Consumer protection act,1986 by Alpana

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CONSUMER PROTECTION ACT,

1986

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GROUP MEMBERS

AVINASH KAUSHIK ABHINAV KUMAR

ANKIT RAGHAVALPANA SINHAVIKAS VERMA

NIPURN GUPTASAHIL RATHI

ABHISHEK SINGH SIROHI

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CONTENT

Consumer Protection Act,1986 Definitions Related To CPA Consumer Rights Nature and Scope of Remedies Available to

Consumers Case Studies Conclusion References

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Consumer Protection Act

Consumer protection laws are designed to ensure fair competition and the free flow of truthful information in the marketplace.

The laws are designed to prevent businesses that engage in fraud or specified unfair practices from gaining an advantage over competitors and may provide additional protection for all types of consumers.

Consumer Protection laws are a form of government regulation which protects the interests of consumers.

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BRIEF HISTORICAL BACKGROUND

On 24 December 1986 Govt. of India enacted the Consumer Protection Act 1986 to:

Act is claimed to have been designed after an in depth study of consumer protection laws and arrangements in UK,USA, Australia and New Zealand.

Act applies to whole of India except Jammu and Kashmir Chapter I, II and IV came into force on 15 april1987.

Chapter III came into force on 1 July 1987 The act was amended in 2002 and the amendments came

into force on 15th March 2003.

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OBJECTIVES

To provide better protection of interests of consumers.

To provide establishment of consumer councils and other authorities.

To empower the consumer councils and other authorities to settle consumers disputes and matters

Ensure Rights of Consumers and provide Remedies for deceived Consumers

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SALIENT FEATURES OF CPA

The Act applies to all goods and services

unless specially exempted by Union Government It covers all sectors – public, private or cooperative Provisions of the Act are compensatory in nature . It envisages establishment of consumer protection

councils at the central and state levels. Provisions of this act are in addition to and not in

derogation of the provisions of any other act.

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GUIDELINES FOR THE CONSUMER PROTECTION

· Protect from hazard to health & safety;

· Promote & protect economic interests;

· Provide adequate information for informed choice;

· Consumer education;

· Provide effective redress—formal and informal

procedures;

· Freedom to form groups & present views in decision-

making affecting consumers.

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DEFINITIONS

RELATED TO CONSUMER PROTECTION ACT

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WHAT IS A COMPLAINT?

“Complaint” means any allegation in writing made by a compliant that :I. An unfair trade practice or a restrictive trade

practice has been adopted by any trader or service provider;

II. The goods bought by him or agreed to be bought by him suffer from one or more defects ;

III. The services hired or availed of or agreed to be hired or availed off by him suffer from deficiency in any respect;

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A trader or 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) displayed on the price list exhibited by him by or

under any law for the time being in force;d) agreed between the parties .

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Goods which will be hazardous to life and safety when used are being offered for sale to the public –

a) In contravention of any standards relating to safety of such goods as required to be compiled with, by or under any law for the time being in force;

b) If the trader could have known with due diligence that the goods so offered are unsafe to the public;

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Service which are hazardous or likely t be hazardous to the life and safety of the public when used, are being offered by the service provider which such person could have known with due diligence to be injurious to life and safety.

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WHO IS COMPLAINANT ?

A Complainant means any of the following and having made a complaint:

A consumer ; Any voluntary consumer association registered under the

companies act , 1956 or under any other law . The Central Government or any State Government One or more consumers, where there are numerous

having the same In case of consumer , his legal heir or representative.

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WHO IS A CONSUMER ?

Any person who buys goods or avails services for consideration

Consideration may be fully paid, partially paid or fully promised to be paid or partially promised to be paid

Any body who uses the goods or services with the consent of the consumer

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WHO IS A CONSUMER ?

Legal heir of consumer in case death of consumer

Does not include any person who buys goods for resale or commercial purpose and services for commercial purpose

However any person who buys goods for commercial use but exclusively for his livelihood by means of self employment is a consumer.

