A Project Report On A Project Report On Awareness of Consumer Protection Act, 1986 in Nashik City

By Pushpak Chumbale Shrirang Kothavade Ritesh More Darpan Singh Hussain Telwala

MBA II (MARKETING), METs Institute of Management

INDEX
CHAPTER 1 Introduction 1.1 Introduction of Consumer Protection Act 1.2 Meaning and Definition 1.3 Objectives 1.4 features 1.5 Structure of the Act

CHAPTER 2 Research Methodology

CHAPTER 3 3.1 Data collection 3.2 Data Analysis 3.3 Interpretations and findings 3.4 Suggestions CHAPTER 4 4.1 Recommendations 4.2 Conclusion Bibliography

INTRODUCTION
Consumer rights are an integral part of our lives like the consumerist way of life. We have all made use of them at some point in our daily lives. Market resources and influences are growing by the day and so is the awareness of ones consumer rights. These rights are well defined and there are agencies like the Government, consumer courts and voluntary organizations that work towards safeguarding. While we like to know about our rights and make full use of them, consumer responsibility is an area which is still not demarcated and it is hard to spell out that all the responsibility is that a consumer is supposed to shoulder. Consumer Protection Act, 1986 is an important Act in the history of the consumer movement in the country. The Act was made to provide for the better protection and promotion of consumer rights through the establishment of consumer councils and quasi-judicial machinery. It is mile stone in the history of socio-economic legislation and directed towards public welfare and public benefits. The CPA was passed by the Lok Sabha on 5th December 1986 and Rajya Sabha on 10th December, 1986 and assented to by the president in the Gazette of India. Extra Part II: Section 1 dated 26.12.1986.and at PP 112 called, the CPA 1986 (Act No.66 of 1986) and the preamble states that, An Act provide for better protection of the interest of the consumers and for that purpose to make provisions for the establishment of consumer councils and other authorities for the settlement of consumers dispute and for matters connected therewith.

Under the Act, consumer disputes redressal agencies have been set up throughout the country with the District Forum at the District level, State Commission at the State level and National Commission at national level to provide simple, inexpensive and speedy justice to the consumer with complaints against defective goods, deficient services and unfair and restrictive trade practices1. The Law relating to consumer protection in India is at recent origin and is developing slowly, day by day, with the pronouncement of orders passed by the commissions constituted under the Act all over India and the National Commission2. However the presence of some protective Laws for the benefits of consumer in the ancient culture cannot be denied.

HISTORICAL PERSPECTIVES
In the early years when welfare legislatures like the consumer protection Act did not exist, the maxim Caveat emptor (let the buyer beware) governed the market deals. We find the seeds of consumer protection during the Mughal times and especially during the time of Khiljis. It is said that Sultan Ala-ud-Din Khilji (1296 A.D. to 1316 A.D.) had introduced strict price control measures based on production costs. He had also established separate shopping centers in Delhi for (1) grain, (2) cloth, sugar, dried fruits, herbs, butter, and oil, (3) horses, slaves, and cattle, and (4) miscellaneous commodities. The supply of grain was ensured by collecting tax in kind in the production areas and keeping it in the royal storehouses. Hoardings of grain were forbidden. Elsewhere the growers were ordered to sell their grains for cash in their fields at fixed prices and were not allowed to take any grain home for private sale. The market controller, the state intelligence officer, and the Sultans secret agents, each submitted independent reports on these shopping centers to the Sultan. Even a minor violation of the rules was not tolerated. The shopping center for cloth, known as the sara-i-adl, was established near one of the royal palaces on the inner side of the Badaun-Gate. All goods, including foreign imports, were first taken there and their price fixed. Every merchant was registered with the commerce ministry and had to sign a bond guaranteeing a regular supply to the goods in which they traded. The Hindu Multani merchants were advanced money by the treasury to import rare commodities for the sara-i-adl, some price were subsidized. Costly fabrics and luxury goods could be sold only to those who have obtained permits from the Government. The prices of cattle were also fixed and unscrupulous merchants were deprived of their trading rights. The shopping center for general commodities was under the direct control of the commerce ministry. Ala-ud-Dins Minister of

commerce was also the Superintendent of weights and Measure and the Controller of the Commercial transactions. He was assisted by Superintendent for each commodity. Prices and weight and measure were chequed by sending the children employed in the royal pigeon-house to buy petty articles. The prices fixed for the Delhi market were also applied in the provincial capitals and towns. During the British regime (1765-1947), also known as the Colonial Era, Governments economic policies in India were concerned more with protecting and promoting the British interests than with advancing the welfare of the native population. The administrations primary per-occupation was with maintaining law and order, tax collection and defense. Accordingly much of the legalization enacted during the British regime was primarily aimed at serving the colonial rulers intend of the natives. There were, however, some pieces of legislation which protected the overall public interest through not necessarily the consumer interest. Prominent among these were: the Indian Penal code, 1860, the sale of Goods act, 1930, the dangerous drugs act, 1930 and the drugs and cosmetics act, 1940. In a sense, the sale of good act, and the principles of the law of torts were more for the protection of the trader than the consumer.

MEANING
As the preamble of CPA 1986 reflect; this socio-economic Law was enacted to provide for the better protection of the interest of consumers and for that purpose the CPA 1986 seeks to provide speedy and simple redressal to consumer dispute. In Charan Singh v. Healing Touch Hospital the Honble Supreme Court has made important observations on the object of the act.

