Consumer protection act

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1. Consumer Protection Act 1986

2. Introduction: With the advent of the 20th century due to rapid industrialization and multifaceted development in India after the Independence, there appeared a flood of consumer goods and services in the Indian Market, which almost changed the relationship between the consumer and the trader . Lack of consumer awareness, illiteracy, poverty, etc. further led to the exploitation of consumers. Technological advancements in the field of media led to flooding of advertisements of goods and services further worsening the otherwise grim situation. Globalisation and liberalisation of trade and business has resulted in many products and services being available to the consumers. Growth in economy has resulted in increase in the purchasing power of the middle class section , which is the largest segment of the population. This has necessitated giving high priority for the protection of the consumers and promotion of responsible consumer movement in the country Modern technological growth & complexities of the sellers techniques, existence of a vast army of middlemen and unethical and untruthful advertisements have aggravated the situation of consumer exploitation

3. Introduction: For the welfare of the public, the glut of adulterated and sub-standard articles in the market have to be checked. In spite of various provisions providing protection to the consumer and providing for stringent action against adulterated and sub-standard articles in the different enactments like Code of Civil Procedure, 1908 , the Indian Contract Act, 1872 , the Sale of Goods Act, 1930 , the Indian Penal Code, 1860 , the Standards of Weights and Measures Act, 1976 and the Motor Vehicles Act, 1988 , very little could be achieved in the field of Consumer Protection. Though the Monopolies and Restrictive Trade Practices Act, 1969 and the Prevention of Food Adulteration Act, 1954 have provided relief to the consumers yet it became necessary to protect the consumers from the exploitation and to save them from adulterated and sub-standard goods and services and to safe guard the interests of the consumers. 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 . It extends to the whole of India except the State of Jammu and Kashmir

4. The Act: Consists of 4 Chapters: Chapter I Preliminary Chapter II Consumer Protection Council Chapter III Consumer Disputes Redressal Agencies Chapter IV Miscellaneous .

5. Objectives: It seeks to promote and protect the rights of consumers such as- The right to be protected against marketing of goods which are hazardous to life and property ; The right to be informed about the quality, quantity, potency, purity, standard and price of goods to protect the consumer against unfair trade practices ; The right to be assured, wherever possible, access to an authority of goods at competitive prices ; The right to be heard and to be assured that consumers interests will receive due consideration at appropriate forums; The right to seek Redressal against unfair trade practices or unscrupulous exploitation of consumers ; and The right to consumer education

6. Salient Features: These objects are sought to be promoted & protected by the Consumer Protection Council to be established at the Central and State level. To provide speedy & simple Redressal to consumer disputes, a quasi-judicial machinery is sought to be setup at the district, State & Central levels. These quasi-judicial bodies will observe the principles of natural justice and have been empowered to give relief of a specific nature and to award, wherever appropriate, compensation to consumers. Penalties for noncompliance of the orders given by the quasi-judicial bodies have also been provided. Chapter-II of the Consumer Protection Act, 1986 provides for establishment of central consumer protection council and state consumer protection council while Chapter III of the Act, provides for establishment of three tier consumer disputes redressal agencies namely ( i ) the district form , (ii) the state commission , (iii) the national consumer disputes redressal commission

7. Complaint: To initiate an action under the Consumer Protection Act, 1986, what is required is a complaint from the complainant . The term ‘ complaint ’ has been defined in section 2(1)(d) of the Act. According to clause (b) of section 2(1) of the Consumer Protection Act, a complaint can be made by any of the following: ( i ) a consumer or (ii) any voluntary consumer associatio n registered under the Companies Act, 1956, or under any other law for the time being in force; or (iii) the Central Government or any State Government , who or which makes a complaint; or (iv) one or more consumers , where there are numerous consumers having the same interest; (v) In case of death of a consumer, his legal heir or representative .

8. Complaint: means any allegation in writing made by a complainant that- an unfair trade practice or a restrictive trade practice has been adopted by any trader or service provider. the goods bought by him or agreed to be bought by him suffer from one or more defects ; the services hired or availed of or agreed to be hired or availed of by him suffer from deficiency in any respect; a trader or the service provider, 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 goods which will be hazardous to life and safety when used, are being-offered for sale to the public- (a) in contravention of any standard relating to safety of such goods as required to be complied 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;) services which are hazardous or likely to be hazardous to 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 .