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WHAT IS A SERVICE?“Service” means service of any description, which is made available to potential users and includes, but not limited to the provisions of the facilities in connection with 1) banking 2) financing 3) insurance 4) transport 5) processing 6) supply of electrical or other energy 7) boarding or lodging or both 8) house construction 9) entertainment 10) amusement or 11) the purveying or new or other information

But does not include the rendering of any service free of charge or under a contract of personal service

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CONSUMERS NEED PROTECTION AGAINST

Unfair trade practice

Restrictive trade practice

Defects

Deficiencies

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UNFAIR TRADE PRACTICEAdopting 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 another’s goods or services.

Falsely claiming a sponsorship, approval or affiliation.

Offering misleading warranty or guarantee.

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RESTRICTIVE TRADE PRACTICEPrice fixing or output restraint re: delivery/flow of supplies to

impose unjustified costs/restrictions on consumers.

Collusive tendering; market fixing territorially among competing suppliers, depriving consumers of free choice, fair competition.

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.

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WHAT IS A DEFECT ?

Fault Imperfection Shortcoming

In the Quality Quantity Potency Purity Or Standards

Which is required to be maintained by or under any law for the time being in force

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WHAT IS A DEFICIENCY ? Fault Imperfection Shortcoming Or Inadequacy

In the Quality Standard and Manner of performance

Which is required to be maintained by or under any law for the time being in force

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THE CONSUMER RIGHTS

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RIGHT TO SAFETY

The right to be protected against marketing of goods and services which are hazardous to life and property.

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Right to Safety

Though about 83% respondents believe that certification and warnings are an important means to ensure right to safety.

But 40% of respondents do not refer to any safety or quality

certifications such as ISI, ISO, Agmark, Codex etc. before making a purchase. ISI is the most known certification

Consumers suggested to make mandatory certification of Acid, Paints, Mosquito Coils, Beverages and Electronic Items.

RIGHT TO BE INFORMED

The right to be informed about quality, quantity, potency, purity, standard and price of goods and services.

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RIGHT TO BE INFORMEDAwareness Regarding Consumer Protection Related

Laws (%)

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CPA1986 W&M 1976 SoG 1930 Contract Act 1872 Competition 2002 FSSA 2006 PSG 2011 LM 2009

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19

15

11

13

18

14

9

16

12

8

45

8

6

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Awareness Level of Different Legislations

Aware Urban Aware Rural

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RIGHT TO CHOOSE

It means whenever possible ,access to variety of goods and services at competitive prices.

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Right to Choose

Only few consumers are aware about competition issues and their importance to protect interests of consumers.

only 1.6% respondents were able to correctly name at least one product/service which has only one or two producers/providers.

Apart from availability, cost of alternatives, transaction fee, documentation are the main barriers before consumers in choosing alternative service/products.

Consumers believe that there is need to promote more free & fair competition in Aviation, Education, Oil & Gas, Railway and Real –Estate. 30

Products/Services which Should Offer Portability

Bank Account Number

School/College Admission

Electricity

LPG Connection

Insurance

0 20 40 60 80

60

12

15

17

15

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RIGHT TO BE HEARD

The consumer’s interest will receive due consideration at appropriate forums.

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Right to be Heard

Only 23% are aware about the process of public consultation or consumer representation.

In rural area only 18% respondents are aware

About 28% of those who are aware about public consultation or consumer representation have also participated

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Lack of awareness among people

Lack of interest among people to participate

Date/time and Objective of public consultation are not properly communicated

Participation do not result in framing of consumer friendly regulations

0 10 20 30 40 50 60 70

64

25

6

5

Hurdles in ensuring effective consumer representation/ participation

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RIGHT TO SEEK REDRESSAL

It means right to seek redressal against unfair practices or restrictive trade practices or unscrupulous exploitation of consumers.

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Right to Redressal

61% normally voice their complaints to seller, at first point When it come to actual situation - 93% respondents have never made a formal

complaint Only 0.3% respondents have approached consumer for a for grievance

redressal, 78% have rated the grievance redressal process as “difficult”.

• 75% cases were not completely redressed while only 18% of such unresolved cases were taken to a higher authority for redressal.

• 67% cases were not redressed within stipulated time frame

Only 18% consumers are fully satisfied with the existing redressal mechanism Only 28% of those who know about external redressal mechanism believe that

it is easily accessible by a common man About 89% aggrieved consumers are represented through advocates in SCDRC

and DCDRC.

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RIGHT TO CONSUMER EDUCATION

It means the right to acquire the knowledge andto be an informed consumer.

