Consumer Protection Act-1986

Group MembersLalit Chawhan (68)Aditi Hebli (75)Jaya Kaku (80)Pooja Parekh (99)Hitesh Pednekar (104)Siddharth Shinde (112)Hardik Thakkar (118)

Need for Consumer Protection Act

In an era, where consumer is the king..This Act provides affective protection to the

consumer from different types of exploitations, such as defective goods, adulteration, under-weight, excessive price, unsatisfactory or deficient services and unfair trade practices.

This Act redresses in a simple, cheap and dynamic manner the grievance of the consumer in limited time.

All suppliers of goods and services belonging to private, public and co-operative sectors come under the purview of this Act.

Who is Consumer?Who buys any goods for a considerationHires or avails of any services for a

considerationUses the goods with the approval of the

person who has bought the goods for consideration

Is beneficiary of the services

This Act provides for the following rights to the consumer:

• Right to safety, • Right to be heard, • Right to consumer education, • Right to seek redressal• Right to Choose• Right to be Informed

Who is Person?

A Firm whether registered or notA Hindu Undivided FamilyA Co-operative society

Who is not Consumer?

He who buys for resale or for commercial purpose

Buys goods without considerationUses goods without the approval of the

person who has bought the goods for consideration

Obtains services under a contract of personal service

Unfair Trade PracticeMaking statements

Falsely representing goods of particular standardOld goods as new goodsGoods and services have sponsorship,approvalFalse guarantee is givenMaterially misleading the public about the price of

the product

CONSUMER AWARENESS

CONSUMER AWARENESS

When a consumer can file a complaint?

Unfair trade practicesRestrictive trade practicesDefectDeficiencyExcessive priceHazardous goods

Procedure to file a complaint

A complaint can be filed in a District Forum or as per pecuniary jurisdiction in another forum within local limits of whose jurisdiction the opposite party or any of the opposite parties resides or carries on business, or has a branch office or personally works for gain.

Limitation periodA complaint can be filed within two years

from the date on which the cause of action has arisen.

Why consumers do not lodge a complaintMore number of cases pendingConsumers mentalityConsumer feel shy persuing his complaintUnduly long time involved in court process

Various laws to protect CONSUMERS The Indian Contract Act, 1827 The Indian Penal Code Act, 1860 The Sale of Goods Act, 1927 The Dangerous Drugs Act, 1940 The Essential Commodities Act, 1950 The Prevention of Food Adulteration Act, 1954 The Monopolies and Restrictive Trade Practices Act,

1969 The Hire-Purchase Act, 1972 The Standards of Weight and Measures Act, 1979

Consumer Responsibilities To provide adequate information about his needs and

expectations to the seller. The consumer must try to get full information on

quality, quantity, price etc. To insist on cash memo or receipt. To file complaint against genuine grievances While purchasing, the consumers must look for

standard quality certifications marks such as ISI, Agmark etc.

To exercise his legal rights. To be cautions against false and misleading

advertisement.

Three tier system of redressal of consumer disputeDistrict Forum-not more than 20 lakhsState Forum-20 lakhs to 1 croreNational Forum-above 20 lakhs

The consumer protection act provides for a three-tier consumerdisputes redressal system encompassing the District, State and National levels.

DISTRICT FORUMThe office of the district forum shall be at

the Head Quarters of the respective district. The District Forum consists of the President, who is nominated by the Government and who is or has been or qualified to be a District Judge and two other members (one is a lady member) of eminence in the field of education, trade or commerce. They hold office for a term of 5 years whichever is earlier and they are not eligible for reappointment. The pecuniary jurisdiction of the forum is less than 5 lakh rupees ie, value of goods of services and compensation if any claimed.

STATE COMMISSIONThe President of the State Commission is or

had been a Judge of a High Court. There are two other Members who are person for ability, integrity and standing with adequate knowledge or experience in Economic, Law, Commerce, Accountancy, Industry, Public affairs or administration. One Member shall be a woman.

Complaint value of goods or services and compensation exceeds rupees five lakhs but does not exceed Rs.10 lakhs. It also hears appeal against orders of district forum

NATIONAL COMMISSION The national commission shall consist of a

person who is or who has been a judge of the supreme court ,appointed by the central government and two other member who shall be person of ability, integrity and standing and have adequate knowledge or experience of or have shown capacity in dealing with problem relating to economics, law, commerce, accounting, industry, public affairs or administration, one of whom shall be a woman.

A complaint where the value of the goods or services and the compensation is more than 10 Lakh dealt with.

In general, the rights of consumers in India can be listed as under:-ACT1986

* The right to be protected from all types of hazardous goods and services* The right to be fully informed about the performance and quality of all goods and services* The right to free choice of goods and services* The right to be heard in all decision-making processes related to consumer interests* The right to seek redressal, whenever consumer rights have been infringed* The right to complete consumer education

CONSUMER PROTECTION ACTCASE - IVenkitesh.C.D v/s Reliance Communications Ltd. Complaint : Disconnection of telephone service.

Complainant is a customer of Reliance for using land phone for internet connection.Out going service was cancelled on 6th March 2008.The complainant was supposed to pay Rs.1755.64 to activate the outgoing calls & the credit limit was 1300.Later on it was mentioned by the company that the actual amount to be paid was Rs 1129.As the thresh-hold was not crossed, he asked for re-connection and refund of the extra money.The company refused to refund & instead asked for Rs 793 more as internet & mobile connection charges.

RESULT: The court ordered Reliance to pay the complaintant Rs 5000 as compensation & Rs 500 as cost of proceedings.

CONSUMER ACT PROTECTION CASE - II B.Prakash Bhat v/s The Managing Director, Hindustan

Unilever Limited. HINDUSTAN UNILEVER LIMITED: Vaseline Intensive Care Summer

Body Lotion. Complainant purchased Vaseline Intensive Care Aloe Fresh

Summer Body Lotion measuring 300 ml for Rs 75.Complainant noticed the date mentioned on the face of the product as date expired.He went to the retailer, but instead he directed him to the dealer, who ignored him. Actually HUL sold all over its market, Vaseline Products which were expired.

RESULT: The complaint was dismissed. Reason: HUL doesn’t sells expired products and it was an equal

fault of the retailer and the complainant, as both should have checked the date.Moreover, the complaint was against HUL & not the dealer and therefore, no actions were taken against the dealer

CONSUMER PROTECTION ACTCASE - III

JAGO GRAHAK JAGO !!!

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