‘‘NEED FOR CONSUMER PROTECTION ACT IN AN ERA OF FREE COMPETITION WHERE ‘CONSUMER IS A KING’ – SO KING NEEDS PROTECTION’’

INTRODUCTION:

o Consumer protection is a group of laws and organizations designed to ensure the rights of consumers

o Consumer protection Act enacted in 1986

o Separate Consumer Dispute Redressal Forum have been set up throughout India (in each and every district as well)

o The Consumer Protection Act, 1986 aims to provide better protection of interest of consumers

o The Act extends to whole of India except the state of Jammu and Kashmir

o 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

o This act was enforced on 15 April, 1987.

SOME IMPORTANT DEFINITIONS:

Any person who buys goods or services for a consideration

Any person means individual company, group/ association of people

User of such goods and services

Movable property including shares, stocks, growing crops

Forming part of the land

Excluding actionable claims and money

Tangible in Nature

1. CONSUMER2. GOODS

Service is made available to potential users

Eg: Provision of facilities - banking, financing, insurance, transport, supply of electrical energy, board or/and lodging

Complaint is a statement made in writing by a person competent to file it

It contains the allegations in detail

Made in view to obtain relief

3. SERVICES

4. COMPLAINT

Unfair trade practice or a restrictive trade practice

Goods having defects

Service having deficiency

Excess price charged

Hazardous goods

Hazardous service

Consumer or consumers

Voluntary consumer association

Government which may be Central or State

In case of death: Legal Heir, Beneficiary, Husband, Relative can file a complaint

COMPLAINT MUST CONTAIN:

5. COMPLAINANT

NEED, PURPOSE AND OBJECTIVE OF CONSUMER PROTECTION

Consumer Protection Caveat Emptor TO

NEED FOR CONSUMER PROTECTION

Protection from Exploitation

Consumer Education

Redressal of Complaints

A Connecting Link

Quality Life for consumer

Ethical Obligations

PURPOSE & OBJECTIVE OF CONSUMER PROTECTION

Protection of Consumer against unfair trade practices

Protection of enjoying the rights

IMPORTANCE OF CONSUMER PROTECTION IN A BUSINESS ORGANIZATION

Public Image

Social Responsibility

Increasing Awareness

Customer Satisfaction

Government Intervention

RIGHTS OF THE CONSUMERS:1. The Right To Safety

2. The Right To Choose

3. The Right To Information

4. The Right To Be Heard

5. The Right To Redressal

6. The Right To Consumer Education

7. The Right For Basic Needs

8. The Right For Healthy Environment

1. THE RIGHT TO SAFETY Before purchasing, consumers should inspect on the quality of the

products as well as on the guarantee of the products and services.

They should preferably purchase quality marked products such as ISI, AGMARK, FPO, Hallmark etc.

2. THE RIGHT TO CHOOSE

The consumer before purchase a product needs to be made aware of:

o Variety of products and serviceso Fair priceso Qualityo Quantityo Competition

Knowing this the consumer can make his/her choice for the product

3. THE RIGHT TO INFORMATION The consumer has the right to be informed about the quality, quantity,

purity, standard and price of goods so as to protect themselves against unfair trade practices.

RTI & THE CONSUMER PROTECTION ACT

The consumer has the right to be heard and be assured that their interests or views or complaints will be considered at consumer forums

4. THE RIGHT TO BE HEARD

5. THE RIGHT TO REDRESSAL

The right to seek redressal against unfair trade practices or restrictive trade practices or exploitation of consumers

6. THE RIGHT TO CONSUMER EDUCATION

The consumers should have access to informational programs and materials that would enable them to make better buying decisions

7. THE RIGHT FOR BASIC NEEDS Every consumer has the right to get the quality basic needs

such as food, clothing and shelter.

50%

25%

25%

BASIC NEEDS

FoodShelterClothing

8. THE RIGHT FOR HEALTHY ENVIRONMENT

The manufacturer should aim at producing more environment friendly and energy efficient products.

