Post on 10-Apr-2018
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` Any person (firm, HUF, co-operative, association) who
buys any goods or hires any service (fully or partly
paid for).
` NOT goods or services obtained for resale or for any
commercial purpose (except self-employment).
` NOT any service free of charge or under a contract of
personal service.
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` Two kinds of consumer under the Act
Consumer of goods [Sec 2(1)(d)-I]
x buys or agrees to buy goods
x any user of such goods with the consent of buyer
Consumer of services [Sec 2(1)(d)-II]
x hires or avails any services
x any beneficiary of such service with the consent of availer
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Amendments
Amendments in the year 1993
Amendments in the year 2002
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` Exclusive courts for consumer disputes in all districts,
state and national capitals.
` 6 consumer rights specified.
` Consumer Protection Councils from national to state
and district levels.
` Covers private, public, cooperative sectors.
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Government of West Bengal's Infrastructure for Consumer Protection
Inspectors of Legal Metrology in Subdivisions
Assistant Controller of District
LEGAL METROLOGY DIRECTORATE
CONTROLLER
JOINT CONTROLLER
Deputy Controllers
CONSUMER DISPUTES REDRESSAL FORA
STATE COMMISSION
DISTRICT FORA
17+2+2
CONSUMER WELFARE OFFICER
Assistant Director of District & some Subdivisions
CONSUMER AFFAIRS & FAIR BUSINESS PRACTICES DIRECTORATE
(unique in India)
DIRECTOR
JOINT & DEPUTY DIRECTOR
CONSUMER AFFAIRS DEPARTMENT(the only State Government having this)
State Consumer Protection Council
District Consumer Protection Council
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District Forum
Value and compensation claimed Fee
Upto Rs 1 Lakh Rs 100 Rs 1 lakh & above but < Rs 5 lakh Rs 200
Rs 5 lakh & above but < Rs 10 lakh Rs 400
Rs 10 lakh & above but < Rs 20 lakh Rs 500
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1. Right to SAFETY against hazardous goods and services
2. Right to be INFORMED about quality, quantity, purity,
standard, price3. Right to CHOOSE from a variety at competitive prices
4. Right to BE HEARD
5. Right to seek REDRESSAL
6. Right to CONSUMER EDUCATION
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Unfair trade practice
Restrictive tradepractice
Defects
Deficiencies
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UNFAIR TRADE PRACTICE
Adopting unfair methods to promote sale, use or supply of
goods or services e.g.
Misleading public about price.
Charging above MRP printed.
Misleading public about anothers goods or services.
Offering misleading warranty or guarantee.
Contd.
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RESTRICTIVE TRADE PRACTICE
y Depriving consumers of free choice, fair competition.
y Supplying only to particular distributors or on condition of
sale only within a territory.
y Delaying in supplying goods/services leading to rise in
price.
y Requiring a consumer to buy/hire any goods or servicesas a pre-condition for buying/hiring other goods or
services.
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` DEFECTS
Any fault, imperfection or shortcoming in the quality,
quantity, purity or standard which is required to bemaintained by or under any law for the time being in force
or under any contract express or implied or as is claimed by
the trader in any manner whatsoever in relation to any
goods.
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DEFICIENCY
Any fault, imperfection, shortcoming or inadequacy in the
quality, nature and manner of performance which isrequired to be maintained by or under any law for the
time being in force or has been undertaken to be
performed by a person in pursuance of a contract or
otherwise in relation to any service.
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Removal of defects in goods or deficiency in services.
Replacement of defective goods. Refund against defective goods or deficient services.
Compensation.
Prohibition on sale of hazardous goods.
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` Consumer Disputes Redressal Forums (District Forum)
Claims less than or equal Rs.20 lacs.
` Consumer Disputes Redressal Commissions (State Commission)
Claim more than Rs.20 lacs & less than Rs.1 crore.
` National Consumer Disputes Redressal Commission (National
Commission) Claim equal to Rs.1 crore.
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NATIONAL COMMISSION
STATE COMMISSION
DISTRICT FORUM/DISTRICT
COURT
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` Who can file a complaint [Sec 12(1)]:-
Consumer [Sec 2(1)(d)]
Consumer Association
Central Government/State Government
Group ofConsumers having common complain
` Where to file a complaint
` How to file a complaint
` What constitutes a complaint?
` Procedure for filing the appeal
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Name and full address of complainant.
Name and full address of opposite party.
Description of goods and services.
Quality and quantity.
Price.
Date & proof of purchase.