9. Consumer : "consumer" means any person who- buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose ; or (ii) hires or avails any services for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such services other than the person who hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person; but does not include a person who avails of such services of any commercial purpose.

10. The Central Consumer Protection Council : According to Sec 4 The Central Government shall, by notification, establish with effect from such date as it may specify in such notification, a Council to be known as the Central Consumer Protection Council (hereinafter referred to as the Central Council). The Central Council shall consist of the following members, namely (a) the Minister in charge of the consumer affairs in the Central Government, who shall be its Chairman , and (b) such number of other official or non-official members representing such interests as may be prescribed. Sec 5 gives the Procedure for meetings of the Central Counci l.- (1) The Central Council shall meet as and when necessary, but at least one meeting of the Council shall be held every year . (2) 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

11. The Central Consumer Protection Council : Sec 6 gives the Objects of the Central Council: - The objects of the Central Council shall be to promote and protect the rights of the consumers such as,- (a) the right to be protected against the marketing of goods and services which are hazardous to life and property ; (b) the right to be informed about the quality, quantity, potency, purity, standard and price of goods or services, as the case may be so as to protect the consumer against, unfair trade practices ; (c) the right to be 'assured, wherever possible, access to a variety of goods and services at competitive prices ; (d) the right to be heard and to be assured that consumer's interests will receive due consideration at appropriate Fora ; (e) the right to seek redressal against unfair trade practices or restrictive trade practices or unscrupulous exploitation of consumers; and (f) the right to consumer education .

12. The State Consumer Protection Council : According to Sec 7 The State Government shall, by notification, establish with effect from such date as it may specify in such notification, a Council to be known as the Consumer Protection Council . The State Council shall consist of the following members, namely : (a) the Minister incharge of consumer affair s in the State Government who shall be its Chairman ; (b) such number of other official or non-official members representing such interests as may 'be prescribed by the State Government . (c) such number of other official or non-official members, not exceeding ten , as may be nominated by the Central Government .) The State Council shall meet as and when necessary but not less than two meetings shall be held every year . The State Council shall meet at such time and place as the Chairman think fit and shall observe such procedure in regard to the transaction of its business as may be prescribed by the State Government. Sec 8: Objects of the State Council:- Same as of central council.

13. The District Consumer Protection Council : According to Sec 8A : The State Government shall establish for every district, by notification, a council to be known as the District Consumer Protection Council with effect from such date as it may specify in such notification. The District Consumer Protection Council shall consist of the following members, namely – (a) the Collector of the district, who shall be its Chairman ; and (b) such number of other official and non-official members representing such interests as may be prescribed by the State Government . The District Council shall meet as and when necessary but not less than two meetings shall be held every year . The District Council shall meet as such time and place within the district as the Chairman may think fit and shall observe such procedure in regard to the transaction of its business as may be prescribed by the State Government.) Sec 8B: Objects of the District Council:- Same as of central council and state council.

14. Three Tier Consumer Redressal Bodies : The three-tier machinery consists of the District Forum, the State Commission and the National Commission. Section 9 of the Consumer Protection Act, 1986 provides a three-tier quasi-judicial machinery at the district, State and National level to enforce the provisions of the Act. At the district level there is a ‘District Forums’ to entertain consumer complaints where the value of goods or services and compensation does not exceed twenty lacs , and at the State level there is a ‘State Commission’ to deal with the complaints where the claim exceeds rupees 20 lacks but does not exceed rupees one crore . At the national level there is a ‘National Commission ’ for complaints exceeding rupees one crore .

