The Consumer Protection Act,1986

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The Consumer Protection Act,1986 Presented By: Mayank Garg

Transcript of The Consumer Protection Act,1986

Page 1: The Consumer Protection Act,1986

The Consumer Protection Act,1986

Presented By: Mayank Garg

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INTRODUCTION

• The enactment of CPA,1986 by parliament was a milestone in the history of consumer protection movement in India.

• The special feature of this act is to provide speedy and inexpensive redressal grievances of the consumer and to provide him specific relief or award of compensation wherever appropriate.

• It recognizes six of the eight rights of the consumer as provided in the UN charter.

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WHO IS A CONSUMER ?

A. Any person who buys goods or avails services for consideration

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

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Cont...

C. Legal heir of consumer in case death of consumer

D. 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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OBJECTIVES OF CPA

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

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CONSUMER PROTECTION COUNCILS

• Consumer protection councils are at three levels:-

Central State and, District.

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ESTABILISHMENT OF CENTRAL CONSUMER PROTECTION COUNSILS

• Section 4 of the act provides that the central government shall by notification establish a council to be known as the central consumer protection council which shall consist of the following members:-

a) the minister in charge of consumer affairs who shall be its chairmen.

b) such member of other official or non-official members representing such interests as may be prescribed.

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OBJECTIVES OF CENTRAL COUNCIL

• SEC.6 states the objects of the central council as being promotion and protection of the rights of the consumer these rights are:-

a) Right to information.b) Right to be heard.c) Right to be seek redressal.d) Right to protection against

marketing of hazardous goods.

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CONT…

e)Right to be assured, wherever possible, access to a variety of goods at competitive prices.

f)Right to consumer education.

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DISTRICT FORUM

• District Consumer Disputes Redressal Forum commonly known as district forum is the lowest authority having only original jurisdiction i.e. deciding the consumer complaint.

• SECTION10(1) provides that each district forum shall consist of:-

a) A person who is or who has been or is qualified to be, a district judge who shall be its president

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CONT…

b) Two other members, one of whom shall be a women, who shall have the following qualification namely:

I. Be not less then 35 years age,II. Posses a bachelors degree from a recognized

university.III. Be a person of ability, integrity and standing

andIV. Have adequate knowledge and experience of

at least ten years in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs of administration.

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JURISDICTION OF DISTRICT FORUM

• SEC.11 provides for the jurisdiction of the district forum under two criteria :-

I. Pecuniary limits..II. Territorial limits

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STATE COMISSION

• SEC.16(1) provides that each state commission shall consist of:-

a) A person who is or has been a judge of a high court appointed by state gov.(in consultation with the chief justice of the high court ) who shall be its president.

b) Not less then two and not more then such numbers of members, as may be prescribed one of who shall be a women who shall have the following qualification:-

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CONT…

a) Be not less than 35 years of ageb) Possess a bachelor’s degree from a

recognised universityc) Be persons of ability, integrity, and

standing and,d) have adequate knowledge and

experience of at least ten years in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs of administration

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JURISDICTION OF STATE COMMISSION

• SEC.17 of the act provides that the state commission shall have jurisdiction to entertain:

a) Complaints where the value of the goods and services.

b) Appeals against the orders of any District Forum within the state ; and

c) To call for the records and pass appropriate orders in any consumer dispute, which is pending before or has been decided by any district forum within the state.

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NATIONAL COMMISSION• SEC.20(1) provides that national

commission should consist of :-a) A person who is or has been a judge

of the supreme court, to be appointed by the central government (in consultation with the chief justice of India) who shall be its president.

b) Not less than 4 and not more then such number of members, may be prescribed and one of whom shall be a women who shall have the following qualifications namely:

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CONT…

a) Be not less than 35 years of ageb) Possess a bachelor’s degree from a

recognised universityc) Be persons of ability, integrity, and

standing and,d) have adequate knowledge and

experience of at least ten years in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs of administration

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REQUISTIES OF A COMPLAINT

• Who can file a complaint

• Where to file a complaint

• How to file a complaint

• What constitutes a

complaint?

• Procedure for filing the

appeal

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ESSENTIAL INFORMATION IN THE APPLICATION

• 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 prayed for

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FILING OF COMPLAINTS

A complaint may be filed by

a) The consumer to whom the goods are

sold or services are provided

b) Any recognised consumer association

c) One or more consumers with same

interest

d) 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) Up to 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.600

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.

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CONSUMERS NEED PROTECTION AGAINST

•Unfair trade practice

•Restrictive trade practice

•Defects

•Deficiencies

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CONSUMERS NEED PROTECTION AGAINST

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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CONSUMERS NEED PROTECTION AGAINST

RESTRICTIVE TRADE PRACTICE· Price 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.

· Supplying only to particular distributors or on condition of sale only within a territory.

· 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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CONSUMERS NEED PROTECTION AGAINST

DEFECTSAny fault, imperfection or shortcoming in the quality, quantity, potency, purity 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.

DEFICIENCYAny fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance which is required to be maintained by or under any law for the time being in force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service.

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