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` Procedure followed by District Forum on admission of
complaint :
Section 13(1): Procedure on admission of complaint if it relates
to any goods which require Laboratory Testing.
Section 13(2): Procedure on admission of complaint if it relates
to any services which do not require Laboratory Testing
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Section 13(3A) & (3B) : Every complaint shall be heard as
expeditiously as possible and endeavor shall be made to decide
the complaint within a period ofthree months from the date of
receipt of notice by opposite party where the complaint does
not require analysis or testing of commodities and within fivemonths ifit requires analysis or testing of commodities.
Section 13(3A) & (3B) : Where during the pendency of any
proceeding before the District Forum, it appears to it necessary, itmay pass such interim order as is just and proper in the facts and
circumstances of the case
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Complainants (Petitioner):
1. Jagrut Nagrik, Gujarat
2. Pradeep Kumar Thakur, Delhi
3. Awaz
Opposite Parties(Respondents):
1. RBI, Mumbai
2. HSBC Ltd, Mumbai
3. American Express BankLtd, Gurgaon
4. Citibank, Chennai
5. Standard Chartered BankCredit Card Division, NewDelhiJudges:
1. Honble Mr. Justice M. B. Shah, President
2. Honble Mrs. Rajyalakshmi Rao, Member
3. Honble Mr. Anupam Dasgupta, Member
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Following complaints of a lot of consumers regarding hefty interest rates in caseof credit card dues, the consumer protection organizations Jagrut nagrik andAwaz filed a case againt HSBC, CitiBank, American Express, Standard CharteredBank and RBI contending that various commercial banks are indulging in unfairtrade practice by charging usurious interest on the loans advanced by the Banksas well as on the amounts payable under credit cards.
It is pointed out that:
1. On credit cards, the banks are charging interest roughly at the rate of36% per annum
2. Banks are charging various financial charges, such as, late payment feeof Rs.200/- to Rs.500/- despite the decision of the Apex Court that penalinterest cannot be capitalized and no interest can be charged on penalty
3. The banks are charging transaction fee of 2.5% for cash advanceagainst credit card, ATM, etc. - this is over and above the interest at the rate of2.95% per month on credit facility
4. Late fee of 30% of the minimum due is being charged up to Rs.500/-per month, if the credit card bill is not paid by the due date
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1. The complainants have no legal standing to file this complaint. Complainants No.1and 2 are not voluntary consumer organizations registered under the provisions ofthe Companies Act, 1956.
2. Under the Consumer Protection Act, 1986, the Consumer fora have no jurisdiction
to determine the fixing of rates of interest on credit cards by the banks contrary tothe directives of the RBI under the statutory provisions.
3. The Consumer Protection Act, 1986 does not provide for interference by theNational Commission in the functioning of the regulator (RBI).
4. As long as the banks are functioning within the four corners of the statutoryguidelines under the Banking Regulation Act, 1949, there is no cause of actionavailable to even assert a plea of unfair trade practice or any deficiency in service.
5. The credit card operations are in the nature of high risk unsecured lending andhence there is justification of a higher rate of interest
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1.
Whether the Reserve Bank of India (hereinafter referred to as the RBI) is requiredto issue any circular or guidelines prohibiting the Banks / Non-Banking FinancialInstitutions / money lenders from charging interest above a specific rate?
2.
Whether banks can charge the credit card users interest at rates rangingfrom 36% to 49% per annum if there is any delay or default in paymentwithin the time specified?
3.
Whether interest at the above-stated rates amounts to chargingusurious rates of interest?
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Under Section 2(1) (d) (ii), a voluntary consumer associationcan file a complaint under CPA.
At the outset, it is made clear that a complaint under theConsumer Protection Act, 1986 to curb unfair tradepractice(s) adopted by the banks is maintainable.
One of the objects and reasons of the Consumer ProtectionAct, 1986 is, the right to be informed about the quality,quantity, potency, purity, standard and price of goods toprotect the consumer against unfair trade practice.
2(1) (r) unfair trade practice" means a trade practice which,for the purpose of promoting the sale, use or supply of anygoods or for the provision of any service, adopts any unfairmethod or unfair or deceptive practice
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Thereafter, section 2(1)(o) reads as under:
2(1)(o) "service" means service of any description which is madeavail-able to potential users and includes, but not limited to, theprovision of facilities in connection with banking, financing,
insurance, transport, processing, supply of electrical or otherenergy, board or lodging or both, housing construction,entertainment, amusement or the purveying of news or otherinformation, but does not include the rendering of any service freeof charge or under a contract of personal service;
The aforesaid sub-section would establish beyond doubt that if theservice provided by the bank in connection with banking facilitiesis deficient, then it would be service as contemplated under theAct and any dispute pertaining to such service would be governedunder the Consumer Protection Act, 1986.
