Professional Documents
Culture Documents
Consumer Protect Act
Consumer Protect Act
● Right to Safety- Before buying, a consumer can examine the quality and guarantee of the
goods and opt for ISI or AGMARK products.
● Right to Choose- Consumers must have the right to choose from a variety and number of
goods and at a competitive price
● Right to be informed- The buyers must be provided with complete information with all the
necessary and adequate details of the product, make her/him act wise, and change the
buying decision.
● Right to Consumer Education- The consumer must be aware of his/her rights and avoid
exploitation.
● Right to be heard- The consumer will get due attention to express their grievances at a
suitable platform.
● Right to seek compensation- The consumer has the right to seek or ask for redressal
against unfair and inhumane practices or exploitation of the consumer.
Consumer Responsibilities
● Responsibility to be aware – A consumer has to be careful of the safety and quality of
products and services before purchasing.
● Responsibility to think independently– Consumers should be well bothered about what
they want and need and hence make independent choices.
● Responsibility to speak out the buyer should be fearless to speak out their problems and
tell to traders what they exactly want
● Responsibility to complain- It becomes the consumer’s responsibility to express and file a
complaint about their dissatisfaction with goods or services sincerely and fairly.
● Responsibility to be an Ethical Consumer- Consumers must be fair and not engage
themselves with any deceptive practice.
In the case of tort, damages In the case of the CP Act of 1986, the aggrieved
are always unliquidated, or consumer is entitled to liquidated damages only, i.e.
unascertained and pre-settled or actual damages. Redressal agencies
invariably they are not, and can ascertain the damages.
cannot be real.
A tort is an infringement of a In the case of this Act, the consumer is injured or
right in rem. suffer loss then, it is an infringement of a right in
person.
In tort, the duty is imposed The duty is also imposed by the law in
by the law and is owned by consumerism but is owned by the seller
the community at large. This /manufacturer/trader. This duty’s principle is known
principle is known as as “Caveat Venditor”.
“Respondent Superior”.
Sometimes the motive is an The motive in consumerism is not a key factor. The
essential factor in defaulting party, i.e. the seller/trader/manufacturer,
determining the liability, for must pay the costs of the goods or services or
example, malicious replace them with new defect-free goods or actual
prosecution, defamation, damages, without any inquiry as to the motive.
etc.
Tort law has not been While consumer law is new, it is codified.
codified. It’s the law made
by the judge.
The Indian Sale of Goods Act, 1930 is a mercantile Law. The Indian Sale of Goods
Act of 1930 was a market law that came into being on 1 July 1930 in the British Raj.
It shall lay down contracts where the seller transfers the right (ownership) of the
goods or agrees to move them to the buyer. This applies to the whole of India. The
Act includes the selling of merchandise from the owner to the customer at a certain
price and for a certain period. The term 'Indian' was also withdrawn with effect from
22 September 1963. This Act is now known as the 'The Sale of Goods Act, 1930.'
Ans: 2)
The consumer is the purpose and most powerful motivating force of production, yet
at the same time consumer is a create equally vulnerable segment of the whole
marketing system. Attempts have been made to guard the interest of the consumer.
In 1986, Government of India enacted a comprehensive legislation-Consumer
Protection Act, to safeguard the interest of the consumer. The Consumer Protection
Act, 1986, applies to all goods and services, excluding goods for resale or for
commercial purpose and services rendered free of charge and under a contract for
personal service. The provisions of the Act are compensatory in nature. It covers
public, private, joint and cooperative sectors.
The Act enshrines the rights of the consumer such as the right to safety, right to be
informed, right to be heard, and right to choose, right to seek redressal and right to
consumer education.
All of us are consumers of goods and services. For the Consumer Protection Act, the
word "consumer" has been defined separately for "goods" and "services".
For "goods", a consumer means a person belonging to the following
categories:
(i) One who buys or agrees to buy any goods for a consideration which has been
paid or promised or partly paid and partly promised or under any system of deferred
payment
(ii) It includes any user of such goods other than the person who buys goods and
such use is made with the approval of the purchaser.
(ii) It includes any beneficiary of such service other than the one who hires or avails
of the service for consideration and such services are availed with the approval of
such person.
Characteristics of Services-
(i) Two-party process –
there has to be a service provider and service recipient.
(ii) It has to be intangible and invisible, i.e., it cannot be seen or touched.
