THE CONSUMER PROTECTION ACT , 1986

PRESENTED TO :Ms. Mani Parti

PRESENTED BY :Chiransh Goyal Madhu ROLL NO - 8118,8119

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

INTRODUCTION

Caveat emptor rule ( let the buyer beware) in sale of goods act of 1930, sprout the root of consumer interest protection. United nations passed resolution of consumer protection in april 1985 In India 1986 was the enactment of consumer protection act Aimed at providing simple, quick, and cheaper protection of consumers interest The act was amended in 2002 and the amendments came into force w.e.f. 15th March 2003.

FEATURES OF THE ACT

Applies to all type of goods and services unless specifically exempted by the Union Government Covers all the sectors whether private , public or cooperative Applies to whole of the state Except the state of Jammu and Kashmir Provides an additional remedy besides those which are available under other laws such as Contract Act , Sales of Goods Act .

A consumer or any registered voluntary organization or the government can file a complaint

It enshrines the consumer s seeking rights related to safety , choice , education , redressal ,information and heard . It empowers the consumer s seeking discontinuance of certain unfair and restrictive trade practices and withdrawal of hazardous goods from the market

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 pressure cookers can cause serious injury , if there is any manufacturing 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 be informed by the producer about the quality , quantity , purity , standard and price of goods so as to protect

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 use aggressive selling techniques to sell a particular product 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 .

( V ) Right to be heard : This right states that consumers should have the right to express their views , ideas and reaction about the product . There should be appropriate consumer forums where consumers should have an opportunity to 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 or redress for small claims wherever necessary . The right to seek redressal against unfair trade practices or restrictive trade practices or unscrupulous exploitation of consumers .

EXAMPLES OF CONSUMER EXPLOITATION IN INDIA

(Based on judicial Decisions and Newspapers Reports )

A well- known manufacturer of sunflower oil inserted a fullpage 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 of noodles containing 80 grams only .

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 not depend entirely on the seller . Cash memo - A consumer must insist on cash memo, cash memo acts as a proof of purchase . Every seller is bound to give a cash memo . Cautious reliance on advertisement Consumers should not believe the advertisements blindly . He should compare the uses of the product given in the advertisement copy and actual product .

Quality conscious Consumer must look at standard quality certification marks like ISI , AGMARK , etc. Environment Consumers should respect the environment by using environment friendly products and avoiding pollution. Redressal of grievances Consumers should file complaints for the redressal of genuine grievances .

IMPORTANT DEFINITIONS
1. 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 ) ]

2. WHO CAN FILE A COMPLAINT

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 .

3. WHAT IS A COMPLAINT ?
Complaint means any allegation in writing made by a

complainant that :I. An unfair trade practice or a restrictive trade practice has been adopted 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 ;

III. The services hired or availed of or agreed to be hired or availed 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

a) In contravention of any standards relating to safety of such goods as required 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.

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 has bought such goods for consideration. is beneficiary of services with the approval of person who has hired the services for consideration.

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)

Any fault, imperfection or shortcoming in the quality, quantity, potency, 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

7. UNFAIR TRADE PRACTICE

It means trade practices which a trader, for the purpose of promoting the sale, use or supply of any goods or for the provision of any service , adopts any unfair method or unfair or deceptive practice

(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; 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;

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.

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 and protect the rights of the consumers such as, the right to be protected against the marketing of goods and services which are hazardous to life and property;

the right to be assured, wherever possible, access to a variety of goods and services at competitive prices; the right to be heard and to be assured that consumer's interests will 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 or restrictive trade practices or unscrupulous exploitation of consumers; and the right to consumer education

 Procedure for meetings of the Central Council

The Central Council shall meet as and when necessary, but at least one meeting of the council shall 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

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 and protect 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

 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. The objects of every District Council shall be to promote and protect within the district the rights of the consumers.

Objective of District Council

Meetings:Number of meetings :- not less then 2 meetings Time and place :- as decided by the chairman

CONSUMER DISPUTES REDRESSAL AGENCIES

1) DISTRICT FORUM
Established 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, possess a bachelor's degree from a recognised university,

 be a person of ability, integrity and standing, and have adequate 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 Forum where the value of goods or services and the compensation claimed is less than rupees 25 lakhs .

2) STATE COMMISSION
This is established by the State Government in the state Each State Commission shall consist of A person who is or has been a Judge of a High Court, appointed by 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 same qualifications which has been stated in the District Forum . Only those complaints can be filed where the value of goods or services and compensation claimed is between rupees 25 lakhs and 1 crore. Also , appeals against the orders of any District Forum can be filed before the State Commission within a period of thirty days from the date of the order .

3. NATIONAL COMMISSION
This is established by the central government . National Commission shall consist of a person who is or has been a judge of the Supreme Court , to be appointed by the Central Government ( in consultation with the Chief Justice of India ) , who shall be its President ; not less than four , and not more than such number of members , as may be prescribed , and one of them shall be woman , who shall have the same qualifications as stated in District Forum . All complaints pertaining to those goods and services and compensation whose value is more than rupees 1 crore can be filed .

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

CASE LAWS ON THE ACT.

1. PECUNIARY JURISDICTION In Krishan Dass Chaurasia Vs. State Bank of India(1995) the total 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 was rejected by the State Commission. The Complainant could seek the remedy from the District Forum. Therefore, jurisdiction, which is vested in a district Forum cannot be created for State Commission by merely exaggeration of a claim .

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 Opposite party. It was held that the evidence by affidavit was legal and sufficient to support the complainants case.

3. PRESIDENT SITTING SINGLY It has been held by the National Commission that the orders passed by the President of the State Commission sitting 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. DAMAGES

In 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.