15. District Forum : At the district level, each district of the State shall have a Consumer Disputes Redressal Forum to be known as ‘ District Forum ’. Each District forum is to be established by the State Government by notification to be published in Official Gazette. COMPOSITION OF THE DISTRICT FORUM The District Forum is to consist of a President and two members (one of whom shall be a woman). The appointments have to be made by the State Government on the recommendation of a selection committee constituted under sub-section (1A) of Section 10 of the Act. the selection committee shall consist of the following : President of the State Commission - Chairman Secretary Law Department of the State - Member Secretary in-charge of the Department - Member dealing with consumer affairs in the State

16. District Forum : TENURE AND JURIDICTION Under the existing law all the appointments of members are valid for a period of five years or upto age of 65 years whichever is earlier. Provided that a member shall be eligible for re-appointment for another term of five years, subject to condition that he fulfils the qualifications and other conditions for reappointment mentioned in clause (b) of sub-section. Reappointment is also made on the basis of the recommendations of the selection committee. Jurisdiction means the extent of the authority to administer justice not only with reference to the subject matter of suit but also to the territorial and pecuniary limits. PECUNIARY JURISDICTIONS Section-11(1) of the Act provides pecuniary jurisdiction of the District Forum. It states that the District Forum has the jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed does not exceed rupees twenty lacs . The pecuniary jurisdiction depends upon the amount of relief claimed and not upon the value of the subject-matter, nor upon relief granted.

17. District Forum : Section 11(2) of the Act provides that a complaint shall be instituted in a district forum within the local limits of whose jurisdiction The opposite party or each of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides or carries on business or has a branch office , or personally works for gain or; Any of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides, or carries on business or has a branch office, or personally works for gain provided that in such case either the permission of the District Forum is given, or the opposite parties who do not reside or carry on business or has a branch office or personally work for gain as the case may be, acquiesce in such institution. The cause action, wholly or in part, arises

18. State commission : Section 16(1) of the Consumer Protection Act provides that the State Commission consists of: A person who is or has been a judge of a high court , appointed by the state government who shall be its president ; Provided that no appointment under this clause shall be made except after consultation with the chief justice of the High Court. Not less than two , and not more than such number of members, as may be prescribed, and one of whom shall be a woman , who shall be not less than 35 years of age, possess a bachelor’s degree and be persons of ability integrity and standing and have adequate knowledge or experience of at least ten years in dealing with problems relating to Economics, Law, Commerce, Accountancy, Industry, Public Affairs or Administration. The appointment of the President and the members are made by the State Government. The appointment of the President shall be made only after consultation with the Chief Justice of the High Court of the State. In the case of appointment of the member, a selection committee shall be constituted by the State Government for recommending the name of members. the selection committee shall consist of the following : President of the State Commission - Chairman Secretary Law Department of the State - Member Secretary in-charge of the Department - Member dealing with consumer affairs in the State

19. State commission : TENURE AND JURISDICTION A member of the State Commission shall hold office for a term of five years or upto the age of 67 years whichever is earlier . Provided that a member shall be eligible for re-appointment for another term of five years or upto age of 67 years whichever is earlier, subject to condition that he fulfils the other conditions for reappointment mentioned in clause (b) of sub-section(1) and such appointment is made on the basis of the recommendations of the selection committee. Section 17 of the Act empowers the State Commission to exercise three types of jurisdiction, namely: ( i ) Original jurisdiction, (ii) Appellate Jurisdiction, and (iii) revisional jurisdiction.

20. State commission : ORIGINAL JURISDICTION: PECUNIARY ( i ) Pecuniary :- Section 17(a)( i ) of the Act provides that the State Commission can certain complaints where the value of the goods or services and compensation, if any, claimed exceeds twenty lacs of rupees but does not exceed one crore . The pecuniary jurisdiction depends upon the amount of relief claimed (including compensation) and not upon the value of the subject-matter nor upon the relief granted. (ii) Territorial :- According to section 17(2) a complaint shall be instituted in a state commission within the limits of whose jurisdiction, (a) the opposite party or each of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides or carries on business or has a branch office, or personally works for gain or; (b) any of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides, or carries on business or has a branch office, or personally works for gain provided that in such case either the permission of the District Forum is given, or the opposite parties who do not reside or carry on business or has a branch office or personally work for gain as the case may be.

