Consumer Protection Act 1986

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Transcript of Consumer Protection Act 1986

  1. 1. NEED FOR CONSUMER PROTECTION ACT IN AN ERA OF FREE COMPETITION WHERE CONSUMER IS THE KING THEREFORE, KING NEED PROTECTION These PPT is for learning purpose and not for official use
  2. 2. CONSUMER IS THE KING Markets - guided by customers desire. Customer eccentricity is extremely essential. Products seen through consumers eyes. Sellersmarket to Buyersmarket.
  3. 3. INTRODUCTION Consumerism - the promotion of the consumers interests. Let the buyer beware, has changed to Let the seller beware. Product and services to fulfill needs & wants of customers. To increase sales - engage in unfair practices. Consumer protection :- For protection of buyers from, Low quality products, Dangerous products & Deceiving advertisements. Educating consumers about their rights and responsibilities. Helping them to seek redressal of their grievances.
  4. 4. PROBLEMS FACED BY CONSUMERS Illiteracy and Ignorance, Unorganised Consumers, Spurious Goods, Deceptive Advertising, Adulteration, Irregular Supply, Other Problems. Play in slide show
  5. 5. EVOLUTION OF CONSUMER PROTECTION RIGHTS IN INDIA Prior to independence, Indian Penal Code, Agricultural Production, Grading and Marketing Act, 1937, Drugs and Cosmetics Act, 1940. In 1915 - Passengers and Traffic Relief Association (PATRA). In 1978 - Consumer Education and Research Centre in Ahmadabad. In 1986 - The Consumer Protection Act was enacted. Other acts includes, Contract Act, Sale of Goods Act, The Essential Commodities Act, The Agricultural Produce Act, The Prevention of Food Adulteration Act, The Standards of Weights and Measures Act.
  6. 6. CONSUMER PROTECTION ACT - 1986 To provide better protection of the interests of the consumers in India. To make provision for the establishment of consumer councils. For the settlement of consumer disputes. This act is applicable to all goods and services. Amended in 1991, 1993 & 2002.
  7. 7. AMENDMENT - 1991 It was mainly to incorporate provision for the quorum of District Forum. Appointing persons to preside over State Commission / District Forum in case of absence of president. AMENDMENT - 1993 To find out loopholes in the main act and to overcome them. Expand the scope of area covered. To give more power to the redressal agencies under the act.
  8. 8. AMENDMENT - 2002 To facilitate quicker disposal of complaints. Enhancing the capabilities of redressal agencies. Strengthening them with more power. Streamlining the procedure. Widening the scope of the act to make it more functional and effective
  9. 9. CONSUMER Buyer of any commodity or service or a user of such commodity or service . Must satisfy two condition :- The service must be rendered to him. He must have paid or promised to pay for the same. If any person buy capital goods to provide services to other individual, then he is also recognised as consumer. If any person buys a commodity with an intention to resale or trade, then he will not be recognised as consumer.
  10. 10. INTERNATIONAL SCENARIO Due to increasing globalization. To unlock consumer power on a global scale. Consumer International took initiative. Guidelines for consumer protection. Specially for - developing countries & newly independent countries.
  11. 11. Right to Safety. Right to Choose. Right to be Informed. Right to be Heard. Right to Seek Redressal. Right to Consumer Education. RIGHTS OF A CONSUMER
  12. 12. BE AWARE WHILE PURCHASING COSMETICSPURCHASING DRUGS BUYING CLOTHSDURING SALE OFFERS
  13. 13. QUALITY MARKS AGMARK FPO AGMARK FPO BIS ISI
  14. 14. COMPLAINT Any allegation in writing made by a complainant. Complaint is filed for:- Defect in goods, Deficiency in service, Charging of excess price, Hazardous goods or Unfair trade practices.
  15. 15. PROCEDURE OF FILING A COMPLAINT Filing a Complaint in Consumer Court Obtain the documents Send the Personal or Legal Notice to Company Prepare a complaint Download the sample format Complaint filed at District , State Or National Forum The Fee Prepare a bank draft from a Nationalized Bank to pay court fee. Get the complaint affidavit notarized through a notary Get the complaint reference number and date for admission hearing Case Admitted Submit the complaint and court fee The court will send a notice with your complaint copy to the service/goods provider asking for reply within 30 days Hearing Ask from the consumer court Court Order
  16. 16. REDRESSAL AGENCIES UNDER THE ACT Consumers can file the complaint at :- 1. District Forum 2. State Commission or 3. National Commission. Prescribed fee payable for filling a complaint. Dont have to go to through a lawyer.
