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Consumer Protection Act

Here are the six consumer rights that were violated in Reena's case: 1. Right to Safety - The adulterated ghee posed a risk to Reena's health and safety. 2. Right to be Informed - The shopkeeper did not disclose that the ghee was adulterated. 3. Right to Choose - Reena was not given the choice to choose pure desi ghee. 4. Right to be Heard - Reena's concerns about adulteration were not addressed. 5. Right to Seek Redressal - Reena had to get the ghee tested to prove adulteration and seek compensation. 6. Right to Consumer Education - Reena

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125 views35 pages

Consumer Protection Act

Here are the six consumer rights that were violated in Reena's case: 1. Right to Safety - The adulterated ghee posed a risk to Reena's health and safety. 2. Right to be Informed - The shopkeeper did not disclose that the ghee was adulterated. 3. Right to Choose - Reena was not given the choice to choose pure desi ghee. 4. Right to be Heard - Reena's concerns about adulteration were not addressed. 5. Right to Seek Redressal - Reena had to get the ghee tested to prove adulteration and seek compensation. 6. Right to Consumer Education - Reena

Uploaded by

divya kalra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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CONSUMER PROTECTION

ACT
1986
Content
s• Introduction to CPA
• Objective of CPA

• Rights of Consumer

• Redressal Agency

• Councils

• Case Studies
State The Rights Of Consumers?
Sirajuddin purchased a car for Rs.15 lacs from an automobile company
and found that its airbags were defective. After many complaints with
the company that went unheard, he filed a case in the District Forum.
He was not satisfied with the orders of the District Forum. He then
appealed before the State Commission and on being dissatisfied with
the orders of State Commission, he appealed before the National
Commission. Sirajuddin was not satisfied with the orders of National
Commission. Suggest him the highest authority where he could appeal
against the decision of the National Commission.
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 on 5th December, 1986.

• The Consumer Protection Act 1986 is a social welfare legislation

which was enacted as a result of widespread consumer protection


movement.
Objective
•The main objective of CPA is to provide speedy and simple redressal
to consumer disputes.

•It is one of the benevolent pieces of legislation intended to protect the


consumers at large from exploitation
Consumer Protection Act is significant to
A) Immovable Goods
B) Movable Goods
C) Particular Goods and Services
D) All Goods and Services
Jolly bought an Anti-dandruff Shampoo of a reputed company which
claimed to contain zinc pyrithione (ZPTO) to control dandruff. When the
product did not show the promised results even after regular use for
two months she discussed the problem with his aunt Dolly who is a
dermatologist. Dolly told him ZPTO is an anti-fungal agent, meaning
that only dandruff caused by a fungal infection could be ‘cured.’ But to
Jolly’s surprise, this condition was not mentioned in the shampoo case.
In the context of the above case:
Identify and explain the consumer right being violated in the above
case.
List any two other consumer rights.
Who is a Consumer? Sec. 2 (1)
(d)
Any person who:
• Buys any goods for a consideration which has been paid or will be

paid.
• Hires or avails any service for a consideration which has been paid or

will be paid.
• It does not include a person who obtains goods for resale or
any commercial purpose
Rights of
Consumer
Right to
Safety

Right to
Consumer Right to be
Informed
Education Rights of
Consumer

Right to Right to be
Redressal Heard
Redressal
Agency
The aims and objectives of the Act are achieved by

District Forum

State Commission

National Commission.
Vasvi purchased a bottle of pickle from the local grocery shop. The
information provided on the bottle was not clear. She fell sick on
consuming it. She filed a case in the District Forum under the
Consumer Protection Act and got the relief.
Identify the important aspect neglected by the marketer in the above
case.
Explain briefly the functions of the aspect identified in (a) above.
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 which ever 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 Rs.20 Lacs.
A District Forum shall have the
powers
I. To remove the defect pointed out by the appropriate laboratory
from the goods in question
II. To replace the goods with new goods of similar
description which shall be free from any defect
III. To return to the complainant the price, or as the case
may be, the charges paid by the complainant
IV. 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
State
Commission
•It is established by SG by notification

•It shall have jurisdiction to entertain complaints where the value of the
goods or services and compensation, if any, claimed exceeds Rs. 20
Lacs but does not exceed Rs.1 Crore and appeals against the orders of
any District Forum within the State.
National
Commission
• It shall consist of a person who is or has been a Judge of the
Supreme Court, as 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

• Every member of the National commission shall hold office for a


term of 5 years or up to the age of 70 years which ever is earlier.

