Consumer protection Act

The Consumer The Consumer Protection Act, Protection Act,

19861986

INTRODUCTIONINTRODUCTION

What is consumerismWhat is consumerism ““Gone are the days when the consumers Gone are the days when the consumers

were treated as slaves.”were treated as slaves.” Shift from “Sellers market” to “buyers Shift from “Sellers market” to “buyers

market”.market”. Industrial development has led to the influx Industrial development has led to the influx

of various goods and services in the market.of various goods and services in the market.

““Consumer is the king of the market”Consumer is the king of the market”

CONSUMER PROTECTION ACT 1986CONSUMER PROTECTION ACT 1986

The act was passed in LokSabha on 9th The act was passed in LokSabha on 9th December,1986 and RajyaSabha on 10th December,1986 and RajyaSabha on 10th December, 1986 and assented by the December, 1986 and assented by the President of India on 24th December, President of India on 24th December, 1986 and was published in the Gazette of 1986 and was published in the Gazette of India on 26th December, 1986.India on 26th December, 1986.

Objects and Applicability of Objects and Applicability of the Actthe Act

1.To Provide for better protection of 1.To Provide for better protection of interest of consumers.interest of consumers.

2.To establish the Consumer Councils2.To establish the Consumer Councils

3.To empower the Consumer Councils and3.To empower the Consumer Councils and

other authorities to settle disputes andother authorities to settle disputes and

matters connected.matters connected.

““The Act in terms of geographical The Act in terms of geographical application application

extends to the whole of India except extends to the whole of India except Jammu &Jammu &

Kashmir.” and compensatory in natureKashmir.” and compensatory in nature..

Basic Definitions & Basic Definitions & ConceptsConcepts

1.Appropriate Laboratory {Sec 2(1)a}.1.Appropriate Laboratory {Sec 2(1)a}.

2.Complainant {Sec 2(1)b}.2.Complainant {Sec 2(1)b}..(A Consumer .(A Consumer .An association of consumer registered .An association of consumer registered under Companies Act of 1956.under Companies Act of 1956..The Central or State Govt..The Central or State Govt..One or more consumers having same.One or more consumers having same interest.interest..The legal Heir or representative in case of.The legal Heir or representative in case of death of the consumer.”)death of the consumer.”)

Def of Complaint {Sec Def of Complaint {Sec 2(1)b}2(1)b}

Complaint means any allegation in writing made by a Complaint means any allegation in writing made by a complainant that-complainant that-

1)An unfair trade practice or a restrictive trade practice has been 1)An unfair trade practice or a restrictive trade practice has been adopted by any trader or service provider.adopted by any trader or service provider.

2)Goods bought by him or agreed to be bought by him suffer 2)Goods bought by him or agreed to be bought by him suffer from defects.from defects.

3)Services hired or availed or agreed to be hired suffer from 3)Services hired or availed or agreed to be hired suffer from deficiency in any respect.deficiency in any respect.

4)A trader or the service provider as the case may be has charged 4)A trader or the service provider as the case may be has charged for the goods or for the services mentioned in the complaint, a for the goods or for the services mentioned in the complaint, a price in excess of the price.price in excess of the price.

5)Goods and Services which are hazardous to life and safety 5)Goods and Services which are hazardous to life and safety when used are being offered for sale to the public.when used are being offered for sale to the public.

Define Consumer Define Consumer {Sec2(1)d}{Sec2(1)d}

A person who buys any goods for a A person who buys any goods for a consideration which has been paid consideration which has been paid or promised or partly paid and partly or promised or partly paid and partly promised or any other user of such promised or any other user of such goods when such user is made with goods when such user is made with the approval of the buyerthe approval of the buyer..

OROR A person who hires or avails of any A person who hires or avails of any

services for consideration which has services for consideration which has been paid or promised or partly been paid or promised or partly promised or under any system of promised or under any system of deferred payment.deferred payment.

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

Are the following Are the following consumersconsumers

Winner of a lottery (Byford v/s Winner of a lottery (Byford v/s Shrivastava.Shrivastava.

Warranty of free service.Warranty of free service. Passenger traveling by train.Passenger traveling by train. A person registering for gas connection.A person registering for gas connection. Subscriber of telephones.Subscriber of telephones. User of electricity.User of electricity. User of sewerage system laid down by User of sewerage system laid down by

Municipal Corporation.Municipal Corporation. Purchaser of equipment using it by Purchaser of equipment using it by

himself in the practice of his profession.himself in the practice of his profession.

Are the following Are the following consumersconsumers

Parents of the infant person.Parents of the infant person.

Subscriber to a provident fund.Subscriber to a provident fund.

Person buying goods for resale Person buying goods for resale use in large scale profit making use in large scale profit making activity.activity.

Insurance Company.Insurance Company.

CASE STUDYCASE STUDY

STANDARD CHARTERED BANKSTANDARD CHARTERED BANK V/SV/S BHAKRU (Delhi based resident)BHAKRU (Delhi based resident)

Consumer Consumer disputedispute

COVERED UNDER SECTION 2(1)(c).COVERED UNDER SECTION 2(1)(c).

