CONSUMER

PROTECTION ACT
PROFESSIONAL PRACTICE -II

AJAL | SONAL | PRATHIMA

 TABLE OF CONTENTS
01 --WHO ARE CONSUMERS?
--CONSUMER PROTECTION?
--INTRODUCTION TO CPA

02 --OBJECTIVE
--SCOPE
--NEED OF CPA

03 --RIGHTS OF CONSUMER
--COMPLAINTS RELATED TO CPA

04 --COUNCILS & REDRESSAL AGENCY

-- CASES AND EXAMPLES
-- CONCLUSIÓN

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 WHO IS A CONSUMER????
● Consumer refers to any individuals or households
that use goods and services generated within the
economy.
● Consumer is defined as someone who acquires
goods or services for direct use or ownership rather
than for resale or use in production and
manufacturing.

WHAT IS CONSUMER PROTECTION????

● Consumer protection means safeguarding the interest and rights
of consumers.
● In other words, it refers to the measures adopted for the protection
of consumers from unscrupulous and unethical malpractices by
the business and to provide them speedy redressal of their
grievances
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INTRODUCTION TO CONSUMER PROTECTION ACT
⤞ The Consumer Protection Act, 1986 (COPRA) was an Act by the
Parliament of India enacted in 1986 to protect the interests of
consumers in India. It was replaced by the Consumer Protection Act,
2019.
⤞ It was made for the establishment of consumer councils and other
authorities for the settlement of consumer grievances and matters
connected with it.
⤞ This Act is applied to all goods and services and It shall come enforce
through central govt. by notifications for different provisions of this
act
⤞ The Indian Consumer Protection Act is a social welfare legislation and
has been designed to avoid technicalities, procedural delays,
procedural requirement, court fees and costs.
⤞ The Government of India and its Ministry of Consumer Affairs, opened
a nodal organisation called the Department of Consumer Affairs to
protect the consumers from frauds and unfair treatment.
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CONSUMER PROTECTION ACT,1986
● In Order To Provide for better protection of the interests of the consumer the
Consumer Protection Bill,1986 was introduced in the Lok Sabha .The act was
passed in Assembly in October 1986 and came into force on December 24, 1986.
The statute on the right was made before this COPRA act.
● The Consumer Protection Act 1986 is a social welfare legislation which
was enacted as a result of widespread consumer protection movement.
● By July 1997 all provisions come into operation.
● The object of legalisation, as the preamble of the act proclaims, is ‘for
better protection of the interests of consumers’.

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OBJECTIVES

--To promote and protect the --To provide speedy and --This Act may be called the
rights of consumers. simple redressal to consumer Consumer Protection Act,
--To be established Consumer disputes by establishing 1986. It extends to the whole
Protection Council at the consumer courts of India except the State of
Central and State level. Jammu and Kashmir

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SCOPE OF CONSUMER ★ Requirements to performance, composition, contents, design, construction, finish, packaging of a
PROTECTION ACT consumer product.
★ Requirements as to kind, class, grade, dimensions, weights, material.
★ Requirements as to the methods of sampling, tests and codes used to check the quality of the
products.
★ Requirements as to precautions in storage, transporting and packaging.
★ Requirements that a consumer product be marked with or accompanied by clear and adequate safety
warnings or instructions, or requirements respecting the form of warning or instructions.

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 NEED OF CONSUMER PROTECTION ACT

The necessity of adopting measures to protect the interest of

consumers arises mainly due to the helpless position of the
consumers.

Social Responsibility:
★ It is the moral responsibility of the business to serve the
interest of consumers.
★ Keeping in line with this principle, it is the duty of producers
and traders to provide right quality and quantity of goods at
fair prices to the consumers.

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Increasing Awareness:
★ The consumers are becoming more mature and conscious of their rights
against the malpractices by the business.
★ There are many consumer organisations and associations who are making
efforts to build consumer awareness.