21. State commission : APPELLATE JURISDICTION According to section 17(a)(ii) of the Act, the State Commission shall have jurisdiction to entertain appeals against the order of any District Forum within the State. Under section 15 of the Act, any person aggrieved by an order made by the District Forum may prefer an appeal against such order to the state commission within a period of thirty days from the date of orders. However, the state commission may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that there was sufficient cause for not filing it within that period. However, no appeal by a person, who is required to pay any amount in terms of an order of the District forum, shall be entertained by the State Commission unless the appellant has deposited fifty percent of that amount or 25 thousands whichever is less.

22. State commission : REVISIONAL JURISDICTION The State Commission under Section 17(b) of the Act can exercise its revisional jurisdiction in any consumer dispute which is pending before or has been decided by any District Forum within the State where it appears that such district forum: has exercised a jurisdiction not vested in it by law , or has failed to exercise a jurisdiction so vested, or has acted in exercise of its jurisdiction illegally or with material irregularity. The State Commission can exercise its power in revision only under the aforesaid situations. The commission has only to see whether the requirements of law have been duly complied with by the District Forum whose order is subject of revision and whether the irregularity as to failure or exercise of jurisdiction is such as to justify interference with the order. Any error by the District Forum which does not have any relation to jurisdiction cannot be made a ground for revision.

23. National commission : The National Commission is the apex body at the centre to settle the consumer disputes under the Act. Section 20 of the Consumer Protection Act lays down that (a) a person who is or has been Judge of the Supreme Court to be appointed by the Central Government who shall be its president ; (b) not less than four , and not more than such number of members, as may be prescribed, and one of them shall be woman and who shall be persons of integrity and standing and have adequate knowledge or experience of, at least 10 years in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or administration. The others qualification and disqualifications are the same which are those of members of district forum or state commission. The President of the National Commission shall be appointed by the Central Government only after consultation with the Chief Justice of India. Selection Committee consisting of the following, namely a person who is a judge of the Supreme Court Chairman to be nominated by the Chief Justice of India Secretary in the Department of Legal Member Affairs in the Government of India is a member Secretary of the Department dealing with Member Consumer affairs in the Government of India is a member .

24. National commission : TENURE Sub-section (3) of Section 20 provides that every member of the National Commission shall hold office for a term of five years or upto the age of seventy years , whichever is earlier. Provided that a member shall be eligible for re-appointment for another term of five years or upto the age of 70 years, whichever is earlier, subject to the condition that he fulfils the qualifications and other conditions for appointment. JURISDICTION OF THE NATIONAL COMMISSION The National Commission has been vested with three types of jurisdiction namely ( i ) Original jurisdiction, (ii) Appellate jurisdiction and (iii) Revisional jurisdiction.

25. National commission : ( i ) Original Jurisdiction :- According to Section 21(a)( i ) of the Act, the National Commission shall have jurisdiction to entertain complaints where the value of the goods or services and compensation , if any claimed, exceeds one crore of rupees . Its jurisdiction extends to the whole of India. (ii) Appellate Jurisdiction: - Under Section 21(a)(ii ) of the Act, the National Commission shall have jurisdiction to entertain appeals against the order of any State Commission. An appeal may be preferred to the National Commission within period of thirty days from the date of the order of the State Commission. However no appeal by a person, who is required to pay any amount in terms of an order of state commission, shall be entertained by the national commission unless the appellant has deposited fifty percent of the amount or Rs. 35000/- whichever is less.

26. National commission : (iii) Revisional Jurisdiction : - The revisional jurisdiction has been vested in the National Commission under Section 21(b) of the Act. The revisional jurisdiction may be exercised where it appears to the National Commission that a State Commission has exercised a jurisdiction not vested in it by law , or has failed to exercise jurisdiction so vested, or has acted in the exercise of its jurisdiction illegally or with material irregularity . The National Commission in revision should not-interfere if there is no error of jurisdiction or any material irregularity or improper exercise of jurisdiction The National Commission has the power to call for the records and pass appropriate orders in any consumer dispute which is pending before or has been decided by any State Commission