THE PERSON AGAINST WHOM A COMPLAINT IS MADE THE PERSON AGAINST WHOM A COMPLAINT IS MADE DENIES THE ALLEGATIONS CONTAINED IN THE DENIES THE ALLEGATIONS CONTAINED IN THE COMPLAINT.COMPLAINT.

DEFECTDEFECT

COVERED UNDER SECTION 2(1)(f).COVERED UNDER SECTION 2(1)(f).

ANY FAULT, IMPERFECTION OR SHORTCOMING IN THE ANY FAULT, IMPERFECTION OR SHORTCOMING IN THE QUALITY, QUANTITY, POTENCY, PURITY OR STANDARD QUALITY, QUANTITY, POTENCY, PURITY OR STANDARD WHICH IS TO BE MAINTAINED IN RELATION TO ANY WHICH IS TO BE MAINTAINED IN RELATION TO ANY GOODS.GOODS.

DEFICIENCYDEFICIENCY

COVERED UNDER SECTION 2(1)(g).COVERED UNDER SECTION 2(1)(g).

ANY FAULT, IMPERFECTION, SHORTCOMING OR ANY FAULT, IMPERFECTION, SHORTCOMING OR INADEQUACY IN THE QUALITY, NATURE AND MANNER INADEQUACY IN THE QUALITY, NATURE AND MANNER OF PERFORMANCE TO BE MAINTAINED IN RELATION TO OF PERFORMANCE TO BE MAINTAINED IN RELATION TO ANY SERVICES. ANY SERVICES.

DISTRICT FORUMDISTRICT FORUM

COVERED UNDER SECTION 2(1)(h).COVERED UNDER SECTION 2(1)(h).

A CONSUMER DISPUTES REDRESSAL FORUM A CONSUMER DISPUTES REDRESSAL FORUM ESTABLISHED UNDER CLAUSE (a) OF SECTION 9.ESTABLISHED UNDER CLAUSE (a) OF SECTION 9.

ESTABLISHED BY THE STATE GOVERNMENT IN EACH ESTABLISHED BY THE STATE GOVERNMENT IN EACH DISTRICT OF THE STATE BY NOTIFICAION.DISTRICT OF THE STATE BY NOTIFICAION.

goodsgoods

COVERED UNDER SECTION 2(1)(i).COVERED UNDER SECTION 2(1)(i).

ANY KIND OF MOVABLE PROPERTY OTHER THAN ANY KIND OF MOVABLE PROPERTY OTHER THAN ACTIONABLE CLAIMS AND MONEY.ACTIONABLE CLAIMS AND MONEY.

NATIONAL NATIONAL COMMISSIONCOMMISSION

COVERED UNDER SECTION 2(1)(k).COVERED UNDER SECTION 2(1)(k).

NATIONAL CONSUMER DISPUTES REDRESSAL NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION ESTABLISHED UNDER CLAUSE (c) OF COMMISSION ESTABLISHED UNDER CLAUSE (c) OF SECTION 9. SECTION 9.

ESTABLISHED BY THE CENTRAL GOVERNMENT BY ESTABLISHED BY THE CENTRAL GOVERNMENT BY NOTIFICATION.NOTIFICATION.

State State commissioncommission

COVERES UNDER SECTION 2(1)(p).COVERES UNDER SECTION 2(1)(p).

A CONSUMER DISPUTES REDRESSAL COMMISSION A CONSUMER DISPUTES REDRESSAL COMMISSION ESTABLISHED UNDER CLAUSE (b) OF SECTION 9.ESTABLISHED UNDER CLAUSE (b) OF SECTION 9.

ESTABLISHED BY THE STATE GOVERNMENT IN THE ESTABLISHED BY THE STATE GOVERNMENT IN THE STATE BY NOTIFICATION IN THE STATE BY NOTIFICATION IN THE OFFICIAL GAZETTE.OFFICIAL GAZETTE.

TRADERTRADER

COVERED UNDER SECTION 2(1)(q).COVERED UNDER SECTION 2(1)(q).

A PERSON WHO SELLS OR DISTRIBUTES ANY GOODS FOR A PERSON WHO SELLS OR DISTRIBUTES ANY GOODS FOR SALE.SALE.

TRADER SHALL INCLUDE THE PACKER OF THOSE TRADER SHALL INCLUDE THE PACKER OF THOSE GOODS.GOODS.

UNFAIR TRADE UNFAIR TRADE PRACTICEPRACTICE

COVERED UNDER SECTION 2(1)(r).COVERED UNDER SECTION 2(1)(r).

UNFAIR METHOD OR UNFAIR OR DECEPTIVE PRACTICE UNFAIR METHOD OR UNFAIR OR DECEPTIVE PRACTICE ADOPTED FOR PROMOTING THE SALE, USE OR SUPPLY ADOPTED FOR PROMOTING THE SALE, USE OR SUPPLY OF ANY GOODS OR FOR THE PROVISION OF ANY OF ANY GOODS OR FOR THE PROVISION OF ANY SERVICES.SERVICES.