Consumer Satisfaction:
★ Father of the Nation Mahatma Gandhi had once given a call to
manufacturers and traders to “treat your consumers as god”.
Consumers satisfaction is the key to success of business.
★ Hence, the businessmen should take every step to serve the interests of
consumers by providing them quality goods and services at reasonable
price.
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RIGHTS OF CONSUMERS ↠ Right to Safety: To be protected against the marketing of goods or the
provision of services that are hazardous to health and life.
↠ Right to Information: To be protected against dishonest or misleading
advertising or labeling and the right to be given the facts and information
needed to make an informed choice.
↠ Right to Choice: To choose products at competitive prices with an
assurance of satisfactory quality.
↠ Right to representation: To express consumer interests in the making and
execution of government policies.

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RIGHTS OF CONSUMERS
↠ Right to Seek Redress: To be compensated for misrepresentation,
shoddy goods or unsatisfactory services.
↠ Right to Consumer Education: To acquire the knowledge and skills
necessary to be an informed customer.
↠ Right to Basic Needs: which guarantee survival, adequate food, clothing,
shelter, health care, education and sanitation.
↠ Right to health environment: To live and work in an environment which is
neither threatening nor dangerous and which permits a life of dignity and
well-being.

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COMPLAINTS UNDER CPA WHO CAN FILE A COMPLAINT WHAT COMPLAINTS CAN BE WHERE TO FILE A
UNDER CPA?? FILED UNDER CPA?? COMPLAINT UNDER CPA??
1. A consumer 1. An unfair trade practice or a 1. If the value of goods and services
2. A recognized voluntary restrictive trade practice adopted claimed does not exceed ₹1 C,
consumer association whether by any trader. the complaint can be filed in
the consumer is a member of that 2. Price charged in excess. District Forum.
association or not. 3. Goods or service which are 2. If the value of goods and services
3. The Central or any State hazardous to life. claimed does not exceed ₹10 C,
Government. 4. If the goods purchased by a the complaint can be filed in
4. One or more consumer having consumer is defective. State Commision.
same interest. 3. If it exceeds ₹10 C, the complaint
5. Legal heir or representative in can be filed in National
case of death of a consumer Commision.
6. Parent or legal guardian in case
the consumer is minor

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CONSUMER PROTECTION COUNCIL
CENTRAL COUNCIL DISTRICT COUNCIL

0101 02 02 03 03

STATE COUNCIL

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 CENTRAL COUNCIL
★ The Central Consumer Protection Council
★ It shall consist of the following members, namely
○ the Minister in charge of Consumer Affairs in the CG as its Chairman, and
○ such number of other official or non-official members as may be prescribed.
★ The Council shall meet at least once an year.

STATE COUNCIL
★ The Minister incharge of consumer affairs in the State Government who shall be it’s
Chairman.
★ Such number of other official or non-official members representing such interests as may be
prescribed by the State Government.
★ Such number of other official or non-official members, not exceeding ten, as may be
nominated by the central government.

DISTRICT COUNCIL
★ 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
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 CONSUMER DISPUTES REDRESSAL AGENCY
Following agencies are established by government for consumer dispute redressal process.

DISTRICT FORUM NATIONAL COMMISSION

0101 02 02 03 03

STATE COMMISSION

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DISTRICT FORUM
● It shall consist of a person who is or has been or is qualified to be a District
Judge as its President,2 other members, one of whom shall be a woman.
● Every member of the District Forum shall hold office for a term of 5 years or
up to the age of 65 years whichever is earlier
● It shall have jurisdiction to entertain complaints where the value of the
goods or services and the compensation, if any, claimed does not exceed
₹20 Lacs.
● A District Forum shall have the powers:
○ To remove the defect pointed out by the appropriate laboratory from
the goods in question
○ To replace the old goods with new goods of similar description
which shall be free from any defect
○ To return to the complainant price, or as the case may be, the charges
paid by the complainant
○ To pay such amount as may be awarded by it as compensation to the
consumer for any loss or injury suffered by the consumer due to the
negligence of the opposite party.
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STATE COMMISSION
● A Consumer Disputes Redressal Commission to be known as the "State
Commission" established by the State Government in the State.
● A person who is or has been a Judge of a High Court, appointed by the State
Government, who shall be its President.
● Each State Commission shall have jurisdiction to entertain complaints where the
value of the goods or services and compensation, if any, claimed exceeds Rs. 20
Lakhs but does not exceed Rs.1 Crore and appeals against the orders of any
District Forum within the State.