The products which can be recycled has the following symbol:

NOTE: Rights number 7 & 8 have been added by the amendment in the act in 1993 and 2002 respectively.

RESPONSIBILITIES OF A CONSUMER

Be aware of various goods & services available in the market

Buy standardize products only (eg: ISI marked products)

Be aware of each & every aspect of the product while purchasing it

Buy legal products Ask & take the proof of the purchase File a complaint in an appropriate consumer

forums Respect the environment

CONSUMER IS THE KING..

FREE MARKET

CONDITIONS FOR A FREE MARKET TO EXIST

2

3

Free Competition

Consumer Rationality

1

The Central

Consumer Protection

Council

The State Consumer Protection

Council

The District

Consumer Protection

Council

CONSUMER PROTECTION COUNCIL

NEED FOR CPC:

To Promote And Protect The Rights Of The Consumers

THE CENTRAL CONSUMER

PROTECTION COUNCIL

• Members: Chairman, Vice Chairman, other members

• Meetings : at least once in a year

THE STATE CONSUMER

PROTECTION COUNCIL

• Members: Chairman, other members prescribed by the State Government, Up to 10 members nominated by Central Government

• Meetings : At least 2 meetings in a year

THE DISTRICT CONSUMER

PROTECTION COUNCIL

• Members: Chairman, other members prescribed by the State Government

• Meetings : Not less than 2 meetings in a year

COMPOSITION OF THESE COUNCILS

National Commission

At State Level

• State Commission

At District Level

• District Forums

CONSUMER DISPUTES REDRESSAL AGENCIES

COMPOSITION

• President : a person who is, or has been, or is qualified to be a District Judge

• Two other members : persons of ability and integrity and have knowledge (or experience) of economics, law, commerce, accountancy, public affairs and administration. One of the member shall be a woman

District Forum

• President: Judge of High Court • Not less than 2 members and not more than the prescribed number (one

of them shall be a woman)

State Commission

• President: Judge of Supreme Court • Members not less than four and not more than the prescribed numbers

(One of whom shall be a woman)

National Commission

1. DISTRICT FORUM

Value of services and compensation claimed does not exceed Rs 5

Lakhs

Complaint can be filed by: Consumer, Consumer

Association, Central or state government

JURISDICTION

PROCEDURE ON RECEIPT OF A COMPLAINT

It is the same for all the 3: District Forum, State Commission & National Commission.

But for the National Commission before the procedure begins following should be kept in mind.

1.The name, description and the address of

the complainant;

2. The name, description and address of the

opposite party or parties, as the case may be, so

far as they can be ascertained;

3. The facts relating to the complaint and

when and where it arose

4. Documents in support of the

allegations contained in the

complaint

5. The relief which the

complainant claims

A complaint containing the following particulars shall be presented by the complainant in person or by his agent to the National Commission or be sent by registered post, addressed to the National Commission

THE PROCEDURE

1. On the basis of evidence brought by complainant and the opposite party denies the allegations

2. On the basis of evidence brought by the complainant and opposite party fails to take action

3. Complainant fails to appear on such day, the CDRA may dismiss the complainant complain, decide on merit or ex-parte

4. Any party fails to produce his evidence or to cause the attendance of witness – CDRA may not withstand

5. On such cases CDRA may adjourn the hearing ( not more than 1 adjournment shall be given)

I] Referral of the complain copy to the opposite party;

II] If Opposite party denies or disputes the allegations or fails to take any action then CDRA shall proceed to settle the dispute

• Any person aggrieved by an order made by the District Forum may appeal against such order to the State Commission within a period of 30 days from the date of the order.