  17. 17. FORUMS FORUMS ESTABLISHED BY COMPOSITION JURISDICTION APPEAL District Forum State Government - Chairman & 2 members - One shall be woman Less than Rs.20 lakhs To state commission within 30 days of order Head: District Judge State Commission State Government - President & - Minimum 2 members - One shall be woman In range of Rs. 20 lakhs to Rs. 1 crore To national commission within 30 days of order Head: High Court Judge National Commission Central Government In 1988 - President & - Minimum 4 members - One shall be woman More than Rs. 1crore To supreme court within 30 days of order.Head: Sitting or Retired Judge of the Supreme Court
  18. 18. JAGO GRAHAK JAGO SCHEME Priorities Consumer Education Consumer Protection Consumer Awareness
  19. 19. MULTIMEDIA CAMPAIGNS MULTIMEDIA CAMPAIGN VIDEOS PRINTED LITERATURE ADVERTISE -MENTS MEGHDOOT POSTCARDS NUKKAD NATAKS NATIONAL CONSUMER HELP LINE ONLINE MEDIUM JOURNALS
  20. 20. MEGHDOOT POSTCARDS
  21. 21. CONSUMER GUIDANCE SOCIETY OF INDIA (CGSI) Consumerism - the promotion of the consumers interests. Involved in consumer education. For the urban and rural low income consumers. School and college students. 107 training programmes - 5,700 potential activists. Monthly magazine - Keemat and Consumer Guides. Training programme using creative methods such as, Games & street plays, Through talks, Demonstrations and exhibitions.
  22. 22. MONTHLY MAGAZINE BY (CGSI) KEEMAT
  23. 23. STATISTICAL DATA NO. OF CASES FILED - STATE WISE
  24. 24. CASES DISPOSED AND CASES PENDING IN STATE COMMISSION
  25. 25. NO. OF COMPLAINTS FILED/ DISPOSED SINCE INCEPTION Updated on 10.03.2015 Sr. No. Name of Agency Cases filed Since Inception Cases Disposed of Since Inception Cases Pending % Of Total Disposal 1 National Commissions 93,860 83,294 10,566 88.74% 2 State Commissions 6,72,486 5,83,305 89,181 86.74% 3 District Forums 35,32,749 32,62,916 2,69,833 92.36% TOTAL 42,99,095 39,29,515 3,69,580 91.40%
  26. 26. COMPARISON OF CONSUMER PROTECTION ACT IN INDIAAND BRAZIL INDIA BRAZIL Consumer Protection Act is an Indian federation law enacted in 1986. The Government issued the Consumer Defense Code in 1990. The Act aims to provide better and all-round protection to consumers. The Code came to discipline the relations and responsibilities between providers and consumers. Health Services provided by Government hospitals, Civic amenities provided by municipal authorities. All suppliers of goods and services, both in the private and in the public sector and the cooperative sector, are covered by the Act. In Brazil, Article 12 of the CPC deals with defective products, requiring suppliers to provide reparations for any harm caused by defects in a product. District Forums at the base, the State Commission at the middle level and the National Commission at the apex level. The National Consumer Defense Policy is coordinated by the Consumer and Protection Defense Department (DPDC) subordinated to the Secretariat of Economic Law of the Ministry of Justice.
  27. 27. CASES UNDER CONSUMER PROTECTION ACT 1986
  28. 28. CASE 1 DHARAMDAS PRITIANI VS. HDFC ERGO GENERAL INSURANCE COMPANY LTD Complainant - Dharamdas Pritiani - Advised by the doctors to undergo treatment for suffering from a heart ailment in 2008-09. He then underwent a rare treatment called Enhanced External Counter Pulsation (EECP). The treatment was completed in 45 sittings, costing Rs. 1,18,000. HDFC Ergo rejected the complainants claim saying the treatment was experimental and not recognized by the insurer. The insurance company also claimed that a policy holder must be hospitalized for at least 24 hours for reimbursement.
  29. 29. CASE 1 DHARAMDAS PRITIANI VS. HDFC ERGO GENERAL INSURANCE COMPANY LTD The complainant claimed - Treatment recognized by the United States and 40 hospitals in India use EECP method to treat heart patients. The forum said the documents furnished by Pritiani support his claim. The treatment did not require hospitalization, thus he should be reimbursed Rs. 1,18,000 JUDGEMENT Consumer redressal forum of Indias - Directed HDFC Ergo General Insurance Company Ltd to pay Rs.1,18,000 towards compensation for refusing a policy holders claim. Additional compensation of Rs. 5,000 to be paid for mental agony.
  30. 30. CASE 2 CHETAN PRAKASH VS. MET INSTITUTE OF COMPUTER SCIENCE Chetan Prakash, final year BSc. Student sought admission in MET Institute of Comp. SC. for MCS. The Institute had stipulated that in order to pursue the MCS course student has to clear III year exams. He deposited the fees before declaration of result. Seeing that he had failed in exams, he tried to withdraw the admission and requested for a refund, to which the institute did not responded. Finally, he sent a legal notice to the institute, and then lodged a complaint in the consumer forum.
  31. 31. CASE 2 CHETAN PRAKASH VS. MET INSTITUTE OF COMPUTER SCIENCE JUDGEMENT The Institute had to pay the complainant, Chetan Prakash, Rs. 62,200 as refund of course fee and Rs. 32,00