CONSUMER PROTECTION ACT-1986

PRESENTED BY:

PALASH BHATIA

PRERNA HOLKAR

NITISH PANDEY

POORVI KALYANI

RAHUL LAKKADWALA

RAHUL YADAV

INTRODUCTION

The law relating to consumer rights iscontained in the Consumer Protection Act ,1986.

United nations resolution - April 1985 The Consumer Protection Act-1986 & enforced from 10th

June 1987 in India Aimed at providing simple, quick, and cheaper protection of consumers interest

OBJECTIVES OF CONSUMER PROTECTION ACT

Better protection of interests of consumers. Protection of rights of consumers. Consumer protection councils. Quasi-Judicial Machinery for Speedy Redressal

of Consumer Disputes.

COMPLAINANT

A consumer; or Any voluntary consumer association

registered under Companies act,1956 The Central or State Government who

or which makes a complaint One or more consumers having

similar interest In case of death of a consumer, his

legal heir or representative

DEFECTS AND DEFICIENCY

DEFECT means any fault, imperfection or shortcoming in the quality, potency, purity or standard which is required to be maintained in a product.

DEFICIENCY means any fault, imperfection, shortcoming or inadequacy in the quantity, nature and manner of performance which has been undertaken by law.

TRADE PRACTICES

RESTRICTIVE TRADE PRACTICE is a trade practice which tends to bring about manipulation of price or conditions of delivery; or which affects the flow of supplies into the market in such a manner that imposes unjustified costs on customers.

UNFAIR TRADE PRACTICE is a trade practice which for the purpose of promoting any sale, use or supply of any goods or services adopts unfair method or deceptive practice.

COMPLAINT It means any allegation made by a complainant in writing, the

allegation may be:- An unfair trade practice or a restrictive trade practice adopted

by any trader or service provider The goods bought by him or agreed by him suffer from one or

more defects The services hired or availed of or agreed to be hired or availed

of by him suffer from deficiency in any respect Services which are hazardous to life and safety of the public are

being offered by the service provider

CONSUMER RIGHTS Right to SAFETY against hazardous

goods and services. Right to be INFORMED about the

quality, quantity, purity, standard and price.

Right to CHOOSE from a variety at competitive prices.

Right to be HEARD. Right to seek REDRESSAL. Right to CONSUMER EDUCATION.

CONSUMER PROTECTION COUNCIL

The Consumer Protection Act postulates establishment of Consumer Protection Councils at the Central and State levels for the purpose of spreading consumer awareness. The objects of the Councils, as per the Act, shall be to promote and protect the rights of the consumers.The Consumer Protection Council can be subdivided into: Central Consumer Protection Council State Consumer Protection Council District Consumer Protection Council

CASE STUDIES

Chetan Prakash vs MET Institute of Computer Science Krishnan Kumar Bajaj vs Pepsico Dharamdas Pritiani vs HDFC ERGO General Insurance

Company Ltd.

CONSUMER DISPUTES REDRESSAL AGENCIES

Following agencies are established by government for consumer dispute redressal process:

1) District Forum2) State Commission3) National Consumer Disputes Redressal Commission

Composition of the District ForumDistrict Judge, who shall be its Presidentother members, one of whom shall be a woman, who shall have

the following qualifications, namely :- be not >35 years of age, a bachelor’s degree from a recognized university, be persons of ability, integrity and standing, and have adequate

problems relating to economics, law, commerce, accountancy, industry public affairs or administration.

Member -5 Year term or up to the age of 65 years, whichever is earlier.

Jurisdiction of the District Forum.--( I) Subject to the other provisions of this Act, the District Forum shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed does not exceed rupees twenty lakhs.

District forum will send a copy of complaint to the counter parties. If the counter party is not taking appropriate action with in 30 days forum will proceed the action. If opposition reply by denying the complaint forum will fix date to here the parties and will take decision after hearing both parties.

Appeal.-Any person aggrieved by an order made by the District Forum may prefer an appeal against such order to the State Commission within a period of thirty days from the date of the order, in such form and manner as may be prescribed.

FINDING OF THE DISTRICT FORUM

District forum will have following decisions:(a) to remove the defect pointed but by the appropriate laboratory

from the goods in question;(b) to replace the goods with new goods of similar description which

shall be free from any defect;(c) to return to the complainant the price, or, as the case may be, the

charges paid by the complainant;(d) to pay such amount as may be awarded by it as compensation to

the consumer for any loss or injury suffered by the consumer due to the negligence of the opposite party

Cont.…

(e) to remove the defects in goods or deficiencies in the services

(f) to discontinue the unfair trade practice(g) to withdraw the hazardous goods from being offered for

sale(h)to cease manufacture of hazardous goods and to desist

from offering services which are hazardous in nature(i) to provide for adequate costs to parties

STATE COMMISSION

State Commission has been established at the State level and it is next, after District Forum. There are 35 State Commissions at present in India.

It consists of a president and two other members. The president must be a retired or working judge of high court.

Two other members, neither more than two nor less than prescribed and one of them must be a woman.

Jurisdiction of State Commission Pecuniary Jurisdiction Territorial Jurisdiction Appellate Jurisdiction Revisional Jurisdiction Review of Jurisdiction

Cont.… CPA amendment Rules, 1991, requires that before giving the

judgment in any case, consensus of two members must be required and one of them must be the president of the Commission.

Provision of setting up Benches has been introduced after amendment 2002.

If no appeal has been made against the order made by State Commission, the order is treated as final.

Each and every order made by State Commission is enforceable as enforced by Civil Court if there is a non-compliance of the order, the concerned person will be charged with Penalties

NATIONAL COMMISSION The National Commission is considered as an apex court; because it

oversees the functioning of State Commissions and District Forums also.

A person who is or has been a judge of the Supreme Court, to be appoint by the Central Government  who be its President

Four other members, neither more than four nor less than prescribed and one of them must be a woman

Jurisdiction of National Commission Pecuniary Jurisdiction Territorial Jurisdiction Appellate Jurisdiction Revisional Jurisdiction Review of Jurisdiction

Cont.… CPA amendment Rules, 1991, requires that before giving the judgment

in any case, consensus of three members must be required and one of them must be the president of the Forum.

Every order made by the Commission must be signed by the president and two other members who conclude the case.

If any party not satisfied with judgment given by National Commission, can make appeal with the Supreme Court.

If no appeal has been made against the order made by National Commission, the order is treated as final.

Penalties Imprisonment for a term from one month to three years Monetary punishment from Rs. 2,000 to Rs. 10,000, Or With both

RECENT NEWS Cabinet approves new Consumer Protection Bill that seeks to

replace 29-year-old law. The key features of the new bill include establishment of an

executive agency 'Central Consumer Protection Authority‘ which will protect and enforce the rights of consumers.

The bill also has a provision for setting up of a 'circuit bench' to facilitate quicker disposal of complaints and there is an enabling provisions for consumers to file complaints electronically.

U.S judge dismissed some claims brought against general motors by customers seeking to recoup vehicle values.

CONCLUSION

Consumer protection act 1986. Objectives of consumer protection act- protection of rights

of customer and protection of interest . Different trade practices- Restrictive Trade Practice and

Unfair Trade Practice. Consumer rights- Right to safety, Right to be informed,

Right to choose etc.