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Right to Consumer Education

Only 42% respondents have heard about consumer rights

78% of such respondents heard about consumer rights from television (TV) Almost 50% of respondents are aware of “Jago Grahak Jago Campaign”.

80% of such respondents learnt about the campaign from Television.

Close to 50% of those who know about “Jago Grahak Jago” campaign have reported to benefit directly or indirectly from the campaign.

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RIGHT TO A HEALTHY ENVIRONMENT

To live and work in an environment which is non-threatening to the well-being of present and future generations.

RIGHT TO A HEALTHY ENVIRONMENT

Only 9% respondents are aware about certifications and initiatives.

Awareness about such certifications is largely among residents of southern (18%) and northern (12%) region, while eastern region has lowest level of awareness (2.5%).

About 28% respondents those who know about such products always tend to buy such products

About 63% are willing to pay some extra money to buy such products

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Awareness regarding environmental friendly certifications

Yes9%

No91%

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Nature and Scope of Remedies Available to Consumers

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3-Tier Redressal Agency

The aims and objectives of the Act are achieved by the constitution and creation of 3-tier judicial machinery depending upon the amount of loss involved District Forum

State Commission and

National Consumer Disputes redressal Commission.

NATIONAL COMMISSION

STATE COMMISSION

DISTRICT FORUM

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JURISDICTION

Forum / Commission Where the value of the goods or services and the compensation, if any claimed,

District Forum Does not exceed Rs. 20 lakhs

State Commission Rs. 20 lakhs and above but not exceeding One Crore

National Commission Above One Crore

Besides, State and National Commission have appellate jurisdiction also.

Power or right of a legal or political agency to exercise its authority over a person ,subject matter, or territory.

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Consumer Protection Followed In India

Lok Adalats:The Consumer can approach the Adalat with his

grievance. The issue is discussed and decision is taken on the spot. This saves time and money

Lok Adalat has become a speedy, effective and economical redressal system.

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FILING OF COMPLAINTS

A complaint may be filed by:

The consumer to whom the goods are sold or

services are provided

Any recognised consumer association

One or more consumers with same interest

The central government or state government

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FILING OF COMPLAINTS

The Fee for filing the Complaint for the district forum is as under

Sr. No.

Value of Goods / Service and Compensation Amount of Fees

1) Upto Rs. 1 lakh rupees Rs. 100

2) Rs. 1 Lakh and above but less than Rs.5 lakhs Rs. 200

3) Rs. 5 Lakhs and above but less than Rs. 10 lakhs Rs. 400

4) Rs. 10 lakhs and above but less than Rs. 20 lakhs Rs. 500

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FILING OF COMPLAINTS The Fee for filing the Complaint for the STATE COMMISSION is as under:

Sr. No.

Value of Goods / Service and Compensation Amount of Fees

1) Matter related Upto Rs. 20-50 lakh rupees Rs. 2000

2) Matter related b/w Rs 50 lakhs- Rs 1crore Rs. 4000

* Matter above Rs 1 crore are filed under NATIONAL COMMISSION

Rs. 5000

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MODE OF PAYMENT

The fees shall be paid by Cross demand Draft drawn on a nationalized bank or through crossed Indian postal order drawn in favour of the Registrar of the Sate Commission and payable at the place of the State Commission (w.e.f. 5.3.2004.)

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Information Required for a Complaint

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 requested

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MODEL FORMAT OF A COMPLAINT* TITLE OF COMPLAINTName of the CourtComplaint no. with yearFull Name and description of ComplainantFull Name and address of opposite party

* BODY OF COMPLAINTIntroduction: Full info about you and opp. PartyTransaction : Goods DetailDefect or DeficiencyRectification : efforts done to solve the disputeOther provisions : Any provision in favour of you should be mentionedEvidence : Receipts etc.JurisdictionLimitation Period : Matter is within limited time or notRelief :what you want from court

*PRAYER CROSS : Details of Relief, Date and Sign. Of Complainant*VERIFICATION CLAUSE : Date and Sign.

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APPEAL

shall be filed within thirty days.

Delay in filing appeal may be condoned if there is sufficient cause.

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LIMITATION PERIOD

Within two years from the date on which the cause of action has arisen.

