Lec 6 Consumer Protection Act [Compatibility Mode]

8/17/2019 Lec 6 Consumer Protection Act [Compatibility Mode]

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Social & Legal Issues

Consumer Protection Act 1986

The Consumer Protection (Amendment) Act

e onsumer ro ec on men men c

2005


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Objectives of the Act

• Protect on o Interest o Consumers

• Protection of Rights of Consumer:

1. Right to be protected against marketing of goods and services which are

hazardous to life and property

2. Right to be assured of Goods and services at competitive price

. , ,

Price

4. Right to be Heard

. g o see re ressa

6. Right to consumer Education:

7. Consumer protection councils• Quasi-judicial machinery


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o s a onsumer

• Consumer means any person who:

a) Buys any goods for consideration which has paid, or prom se or part y pa or part y prom se , or un er any

system of deferred payment and includes any user of

for consideration paid or promised or partly paid or

partly promised or under any system of deferred payment

when such use is made with the approval of such

persons, but does not include a person who obtain suchgoo s or resa e or any o er commerc a purpose


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Who is a Consumer

contd…

b) Hires or avails of any services for a consideration which has beenaid or romised or artl aid or artl romised or under

system of deferred payment and includes any beneficiary of such

services other than the person who hires or avails of the services

promised, or under system of deferred payment when suchservices are availed of with the approval of the first mentioned

person u oes no nc u e a person w o ava s o suc serv ces

for any commercial purpose.


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oo s

• According to the sale of Goods Act- “Goods means

ever kind of movable ro ert other than the

actionable claims and money; and includes stocks and

shares, growing crops, grass and things attached to or

forming part of land which are agreed to be severed before sale or under the contract of sale”.

• a s an ous ng was nc u e un er goo s n


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Services

• Services of an descri tion which is available to otential users

and includes, but not limited to, the provision of facilities in

connection with banking, financing, insurance, transport,

, ,

both, housing construction, entertainment, amusement or the purveying of news or other information

• Housing construction is a service


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• Acc to the Act, “Complainant means-

a) A consumer; or

companies act,1956 or under any other law for the time being

in force, or

c) The central government or any state government;d) One or more consumers, where there are numerous consumers

havin the same interest

e) In case of a death of a consumer, his legal heir or

representative; who or which makes complaint


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omp a nt

• “Complaint” means any allegation in writing

made by a complainant with a view to obtainany relief under the Act


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Restrictive Trade Practice

• ccor ng o c : es r c ve ra e prac ce means a ra e practice which tends to bring about manipulation of price or

its conditions of delivery or to affect the flow of supplies inthe market relatin to oods or services in such a manner asto impose on the consumers unjustified costs or restrictionsand shall include:

a) Delay beyond the period agreed to by a trader in supply ofsuch goods or in providing the services which has led or islikely to lead to rise in the prices

b) Any trade practice which requires a consumer to buy, hire or, ,

condition precedent to buying, hiring or availing of othergoods or services.”


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n a r ra e ract ces

• Unfair means and deceptive practices

• Misleading advertisements

• Publication of any advertisement for the sale at a

arga n pr ce a are no n en e o e o ere or

sales

• Not providing gifts/prizes after declaration of results


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CASE

• Am t oug t a te ev s on set rom an e ectron c

store for using it at home. The television was.

• um t, on a o ay w t s am y, re ataxi service. The taxi was in poor condition, the

rashly. The taxi broke down on two occasions

hills. They could not reach in time to catchtheir fli ht. Is Sumit a consumer?


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Case

• Amit bought a pressure cooker for use by hisam y. n e rs use se , w e s w e

Simi was using it, the pressure cooker burst,hurtin her. Is Amit a consumer? Is Simi a

consumer?• Amit bought a pressure cooker for use by his

family. He paid only 30% of the price whileremaining was to be paid a week later. The

. .Is Amit a consumer?


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Case

• Sujit bought a pressure cooker for domestic use. The

mone for it was to be aid next week. It burst in thesecond use? Is Sujit a consumer?

• Suman bought a cell phone for personal use .The

payment of the phone was to start the following month.The payment was to be one in six monthly installments.

e p one was e ec ve. s uman a consumer


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Cases

• A manufacturer of pens was distributing his

pens free to the visitors to an exhibition. The pens were defective and leaking. The pens spoilt

the clothes of several persons. Sunita is one of

the persons who has spoilt her clothes. Is she aconsumer?


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Contd….

Composition President and

two members-1

President and

min. 2 members-

President and

min. 4 members-woman woman woman

-

35,graduate, 10yrs ex. in

Forum

Forum

eco, aw,a c,e-

commerce

Re-a ointment Yes Yes Yes


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Contd…-

Jurisdiction

crore

crore

Administra-tive

Control

State

commission

National

commission

Penalties Imprisonment for not less than 1 mth but can

extend to 3 yrs. Fine not less than 2000.

Frivolous

complaint

Dismiss the complaints and costs upto Rs 10000/-


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n ngs• The following orders can be made by the consumer dispute

redressal agency:

1. To remove the defect

.

3. To return to the complainant the price

4. To pay compensation

5. To remove the defects in goods or deficiencies in services.6. To discontinue the unfair trade practice

7. Not to o er azar ous goo s

8. To cease manufacture of hazardous goods.

.

10. To provide for adequate cost


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Dec s ons o Nat ona comm ss on an Supreme court

• octors are w t n t e purv ew o t s act

• Government hospitals/health centres who render service for.

• Damages are payable if there is negligence of the opposite party .

• Provident fund subscribers are also consumers.• Deficiency of railway services.

• Confirmed ticket not providing a seat is a deficiency ofservice.

• urs ng ome no a e o manage emergency s a neg genceof service.


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Decisions of National commission and Supreme court

• Deceased husbands premium was not deduced from salary

wife can claim the benefits• naut or ze esca at on o pr ce ue to e ay o e very.

• Full payment done for flat, but due to some reasons flat not

is deficiency of service


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Consumer and Commercial Use

•

Interpretation of Livelihood

• Western India State Motors v.Sobhag Mal MeenaPrivity of Contract

• R.Balraj v Grindlays Bank and State Bank of

India

Lec 6 Consumer Protection Act [Compatibility Mode]

Documents

Transcript of Lec 6 Consumer Protection Act [Compatibility Mode]