Consumer Protection Act by Dr. Vimarsha Bhatkalkar.pptx

Consumer protection is the practice of safeguarding buyers of goods and services against unfair practices in the market. It refers to the steps adopted for the protection of consumers from corrupt and unscrupulous malpractices by the sellers, manufacturers, service providers, etc. and to provide remedies in case their rights as a consumer have been violated.
In India, the protection of the rights of the consumers is administered by the Consumer Protection Act, 2019.
The Consumer Protection Act, 2019 was introduced to replace the Consumer Protection Act, 1986.
The new Act contains various provisions which incorporate the challenges faced by modern and technology-dependent consumers. The Act also contains various provisions for the protection and promoting the rights of the consumers.

1. Consumer protection act 1986 Name: Dr. Vimarsha Bhatkalkar Designation: 2 nd year PG Scholar Department of Rasashastra and Bhaishajya Kalpana Institute: KLE Ayurveda Mahavidyalaya and Research Centre, Belagavi, Karnataka 25-11-2024 Consumer Protection Act 1986 1 SUBJECT SEMINAR

2. Introduction Who is a consumer? Why protect the consumer? Consumer Protection Act History of Consumer Protection Act Objectives Features of Consumer Protection Act Consumer Rights Importance of Consumer Protection Act Scope of Consumer Protection Act 25-11-2024 Consumer Protection Act 1986 2 CONTENTS Need of Consumer Protection Act Responsibility of Consumer Filing of Complaint Remedies Three tier consumer grievances machinery under the consumer protection act, 1986 and their jurisdiction Few cases Conclusion

3. 25-11-2024 Consumer Protection Act 1986 3 INTRODUCTION Consumer protection is the practice of safeguarding buyers of goods and services against unfair practices in the market. It refers to the steps adopted for the protection of consumers from corrupt and unscrupulous malpractices by the sellers, manufacturers, service providers, etc. and to provide remedies in case their rights as a consumer have been violated. In India, the protection of the rights of the consumers is administered by the Consumer Protection Act, 2019. The Consumer Protection Act, 2019 was introduced to replace the Consumer Protection Act, 1986. The new Act contains various provisions which incorporate the challenges faced by modern and technology-dependent consumers. The Act also contains various provisions for the protection and promoting the rights of the consumers.

4. This Photo by Unknown Author is licensed under CC BY-SA 25-11-2024 Consumer Protection Act 1986 4 WHO IS A CONSUMER? A consumer is someone who buys goods or services for personal use, not for resale or business purposes. A “consumer” under this Act will include person Who buys any goods for personal use or avails services for consideration. Who uses such goods or services with the permission of the buyer Who obtains goods or avail services on deferred payment basis Who obtains goods for self-employment.

5. 25-11-2024 Consumer Protection Act 1986 5 WHY PROTECT THE CONSUMER Protect consumers from unfair trade practices like overpricing, adulteration, and misleading advertisements. Safeguard against hazardous goods and defective services that may harm health, safety, or property. Encourage ethical business practices by holding sellers accountable for quality, pricing, and warranties. Enable consumers to make informed choices and have access to remedies in case of grievances. Build confidence in the market by ensuring transparency and addressing disputes effectively. To strengthen the economy i.e a well-protected consumer fosters healthy competition, improving product quality and innovation.

6. 25-11-2024 Consumer Protection Act 1986 6 Hence, There was An Act to protect consumer interests by setting up Consumer Councils and authorities to resolve disputes and handle related matters. (1) This Act may be called the Consumer Protection Act, 1986. (2) It extends to the whole of India except the State of Jammu and Kashmir. (3) Expressly provided by the Central Government by notification, this Act shall apply to all goods and services.

7. 25-11-2024 Consumer Protection Act 1986 7 “CONSUMER IS THE KING OF THE MARKET’” “Sellers market” is now “Buyers market” With industrial development leading to the influx of various goods and services in the market, Consumers have to protected!