• It 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.
Council
s
Central Council

State Council

District Council
The District Consumer Protection
Council
•It shall consist of the following members, namely:-

(a)the Collector of the district (by whatever name called), as its


Chairman; and
(b)such number of other official and non-official members as may
be prescribed by the SG

• The District Council shall meet at least twice in an year.

• The procedure will be set by SG


The State Consumer Protection
Council
• It shall consist of the following members, namely:

(a)the Minister in-charge of consumer affairs in the SG as its


Chairman;
(b) such number of other official or non-official members
as may be
prescribed by the State Government.

• The State Council shall meet at least twice in an year.

• The procedure will be prescribed by the SG


The Central Consumer Protection
Council
• It shall consist of the following members, namely

• (a) the Minister in charge of Consumer Affairs in the CG as


its Chairman, and
(b) such number of other official or non-official members as may
be prescribed.

• The Council shall meet at least once an year.


In which forum is it compulsory to have a female member?
A) National commission
B) State commission
C) District commission
D) All of the above
Case
Studies
CASE I

• Chetanprakash vs. MET Institute of computer Science

CASE II

• Krishnan Kumar Bajaj vs. PepsiCo.

CASE III

• Dharamdas Pritiani vs. HDFC Ergo General


Insurance Company Ltd.
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.
Krishnan Kumar Bajaj vs.
PepsiCo.
• Bajaj, a resident of Ahmedabad, had purchased a Lay’s packet on 28

June 2010 and sensed its being underweight.

• He wrote twice to the manufacturer. While the first letter got no

response, in reply to the second, it offered Bajaj gifts hamper which


he refused.

• Bajaj approached CERS, who wrote to PepsiCo.


• Company refused to accept their fault and gave several unsatisfactory

clarifications

• CERS took the issue to the Consumer Disputes Redressal Forum,

which also gave a favourable ruling

• The company asked for the bill of purchase which Bajaj could not

produce
Judgement
• The Court overruled the argument of his not having a bill

• CERS requested the court to direct PepsiCo to deposit Rs.2,00,000 in

the Consumer Welfare Fund and award Rs.2,75,250 as punitive


damages.
• And also to give Rs.75,000 as costs of litigation.
Dharamdas
Pritiani vs.
HDFC Ergo
General Insurance
Company Ltd.
• Complainant was advised by the doctors to undergo treatment upon

suffering from a heart ailment in 2008-09.

• He then underwent a rare treatment called Enhanced


External Counter Pulsation (EECP).

• The treatment was completed in 45 sittings, cost Rs 118,000.

• HDFC Ergo rejected the complainant's claim saying the


treatment was experimental and not recognized by the insurer.
• The insurance company also claimed that a policy holder must be

hospitalized for at least 24 hours for reimbursement.

• The complainant claimed that the treatment was recognized by the

United States, and 40 hospitals in India use EECP method to treat


heart patients.

• The forum said the documents furnished by Pritiani support his claim.

Complainant was a heart patient, who underwent a treatment, which


did not require hospitalization, thus he should be reimbursed Rs
118,000.
Judgement
• Consumer redressal forum of India's financial capital Mumbai has

directed HDFC Ergo General Insurance Company Ltd to pay Rs


118,000 towards compensation for refuting a policyholder's claim.

• The forum has also directed the insurer to pay an additional

compensation of Rs 5,000 for mental agony.


Reena purchased one litre of pure desi ghee from a shopkeeper. After
using it, she had a doubt that it is adulterated. She sent it for a
laboratory test which confirmed that the ghee is adulterated. State any
six reliefs available to Reena, if she complains and the consumer court
is satisfied about the genuineness of the complaint.

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