Consumer Protection Act 1986

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“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

Transcript of Consumer Protection Act 1986

“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

CONSUMER IS THE KING

⋆Markets - guided by customers desire.⋆Customer eccentricity is extremely

essential. ⋆Products seen through consumers’ eyes.⋆“Sellers’ market” to “Buyers’ market.”

INTRODUCTION

⋆ Consumerism - the promotion of the consumer’s 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.

PROBLEMS FACED BY CONSUMERS

⋆ Illiteracy and Ignorance,⋆ Unorganised Consumers,⋆ Spurious Goods,⋆ Deceptive Advertising,⋆ Adulteration,⋆ Irregular Supply,⋆ Other Problems.

Play in slide show

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.

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.

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.

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

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 resaleor trade, then he will not be recognised as consumer.

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.

⋆ Right to Safety.⋆ Right to Choose.⋆ Right to be Informed.⋆ Right to be Heard.⋆ Right to Seek Redressal. ⋆ Right to Consumer Education.Hall

mark

RIGHTS OF A CONSUMER

BE AWARE WHILE

PURCHASING COSMETICSPURCHASING DRUGS

BUYING CLOTHSDURING SALE OFFERS

QUALITY MARKS

AGMARK

FPO

AGMARK

FPO BIS

ISI

COMPLAINT

⋆ Any allegation in writing made by a complain ant.

⋆ Complaint is filed for:-

• Defect in goods,

• Deficiency in service,

• Charging of excess price,

• Hazardous goods or

• Unfair trade practices.

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 filedat District , State

Or National Forum

The Fee

Prepare a bank draft from a Nationalized

Bank to pay court fee.

Get the complaintaffidavit 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 replywithin 30 days

Hearing

Ask from the consumer court

Court Order

 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.⋆ Don’t have to go to through a lawyer.

FORUMS

FORUMSESTABLISHED

BYCOMPOSITION JURISDICTION APPEAL

DistrictForum

StateGovernment

- 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 ofRs. 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

JAGO GRAHAK JAGO SCHEME

Priorities

Consumer Education

Consumer Protection

Consumer Awareness

MULTIMEDIA CAMPAIGNS

MULTIMEDIA CAMPAIGN

VIDEOS

PRINTED LITERATURE

ADVERTISE-MENTS

MEGHDOOTPOSTCARDS

NUKKAD NATAKS 

NATIONAL CONSUMER HELP LINE

ONLINE MEDIUM

JOURNALS

MEGHDOOT POSTCARDS

CONSUMER GUIDANCE

SOCIETY OF INDIA (CGSI)⋆ Consumerism - the promotion of the consumer’s 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.

MONTHLY MAGAZINE BY (CGSI) – KEEMAT

STATISTICAL DATA

NO. OF CASES FILED - STATE WISE

CASES DISPOSED AND CASES PENDING IN STATE COMMISSION

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

1National

Commissions93,860 83,294 10,566 88.74%

2State

Commissions6,72,486 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%

COMPARISON OF CONSUMER PROTECTION ACT IN INDIA AND 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 andall-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.

CASESUNDER CONSUMER

PROTECTION ACT 1986

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 calledEnhanced External Counter Pulsation (EECP).

⋆ The treatment was completed in 45 sittings, costing Rs. 1,18,000.

⋆ HDFC Ergo rejected the complainant’s 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.

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 India’s - Directed HDFC Ergo General Insurance Company Ltd to pay Rs.1,18,000 towards compensation for refusing a policy holder’s claim.

⋆ Additional compensation of Rs. 5,000 to be paid for mental agony.

CASE 2CHETAN 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.

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. 32,000 as compensation for harassment.

CASE 3KRISHAN KUMAR BAJAJ VS. PEPSICO

⋆ Krishan Bajaj, a resident of Ahmadabad – Purchased “Lay’s (Shipra Tangy Twist Potato Chips)

⋆ Packet on 28 June 2010 and sensed its being underweight.

⋆ He wrote twice to the manufacturer.First letter got no response, In second reply, a gifts hamper was offered to him - which he refused.

⋆ Bajaj approached CERS, who wrote to PepsiCo.

⋆ Company refused to accept their fault and gave severalunsatisfactory clarifications.

CASE 3

KRISHAN KUMAR BAJAJ VS. PEPSICO

⋆ CERS took the issue to the Consumers Dispute Redressal Forum, which also gave a favorable ruling.

⋆ The company asked for the bill of purchase which Bajaj could not produce.

JUDGEMENT⋆The Court overruled the argument of Bajaj for not having a bill.

⋆CERS requested the court to direct PepsiCo.

⋆To stop such unfair practices & to deposit Rs. 2,00,000 in the Consumer Welfare Fund, Rs. 2,75,250 as Punitive Damages and also to give Rs. 75,000 as Costs of Litigation.

⋆ Educating more about - rights and responsibilities as consumer. ⋆ All consumers need to know their rights & practice them. ⋆ Consumers should always conduct market surveys.⋆ Buy from authorised company showrooms & reliable shops.⋆ Obtain bills, receipts and guarantee cards - keep them safe. ⋆ Instead of loose items, prefer properly packed and labelled products.⋆ Read labels carefully for brand names, ingredients, net weight, MRP, expiry date and standardization mark.⋆ Consumers should report any unfair trade practices to redressal agencies.⋆ Procedure for filing a complaint should be known to all.⋆ System to be more transparent.

RECOMMENDATIONS

⋆ Consumer is in a dominant position.⋆ Consumers as a class can be called as king.⋆ Individual consumer barely enjoys such a status.⋆ The king, in this case, is vulnerable and requires

protection form unfair trade practices.

CONCLUSION

VIDEO ON

“JAGO GRAHAK JAGO”

http://www.cag.org.in/guidelines-filing-complaint

http://consumerresources.in/2012/09/20/how-to-prepare

-and-submit-a-complaint-to-a-consumer-forum/

http://www.consumerredressal.com/content/contentID/14/

consumerprotection_act

http://consumerresources.in/2012/10/05/pepsico-penalized-for-

shortchanging-consumer/

http://ncdrc.nic.in/statistics.html

Legal aspects of Business By Akhileshwar Pathak

WEBLIOGRAPHY