27. National commission : ADMINISTRATIVE CONTROL Section 24B of the Act provides that the National Commission shall have administrative control over all the State Commissions in the following matters namely: calling for periodical returns regarding the institution, disposal and pendency of cases; issuance of instructions regarding uniform procedure in the hearing of the matters, prior service of copies of documents produced by one party to the opposite parties, furnishing of English translation of judgments written in any language, speedy grant of documents; generally overseeing the functioning of State Commissions or district fora to ensure that the objects and purposes of the Act are best served without in any way of interfering with their quasi judicial freedom. The state commission shall have administrative control over all the district fora within its jurisdiction in all matters referred to in sub-section

28. Grievance redressal procedure : (1) The District Forum shall, on admission of a complaint , if it relates to any goods ,- (a) refer a copy of the complaint to the opposite party mentioned in the complaint directing him to give his version of the case within a period of thirty days or such extended period not exceeding fifteen days as may be granted by the District Forum; (b) if the opposite party denies or disputes the allegations contained in the complaint, or omits or fails to take any action to represent his case within the time, the District Forum shall proceed to settle the consumer dispute as below: (c) where the complaint alleges a defect in the goods which cannot be determined without proper analysis or test of the goods, the District Forum shall obtain a sample of the goods from the complainant, seal it and authenticate it and refer the sample so sealed to the appropriate laboratory with a view to finding out whether such goods suffer from any defect alleged in the complaint or from any other defect and to report its findings thereon to the District Forum within a period of forty-five days of the receipt of the reference or within such extended period as may be granted by the District Forum;

29. Grievance redressal procedure : (d) before any sample of the goods is referred to any appropriate laboratory, the District Forum may require the complainant to deposit to the credit of the Forum such fees as may be specified, for payment to the appropriate laboratory for carrying out the necessary analysis or test in relation to the goods in question; (e) the District Forum shall remit the amount deposited to its credit to the appropriate laboratory and on receipt of the report from the appropriate laboratory, the District Forum shall forward a copy of the report along with such remarks to the opposite party ; (f) if any of the parties disputes the correctness of the findings of the appropriate laboratory, or disputes the correctness of the methods of analysis or test adopted by the appropriate laboratory, the District Forum shall require the opposite party or the complainant to submit in writing his objections in regard to the report made by the appropriate laboratory; (g) the District Forum shall thereafter give a reasonable opportunity to the complainant as well as the opposite party of being heard as to the correctness or otherwise of the report made by the appropriate laboratory and also as to the objection made in relation thereto and issue an appropriate order

30. Grievance redressal procedure : (2) the District Forum shall, if the complaint received by it under section 12 relates to goods in respect of which the procedure specified in subsection (1) cannot be followed , or if the complaint relates to any services ,- (a ) refer a copy of such complaint to the opposite party directing him to give his version of the case within a period of thirty days or such extended period not exceeding fifteen days as may be granted by the District Forum; (b) where the opposite party, on receipt of a copy of the complaint, denies or disputes the allegations contained in the complaint, or omits or fails to take any action to represent his case within the time given by the District Forum, the District Forum shall proceed to settle the consumer dispute, where the complainant fails to appear on the date of hearing before the District Forum, the District Forum may either dismiss the complaint for default or decide it on merits. Every complaint shall be heard as expeditiously as possible and endeavour shall be made to decide the complaint within a period of three months from the date of receipt of notice by opposite party where the complaint does not require analysis or testing of commodities and within five months if it requires analysis or testing of commodities.

31. Grievance redressal procedure : For the purposes of this section, the District Forum shall have the same powers as are vested in a civil court under Code of Civil Procedure, 1908 while trying a suit in respect of the following matters, namely:- ( i ) the summoning and enforcing the attendance of any defendant or witness and examining the witness on oath, (ii) the discovery and production of any document or other material object producible as evidence , (iii) the reception of evidence on affidavits, (iv) the requisitioning of the report Qf the concerned analysis or test from the appropriate laboratory or from any other relevant source. (v) issuing of any commission for the examination of any witness, and (vi) any other matter which may be prescribed.

