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THE CONSUMER PROTECTION

ACT , 1986

PRESENTED TO:-Ms. Mani Parti

PRESENTED BY :-Chiransh GoyalMadhuROLL NO - 8118,8119


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INDEX Introduction

Features of the act

Objectives

Rights of consumer Responsibilities of consumer

Important definitions

Consumer Protection Councils Consumer Disputes Redressal Agencies

Case Laws of the Act


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INTRODUCTION Caveat emptor rule ( let the buyer beware) in sale of

goods act of 1930, sprout the root of consumer interestprotection.

United nations passed resolutionofconsumerprotection in april 1985 In India 1986 was the enactment of consumerprotection act Aimed at providing simple, quick, and cheaper

protection of consumers interest

The act was amended in 2002 and the amendmentscame into force w.e.f. 15th March 2003.


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FEATURES OF THE ACT Applies to all type of goods and services unless specificallyexempted by the Union Government Covers all the sectors whether private , public or

cooperative

Applies to whole of the state Except the state of Jammu andKashmir Provides an additional remedy besides those which are

available under other laws such as Contract Act , Sales of

Goods Act . Aconsumer or any registered voluntary organization orthe government can file a complaint


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It enshrines the consumer s seeking rights related tosafety , choice , education , redressal ,information and heard. It empowers the consumer s seeking discontinuanceof certain unfair and restrictive trade practices andwithdrawal of hazardous goods from the market


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OBJECTIVES Better protection of interests of consumers Protection of rights of consumers

( I ) Right to safety :consumer has the right to be protected against the

goods which are hazards to his life and property

while purchasing and consuming the goods.

For example : goods like electrical goods and pressurecookers can cause serious injury , if there is anymanufacturing defect in them. There is also risk to life

. This right provide protection against any such danger .( II ) Right to information :

The consumer has been given the right to beinformed by the producer about the quality , quantity ,

purity , standard and price of goods so as to protect


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the consumer against unfair trade practices .

( III ) Right to choose :A variety of products are available in the market at

competitive prices . The manufacturer should not useaggressive selling techniques to sell a particularproduct without giving the consumer a chance to

choose from alternative products available .

( IV ) Right to consumer education :Consumers have a right to be educated ( informed )

on various aspects relating to the use of goods .

These aspects include health , product hazards ,environments etc . Further , consumers should be

made aware of the rights and remedies available .


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( V ) Right to be heard :

This right states that consumers should have the right

to express their views , ideas and reaction about theproduct . There should be appropriate consumerforums where consumers should have an opportunityto lodge their complaints .

VI ) Right to seek redressal :This right includes the right to receive compensation

for supply of shoddy goods or unsatisfactory services

and availability of acceptable forms of legal aid orredress for small claims wherever necessary . The rightto seek redressal against unfair trade practices orrestrictive trade practices or unscrupulous exploitation of

consumers .


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EXAMPLES OF CONSUMER EXPLOITATION ININDIA

(Based on judicial Decisions and Newspapers Reports )

A well- known manufacturer of sunflower oil inserted a full-

page colour advertisement in national dailies claiming that it

was full of vitamins , minerals and proteins. On testing the oil, the tall claims proved to be false .

Instant noodles can be sold in the packet of 100 grams

only . But many manufacturers are marketing packets ofnoodles containing 80 grams only .


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RESPONSIBILITIES OF CONSUMER Awareness of rights - Consumer must be aware of their

own rights . Consumer must exercise their rights . Full information - A consumer must have all relevant

information before making the purchase . He should notdepend entirely on the seller .

Cash memo -A consumer must insist on cash memo, cashmemo acts as a proof of purchase . Every seller is bound tgive a cash memo .

Cautious reliance on advertisement Consumers should notbelieve the advertisements blindly . He should compare theuses of the product given in the advertisement copy andactual product .


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Quality conscious Consumer must look at standardquality certification marks like ISI , AGMARK , etc.

Environment Consumers should respect theenvironment by using environment friendly products

and avoiding pollution.

Redressal of grievances Consumers should filecomplaints for the redressal of genuine grievances .


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IMPORTANT DEFINITIONS1. APPROPRIATE LABORATORY :

It means a laboratory or organisation recognized by

the Central Government or by a State Government

subject to such guidelines as may be prescribed by

the Central Government in this behalf : or any such

laboratory or organisation established by or under any

law for the time being in force , which is maintained

, financed or aided by the Central government or a

state government for carrying out analysis or test of

any goods with a view to determining whether such

goods suffer from any defect . [ Sec . 2 ( 1 )( a ) ]


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Any consumer

Any registered consumers association.

