Consumer protection ppt

NEED FOR CONSUMER PROTECTION ACT IN AN ERA OF FREE

COMPETITION WHERE CONSUMER IS A

KING THEREFORE , KING NEEDS

PROTECTION

Consumer Protection Act-1986

INTRODUCTION

• Caveat Emptor Caveat Venditor.• Consumerism – the promotion of consumer’s interest.• Consumer – demanding quality goods and better serivce

for the value of their money.• To increase sales – engage in unfair trade practices.


CONSUMER PROTECTION ACT-1986

• This law was enacted in 1986 to protect interests of consumers in India

• To make provision for the establishment of consumer councils• For settlement of consumer disputes• This Act applies to all goods and services • It guides how to file the case in consumer courtProvide justice to

consumers.• It was passed by both the Houses of Parliament


CONSUMER

• Person who buys any commodity or service or uses such commodity or service• Must satisfy two conditions to claim himself as a consumer

The service must have been 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 individuals then he is also recognized as consumer• If any person who buys commodity with an intention to resale or trade then he is not recognized as consumer


CONSUMER OF GOODS AND SERVICES

Consumer of goods– Goods are bought for consideration– Person who obtains goods for resale or commercial purpose is not consumer

Consumer of services– Services are hired or availed of – Consideration must be paid or payable– Beneficiary of services is also consumer


COMPLAINT

• An allegation in writing to council by an applicant• It is a formal legal document that sets out the facts and legal reasons • Complaint is filed for

Defects in goods Deficiency in service Charging excessive price Hazardous goods Unfair trade practices


ELIGIBILTY FOR FILING THE COMPLAINT

• Beneficiary of the goods/services• Legal representative of the deceased consumer• Legal heirs of the deceased consumer• Husband of the consumer • A relative of consumer• Insurance company


TIME FRAME WITHIN WHICH A COMPLAINT CAN BE FILED

• Consumer dispute can be filled within two years from the date on which the action to place.

• To file a complaint the point of time when the action arises is an important factor for determining the time period available.

• There are no set of such rules which decide time rather it depends on the facts and circumstances of each case.


CIRCUMSTANCES WHEN A COMPLAINT CANNOT BE FILED

• A complaint on behalf of the public which consist of unidentifiable

consumer which cannot be filed under the Act.

• A complaint by an individual on behalf of general public is not permitted.

• An unregistered association cannot file a complaint under the Act.

• A complaint after expiry of limitation period is not permitted.


DISMISSAL OF FRIVOLOUS AND VEXATIOUS

COMPLAINTS

• If the complaint found to be frivolous and vexation then the district forum has the authority to dismiss the compliant.

• They can also say that the complaint shall pay the opposite party an amount of Rs.10000

NEED FOR CONSUMER PROTECTION

• Adulteration.

• Spurious goods.

• Misleading advertising.

• Artificial scarcity.

• Other problems.


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 andnewly independent countries.


COMPARISON OF CONSUMER PROTECTION ACT IN INDIA AND UNITED KINGDOM

INDIA United Kingdom Consumer Protection Act is an Indian

1986. The Consumer Protection Act 1987

The Act aims to provide better andall-round protection to consumers.

the act implemented for product liability, Consumer safety, Misleading price indications

All suppliers of goods and services, both in the private and in the public sector and the cooperative sector, are covered by the Act.

Apply for goods, services, accommodation, or facilities.

no claim can be brought more than 10 years after the date the product was put into circulation.

District Forums at the base, the State Commission at the middle level and the National Commission at the apex level.

Information communicated by the Commissioners of Customs

Trading Standards Officers

RIGHTS OF A CONSUMER

Right to safety Right to choose Right to information Right to be heard Right to seek redressal Right to consumer education


CONSUMER GUIDANCE SOCIETY OF INDIA (CGSI)

Golden Jubilee (1966-2016)-50 years in theservice of consumers• They believe in the consumer cause which includes “Value for

Price, Value for People and Value for Environment”. • CGSI has reached out to lakhs of consumers ⋆ Involved in consumer education.

• For the urban and rural low income consumers.

• School and college students.


The Activities of Consumer Guidance Society of India 1. Complaint redressal2. Product testing3. Consumer education for schools/colleges- 4. Publications 5. National award

MONTHLY MAGAZINE BY (CGSI) – KEEMAT

March-April 2016 January-February 2016


UNFAIR TRADE PRACTICE

Any unfair method or deceptive practice used for supplying the goods or for the promotion of sales.


TYPES OF UNFAIR TRADE PRACTICES

• False representation.

• False offer of bargain price.

• Free gifts offer and prize scheme.

• Non-compliance of prescribed standards.

RESTRICTIVE TRADE PRACTICE

Trade practice which tends about manipulation of price or

delivery condition or affect flow of supply in a manner to

impose consumer unjustified cost or restrictions.