8. 25-11-2024 Consumer Protection Act 1986 8 CONSUMER PROTECTION ACT An Act to provide for better protection of the interests of consumers and for that purpose to make provision for the establishment of consumer councils and other authorities for the settlement of consumers' disputes and for matters connected therewith. (24 th DECEMBER 1986)

9. 25-11-2024 Consumer Protection Act 1986 9 CONTD…. The Act came into effect on December 24, 1986, after being passed by the Indian Parliament and signed by the President of India. It was later modified, with the changes taking effect in March . Covers both tangible goods and intangible services, collectively referred to as “products.” Applies to purchases made from traders or service providers (referred to as “companies”). The act can apply to any consumer who uses the product for non-commercial activities, the only exception being use of it to earn his livelihood. In other words, the act excludes commercial customers fully, but includes individual domestic customers, groups customers, societies organizations.

10. 25-11-2024 Consumer Protection Act 1986 10 HISTORY OF CONSUMER PROTECTION ACT The act was passed in Lok Sabha on 9th December, 1986 and it came into force from 1 July 1987. Rajya Sabha passed on 10th December, 1986 and assented by the President of India on 24th December, 1986 and was published in the Gazette of India on 26th December, 1986.

11. 25-11-2024 Consumer Protection Act 1986 11 OBJECTIVES To protect the consumers from immoral activities and unfair trade practices of the traders. To protect and promote the rights of the consumers. To set up "Consumer Protection Councils" to educate the consumers and to make them aware of their rights. To redress disputes of the consumers, and matters connected with them, speedily. To make provision for Quasi Judicial machinery to control marketing.

12. 25-11-2024 Consumer Protection Act 1986 12 FEATURES OF CONSUMER PROTECTION ACT Applies to all goods, services and unfair trade practices unless specifically exempted by the Central Government. It covers all sectors whether private, public or co-operative. It provides for establishment of consumer protection councils at the central, state and district levels to promote and protect the rights of consumers and a three tier quasi judicial machinery to deal with consumer grievances and disputes.

13. 25-11-2024 Consumer Protection Act 1986 13 CONSUMER RIGHTS 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 exploitation of consumers and Right to consumer education.

14. 25-11-2024 Consumer Protection Act 1986 14 IMPORTANCE OF CONSUMER PROTECTION ACT In developing countries like India, consumers are largely unorganized, and there are only a limited number of consumer organizations actively working to safeguard consumer interests. The Consumer Protection Act empowers these organizations by granting them the right to represent consumers and file cases on their behalf, ensuring better protection and support for consumer rights. It spreads awareness so that consumer can know about the various redressal agencies where they can approach to protect their interests. Consumers often face exploitation as businesses use unfair practices to cheat and take advantage of them. Consumer protection helps shield people from such exploitation.

15. 25-11-2024 Consumer Protection Act 1986 15 SCOPE OF CONSUMER PROTECTION ACT Product Quality & Design: Standards for performance, composition, design, construction, finish, and packaging. Specifications: Requirements for kind, class, grade, dimensions, weight, and material. Testing & Quality Checks: Methods for sampling, testing, and quality checks. Storage & Transport: Guidelines for safe storage, transportation, and packaging. Safety Warnings: Clear safety warnings or instructions on products or packaging.

16. 25-11-2024 Consumer Protection Act 1986 16 NEED OF CONSUMER PROTECTION ACT The need to protect consumers arises because they are often in a vulnerable position. 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. Increasing Awareness- The consumers are becoming more mature and conscious of their rights against the malpractices by the business. There are many consumer organizations and associations who are making efforts to build consumer awareness.

17. 25-11-2024 Consumer Protection Act 1986 17 CONTD…. Consumer Satisfaction - Consumer satisfaction is essential for business success. Therefore, business owners should prioritize the interests of consumers by offering quality goods and services at fair prices. Survival and Growth of Business - For a business to survive and grow, it must prioritize the interests of consumers. Due to globalization and heightened competition, any business that engages in malpractices or fails to improve its services for consumers will struggle to remain competitive and sustain. Principle of Trusteeship - Resources are provided by society, and businesses act as trustees of these resources. Therefore, they should utilize these resources effectively for the benefit of society, including consumers.

18. 25-11-2024 Consumer Protection Act 1986 18 RESPONSIBILTY OF A CONSUMER The consumer must select the product according to his preferences , he must file a complaint if he is not satisfied with the quality of product. The consumer should not blindly believe on the words of seller . He must insist on getting full information on quality, quantity, utility, price etc. Consumers should prioritize quality and avoid compromising on it . When purchasing goods or services, they should check for recognized quality certifications such as the ISI mark, Agmark, ISO, Woolmark , and similar standards.

