indian consumer protection act 1986

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  1. 1. Why protect the consumers? Reason for Enacting the Act Doctrine of Caveat Emptor This implies that the responsibilityof identifying goods and finding defects with them lies with buyer.
  2. 2. Why protect the consumers? Reasons for Enacting the Act Collective Bargaining Sellers Lobby; Forming cartels; Artificiallykeeping prices high!!!! Multiple Laws India Contract Act; Sale of Goods Act; Essential CommoditiesAct Hurdles in the Litigation Going to regular court; Expensive & Time Consuming Remedy Punishment in the form of Punitive & Deterrent measure
  3. 3. An Act to provide for the better protection of the interests of consumers and for that purpose to make provisions for the establishment of consumer councilsand other authorities for the settlement of consumers' disputes and for matters connectedtherewith. Short title, extent and application: (1). This Act may be called the Consumer Protection Act, 1986. (2). It extends to the whole of India except the State of Jammuand Kashmir. (3). Save as otherwise expressly provided by the Central Government by notification, this Act shall apply to all goods and services. Hence There was
  4. 4. Consumer is the king of the market Sellers market is now Buyers market & With industrial development leading to the influx of various goods and services in the market; Consumers have to be protected!
  5. 5. The act was passed in: Lok Sabha on 9th December,1986 and Rajya Sabha on 10th December, 1986 and Assented by the President of India on 24th December, 1986 and was Published in the Gazette of India on 26th December, 1986. This act was enacted in the 37th year of the Republic of India and was amended from time to time in the following years i.e. 1991, 1993 and 2002.
  6. 6. Choose Information Safety Consumer Rights Redressal Education Heard Objectives of CPA, 1986
  7. 7. Scope of the Act Applies to whole of the state Exept the state of Jammu and Kashmir Applies to all type of goods and services, public utilities & public sector undertakings All types of complains relating to goods ,unfair trade practice Remedies under this act is same as those in other laws. A suit pending in civil court cannot be heard in consumer court Consumer forums have the power to adjudicate disputes, but they do nat have trappings of a court The consumer court powers are limited
  8. 8. Definitions ti f s r r t ti t, 1 , fi s rt i r s i r s i ri s s ti s. SSeecctioonn 22 oof TThhee CCoonnsuummeer PProoteecctioonn AAcct, 1998866, ddeefinnees cceertaainn wwoordds wwhhicchh aaree uuseedd inn vvaarioouus seecctioonns. r ri t r t r : . (1)( ) :AApppprooppriaatee LLaabbooraatooryy: SS. 22(1)(aa) : r ri t l r t r s l r t r r r is ti :AApppprooppriaateelaabbooraatooryy mmeeaanns aa laabbooraatooryy oor oorggaannisaatioonn: I. is t tr l r tI. RReeccooggnniseedd bbyy thhee CCeenntraal GGoovveernnmmeennt II. is st t r t, s j t t s i li s s r s ri t tr l r t i t is lf; r II. RReeccooggnniseedd bbyy aa staatee ggoovveernnmmeennt, suubbjeecct too suucchh gguuiddeelinnees aas mmaayy bbee ppreesccribbeedd bbyy thhee CCeenntraal GGoovveernnmmeennt inn thhis bbeehhaalf; oor III. s l r t r r r is ti st lis r r l f r t ti i i f r , i is i t i , fi r i t tr l r t r t t r t f r rr i t l sis r t st f s it i t t r i i t r s s s ff r f r f t. III. AAnnyy suucchh laabbooraatooryy oor oorggaannisaatioonn eestaabblishheedd bbyy oor uunnddeer aannyy laaww foor thhee timmee bbeeinngg inn foorccee, wwhhicchh is mmaainntaainneedd, finnaanncceedd oor aaiddeedd bbyy thhee CCeenntraal GGoovveernnmmeennt oor aa SStaatee GGoovveernnmmeennt foor ccaarryyinngg oouut aannaalyysis oor teest oof aannyy ggoooodds wwithh aa vvieeww too ddeeteermminninngg wwhheethheer suucchh ggoooodds suuffeer foormm aannyy ddeefeecct.
