Consumer Protection Act (Final PPT)

Need For Consumer Protection act in an era of Free Competition where

“Consumer is a King”

Therefore, king needs Protection;

OBJECTIVES

To assist countries in achieving or maintaining adequate protection for their population as consumers

To facilitate production and distribution patterns responsive to the needs and desires of consumers

To encourage high levels of ethical conduct for those engaged in the production and distribution of goods and services to consumers

To further international cooperation in the field of consumer protection

To encourage the development of market conditions which provide consumers with greater choice at lower prices

FEATURES The Act aims to provide better and all-round protection to consumers.

In terms of geographical application, it applies to the whole of India except the State of Jammu and Kashmir.

It applies to all goods and services unless otherwise expressly notified by the Central Government.

The Act and its Amendment in 1993 have brought fresh hopes to the beleaguered Indian consumer.

It provides effective safeguards to the consumers against different types of exploitation such as defective goods, unsatisfactory (or deficient) services and unfair trade practices.

BASIC RIGHTS OF CONSUMERS

Right of

protection of life

and Property

Right to

be

informed

Right to

choose

Right to be

heardRight to

redress

Right to

education

NEED FOR CONSUMER PROTECTION ACT IN INDIA.

Illiteracy and Ignorance Unorganized consumers Spurious goods Deceptive advertising Malpractices of businessman Freedom of enterprise Legitimacy for existence Trusteeship

Complainant

Defined in Section 2(1)(b) of the Consumer Protection Act, 1986 "complainant" means-  

– a consumer; or – any voluntary consumer association registered under the

Companies Act,1956 (1 of 1956) or under any other law for the time being in force; or

– the Central Government or any State Government;– one or more consumers, where there are numerous consumers

having the same interest;– in case of death of a consumer, his legal heir or representative

who or which makes a complaint;

Complaint

Defined in Section 2(1)(c) of Consumer Protection Act 1986;"complaint“

means any allegation in writing made by a complainant that-

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

2. the goods bought by him or agreed to be bought by him suffer from one or more defects;

3. the services hired or availed of or agreed to be hired or availed of by him suffer from deficiency in any respect;

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 price in excess of the price-

Consumer

Who is a consumer? 

The provision reveals that a person claiming himself as a consumer of goods should satisfy that;

• THE GOODS ARE BOUGHT FOR CONSIDERATION.• ANY PERSON WHO USE THE GOODS WITH THE APPROVAL OF THE BUYER IS A

CONSUMER.• PERSON BUYING GOODS FOR SELF EMPLOYMENT IS A CONSUMER

Who is NOT a consumer? 

• ANY PERSON WHO OBTAINS THE GOODS FOR ‘RESALE’ OR ‘COMMERCIAL PURPOSES’ IS NOT A CONSUMER.

Cosumer disputeDefined in Section 2(1) (e) of the Consumer Protection act 1986, as:

• “Consumer dispute” means a dispute where the person against whom a complaint has been made, denies or disputes the allegations contained in the complaint.

• CaseletIn case of Sawani road transport v. Nirup Syncrome ltd. (1993) The opposite party omits or fails to take any action to represent his case;the forum has to proceed in the manner as if to settle a consumerdispute.

Defects

Defined in Section 2(1) (f) of the Consumer Protection act 1986, as:

• "Defect" means any fault, imperfection or short coming 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;”

• Caselet The national commission in Abhoya Kumar Kumar Panda v. Bajaj auto ltd.

(1982) held that it’s not relevant under the act whether the defect in the goods supplied or deficiency in service is intentional or not.