DEFINITION
S.2(1)d of the act defined consumer as Consumer means any person who(i) Buys any goods for a consideration which has been paid or promised

or partly paid and party promised or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment when person, but does not include with the approval of self-person, but does not include a person who obtains such goods for resale or for any commercial purpose or (ii) {Hires for avails of} any services for a consideration which has been

paid promised or partly paid or partly promised or under any system of differed payment and includes any beneficiary of such services other than the person. [hires or avails of ] the services for consideration paid or promised or partly paid or partly promised, under any system of differed payment, when such services are availed or with the approval the first mentioned person.

OBJECTIVES
(a) To assess the level of awareness about the Consumer Protection Act, 1986. (b) To find the extent of applicability of the act. (c) To study the level of satisfaction of the consumers w.r.t Act.

FEATURES
Following are the features of the Act are: 1) The Act aims to provide better and all-round protection to consumers. 2) In terms of geographical application, it applies to the whole of India except the State of Jammu and Kashmir. 3) It applies to all goods and services unless otherwise expressly notified by the Central Government. 4) It is indeed a very unique and highly progressive piece of social welfare legislation and is acclaimed as the magna carta of Indian consumers. The Act has made the consumer movement really going and more powerful, broad-based and effective and people oriented. In fact, the Act and its Amendment in 1993 have brought fresh hopes to the beleaguered Indian consumer. This is the only law which directly pertains to market place and seeks to redress complaints arising from it. Even prior to 1986, there were in force a number of laws which could be interpreted in favour of the consumers. But, this Act is most powerful piece of legislation the consumer has had before 1986. Its provisions are very comprehensive and highly efficacious. In fact, it provides more effective protection to consumers than any corresponding Legislation in force even in countries which are considered to be much more advanced. 5) It provides effective safeguards to the consumers against different types of exploitation such as defective goods, unsatisfactory (or deficient) services and unfair trade practices.

CONSUMER RIGHTS Consumers in the advanced countries, obviously, are much more conscious of their rights than in countries like India. 1. Right against exploitation by unfair trade practices. 2. Right to protection of health and safety from the goods and services the consumers buy or are offered free. 3. Right to be informed of the quality and performance standards, ingredients of the product, operational requirements, freshness or the product, possible adverse side effects and other relevant facts concerning the product or service. 4. Right to be heard if there is any grievance or suggestions. 5. Right to get genuine grievances redressed. 6. Right to choose the best from a variety of offers. 7. Right to physical environment that will protect and enhance the quality of life.

STRUCTURE OF CONSUMER PROTECTION ACT

The Act envisages a three- tier quasi-judicial machinery at the National, State and District levels.

National Consumer Disputes Redressal Commission - known as "National Commission" deals with complaints involving costs and compensation higher than Rs. One Crore. State Consumer Disputes Redressal Commissions - known as "State Commission, deals with complaints involving costs and compensation higher than Rs. Twenty Lakhs and less than Rs. One Crore. District Consumer Disputes Redressal Forums - known as "District Forum, deals with complaints involving costs and compensation less than Rs. Twenty Lakhs.

CONTENTS OF CONSUMER COMPLAINT

Procedures for filing complaints and seeking redressal are simple. There is no fee for filing a complaint before the District Forum, the State Commission or the National Commission. ( A stamp paper is also not required). Three to five copies of the complaint on plain paper are required to be submitted by the complainant or his authorized agent in person or could be sent by post to the appropriate Forum / Commission. A complaint should contain the following information:(a) The name, description and the address of the complainant. (b) The name, description and address of the opposite party or parties, as the case may be, as far as they can be ascertained; (c) The facts relating to complaint and when and where it arose; (d) Documents, if any, in support of the allegations contained in the complaint. (e) The relief which the complainant is seeking. The complaint should be signed by the complainant or his authorized agent. The complaint is to be filed within two years from the date on which cause of action has arisen.

Research Methodology
Data Survey Primary data will be the responses collected from the people. Secondary data has been obtained from the official websites as well from diaries, journals, newspapers and articles related to the Consumer Protection Act,

Data Collection Primary data will be collected through a well-structured questionnaire prepared by the Researcher. Sampling Design Type Simple Random Sampling Size. 100 respondents. Method of Data Collection By the method of personal interview.

1. Are you aware of Consumer Protection Act 1986? (Just Tick) Yes: 15 No: 5

YES NO

2. Which provisions of the Act you know? Ans: i) Right to information.-5 iii) Right to Quality.-6 v) all-4
6 5 4 3 2 1 0

ii) Right to safety. -4

iv) Right to be redressed.-1

Series1

3. From where did you come to know about the Consumer Protection Act? Ans: i) TVC-6 iii) Newspapers-2 ii) Radioiv) All-6

9 8 7 6 5 4 3 2 1 0 TVC RADIO NEWSPAPER ALL

4. How often do you check the information given with the product? Ans: i) Regularly-7 iii) When needed
16 14 12 10 8 6 4 2 0 Regularly Sometimes When needed Never Series1 Series2

ii) Sometimes-2 iv) Never.-1

5. Have you ever come across a situation when you felt you should approach the consumer forum? Ans: Yes:6 No:14

YES NO

6. Are you aware about the procedure for dispute redressal? Ans: Yes:-12 No:8

12 10 8 6 4 2 0 YES NO Series1

7. Are you satisfied with the verdict given? Ans: Yes: 1 No:1 NA-18

18 16 14 12 10 8 6 4 2 0 YES NO NA Series1