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Consumer Protection Act

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Introduction

The Consumer Protection Act was enacted in 1986. Amendments were made in 2002. The Act applies to the whole of India except the State of Jammu and Kashmir.An Act to provide for the better protection of the interest of the consumers. Establishment of Consumer Councils and other authorities for the settlement of consumers’ disputes.

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Objectives

►Right of protection to life and property► Right to be informed► Right to choose► Right to be heard► Right to redress► Right to education

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Definitions

Consumer: He is a person who i) “buys any goods for a consideration which has

been paid or promised, or partly paid and partly promised, or under a system of deferred payment.

ii) hires any services for a consideration which has been paid or promised, or partly paid and partly promised, or under a system of deferred payment.

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Definitions

Consumer Disputes : sec 2(1)e “a dispute where the person against whom a complaint

has been made denies or disputes the allegations contained in the complaint”.

Defect “any fault, imperfections 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 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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Definitions

Deficiency : 2(1) g

“means 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”.

Service : Sec 2 (0)

service of any description which is made available to potential users and includes the provisions of facilities in connection with banking, financing, insurance, transport, processing, supply of electrical or other energy, boarding or lodging of good, house construction, entertainment, amusement or other information.

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Compliant

‘Complaint’ means any allegation in writing made by a complainant that-

i) an unfair trade practice or a restrictive trade practice adopted by any trade or service provider

ii) the goods bought by him or agreed to be bought by him suffers from one more defect

iii) the services hired or availed of or agreed to be hired or availed of suffer from deficiency in any respect

iv) a trader or the service provider, as the case may be, has charged for the goods or for the services mentioned in the complaint, a price in excess of the price-

a) fixed by or under any law for the time being in force b) displayed on the goods or any package containing such goods c) agreed between the parties

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Who are NOT Consumers?

1. A person who purchased goods for resale2. A person who purchased goods for commercial

purpose3. A person who obtains services without consideration4. A person who obtains services under a contract of

personal service5. Tax-payers to municipality6. Contractors7. Applicants for jobs8. Persons who filed suits in courts

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How to file a complaint

A Complaint, hand written or typed, can be filed by a consumer, a registered consumer organisation, central or state Government and one or more consumers, where there are numerous consumers having the same interest.

The nature of complaint must be clearly mentioned as well as the relief sought by the consumer.

It must be quadruplicate in district forum or state commission. Else, additional copies are required to be filed.

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Relief that can be sought from the forum

Repair of defective goods Replacement of defective goods Refund of the price paid for the defective

goods or service Removal of deficiency in service Refund of extra money charged Withdrawal of goods hazardous to life and

safety Compensation for the loss or injury suffered

by the consumer due to negligence of the opposite party

Adequate cost of filing and pursuing the complaint

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SETTLEMENT OF COMPLAINT

Normally, complaints should be decided within 90 days from the date of notice issued to the opposite party.

Where a sample of any goods is required to be tested, a complaint is required to be disposed of within 150 days. It may take more time due to practical problems.

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Consumer Redressal Forum

The aims and objectives of the Act are achieved by the constitution and creation of

District Forum State Commission National Consumer Disputes Redressal

Commission.

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Powers of District Forum

1. to remove the defect pointed out by the appropriate laboratory from the goods in question

2. to replace the goods with new goods of similar description which shall be free from any defect

3. to return to the complainant the price, or as the case may be, the charges paid by the complainant

4. to pay such amount as may be awarded by it as compensation to the consumer for any loss or injury suffered by the consumer due to the negligence of the opposite party

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District Forum

Each District Forum shall consist of a person who is or has been or is qualified to be a District Judge who shall be its President two other members, one of whom shall be a woman possessing a bachelor’s degree from a recognized university, be a person of ability, integrity and standing and have adequate knowledge and experience

Every member of the District Forum shall hold office for a term of 5 years or up to the age of 65 years which ever is earlier.

Subject to the other provisions of the Act a District forum shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed does not exceed Rs.20 Lakhs.

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State Commission

• Each State Commission shall have jurisdiction to entertain complaints where the value of the goods or services and compensation, if any, claimed exceeds Rs. 20 Lakhs but does not exceed Rs.1 Crore and appeals against the orders of any District Forum within the State.

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National Commission

• The ‘ National Commission’ shall consist of a person who is or has been a Judge of the Supreme Court, shall be its President. Not less than 4 and not more than such number of members as may be prescribed and one of whom shall be a woman with similar qualifications as required in the case of appointment as a member to a District Forum or a State Commission.

• Every member of the National commission shall hold office for a term of 5 years or up to the age of 70 years which ever is earlier.

• The National Commission shall have jurisdiction to entertain complaints where the value of the goods or services and compensation, if any, the claim exceeds Rs. 1 Crore and appeals against the orders of any State Commission.

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Consumer Dispute Redressal Forum

The District Forum, State Commission or the National Commission shall not admit a complaint unless it is filed within 2 years from the date on which the cause of action has arisen.

Where a trader or a person against whom a complaint is made fails or omits to comply with any order made by the District Forum, the State Commission, the National Commission, as the case may be, such trader or person shall be punished with imprisonment for a term which shall not be less than 1 month but which may extend to 3 years, or with fine which shall be not less than 2,000/- Rs. but which may extend to 10,000/-Rs., or with both.

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Filing of complaint

A complaint may be filed by1. The consumer to whom such goods are sold2. Any recognized consumer association, where the

consumer to whom goods are sold or delivered is a member

3. One or more consumers, where there are numerous consumers having same interest

4. The Central and State Government

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Procedure for Complaint

Complaint relating to goods1. Reference of sample to laboratory 2. Deposit of fees3. Remission of fees to lab and forwarding of report

to opposite party4. Objections 5. Reasonable opportunity to parties

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Procedure for complaint

Complaint relating to services1. Reference of claim to opposite party2. Denial of allegations by the opposite party3. Settlement of dispute4. Proceedings of district forum final5. Death of complainant6. period

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Findings and Verdicts

a) To remove the defectb) To replace the goods with new goods of

similar description.c) To return the complainant the priced) To pay compensation to the consumer for

any loss or injury sufferede) To remove the defects in the goodsf) To discontinue the unfair trade practicesg) Not to offer hazardous goods for saleh) To provide adequate costs to parties 2.8

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Appeals

• Appeal to the State commission any person aggrieved by an order made by the district forum may prefer an appeal against such order to the State commission within a period of 30 days

• Appeal to the National commission any person aggrieved by an order made by the State commission in exercise of its powers may prefer an appeal against such order to the National commission within a period of 30 days

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Hearing of Appeal ( Section 19 (a))

• No adjournment shall be ordinarily granted by the state commission or the National commission as the case may by unless sufficient cause is shown and the reasons for grant of adjournment have been recorded.

• The State commission and the National commission as the case may be shall make such orders as to the costs occasioned by the adjournment.

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Miscellaneous

• Protection of action taken in good faith• Power to remove difficulties• Power to make rules • Laying of rules

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Stages in Consumer case

• Filing of complaint• Notice to opposite party• Filing of version• Production of evidence and hearing• Filing of affidavit if required• Order

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Defending consumer cases

• Collect all relevant facts and materials• Consult government pleader if necessary• Prepare reply– To be signed by a gazetted officer

• File reply in required number of copies• Keep track of the case

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Defending consumer cases….

• Hearing– Present evidence

• Final order– Consider need of appeal– Take legal opinion

• File appeal within the time

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• Case Study

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