Central Government or any State Government

One or more consumers on the behalf of

numerous consumers having the same interest . A representative of a deceased consumer .

2. WHO CAN FILE A COMPLAINT

Complaint means any allegation in writing made by acomplainant that :-

3. WHAT IS A COMPLAINT ?

I. An unfair trade practice or a restrictive trade practice has beenadopted by any trader or service provider;

II. The goods bought by him or agreed to be bought by him

suffer from one or more defects ;


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III. The services hired or availed of or agreed to be hired oravailed off by him suffer from deficiency in any respect;

IV. A trader or 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 -

a) fixed by or under any law for the time being in

force;

b) displayed on the goods or any package

containing such goods;

c) displayed on the price list exhibited by him by or

under any law for the time being in force;

d) agreed between the parties .

V. Goods which will be hazardous to life and safety when used

are being offered for sale to the public


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a) In contravention of any standards relating to safety of

such goods asrequired to be compiled with, by or under

any law for the time being in force;

b) If the trader could have known with due diligence that

the goods so offered are unsafe to the public;

VI. Service which are hazardous or likely to be hazardous to the

life and safety of the public when used, are being offered by

the service provider which such person could have known with

due diligence to be injurious to life and safety.


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4. WHO IS A CONSUMER ? "consumer" means any person who buys any goods for a consideration, hires or avails of any services for a consideration, uses such goods with the approval of person who hasbought such goods for consideration.

is beneficiary of services with the approval of person whhas hired the services for consideration.


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5. CONSUMER DISPUTE"consumer dispute" means a dispute where the person against

whom a complaint has been made, denies or disputes the

allegations contained in the complaint.

6. DEFECT Sec 2 (1) (f)Anyfault, imperfection or shortcoming in the quality, quantity,potency, or standard which is required to be maintained by orunder 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

7. UNFAIR TRADE PRACTICEIt means trade practices which a trader, for the purpose ofpromoting the sale, use or supply of any goods or for the provisionof any service , adopts any unfair method or unfair or

deceptive practice


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Falsely represents any rebuilt, second hand, renovated, or old

goods as new goods;Represents that the goods or services have sponsorship,

approval, performance, characteristic, accessories, uses or benefits

which such goods or services do not have;

Represents that the seller or the supplier has sponsorship or

approval or affiliation which such seller or supplier does not have;

Make a false or misleading representation concerning the needs

for , or the usefulness of, any goods or services;

(1)The practice of making any statement, whether orally or in

writing or by visible representation which-

Falsely represents that the goods are of particular standard,

quality, quantity, grade, composition, style or model;Falsely represents that the services are of particular standard,

quality or grade;


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Gives to the public any warranty or guarantee of the

performance or length of life of a product or of any goods that is

not based on an adequate or proper test thereof

Materially misleading the public concerning the price at which a

product or like products or goods or services, have been or are

ordinarily sold or provided.


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CONSUMER PROTECTION COUNCILS Central Consumer Protection Council.

The Central Council shall consist of the following members,

the Minister in charge of the consumer affairs in the Central

Government, who shall be its Chairman, and

such number of other official or non-official members

representing such interests as may be prescribed.

Objectives of the Central Council.The objects of the Central Council shall be to promote andprotect the rights of the consumers such as,

the right to be protected against the marketing of goods andservices which are hazardous to life and property;


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the right to be assured, wherever possible, access to a variety ofgoods and services at competitive prices;

the right to be heard and to be assured that consumer's interestswill receive due consideration at appropriate forums;the right to be informed about the quality , quantity , purity ,standard and price of goods so as to protect the consumer

against unfair trade practices;

the right to seek redressal against unfair trade practices orrestrictive trade practices or unscrupulous exploitation of con-

sumers; and

the right to consumer education


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Procedure for meetings of the Central Council

The Central Council shall meet as and when

necessary, but at least one meeting of the councilshall be held every year

The Central Council shall meet at such time and

place as the Chairman may think fit and shall

observe such procedure in regard to the transaction

of its business as may be prescribed


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State Consumer Protection Councils.The State Council shall consist of the following members,

namely: the Minister in-charge of consumer affairs in the State

Government who shall be its Chairman;

such number of other official or non-official members

representing such interests as may be prescribed by the

State Government.Objectives of the State Council. The objective of every State Council shall be to promote andprotect within the State the rights of the consumers.