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Penalty Under Section 27 CPA

• According to CPA ,where a trader or the complainant fails to comply with an order made by the relevant consumer forum , such person is liable to a punishment with imprisonment for a term which is not less than 1 month but which may extend to 3 years or with fine of not less than 2000 INR but which may extend to 10000 INR with both

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LIMITATION

The District Forum, the State Commission or the National Commission shall not admit a complaint unless it is filed

within two years from the date

on which cause of action has arisen.

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WHEN COMPLAINT CAN’T BE FILED?

# A complain on the behalf of the public in which consumer is

unidentifiable.# A Complain by an individual on behalf

of general public.# An unregistered association can’t file a

complaint# A Complain can’t be filed,after

expiry of the date.

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REMEDIES WITH WHICH CONSUMERS ARE PROVIDED

Depending on the nature of case , consumer Court may give the order for one or more remedies which are as under:

* Removal of defects/deficiency from goods*Replacement of goods* Refund of price* Compensation for any loss or damageOrder of discontinuing unfair/restricted trade practice* Order for stopping the marketing of hazardous goods

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National Consumer Helpline

You may call on the following toll free number

1800-11-4000 (from MTNL or BSNL)

for guidance and information on consumer issues

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Remind Ourselves

24 December National Consumer Day

15 March World Consumer Rights Day

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ALERT

BEFORE BUYING ANY GOODS OR SERVICE, BE SATISFIED ABOUT THE QUALITY OR QUANTITY.

MAKE IT CLEAR THAT ISSUE OF RECEIPT IS MANDATORY FOR ANY PURCHASE OF Rs.200 AND ABOVE.

IN ANY PACKAGED MATERIAL, THE MONTH & YEAR OF MANUFACTURE, NET QUANTITY or WEIGHT & M.R.P is MUST.

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CASE LAWS ON THE ACT

Doctor ordered to pay Rs 2 lakh as damages to patient

KANPUR: District consumer protection forum on Monday directed a child specialist, Dr RC Gupta, to pay Rs 2 lakh to complainant Prince, son of Santosh Kumar, within 30 days.

The complainant had sought a sum of Rs 19 lakh as damages caused by the wrong treatment

given Dr Gupta. A resident of Bidhuna town in Auraiya district, the complainant stated that he was suffering

from fever in December 2001 and on advice of local doctors he had visited the clinic of child specialist RC Gupta situated at Chunniganj on January 14, 2002.

The doctor examined him and prescribed medicines and advised him to visit clinic again for check-up after seven days. The complainant claimed that prescribed medicine did not provide any relief. When he went again to the doctor on stipulated time and explained his condition. The doctor enhanced the dose of medicine prescribed in old prescription..

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CASE LAWS ON THE ACT.

The complainant consulted the child specialist of Etawah and he stated that wrong treatment was being given to him. He was suffering from meningitis. On January 29, he again consulted Dr Gupta and he referred him to a home.

During examination doctors, observed there that he was suffering from meningitis and brain

TB and so far he received wrong treatment. Due to wrong treatment, the complainant got handicapped and lost his eyesight.

The doctor appeared before the forum and admitted that he had treated him on the basis of

external symptoms. He did not return for follow-up check in time and spent his time in consulting other doctors. On January 29, his condition was critical and the doctor had advised the patient to get admitted at the nursing home where meningitis and brain TB was detected.

Forum president LB Singh and member Sumanlata Sharma observed that doctor was

negligent towards his duties and his act comes under the preview of dereliction of duty, therefore he was liable to pay a sum of Rs 2 lakh as damages to the complainant.

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CONCLUSION

• A person may be consumer of goods, or services. When I purchase a fan, a gas stove or a refrigerator, I could be the consumer of goods.

• When I open a bank account, take an insurance policy, get my car repaired, I could be the consumer of services.

• The consumer protection Act, 1986 tries to help a consumer when for example, the goods purchased are defective or the services rendered to him are subject to so deficiency.

• Prior to the consumer Protection Act, 1986 for any consumer complaint one had to go to an ordinary Civil Court. He had to engage a lawyer, pay the necessary fee, and be harassed for years or decades before any outcome, positive or negative, was there in that litigation.

• Under the Consumer Protection Act, no Court fee has to be paid and the decision on the complaint is much quicker, as the Court can evolve a summary procedure in disposing off the complaint.

Consumer protection act,1986 by Alpana

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