32. Grievance redressal procedure : At present there are 632 District Forums, 35 State Commissions with the National Consumer Disputes Redressal Commission(NCDRC) at the apex. As per information made available by NCDRC, out of 38,73,772 cases filed in consumer fora at three-tier level since inception, 35,24,221 cases (almost 91%) have been disposed off. To ensure speedy disposal of cases, State Government advised to avoid any delay in appointment of President and Members in Consumer Fora . In order to dispose of the pending cases , Circuit Benches from National Commission frequently visits the State. So far National Commission has held Circuit Bench sitting at Hyderabad, Bengaluru , Chennai, Pune , Kolkata, Ernakulam , Ahmadabad and Bhopal.

33. Total number of Consumer Complaints Filed/ Disposed since inception Under Consumer Protection Act : As on 4/12/2012 SI. No. Name of Agency Cases filed since inception Cases disposed of since inception Cases Pending %of total Disposal Remarks 1. National Commission 78471 68241 10230 86.96% 2. State Commissions 589771 495717 94054 84.05% 3. District Forums 3205530 2960263 245267 92.35% TOTAL 3873772 3524221 349551 90.98%

34. Consumer Protection (Amendment) Bill 2011 : Consumer Protection Act was earlier amended thrice by Act no.34 of 1991 , Act no.50 of 1993 and Act no.62 of 2002 . Amendment made in 1991 was mainly to incorporate provisions for the quorum of District Forum , appointing persons to preside over State Commissions/District Forums , in case of absence of President to enable the court function uninterruptedly. In 1993 , the Act was again amended to address the inadequacies in the coverage of the main Act. It aimed to plug loopholes and enlarge the scope of areas covered and interest more power to the redressal agencies under the Act. In 2002 , Act was again amended to facilitate quicker disposal of complaints , enhancing the capability of redressal agencies, strengthening them with more powers streamlining the procedure and widening the scope of the Act to make it more functional and effective. In 2011, the Act was again amended with the main objectives of ( i ) Widening the scope and amplifying the provisions of the Act. (ii) Facilitating quicker disposal of complaints. (iii) Rationalising the qualifications and procedure of selection of the Presidents and Members of Consumer Fora . (iv) Strengthening penal provisions/enforcement orders of Consumer Fora

35. Provisions & Sections of the Act : 1. Short title, extent, commencement and application 2. Definitions 3. Act not in derogation of any other law 4. The Central Consumer Protection Council 5. Procedure for meetings of the Central Council 6. Objects of the Central Council 7. The State Consumer Protection Councils 8. Objects of the State Council 9. The District Consumer Protection Council 10. Objects of the District Council. 11. Establishment of Consumer Disputes Redressal Agencies . 12. Composition of the District Forum 13. Jurisdiction of the District Forum 14. Manner in which complaint shall be made 15. Procedure on receipt of complaint 16. Finding of the District Forum 17. Jurisdiction of the State Commission 18. Procedure applicable to State Commissions, 18A Vacancy in the office of the President

36. Provisions & Sections of the Act : 19. Appeals 20. Composition of the National Commission 21. Jurisdiction of the National Commission 22. Power of and procedure applicable to the National Commission 23. Appeal 24 Finality of orders 24A. Limitation Period 24B. Administrative control 25. Enforcement of orders by the Forum, the State Commission or the National Commission 26. Dismissal of frivolous or vexatious complaints 27. Penalties 28. Protection of action taken in good faith 29. Power to remove difficulties 29A. Vacancies or defects in appointment not to invalidate orders. 30. Power to make rules 31. Laying of rules

37. THANK YOU…

38. Introduction: The industrial revolution and the development in the international trade and commerce has led to the vast expansion of business and trade, as a result of which a variety of consumer goods have appeared in the market to cater to the needs of the consumers and a host of services have been made available to the consumers like insurance, transport, electricity, housing, entertainment, finance and banking . A well organised sector of manufacturers and traders with better knowledge of markets has come into existence, thereby affecting the relationship between the traders and the consumers making the principle of consumer sovereignty almost inapplicable. The advertisements of goods and services in television, newspapers and magazines influence the demand for the same by the consumers though there may be manufacturing defects or imperfections or short comings in the quality, quantity and the purity of the goods or there may be deficiency in the services rendered. In addition, the production of the same item by many firms has led the consumers, who have little time to make a selection, to think before they can purchase the best.