Consumer Protection Act, 1986 (2)
Transcript of Consumer Protection Act, 1986 (2)
-
8/2/2019 Consumer Protection Act, 1986 (2)
1/28
SAURABH JAIN
CONSUMER PROTECTION
ACT, 1986
-
8/2/2019 Consumer Protection Act, 1986 (2)
2/28
Objective2
An Act to provide for better protection of theinterests of consumers and for that purpose to make
provision for the establishment of consumer councilsand other authorities for the settlement of consum-ers' disputes and for matters connected therewith.
-
8/2/2019 Consumer Protection Act, 1986 (2)
3/28
WHO IS A CONSUMER?
Two kinds of consumer under the Act
Consumer of goods
buys or agrees to buy goods
any user of such goods
Consumer of services
hires or avails any services
any beneficiary of such service
-
8/2/2019 Consumer Protection Act, 1986 (2)
4/28
Remedies
a) To remove the defect
b) To replace the goods with new goods of similardescription which shall be free from any defects
c) To return the complainant the priced) To pay compensation for the loss or injury suffered
due to negligence of the opposite party
-
8/2/2019 Consumer Protection Act, 1986 (2)
5/28
Complaint5
"complaint" means any allegation in writing made by acomplainant that
an unfair trade practice or a restrictive trade practice hasbeen adopted by any trader or service provider;
the goods bought by him or agreed to be bought 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; a trader or service provider, as the case may be, has
charged for the goods or for the service mentioned in thecomplaint a price in excess of the price.
goods which will be hazardous to life and safety whenused or being offered for sale to the public.
services which are hazardous or likely to be hazardous tolife and safety of the public when used.
-
8/2/2019 Consumer Protection Act, 1986 (2)
6/28
Consumer Dispute6
"consumer dispute" means a dispute where theperson against whom a complaint has been made,
denies or disputes the allegations contained in thecomplaint.
-
8/2/2019 Consumer Protection Act, 1986 (2)
7/28
Who can be a complainant
i) A consumer
ii) Any voluntary consumer association undercompanies act 1956
iii) The Central govt. or the State govt.iv) One or more consumers with same interests.
-
8/2/2019 Consumer Protection Act, 1986 (2)
8/28
CONSUMERS NEED PROTECTION AGAINST
Unfair trade practice
Restrictive trade practice
Defects
Deficiencies
-
8/2/2019 Consumer Protection Act, 1986 (2)
9/28
UNFAIR TRADE PRACTICE
Adopting unfair methods or deception to promote sale, use or
supply of goods or services e.g.
Misleading public about price (e.g. bargain price when it is not so).
Charging above MRP printed.
Misleading public about anothers goods or services.
Falsely claiming a sponsorship, approval or affiliation.
Offering misleading warranty or guarantee.
CONSUMERS NEED PROTECTION
AGAINST
-
8/2/2019 Consumer Protection Act, 1986 (2)
10/28
CONSUMERS NEED PROTECTION AGAINST
RESTRICTIVE TRADE PRACTICE
Price fixing or output restraint re: delivery/flow of supplies toimpose unjustified costs/restrictions on consumers.
Collusive tendering; market fixing territorially among
competing suppliers, depriving consumers of free choice, fair
competition.
Supplying only to particular distributors or on condition of sale
only within a territory.
Delaying in supplying goods/services leading to rise in price. Requiring a consumer to buy/hire any goods or services as a
pre-condition for buying/hiring other goods or services.
-
8/2/2019 Consumer Protection Act, 1986 (2)
11/28
CONSUMERS NEED PROTECTION AGAINST
DEFECTS
Any fault, imperfection or shortcoming in the quality, quantity, potency,
purity or standard which is required to be maintained 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.
DEFICIENCY
Any fault, imperfection, shortcoming or inadequacy in the quality, nature
and manner of performance which is required 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.
-
8/2/2019 Consumer Protection Act, 1986 (2)
12/28
CONSUMER'S RIGHTS
Right to safety against hazardous goods and services
Right to be informed about quality, quantity, purity,
standard, price
Right to choose from a variety at competitive prices
Right to be heard
Right to seek redressal
Right to consumer education
-
8/2/2019 Consumer Protection Act, 1986 (2)
13/28
FORUM & JURISDICTION
Consumer Disputes Redressal Forums (District
Forum): it consists of a president(should be a person who is
qualified to be a district judge) and 2 members
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 & appeals.
National Consumer Disputes RedressalCommission (National Commission)
Claim equal to or more then Rs.1 crore & appeals
-
8/2/2019 Consumer Protection Act, 1986 (2)
14/28
ESSENTIAL INFORMATION IN THE APPLICATION
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
Nature of deception
Type of redressal prayed for
-
8/2/2019 Consumer Protection Act, 1986 (2)
15/28
BENEFITS & RELIEFS
Benefit
Disposal within 90 days
No adjournment shall ordinarily be granted - Speedy trial
Relief 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.