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` Hence, if there is any unfair trade practice on the part of
banks, the provisions of the Consumer Protection Act, 1986
would be applicable and the banks can be directed, as
provided under sec.14(1)(f), to discontinue such unfairtrade practice and not to repeat them. Hence, to contend
that a complaint under Consumer Protection Act, 1986
against the banks is not maintainable, is of no substance.
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Charging of interest at rates in excess of 30% p. a. from thecredit card holders by banks for the formers failure to makefull payment on the due date or paying the minimum amountdue, is an unfair trade practice.
Penal interest can be charged only once for one period ofdefault and shall not be capitalized.
Charging of interest with monthly rests is also an unfair trade
practice.
Hence, the banks are directed not to indulge in the aforesaidunfair trade practices or repeat them.
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REGIONAL PROVIDENT FUND
COMMISSIONER v. SHIV KUMAR JOSHI
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Whether the provisions of the Consumer Protection Act, 1986
can he invoked against the Provident Fund Commissioner by a
member of the Employees' Provident Funds Scheme ? It has to
be ascertained as to whether any such member is a "consumer"and the duties performed by the Provident Fund Commissioner
under the relevant scheme are a "service" within the meaning of
the Act. If it is held that such member is a "consumer" and the
facilities provided are"
services"
, it has to be further consideredas to whether the delayed payment of the provident fund to a
member-employee amounts to deficiency of service under the
Act.
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Respondent (Shivkumar Joshi) applied to the Regional
Provident Fund Commissioner for the payment of his
provident fund on July 15, 1992.
The appellant's area inspector had personally gone to
the factory(where the respondent was employed) on
and obtained the verification application. The claim of
the respondent was settled on August 24, 1992.
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The respondent filed a complaint before the District Consumer
Disputes Redressal Forum, Faridabad (hereinafter referred to as
"the District Forum"), on alleging deficiency in service of the
appellant and claimed damages to the tune of Rs. 65,000 along
with costs for the alleged delay in payment of his provident fund.
The appellant raised a preliminary objection regarding the
jurisdiction of the District Forum on the ground that the
respondent was not a "consumer" and the facilities provided bythe scheme were not a "service". The District Forum, vide its
order dated November directed the appellant to pay interest at
18 per cent. on delayed payment and costs of Rs. 1,000.
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Not satisfied with the order of the District Forum, the appellant filed anappeal before the State Consumer Disputes Redressal Commission, Haryana
at Chandigarh (hereinafter referred to as "the State Commission") under
section 15 of the Act. The appeal was dismissed by the State Commission.
The revision filed before the National Consumer Disputes Redressal
Commission, New Delhi (herein-after referred to as "the National
Commission"), was dismissed, vide the order impugned in this appeal.
Taking as through the Employees' Provident Funds Scheme Shri N. N.
Goswamy, senior advocate, appearing for the appellant, submitted that the
said scheme could not be held to be a "service" within the meaning of
section 2(1)(o) and respondent No. 1 a "consumer" within the meaning of
section 2(1)(d) of the Act. It was urged that as the Provident Fund
Commissioner was the custodian of the funds passed to him and the
contribution to the Scheme was not for consideration, the Act was not
applicable.
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` A. S. Nambiar, Senior Advocate (Hemant Sharma and
Ms. Sushma Suri), for the appellant.
None appeared for the respondent.
` JUDGMENT
The judgment of the court was delivered by
R. P. SETHI J in favour of Shiv Kumar Joshi(respondent).
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THINGSWE MUST KNOW AS ACONSUMER
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To safeguard their interest consumers must check:
` In any packaged material, the MONTH & YEAROF MANUFACTURE,NETQUANTITY orWEIGHT& M.R.P.
` Check whether you are gettingRIGHT GOODS ATTHE RIGHT PRICE.
` Dont pay more than M.R.P.
` If imported, it must carry the NAME & ADDRESSOF IMPORTER WITH VALIDREGISTRATION.
` ISI Logo for purchase of appliances, electrical goods etc.
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` http://www.vakilno1.com/bareacts/employeepfact/s2.
htm (Section 2(1)(o) and Section 2(1)(d)
` http://www.wikipedia.com
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THANK YOU