DISPUTE SETTLEMENT 3-TIERMECHANISM

“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• National Commission


Established by Composition Jurisdiction Appeal

District Forum

State Government

-Chairman & 2 members-One shall be woman-Terms for 5 yrs or upto 65 yrs whichever is earlierHead-District Judge

Less than 20 lakhs

To state commission within 30 days of order

State Commission

State Government

-President & minimum 2 members-One shall be woman-Terms-for 5 yrs or upto 67 yrs whichevr is earlier

Head-High Court Judge

In range of Rs 20 lakhs to Rs 1 crore

To national commission within 30 days of order

National Commission

CentralGovernment

-President & minimum 4 members-One shall be woman-Terms-for 5 yrs or upto 70 yrs whichevr is earlier

Head-Sitting or retired judge of Supreme Court

More than Rs 1 crore

To supreme court within 30 days of order


“JAGO GRAHAK JAGO”SCHEME OF GOVT. OF INDIA

Empowering Consumers• Consumer Rights• Consumer Complaints Redressal• Alternative Dispute Redressal• Consumer Awareness• Upgradation of Standards


Sl. no Name of Agency Cases files since inception

Cases disposed of since inception

Cases pending

% of total disposal

1. National commission

98063 88031 10032 89.77%

2. State commission 694546 598477 96069 86.17%

3. District Forums 3650986 3365999 284987 92.19%

Total 4443595 4052507 391088 91.20%

Statistical Data: Total Number of Consumer Complaints Filed / Disposed since inception Under Consumer Protection Law.


Sex(M/F) Family Members Average family Size

Male 200 2.5

Female 220 2.75

Total 420 5.25

Sex-wise Family Members of the Households

Occupation No. of Households Percentage (%)

Services 68 85

Big Business 02 2.5

Small Business 10 12.5

Total 80 100


Occupational Status of the Head of Households

03060

65 68 6035

77

10

57

15 8 2045

3

70

23

Consumer Awareness

Yes No

Statistical Data

0100200300400

No. Of Case

Series 1


CASESUNDER CONSUMER

PROTECTION ACT 1986

CASE 1A tale of two consumer rights

• consumer complaints disappear into some galactic space and very rarely elicit a response

• Vandana Vasudevan is invitee for a seminar “Consumer Protection Act” at sylvan campus of the National Law School, Bangalore where he meet a bunch of young legal eagles. Student used a set of popular cosmetics and found that every claim made in the advertisements for these products was untrue.

Case base on 2 consumer rights:1. The right to safety 2. The right to information


They didn’t get any response from manufacture company, Company refused to accept their fault and gave several unsatisfactory results. We need to remember that this is a violation of two rights that we have as consumers—the right to be heard and the right to redressal.


Solution :• To not offer the hazardous goods and remove them from

sale.• To award adequate cost.• Replacement of the goods with new goods of good quality.• Return the price paid by the complainant for the goods or

services.• To remove the defects or deficiency in the goods or

services

CASE 1 Products as follow :

CASE 2: A tiff between Reliance Media Works & Manoj Kumar

• Complainant – Manoj Kumar went to Big Cinemas in Jaipur run by Mumbai-based Reliance Media Works.

• He brought Aquafina water charged Rs-30 but MRP was rs-16, so he was upset of being overcharged and filed a complaint in District forum.

• Reliance opposed saying that in cinema halls bottles are meant for higher sale and lower in ordinary shop but no proof was furnished.

• Forum upheld Manoj complaint and direct cinema hall to refund rs-14 , compensation for mental agony- rs-5000 and litigation cost- rs-1500

• Reliance filed a revision petition saying Manoj has purchased it from local shop.• The commission observed that Pepsico was making contrary submission by stating that

its Aquafina bottles were priced at Rs-16, but it was permissible to have two different MRPs .


JUDGEMENT

• Overcharging consumers is not permissible the commission saddled Reliance with further deterrent cost of Rs-5 lakhs for illegal enrichment by charging and extorting money from their customers.

• This amount would have to be deposited in the commission’s Legal Aid Account within 90 days, or with 9% interest if delayed.

VIDEO ON “CONSUMER RIGHTS “


CONCLUSION

Consumer Rights – Improper Implementation in Real Life Education of Consumer Rights works as a Shield to Consumers Technology helps Consumers to keep Up to Date Consumer Protection Programme – A Light Description Lets Make Consumer Protection Act Success & “Consumer as King”


WEBLIOGRAPHY

• http://cgsiindia.org/• http://www.archive.india.gov.in/spotlight/spotlight_archive.php?

id=97#tab=tab-1• http://ncdrc.nic.in/statistics.html• Book name- Business Law by TejpalSheth• Case study from Times of India- 29Feb 2016


http://cgsiindia.org/

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

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