CONSUMER DISPUTE REDRESSAL AGENCIES

1. A consumer dispute Redressal forum at the district level.

2. A consumer dispute Redressal forum at the state level.

3. A consumer dispute Redressal forum at the national level.

Value of goods and services and compensation Amount of fee payable

Claimed

Value of goods and services and compensation

Amount of fee payableRs 100

DistrictForum

Up to one lakh rupees

One lakh and above but less than Rs 5 lakhs Rs 200

Five lakh rupees and above but less than Rs 10 lakhs Rs 400

Ten lakh rupees and above but not exceeding Rs 20 lacs Rs 500

State Commission

Above Rs 20 lacs and Up to 50 lacs Rs 2000

Above Rs 50 lacs to Rs 1 crore Rs 4000

National Commission

Above Rs 1 crore Rs 5000

Filing of a complaint

Occurrence of Problem/Complaint

A consumer person/consumer writes a letter defining the problem

The competent person or an appointed agent determines the fee to be sent

The letter is received by the concerned consumer forum

Receipt send to opposite party

CGSI

• The Consumer Guidance Society of India (CGSI) is a consumer rights organization based in Mumbai, India. It was the earliest consumer organization in India, founded by nine women in 1966, and became the first to conduct formal product testing in 1977.

• NEED AND IMPORTANCE OF CGSI :-

I. Legal Frame Work:

II. Product Testing:

III. Consumer Education for Schools / Colleges:

IV. Publications:

 DEVELOPMENT IN CPA:-

• CONSUMER EDUCATION FOR RURAL CONSUMERS.

• Pedestrian Wing: The objectives of Pedestrian Wing are as follows: 1. To create public awareness about the rights and responsibilities of

Pedestrians and fight for their due rights.

2. To spread awareness about the importance of walking as a mode of transport and facilitate its use for short distance transportation.

3. To facilitate and promote availability of user-friendly Public Transport and encourage it's use by the public.

4. To do all that is necessary to secure the availability of use at least 90% of the time proper smooth, level and properly constructed pavements, free of encroachments, wherever needed.

• HUL has introduced a unique practice in India by launching a Customer Ombudsman. In July the company appointed a retired Justice Mr M S Rane as the customer ombudsman.

• Ombudsman are usually officials who are charged with the responsibility of representing the public by investigating and addressing grievances and complaints of the public.

• According to a report :i. HUL has around 200 cases in various courts against it. Court cases can take away

lot of time energy and money from the company. HUL hopes that such an alternative will help both the customers and the company to handle complaints and grievances quickly.

ii. It’s a good proactive move by the company to make things easier for the consumer to address his grievances. It’s a best practice because it’s usually a nightmarish experience for a customer to get his problem addressed. Ombudsman helps genuine customers to get a speedy unbiased redressal.

CASELET:-

CASE STUDY 1:-

Case study as one incident of violation of consumer rights and the decision

by the consumer court.

Eg: Bajaj CT 100  motorcycle

CASE STUDY 2:-

• Pvt doctor fined 3 lakh for turning away dying man.

- Every doctor is bound by Hippocratic oath: Panel

Source: Times Of India

Questionnaire:-

1. “The consumer protection act, 1986 has provided sufficient privileges to the consumers for protection against overcharging producers" Do you agree?

yes no0%

10%

20%

30%

40%

50%

60%

70%

80%

2. What do you majorly look out for in a product before its selection in terms of being protected? (pricing, quality, name brand, correct labeling , warranty etc.)

Series1

0

1

2

3

4

5

6

7

pricingqualityname brandcorrect labelling in-formationwarranty/guarante

PO-LICE40%

LAWYER30%

CON-SUMER FORUM

30%

4)Would you call yourself a consumer if you bought goods in bulk and re-sold it?a) Yes b) No c) Don’t know 

3) Who would you first approach, in the case of a consumer dispute?a)Police b)Lawyer c) Consumer Forum

YES NO DONT KNOW

0123456

one40%

two30%

more than 530%

5) What is the minimum number of women mandatory to be present in the functioning of the state commission?a) One b) Two c) More than 5 6) What is the limitation period within

which the complaint needs to be filed?a) 6 months b) 1 year c) 2 years d) 5 years

6 months

1 year 2 year 5 year0

0.51

1.52

2.53

3.54

CONCLUSION

• Business Law - Bulchandani• http://www.forecasts.org/consumer-protection/india-cpa.html• http://www.wikipedia.com/scripts/PublicationsView.aspx?id=13

795

• http://www.lawindia.in/terms/cpa/consumerprotection.asp • http://www.federaljurisdiction.gov/releases/h10/current/ • www.dogpile.com • www.4share.com• www.google.com