NATIONAL COMMISSION
● The ‘ National Commission’ shall consist of a person who is or has been a Judge of the
Supreme Court, shall be its President.
● Not less than 4 and not more than such number of members as may be prescribed and
one of whom shall be a woman with similar qualifications as required in the case of
appointment as a member to a District Forum or a State Commission.
● Every member of the National commission shall hold office for a term of 5 years or up
to the age of 70 years whichever is earlier.
● The National Commission shall have jurisdiction to entertain complaints where the
value of the goods or services and compensation, if any, the claim exceeds Rs. 1 Crore
and appeals against the orders of any State Commission. 16
 CASES AND
EXAMPLES OF
CONSUMER
PROTECTION ACT

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 CASE- 1
Chetan Prakash vs. MET Institute of computer Science
● Prakash was in final year of BSc when he sought admission in the institute
for MCS.
● The institute had stipulated that in order to pursue the MCS course,
student has to clear III year exams.
● He deposited the fees before declaration of result.
● Seeing that he had failed in exams, he tried to withdraw the admission and
requested for a refund, to which the institute did not responded.
● Finally, he sent a legal notice to the institute, and then lodged a complaint
in the consumer forum.

JUDGEMENT:THE INSTITUTE HAD TO PAY

THE COMPLAINANT, CHETAN PRAKASH, RS
32,000 AS COMPENSATION FOR HARASSMENT
ALONG WITH THE COURSE FEE OF
RS.62,200. 18
CASE-2
How the factual matter of the case arose?
1. The case dates back to the last century, when in 1991, Ashok
Iron Works, a private company that manufactures iron applied
for obtaining electricity from the state’s power generation
company – the Karnataka Power Transmission Corporation
(hereinafter KTPC) for commencing its iron production.
2. However, despite paying charges and obtaining confirmation
for the supply of 1500 KVA energy in February 1991, the actual
supply did not begin until ten months later, in November 1991.
3. This delay led to incurring of losses by the private company.
This prompted a complaint to the Belgaum Consumer Dispute
Forum and later Karnataka High Court, under the Consumer
Protection Act 1986 for the delay in supply of electricity.

JUDGEMENT: THE COURT ALLOWED THE COMPLAINT ON THE TWO GROUNDS THAT THE APPLICANT –
ASHOK IRON WORKS PRIVATE LIMITED, CAN SUE AS A PERSON, AND THAT SUPPLY OF
ELECTRICITY, IF FOUND DEFICIENT CAN BE A FIT GROUND FOR CLAIMING COMPENSATION. THE
SUPREME COURT SENT THE CASE BACK TO DISTRICT FORUM FOR RETRIAL ON THESE GROUNDS.
 CASE-3
1. In this landmark judgement concerning
educational institutions that dates back to the year
2005, a student was asked to deposit lump sum
fees of ₹18,734 as fees for coaching for medical
entrance examinations for the next two years.
2. This was deposited by the student in two
complete instalments within the first six months of
classes.
3. However, the student realised later that the
quality of the coaching institute was substandard,
and therefore sought a refund for the remaining
period, which was refused by the coaching institute.

JUDGEMENT: BY STATE CONSUMER FORUM, IT WAS MENTIONED THAT NOT JUST THE BALANCE
AMOUNT OF FEE, BUT ALSO A HIGHER COMPENSATION FOR LEGAL COSTS AS WELL AS THE PAIN
THAT THE STUDENT HAD TO UNDERTAKE, COULD BE AVAILED IN SUCH CASES. 20
CONCLUSIÓN
➺ The Act is for the protection of the interest and rights of the consumers and this spirit has been reflected in
its provisions.
➺ CPA was implemented to protect the consumers from unfair trade practices of organizations to protect the
interest of consumers.
➺ CPA solves the disputes of consumers and to provide safety to consumers, the main purpose behind this act
is to protect consumers and various authorities have been established to protect the right of consumers.
➺ The right to obtain information on the quantity, consistency, purity, strength, and quality of products and
services is the rights of the customer.
➺ CPA has broadened the reach of India’s consumer protection regime.
➺ The act definitely marks a significant step in improving, expanding and strengthening consumer protection.
➺ Consumer Protection Act were designed to ensure fair competition and the free flow of truthful information
in the marketplace.
➺ The act is a social welfare legislation which was enacted as a result of widespread consumer protection
movement.

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Thank You!!!