District Forum

APPEAL

TOTAL NUMBER OF CONSUMER COMPLAINTS FILED / DISPOSED / PENDINGUNDER CONSUMER PROTECTION LAW

Cases Filed

Cases Disposed

Cases Pending

0

100

200

300

400

500

600

700

84

72

10

618

527

90

333

307

260

National Commission State Commission District Forum

Nu

mb

er O

f C

ases

(in

‘00

0)

NON-GOVERNMENTAL

CONSUMER ORGANIZATIONS

INITIATIVES TOWARDS

CONSUMER PROTECTION

CONSUMER GUIDANCE SOCIETY OF INDIA (CGSI)

1st consumer organization to demand special Consumer Court for redressal of consumers' complaints

Founded by nine women in 1966

Monthly magazine - "KEEMAT" (Currently 32nd Year of publication)

Produced consumer guides (electrical appliances, edible oils, pesticides, etc)

Handles consumer complaint & offers legal guidance

The CGSI aims at making consumers conscious of their rights and responsibilities and strives to ensure it

Example :Consumer education for rural consumers

MUMBAI GRAHAK PANCHAYAT Mumbai Grahak Panchayat (MGP), or Bombay Consumer Forum, started

as an agitation against the increase of consumer prices near festival season for fair and free distribution of consumer goods

Indian Societies Registration Act 1960 and Indian Public Trust Act 1950 in the name of MGP

Primary objectives - organizing the consumers for common causes, educating them and protecting consumer interest through legal and other means

More than 27,900 members and it has a presence in Greater Mumbai, Thane, Raigad and Ratnagiri district

Various activities conducted here – Monthly distribution of groceries, Panchayat Peth, Road Shows and Cosumer Clubs

Example: V/S

CONSUMER EDUCATION AND RESEARCH CENTRE

Protects consumer interest in India through various mediums

It is an UNITED NATIONS approved NGO

Mission - environmental protection, creating transparency and accountability in the public, etc

Example: CERC's intervention compels mattress manufacturer to refund partial cost of defective mattress

HINDUSTAN UNILEVER CUSTOMER OMBUDSMAN INITIATIVE

In 2008, Hindustan Unilever had roped in an ombudsman.

It was restricted to end consumers of HUL products.

This was the first time an FMCG company had appointed an independent and expert mediation procedure for the benefit of its consumers.

COMPARATIVE STUDY OF INDIA VS THAILAND CONSUMER PROTECTION ACT

Does not focus on the whether the defendant is negligent. Plaintiffs just have to Prove that the loss is caused due to the product

Special masters are appointed for speedy and fair proceedings

NO FAULT COMPENSATION SCHEME

o Focus is to prove that the product is defective, not necessarily unsafe

o Three-tier quasi-judicial system

o Defendant responsible for paying compensation only if proved guilty or negligent

THAILAND INDIA

1.The Act on Liability for Injury from Unsafe Products

2. The Act on Court Proceedings for Consumer Cases

3.The Medical Malpractice Victim Fund Bill

CASE STUDIES IN INDIA

SC orders record Rs 5.96 Crore in a Medical Negligence matter against Kolkata Hospital

Nokia to pay Rs 67,000 for selling Defective Cell Phones

Punjab Institute fined Rs 38 Lakhs for selling Diploma as MBA

CASE STUDIES ABROAD

Case #1: The Disappearing Car

Case #2: The Pickup with Problems

Case#3: The Chair Shortage

CASELETS Case #1: Jerome and Judith O'Callaghan sued American

Airlines for $100,000

Case #2: Zeynep Inanli sued Starbucks for millions of dollars

BIBLIOGRAPHY 

http://en.wikipedia.org/wiki/Consumer_protection#India http://www.ncdrc.nic.in/1_1.html http://ncdrc.nic.in/statistics.html http://www.gizmopod.com/gallery/2868/10-ridiculous-lawsuits?

utm_content=buffer4049a&utm_medium=social&utm_campaign=buffer&utm_sorce=twitter.com

  http://articles-junction.blogspot.in/2013/06/what-is-need-and-

importance-of-consumer.html?m=1   http://www.ask.com/question/why-do-we-need-consumer-protection   http://agmarknet.nic.in/amrscheme/armstandconsu.htm http://ncdrc.nic.in/1_1_2.html

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