The Consumer Protection Act, 1986

INTRODUCTION
Caveat emptor rule ( let the buyer beware) in sale of goods act of 1930, sprout the root of consumer interest protection. United nations passed resolution of consume protection in April 1985 In India 1986 was the enactment of consumer protection act Aimed at providing simple, quick, and cheaper protection of consumers interest The law relating to consumer protection is contained in the consumer protection Act ,1986.The Act applies to all goods and services .The central government may however by notification published in the official Gazette exempt any goods or services(sec.1 )

Objectives
The right to be protected against marketing of goods and services which are hazardous to life and property. The right to be informed about the quality , quantity , potency , purity , standard and price of the goods, or service as to protect the consumers against the unfair trade practices The right to be assured, whenever possible, access to variety of goods and service at competitive price.

Continued
The right to be heard and to be assured that consumers interest will receive due consideration at appropriate forums The right to seek redressal against unfair trade practice or restrictive trade practices or unscrupulous exploitation of consumer. The right to consumer education. The right to be assured, wherever possible access to variety of goods at competitive price.

 A person who buys any goods for a consideration which has been paid or promised or partly paid and partly promised or any other user of such goods when such user is made with the approval of the buyer. OR A person who hires or avails of any services for consideration which has been paid or promised or partly promised or under any system of deferred payment.

A CONSUMER IS

(*Imp Consumer does not include a person who obtains goods or avails services for commercial purpose or re-sale.)

Consumer rights
Right to safety against hazardous goods and services Right to be informed about quality, quantity, purity, standard, price Right to choose from a variety at competitive prices Right to be heard Right to seek redressal Right to consumer education Right to basic needs Right to healthy environment

Consumer responsibility
Critical awareness Action Social concern Environmental awareness Solidarity Agencies responsible for consumer protection Government agencies Ministry of Commerce, Investment and Consumer Affairs Professional/Industry associations Consumer organizations

Function of Consumer Protection Agency

Advise the government on consumer issues Represent the consumer interest in other governmental committees Enforce consumer protection and competition law Conduct market surveys and research into consumer protection problems Conduct product testing for safety and quality

Scope of the Act

Applies to all type of goods and services, public utilities & public sector undertakings All types of complains relating to goods ,unfair trade practice Remedies under this act is same as those in other laws. The consumer court powers are limited A suit pending in civil court cannot be heard in consumer court Consumer forums have the power to adjudicate disputes, but they do not have trappings of a court Applies to whole of the state except the state of Jammu and Kashmir

A complaint is...
A complaint is a written statement of facts about the defect in the goods or deficiency in service noticed by a consumer under the act it contains the allegations of the consumer in details with a view to get the redressal from the consumer court.

A complainant can be
A consumer, Any voluntary consumer association registered under the Companies Act, 1956 or under any other law for the time being in force, The Central Government or any State Government, One or more consumers, where there are numerous consumers having the same interest.

PROCEDURE ON ADDMISSION OF COMPLAINT(GOODS)

FILING A COMPLAINT

21 day

COPY OF COMPLAINT TO OPPOSITE PARTY

DISTRICT FORUM PROCEEDS TO SETTLE DISPUTE

OPPOSITE PARTY FILES PRELIMINARY OBJECTION

SEALED SAMPLE SENT FOR LAB TESTING

45 day

REPORT SENT TO OPPOSITE PARTY

WRITTEN OBJECTION IF ANY

ISSUING OF APPROPRIATE ORDER

PROCEDURE ON ADMISSION OF COMPLAINT(SERVICES)

FILING A COMPLAINT

COPY OF COMPLAINT TO OPPOSITE PARTY

DISTRICT FORUM PROCEEDS TO SETTLE DISPUTE

OPPOSITE PARTY DENIES THE ALLEGATION

ON THE BASIS OF EVIDENCE/OPPOSITE PARTY FAILS TO REPRESENTS

DECISION ON MERIT

COMPLAINANT FAILS TO APPEAR

CASE DISMISES

Fees for filing a complaint.

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 2 3 4

Up to Rs. 1 lakh rupees Rs. 1 Lakh and above but less than Rs.5 lakhs Rs. 5 Lakhs and above but less than Rs. 10 lakhs Rs. 10 lakhs and above but less than Rs. 20 lakhs

Nil* to Rs. 100 Rs. 200 Rs. 400 Rs. 500

State & National Commission

Sr. No. Value of Goods / Service and Compensation Amount of Fees

1. 2. 3.

Rs 20 lakh to 50 lakh Rs 50 lakh to Rs 1 crore Above Rs 1 crore

Rs 2000 4000 5000

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 (w.e.f. 5.3.2004.)

Remedies Under Consumer Protection Act

To remove the defects pointed out by the appropriate laboratory from goods in question.
To replace the goods with new goods of similar description which shall be free from any defect. To return to the complainant the price, or, as the case may be, the charges paid by the complainant. Compensation for loss due to negligence on part of seller. To remove the defects or deficiencies in the services in question. To discontinue the unfair trade practice or the restrictive trade practice or not to repeat them.