  9. 9. l i t . (1)( ) :CCoommpplaainnaannt SS.22(1)(bb) : i. s r, ri. AA ccoonnsuummeer, oor ii. l t r s r ss i ti r ist r r t i s t, 1 , r r t r l f r t ti i i f r ; r ii. AAnnyy vvooluunntaaryy ccoonnsuummeer aassoocciaatioonn reeggisteereedd uunnddeer thhee CCoommppaanniees AAcct, 1995566, oor uunnddeer aannyy oothheer laaww foor thhee timmee bbeeinngg inn foorccee; oor iii. tr l r t r t t r t, r i s l i t; iii. TThhee CCeenntraal GGoovveernnmmeennt oor aannyy SStaatee GGoovveernnmmeennt, wwhhoo oor wwhhicchh mmaakkees aa ccoommpplaainnt; i . r r s rs, r t r r r s s rs i t s i t r st, ivv. OOnnee oor mmooree ccoonnsuummeers, wwhheeree thheeree aaree nnuummeeroouus ccoonnsuummeers hhaavvinngg thhee saammee innteereest, . I s f t f s r, is l l ir r r r s t ti r i l i t. vv. Inn ccaasee oof ddeeaathh oof aa ccoonnsuummeer, hhis leeggaal hheeir oor reeppreeseenntaativvee wwhhoo oor wwhhicchh mmaakkee aa ccoommpplaainnt.
  10. 10. f i t tiUUnnfaairr trraaddee pprraaccticceess
  11. 11. Unfair trade practices [sec. 2(1) (r)] It means trade practices which a trader, for the purpose of promoting the sale, use or supply of any goods or for the provision of any service, adopts any unfair method or unfair or deceptive practice.
  12. 12. The practices included are:(1)The practice of making any statement, whether orally or in writing or by visible representation which- Falsely represents that the goods are of particular standard, quality, quantity, grade, composition, style or model; Falsely represents that the services are of particular standard, quality or grade;
  13. 13. Falsely represents any rebuilt, second hand, renovated, or old goods as new goods; Represents that the goods or services have sponsorship, approval, performance, characteristic, accessories, uses or benefits which such goods or services do not have; Represents that the seller or the supplier has sponsorship or approval or affiliation which such seller or supplier does not have;
  14. 14. Make a false or misleading representation concerning the needs for , or the usefulness of, any goods or services; Gives to the public any warranty or guarantee of the performance or length of life of a product or of any goods that is not based on an adequate or proper test thereof.
  15. 15. Materially misleading the public concerning the price at which a product or like products or goods or services, have been or are ordinarily sold or provided.
  16. 16. Unfair trade practices - contd 2. False offer of bargain price [section 2(1)(r)(2):A price that is stated in any advertisement to be a bargain price by reference to ordinary price or otherwise A price that a person who reads, hears or sees the advertisement would reasonably understand to be a bargain price having regard to the prices at which like products are sold.
  17. 17. Contd 3. Schemes offering gifts or prizes [section 2(1)(r)(3)]Offering gifts or prizes or other items with the intention of not providing them and conducting promotional contests. Creating an impression that something is being given free of charge when it is fully or partly covered by the amount charged in the transaction. Conducting of any contest, lottery or game of chances etc for the purpose of promoting-directly or indirectly- the sale, use or supply of any product or any business interest.
  18. 18. Contd Society for Civil Rights vs Colgate PalmoliveEg: A scheme sponsored by Colgate Palmolive (India) Ltd induced the contestants to buy a minimum of 2 Trigard toothbrushes to be able to participate in the contest. The early bird prizes to be awarded for entries received early had nothing to do with any skill. It was held not to be in public interest.
  19. 19. Contd 4. Withholding any schemes [sec 2(1)(r)(3A)]Withholding from the participants of any scheme offering gifts, prizes or other items free of charge, on its closure the information about final result of scheme. The participants of a scheme shall be deemed to have been informed of the final results of the scheme where such results are within a reasonable time published prominently in the same newspapers in which the scheme was originally published.
  20. 20. Contd 5. Non compliance of prescribed standards [sec 2(1)(r)(4): The prescribed standard may relate to performance, composition, contents, design, packaging etc as are necessary to prevent or reduce the risk of injury to the person using the goods.
  21. 21. CONTD 6. Hoarding, destruction or refusal [sec 2(1)(r)(5):Hoarding, destruction or refusal to sell the goods which raises or tends to raise the cost of those or other similar goods or services shall amount to an unfair trade practice.
  22. 22. Contd 7. Manufacturingor sale of spurious goods [section 2(1)(r)(6): Spurious goods and services means such goods and services which are claimed to be genuine but are not so.
  23. 23. DEFECT Sec 2 (1) (f) Any fault, imperfection or shortcoming in the quality, quantity, potency, or standard which is required to be maintained by or under any law for the time being in force, or under any contract, express or implied or as is claimed by the trader in any manner whatsoever in relation to any goods
  25. 25. Central Consumer Protection Council The Central Government may, by notification, establish with effect from such date as it may specify in such notification, a council to be known as the Central Consumer Protection Council
  26. 26. Consists of.. the Minister in charge of consumer affairs in the Central Government, who shall be its Chairman such number of other official or non-official members representing such interests as may be prescribed
  27. 27. Procedure for meetings of the Central Council The Central Council shall meet as and when necessary, but at least one meeting of the council shall be held every year The Central Council shall meet at such time and place as the Chairman may think fit and shall observe such pro