RESTRICTIVE TRADE RESTRICTIVE TRADE PRACTICEPRACTICE

COVERED UNDER SECTION 2(1)(nn).COVERED UNDER SECTION 2(1)(nn).

A TRADE PRACTICE WHICH REQUIRES A CONSUMER TO A TRADE PRACTICE WHICH REQUIRES A CONSUMER TO BUY, HIRE OR AVAIL OF ANY GOODS OR SERVICES AS A BUY, HIRE OR AVAIL OF ANY GOODS OR SERVICES AS A CONDITION PRECEEDENT FOR BUYING OR HIRING OF CONDITION PRECEEDENT FOR BUYING OR HIRING OF OTHER GOODS AND SERVICES.OTHER GOODS AND SERVICES.

Right to Safety.Right to Safety. Right to be informed.Right to be informed. Right to Choose.Right to Choose. Right to be heard.Right to be heard. Right of Seek Redress.Right of Seek Redress. Right to Consumer Right to Consumer

Education.Education. Right to a Healthy Right to a Healthy

Environment.Environment.

Consumer Consumer ComplaintComplaint

Any allegation made by the Any allegation made by the complainant in writingcomplainant in writing

Unfair trade practiceUnfair trade practiceDefect in goodsDefect in goodsDeficiency in serviceDeficiency in serviceExcess priceExcess price

Content of Consumer Content of Consumer ComplaintComplaint

Details of the complainant.Details of the complainant.

Details of the opposite party or parties.Details of the opposite party or parties.

The facts relating to complaint and when and The facts relating to complaint and when and where it arose.where it arose.

Documents, if any, in support of the allegations Documents, if any, in support of the allegations contained in the complaint.contained in the complaint.

Relief which the complainant is seeking. Relief which the complainant is seeking.

Who can file a Who can file a complaint ???complaint ???

A consumer; orA consumer; or Any voluntary consumer association Any voluntary consumer association

registered under the Companies Act, 1956 registered under the Companies Act, 1956 or under any other law for the time being or under any other law for the time being in force, orin force, or

The Central Government or any State The Central Government or any State Government,Government,

One or more consumers, where there are One or more consumers, where there are numerous consumers having the same numerous consumers having the same interest. interest.

Where do I file my Where do I file my complaint???complaint???

Pecuniary JurisdictionPecuniary Jurisdiction Territorial JurisdictionTerritorial Jurisdiction Consumer ForumConsumer Forum

Time period for filing Time period for filing complaintcomplaint

Within 2 yearsWithin 2 years

Fees for filing a Fees for filing a complaintcomplaint

Up to 1 Lakh – Rs.100.Up to 1 Lakh – Rs.100. 1 Lakh & above but less that 5 Lakhs – Rs.200.1 Lakh & above but less that 5 Lakhs – Rs.200. 5 Lakhs & above but less that 10 Lakhs – Rs.400.5 Lakhs & above but less that 10 Lakhs – Rs.400. 10 Lakhs & above but less that 20 Lakhs – Rs. 10 Lakhs & above but less that 20 Lakhs – Rs.

500500Do I have to be there myself to file a complaint?Do I have to be there myself to file a complaint? Ans : NoAns : No

How to inform the opposite party about the complaint?How to inform the opposite party about the complaint?

Remedies Under Consumer Remedies Under Consumer

Protection ActProtection Act To remove the defects pointed out by the To remove the defects pointed out by the

appropriate laboratory from goods in question.appropriate laboratory from goods in question.

To replace the goods with new goods of similar To replace the goods with new goods of similar description which shall be free from any defectdescription which shall be free from any defect

To return to the complainant the price, or, as To return to the complainant the price, or, as the case may be, the charges paid by the the case may be, the charges paid by the complainant.complainant.

Compensation for loss of negligence on part of Compensation for loss of negligence on part of consumerconsumer

To remove the defects or deficiencies in the To remove the defects or deficiencies in the services in question.services in question.

To discontinue the unfair trade practice or the To discontinue the unfair trade practice or the restrictive trade practice or not to repeat them.restrictive trade practice or not to repeat them.

Not to offer the hazardous goods for sale.Not to offer the hazardous goods for sale.

Continued Continued To withdraw the hazardous goods from being To withdraw the hazardous goods from being

offered for sale offered for sale

To cease from manufacturing of hazardous To cease from manufacturing of hazardous goods goods

Loss of injury of consumerLoss of injury of consumer

Issue of corrective advertisementIssue of corrective advertisement

Provision of adequate costs to parties Provision of adequate costs to parties

CONCLUSIONCONCLUSION Benevolent Piece Social LegislationBenevolent Piece Social Legislation

Issue of Consumer Welfare Issue of Consumer Welfare

Special feature of this actSpecial feature of this act

Role of Three Tier Quasi judiciary Role of Three Tier Quasi judiciary

Concept of Consumers Sovereignty ”Concept of Consumers Sovereignty ”

Overall Effect of Consumer Protection Overall Effect of Consumer Protection