The Central Government shall, by notification in the Official Gazette, establish the
Central Council which shall consist of the following members, not exceeding
thirty-six, namely: —
(a) the Minister-in-charge of Consumer Affairs in the Central Government who shall
be the Chairperson of the Central Council;
(b) the Minister of State (where he is not holding an independent charge) or Deputy
Minister in charge of Consumer Affairs in the Central Government who shall be the
Vice-Chairperson of the Central Council;
(c) the Minister-in-charge of Consumer Affairs of two of the States from each region
as mentioned in Schedule I to be changed by rotation on the expiration of the term of
the Central Council on each occasion;
(e) two Members of Parliament—one from the Lok Sabha and one from the Rajya
Sabha;
(h) the Registrar, National Consumer Disputes Redressal Commission, New Delhi;
(j) representatives with proven expertise and experience who are capable of
representing consumer interests, drawn from amongst consumer organisations,
consumer activists, research and training organisations, academicians, farmers,
trade or industry, not exceeding five, one from each of the regions specified in
Schedule I, of whom at least one shall be a woman;
(k) the Secretaries in-charge of Consumer Affairs in the States, not exceeding three,
to be nominated by the Central Government;
(l) the Secretary in charge of Consumer Affairs in the Central Government shall be
the Member-Secretary of the Central Council.
(a) protect, promote and enforce the rights of consumers as a class, and prevent
violation of consumers rights under this Act;
(b) prevent unfair trade practices and ensure that no person engages himself in
unfair trade practices;
(c) ensure that no false or misleading advertising is made of any goods or services
which contravenes the provisions of this Act or the rules or regulations made
thereunder;
(d) ensure that no person takes part in the publication of any advertisement which is
false or misleading.
(2) Without prejudice to the generality of the provisions contained in sub-section (1),
the Central Authority may, for any of the purposes aforesaid,–
(b) file complaints before the District Commission, the State Commission or the
National Commission, as the case may be, under this Act;
(c) intervene in any proceedings before the District Commission or the State
Commission or the National Commission, as the case may be, in respect of any
allegation of violation of consumer rights or unfair trade practices;
(d) review the matters relating to, and the factors inhibiting the enjoyment of,
consumer rights, including safeguards provided for the protection of consumers
under any other law for the time being in force and recommend appropriate remedial
measures for their effective implementation;
(i) mandates the use of unique and universal goods identifiers in such goods, as may
be necessary, to prevent unfair trade practices and to protect consumers’ interest;
(j) issue safety notices to alert consumers against dangerous or hazardous or unsafe
goods or services;
(k) advise the Ministries and Departments of the Central and State Governments on
consumer welfare measures;
(l) issue necessary guidelines to prevent unfair trade practices and protect
consumers’ interest.
Consumerism
The term ‘consumerism’ was first coined by businessmen in the mid-1960s as they
thought consumer movement as another “ism” like socialism and communism
threatening capitalism.
Consumerism is defined as a social force designed to protect consumer interests in
the marketplace by organizing consumer pressures on business. Consumerism is a
protest of consumers against unfair business practices and business injustices.
It aims to remove those injustices, and eliminate those unfair marketing practices,
e.g., misbranding, spurious products, unsafe products, planned obsolescence,
adulteration, fictitious pricing, price collusion, deceptive packaging, false and
misleading advertisements, defective warranties, hoarding, profiteering, black
marketing, short weights and measures, etc.” According to P. Drucker, consumerism
challenges four important premises of the marketing concept- (1) It is assumed that
consumers know their needs. (2) It is assumed that business cares about those
needs and knows exactly how to find them. (3) It is assumed that business does
provide useful information that precisely matches product to needs. (4) It is
presumed that products and services fulfil customer expectations as well as
business premises.
(3) Modern consumerism also takes a create keen interest in environmental matters
affecting the quality of life.
Ans: 3)
NATIONAL CONSUMER DISPUTES REDRESSAL
COMMISSION
The National Consumer Disputes Redressal Commission (NCDRC), India is a
quasi-judicial commission in India which was set up in 1988 under the Consumer
Protection Act of 1986. Its head office is in New Delhi. The commission is headed
by a sitting or retired judge of the Supreme Court of India. The commission is
presently headed by Justice R K Agrawal, former judge of the Supreme Court of
India.
HISTORY
The Consumer Protection Act, 1986 (In short, ‘The Act’) is a benevolent social
legislation that lays down the rights of the consumers and provides there for
promotion and protection of the rights of the consumers. The first and the only Act of
its kind in India, it has enabled ordinary consumers to secure less expensive and
often speedy redressal of their grievances. By spelling out the rights and remedies
of the consumers in a market so far dominated by organized manufacturers and
traders of goods and providers of various types of services, the Act makes the
dictum, caveat emptor (‘Buyer Beware’) a thing of the past.