-
8/2/2019 Consumer Protection Act, 1986 (2)
16/28
Unfair trade practices
-
8/2/2019 Consumer Protection Act, 1986 (2)
17/28
Unfair trade practices [sec. 2(1) (r)]
It means trade practices which a trader, for thepurpose of promoting the sale, use or supply of anygoods or for the provision of any service, adopts anyunfair method or unfair or deceptive practice.
-
8/2/2019 Consumer Protection Act, 1986 (2)
18/28
The practices included are:
(1)The practice of making any statement, whether orally or inwriting or by visible representation which-
Falsely represents that the goods are of particular standard,quality, quantity, grade, composition, style or model;
Falsely represents that the services are of particular standard,quality or grade; Falsely represents any rebuilt, second hand, renovated, or old
goods as new goods; Represents that the goods or services have sponsorship,
approval, performance, characteristic, accessories, uses orbenefits which such goods or services do not have;
Represents that the seller or the supplier has sponsorship orapproval or affiliation which such seller or supplier does nothave;
-
8/2/2019 Consumer Protection Act, 1986 (2)
19/28
Make a false or misleading representationconcerning the needs for , or the usefulness of, anygoods or services;
Gives to the public any warranty or guarantee of
the performance or length of life of a product or ofany goods that is not based on an adequate orproper test thereof.
Materially misleading the public concerning the
price at which a product or like products or goodsor services, have been or are ordinarily sold orprovided.
-
8/2/2019 Consumer Protection Act, 1986 (2)
20/28
Unfair trade practices - contd
2. False offer of bargain price [section 2(1)(r)(2):
A price that is stated in any advertisement to be a bargainprice by reference to ordinary price or otherwise
A price that a person who reads, hears or sees theadvertisement would reasonably understand to be a bargainprice having regard to the prices at which like products aresold.
-
8/2/2019 Consumer Protection Act, 1986 (2)
21/28
Contd
3.Schemes offering gifts or prizes [section 2(1)(r)(3)]
Offering gifts or prizes or other items with the intentionof not providing them and conducting promotionalcontests.
Creating an impression that something is being givenfree of charge when it is fully or partly covered by theamount charged in the transaction.
Conducting of any contest, lottery or game of chances etcfor the purpose of promoting-directly or indirectly- thesale, use or supply of any product or any businessinterest.
-
8/2/2019 Consumer Protection Act, 1986 (2)
22/28
Contd
4. Withholding any schemes [sec 2(1)(r)(3A)]
Withholding from the participants of any schemeoffering gifts, prizes or other items free of charge,
on its closure the information about final result ofscheme. The participants of a scheme shall bedeemed to have been informed of the final resultsof the scheme where such results are within areasonable time published prominently in thesame newspapers in which the scheme wasoriginally published.
-
8/2/2019 Consumer Protection Act, 1986 (2)
23/28
Contd
5.Non compliance of prescribed standards [sec 2(1)(r)(4):The prescribed standard may relate to performance,
composition, contents, design, packaging etc as arenecessary to prevent or reduce the risk of injury to theperson using the goods.
6.Hoarding, destruction or refusal [sec 2(1)(r)(5):Hoarding, destruction or refusal to sell the goods which
raises or tends to raise the cost of those or other similargoods or services shall amount to an unfair trade practice.
7. Manufacturing or sale of spurious goods [section
2(1)(r)(6):Spurious goods and services means such goods andservices which are claimed to be genuine but are not so.
-
8/2/2019 Consumer Protection Act, 1986 (2)
24/28
RESTRICTIVE TRADE
PRACTICE
-
8/2/2019 Consumer Protection Act, 1986 (2)
25/28
DEFINITION Sec. 2 (1) (nn)
A trade practice which tends to bring aboutmanipulation of price, or its conditions of delivery orto affect flow of supplies in the market relating togoods or services in such a manner as to impose onthe consumers unjustified costs or restrictions
-
8/2/2019 Consumer Protection Act, 1986 (2)
26/28
CONSUMERS NEED PROTECTION AGAINST
Price fixing or output restraint i.e delivery/flow of supplies to
impose unjustified costs/restrictions on consumers.
Collusive tendering; market fixing territorially amongcompeting suppliers, depriving consumers of free choice, fair
competition.
Supplying only to particular distributors or on condition of sale
only within a territory.
-
8/2/2019 Consumer Protection Act, 1986 (2)
27/28
Delaying in supplying goods/services leading to
rise in price.
Requiring a consumer to buy/hire any goods orservices as a pre-condition for buying/hiring
other goods or services.
-
8/2/2019 Consumer Protection Act, 1986 (2)
28/28
DEFECT Sec 2 (1) (f)
Any fault, imperfection or shortcoming in the quality,quantity, potency, or standard which is required to
be maintained by or under any law for the time beingin force, or under any contract, express or implied oras is claimed by the trader in any manner whatsoeverin relation to any goods