Meetings:-Number of meetings :- Not less then 2 meetings every year

Time and place:- Depends on the chairman


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District Consumer Protection Council.It consist of the following members, namely

the Collector of the district (by whatever name called),who shall be its Chairman;

such number of other official and non-official members

representing such interests as may be prescribed by the

State Government.

Objective of District CouncilThe objects of every District Council shall be to promote and

protect within the district the rights of the consumers.

Meetings:-Number of meetings :- not less then 2 meetings

Time and place :- as decided by the chairman


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possess a bachelor's degree from a recognised university,

CONSUMER DISPUTES REDRESSALAGENCIESEstablished by the State Government in each district Each District Forum shall consist of a person who is, or has been, or is qualified to be a District

Judge, who shall be its President; two other members, one of whom shall be a woman, who

shall have the following qualifications, namely

be not less than thirty-five years of age,

1) DISTRICT FORUM


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be a person of ability, integrity and standing, and haveadequate knowledge and experience of at least ten years in dealing

with problems relating to economics, law, commerce,accountancy, industry, public affairs or administration .

Only those complaints can be filed in the District Forumwhere the value of goods or services and the compensationclaimed is less than rupees 25 lakhs .


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2) STATE COMMISSIONThis is established by the State Government in the stateEach State Commission shall consist ofA person who is or has been aJudge of a High Court, appointedby the State Government, who shall be its President.not less than two, and not more than such number of members,and one of whom shall be a woman, who shall have the samequalifications which has been stated in the District Forum .

Only those complaints can be filed where the value ofgoods or services and compensation claimed is betweenrupees 25 lakhs and 1 crore.Also , appeals against the orders of any District Forum canbe filed before the State Commission within a period ofthirty days from the date of the order .


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3. NATIONAL COMMISSIONThis is established by the central government .National Commission shall consist of -

a person who is or has been a judge of the SupremeCourt , to be appointed by the Central Government ( inconsultation with the Chief Justice of India ) , who shallbe its President ; not less than four , and not more than such number ofmembers , as may be prescribed , and one of them shall

be woman , who shall have the same qualifications asstated in District Forum .

All complaints pertaining to those goods and servicesand compensation whose value is more than rupees1 crore can be filed .


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Also , appeals against the order of any State Commissioncan be filed before the National Commission within theperiod of thirty days from the date of the order .


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1. PECUNIARY JURISDICTION In Krishan Dass Chaurasia Vs. State Bank of India(1995)

thetotal claim in a complaint did not exceed Rs.1,00,000/-. It was held that the matter was not within the

jurisdiction of the State Commission and such a claim wasrejected by the State Commission. The Complainant couldseek the remedy from the District Forum. Therefore,

jurisdiction, which is vested in a district Forum cannot becreated for State Commission by merely exaggeration of aclaim .

CASE LAWS ON THE ACT.


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2. EVIDENCE THROUGH AFFIDAVITS IS LEGAL &SUFFICIENT EVIDENCE. In Union of India Vs. Ramswaroop Chandil (1998) the

complainant? Respondent had a circular ticket in his possession

during journey which was locked in his box. He was not allowed

to break open the lock and produce the ticket and was forced to

pay excess charge for four persons. The District Forum awarded

compensation in his favour for refund of fare and excess charge

and for inconvenience, humiliation and Advocates fee, etc. In appeal by the Railway Authorities it was pleaded that the

complainant had not produced any witness to support his claim.

Dismissing the appeal it was held that he had narrated his case in

the affidavit and the same was not rebutted by the Oppositeparty.

It was held that the evidence by affidavit was legal and sufficient

to support the complainants case.


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3. PRESIDENT SITTING SINGLY It has been held by the National Commission that the

orders passed by the President of the State Commissionsitting singly without the junction of any other member is

contrary to Section 14(2) of the Consumer Protection Act,

1986. Such an order is invalid [Raj Kumar Mangla Vs.R.S. Singh (1995)]4. DAMAGESIn Patel Roadways Ltd. Vs. Birla Yahama Ltd. AIR 2000

the Supreme Court has held that Consumer Forums have jurisdiction

to entertain complaints against carriers regarding loss of or damage to

goods entrusted to carrier for transportation.


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