Not to offer the hazardous goods for sale.

To withdraw the hazardous goods from being offered for sale . To cease from manufacturing of hazardous goods. Loss due to injury on part of consumer. Issue of corrective advertisement. Provision of adequate costs to parties.

PENALTIES
Where a trader or a person against whom a complaint is made (or the complainant) fails or omits to comply with any order made by the District Forum, the State Commission or the National Commission, such trader or person (or complainant) shall be punishable with imprisonment for a term which shall not be less than one month but which may extend to three years or with fine which shall not be less than two thousand rupees but which may extend to ten thousand rupees, or with both.

Consumer Protection Council

Consumer protection council is a body which is enacted by the government to ensure and safe guard the interest of the consumer. Central consumer protection council State consumer protection council District consumer protection council

Composition of Council
Minister in charge of consumer affairs Members of parliament Minister in charge of Consumer affairs of two of the states from each region* Administrator of a union territory* Registrar of National consumer dispute redressal commission Representatives of consumers Representative of women Representative of farmers Secretary in charge of consumer affairs

Consumer Dispute Redressal Agency

To redress the consumer grievances and to provide quick verdict on consumer cases, a body is enacted by the government which is known as consumer forums. District Forum State Commission National Commission

Composition of redressal agency

President- who is or has been the Judge of the Supreme Court. Members- Maximum four members and one of whom shall be a woman.

JURISDICTION
Forum / Commission Where the value of the goods or services and the compensation, if any claimed, Does not exceed Rs. 20 lakhs District Forum

State Commission

Rs. 20 lakhs and above but not exceeding One Crore Above One Crore

National Commission

Besides, State and National Commission have appellate jurisdiction also

Appeal
Any person who is dissatisfied by any judgment made by the Forum may prefer an appeal to the State Commission in the prescribed form and manner. Similarly, any person dissatisfied by any original judgment of the State Commission may prefer an appeal to the National Commission in the prescribed form and manner. Any person dissatisfied by any original order of the National Commission may prefer an appeal to the Supreme Court.

A DEFICIENCY IS ANY . . .
Fault Imperfection Shortcoming Or Inadequacy In the Quality Standard and Manner of performance

Which is required to be maintained by or under any law for the time being in force
22

A DEFECT IS ANY . . .
Fault Imperfection Shortcoming In the Quality Quantity Potency Purity Or Standards

Which is required to be maintained by or under any law for the time being in force
23

Contd.
Goods (Covered under section 2(1)(i)) Any kind of movable property other than actionable claims and money. Services Services means services of any description, which is made available to potential users and includes but not limited to the provisions of the facilities in connection with : 1) Banking, 2) Airlines, 3) Insurance. But does not include the rendering of any service free of charge or under a contract of personal services Restrictive trade practice (Covered under section 2(1)(nn)) A trade practice which requires a consumer to buy, hire or avail of any goods or services as a condition precedent for buying or hiring of other goods and services.

Contd.
Unfair trade practice (COVERED UNDER SECTION 2(1)(r).)
Unfair method or unfair or deceptive practice adopted for promoting the sale, use or supply of any goods or for the provision of any services
1. The practice of making any statement, whether orally or in writing or by visible representation 2. False offer of bargain price [section 2(1)(r)(2) 3. Schemes offering gifts or prizes [section 2(1)(r)(3)] 4. Schemes offering gifts or prizes [section 2(1)(r)(3)] 5. Withholding any schemes [sec 2(1)(r)(3A)]

6. Noncompliance of prescribed standards [sec 2(1)(r)(4)

7. Hoarding, destruction or refusal [sec 2(1)(r)(5) 8. Manufacturing or sale of spurious goods [section 2(1)(r)(6)

Amendment
1991 Proceeding of the District Forum may be conducted by the President and one members. New provisions regarding the filling up of the vacancy in the office. 1993 Act was extended so as to cover the restrictive trade practice within its ambit. The housing construction was specifically inserted in the definition of service. Provisions were made for filing class action complaints. Period within which complains are to be admitted notices are to be issued to opposite parties.

Continued.
2002 Creation of benches of the national commissions and state commissions. Provisions have been made for charging fees in respect of complaint filed. Sale of spurious goods or services are brought within the meaning of unfair trade practices recovery of amounts ordered to be paid by the CDRA as arrears of land revenue. Substitution of legal heir or representative as a party to the complaint in the event of the death of the complainant or the opposite party

STEPS TAKEN TO ENSURE CONSUMER PROTECTION

FINANCIAL ASSISTANCE TRAINING PROGRAMS SWAMI VIVEKANANDA NATIONAL AWARDS OF CONSUMER PROTECTION CONSUMER WELFARE FUND PUBLICITY MEASURES (jago grahak jago, grahak dost, upbhogta jagran,booklets, newspaper advertisements)

CASE STUDIES
UCO Bank vs K.L Kapoor October 2010. Amrut Kurale vs Chate International Academy in December 2009.

THANK YOU