The Right to Information Act (RTI) is an Act of the Parliament of India "to provide
for setting out the practical regime of right to information for citizens" and replaces
the erstwhile Freedom of information Act, 2002.The Act applies to all States and
Union Territories of India except Jammu & Kashmir. Under the provisions of the
Act, any citizen may request information from a "public authority" (a body of
Government or "instrumentality of State") which is required to reply expeditiously or
within thirty days. The Act also requires every public authority to computerize their
records for wide dissemination and to proactively certain categories of information
so that the citizens need minimum recourse to request for information formally. It is
an initiative taken by the Department of Personnel and Training, Ministry of
Personnel, Public Grievances and Pensions.
Composition Jurisdiction
The Supreme Court has original, appellate and advisory jurisdiction. Its exclusive
original jurisdiction extends to any dispute between the Government of India and
one or more States or between the Government of India and any State or States on
one side and one or more States on the other or between two or more States, if
and insofar as the dispute involves any question (whether of law or of fact) on
which the existence or extent of a legal right depends. In addition, Article 32 of the
Constitution gives an extensive original jurisdiction to the Supreme Court in regard
to enforcement of Fundamental Rights. It is empowered to issue directions, orders
or writs, including writs in the nature of habeas corpus, mandamus, prohibition, quo
warranto and certiorari to enforce them. The Supreme Court has been conferred
with power to direct transfer of any civil or criminal case from one State High Court
to another State High Court or from a Court subordinate to another State High
Court. The Supreme Court, if satisfied that cases involving the same or
substantially the same questions of law are pending before it and one or more High
Courts or before two or more High Courts and that such questions are substantial
questions of general importance, may withdraw a case or cases pending before the
High Court or High Courts and dispose of all such cases itself. Under the Arbitration
and Conciliation Act, 1996, International Commercial Arbitration can also be
initiated in the Supreme Court.
Powers and Functions of District
Forum
Jurisdiction:
● The District Forum shall have jurisdiction to entertain complaints where
the value of the goods or services and the compensation, if any,
claimed does not exceed rupees one crore. If the Central Government
feels necessary, it would provide other values as it deems fit.
● A complaint shall be instituted in a District Forum within the local limits
of whose jurisdiction:
1. the opposite party or each of the opposite parties, where there are more
than one, at the time of the institution of the complaint, actually and
voluntarily resides or carries on business, or has a branch office or
personally works for gain; or
2. any of the opposite parties, where there are more than one, at the time
of the institution of the complaint, actually and voluntarily resides, or
carries on business or has a branch office, or personally works for gain,
provided that in such case the permission of the District Commission is
given;
● the cause of action, wholly or in part, arises; or
1. Residence or the workplace of the complainant.
● Mere dealing with claim by some at Regional Office would not furnish
part of cause of action.
● In cases of vacancy, the State Government may extend the jurisdiction
of a particular district commission, beyond that district to the one with a
vacancy.
● The functions of the District Commission would be ordinarily performed
at the headquarters or any other place as notified by the State
Government.
Powers:
● The district commission has the power to entertain complaints and
charge fee in relation to the goods sold or agreed to be sold or the
services provided or agreed to be provided by:
1. The consumer of such goods or services; or
2. Any recognized consumer association; or
● One or more consumers in case where numerous consumers have the
same interest; or
1. the Central Government, the Central Authority or the State Government,
as the case may be.
● Every proceeding before the District Commission shall be conducted by
the President of that Commission and at least one member thereof,
sitting together and on receipt of a complaint made, the District
Commission may, by order, admit the complaint for being proceeded
with or reject the same (After an opportunity to be heard is given to the
complainant).
● If it appears to the District Commission that there are elements of
settlement which would be acceptable to both the parties, it may direct
the parties to give in writing consent to have their dispute settled by
mediation.
● Where the complaint is in reference to any goods, the commission
would pass the copy of the complaint to the opposite party named in the
complaint to get their version of the case. The same applies in case of
the services provided.
● In case of an allegation of a defect in a good which cannot be
ascertained without a test or proper analysis of the substance, the
commission may obtain a sample of the goods from the complainant,
seal it and provide it to the appropriate laboratory for analyzing or
testing, as the case may be, for which a fee must be deposited by the
complainant.
● The District Commission may also seek to settle the consumer dispute
ex prate, on the basis of evidence provided by the complainant, in the
case the party mentioned in the complaint fails to respond within the
prescribed time period.
● The commission may also provide for adjournment of the case, where
sufficient cause has been shown and recorded by the commission in
writing. It may also provide an interim order, if necessary, depending
upon the facts and circumstances of the case.
State Commission
Disqualifications of Members
A person shall be disqualified for appointment as member, if he:
The National Commission was constituted in the year 1988. It is headed by a sitting
or retired Judge of the Supreme Court of India.
The provisions of this Act cover ‘goods’ as well as ‘services. The goods are those
which are manufactured or produced and sold to consumers through wholesalers
and retailers. The services are in the nature of transport, telephone, electricity,
housing, banking, insurance, medical treatment, etc.
A written complaint, can be filed before the National Commission for value above
Rupees one crore, in respect of defects in goods and or deficiency in service. The
service can be of any description and the illustrations given above are only
indicative. However, no complaint can be filed for alleged deficiency in any service
that is rendered free of charge or under a contract of personal service.
APPEAL
1. Index
2. List of Dates
3. Memo of Parties (with fresh complete addresses & telephone no.)
4. Appeal with Notarized attested affidavit
5. Stay Application, or any other application if any, with Notarized attested
affidavit
6. Application for condonation of delay with Notarized attested affidavit, if beyond
limitation. (Within 30 days of receipt of
order)
7. Certified copy of order of State Commission
8. Copy of Complaint, Pleadings, Evidence, Reply & Rejoinder filed in State
Commission and other documents relied on
by both parties. (All the Annexures must be attested as True Copy on the last
page with name & signature)
9. Statuary Deposits as per Section 19 of the Consumer Protection Act, 1986 in
the form of Demand Draft (in favor of
“The Registrar, NCDRC, New Delhi”)
Finality of Order
(1) No order of the appropriate government or of the Central Government appointing
any person as the Chairman or any other member of a Board or court or as the
presiding officer of a Labor Court, Tribunal or National Tribunal shall be called in
question in any manner; and no act or proceeding before any Board or court shall be
called in question in any manner on the ground merely of the existence of any
vacancy in, or defect in the constitution of, such Board or court.
(3) Where the report of any settlement arrived at in the course of conciliation
proceeding before a Board is signed by the Chairman and all the other members of
the Board, no such settlement shall be invalid by reason only of the casual or
unforeseen absence of any of the members (including the Chairman) of the Board
during any stage of the proceeding.
Limitation Period
(1) The District Forum, the State Commission or the National Commission shall not
admit a complaint unless it is filed within two years from the date on which the cause
of action has arisen.
Hence, in view of the aforesaid, the time period for filing a complaint for a consumer
from the date of violation of a right is 2 years. The law in this regard is laid down in
Sec24-A of the Consumer Protection Act, 1986. However, the Hon'ble Supreme
Court of India, in a landmark judgement, on 07.04.2017 in the matter of National
Insurance Company Ltd. vs. Hindustan Safety Glass Works Ltd.
(MANU/SC/0390/2017), has held that where a supplier is responsible for causing a
delay in the settlement of the consumer's claim, the consumer shall be entitled under
law to file a complaint in the Consumer Court even after the expiry of the period of
two years.
Brief Facts of the Case & Analysis of the Judgment Passed by the Hon'ble Supreme
Court of India Hindustan Safety Glass Works Ltd. (i.e. insured) i.e. Respondent, had
taken out two policies with the appellant National Insurance Company, both dated
August 29, 1990, for a period of one year which were subsequently renewed for
another year. The first policy was for an amount of Rs. 4.9 lakhs to cover the risks on
office building, residential quarters and canteen etc. in Calcutta. The second policy
was for an amount of about Rs. 5.7 crores to cover the risks on building, machinery,
finished and semi-finished stocks, store, furniture, wiring and fittings etc. in its
factory/works in Calcutta, wherein both the policies included damage or loss due to
flood and inundation.
Enforcement of Orders
(1) All orders made in any civil proceeding by a High Court may be enforced in the
same manner in which decrees of such court made in any suit pending therein may
be enforced.
(4) On receipt of a certificate under sub-section (3), the Collector shall proceed to
recover from such person the amount specified therein as if it were an arrear of land
revenue:
PROVIDED that without prejudice to any other powers of the Collector, he shall, for
the purposes of recovering the said amount, have all the powers, which, under the
Code of Civil Procedure, 1908 (5 of 1908), a civil court has for the purpose of the
recovery of an amount due under a decree.