19. 25-11-2024 Consumer Protection Act 1986 19 CONTD…. To file a complaint, the consumer require proof of purchase: a bill or receipt, serves as evidence that the consumer has paid for the goods or services.

20. 25-11-2024 Consumer Protection Act 1986 20 PROCEDURE OF COMPLAINT The complaint must be filed within 2 years of the cause of action (the date when the issue occurred or came to notice). It can be filed at the Consumer Dispute Redressal Forum (commonly referred to as the District Forum) based on: The location where the seller resides or conducts business. The location where the transaction or incident occurred. ELIGIBILITY FOR FILING A COMPLAINT

21. 25-11-2024 Consumer Protection Act 1986 21 PROCEDURE OF COMPLAINT No legal or complex documentation is needed. The complaint can be written in simple language on plain paper. An affidavit or stamp papers are not required. Three copies of the complaint along with supporting documents should be submitted. Details to be Included in the Complaint: Name and Complete Address of the Complainant. Name and Complete Address of the Opposite Party/Parties (the seller or service provider) Date of Purchase/Service Obtained Amount paid Details of Goods or Service: (the type of goods and quantity to be specified properly) STEPS TO FILE A COMPLAINT

22. 25-11-2024 Consumer Protection Act 1986 22 PROCEDURE OF COMPLAINT Nature of the Complaint (Specify): Unfair trade practice. Defective goods. Deficient services. Overcharging or excess price. Attach copies of all relevant documents such as bills, receipts, or vouchers, emails, letters, etc. (if any). The complaint can be sent by post or submitted in person. It can be submitted directly by the complainant or through an authorized agent ( a representative). There is no lawyer required for filing a complaint. No fees required to pay while filing a complaint.

23. 25-11-2024 Consumer Protection Act 1986 23 REMEDIES The forums/Commissions can order the following relief: Removal of defects from the goods. Replacement of the goods. Refund of the price paid. Award of compensation for the loss or injury suffered. Removal of defects or deficiencies in the services. Discontinuance of unfair trade practices/restrictive trade practices and directing not repeating them. Withdrawal of the hazardous foods from being offered for sale. Award for adequate costs to practice

24. 25-11-2024 Consumer Protection Act 1986 24 THREE TIER CONSUMER GRIEVANCES MACHINERY UNDER THE CONSUMER PROTECTION ACT, 1986 AND THEIR JURISDICTION DISTRICT FORUM STATE FORUM NATIONAL FORUM

25. 25-11-2024 Consumer Protection Act 1986 25 DISTRICT FORUM Members are appointed by the State Government. Two Members are required. One must be a woman. The State Forum could entertain complaints where the value of goods/services did not exceed ₹ 5 Lakhs The forum examines the complaint, and if necessary, sends the goods for testing in a laboratory. Provides judgment on compensation or other reliefs. Appeal must be filed within 30 days, with a deposit of ₹25,000 or 50% of the penalty amount, whichever is lower. If dissatisfied with the judgment, the aggrieved party can appeal to the State Commission.

26. 25-11-2024 Consumer Protection Act 1986 26 STATE FORUM Members are appointed by the State Government. Two Members are required. One must be a woman. The District Forum could entertain complaints where the value of goods/services did not exceed ₹ 5 Lakhs The forum examines the complaint, and if necessary, sends the goods for testing in a laboratory. Addresses appeals from the District Forum. Appeal must be filed within 30 days, with a deposit of ₹35,000 or 50% of the penalty amount, whichever is lower. If dissatisfied, the party can appeal to the National Commission.

27. 25-11-2024 Consumer Protection Act 1986 27 NATIONAL FORUM Members are appointed by the Central government. Four Members are required. One must be a woman. The National Commission entertains cases where the value of goods/services exceeds ₹20 Lakhs. The forum examines the complaint, and if necessary, sends the goods for testing in a laboratory. Addresses appeals from the State Commission. Appeal must be filed within 30 days. If dissatisfied, the party can appeal to the Supreme Court.

28. 25-11-2024 Consumer Protection Act 1986 28 HIERARCHY OF APPEALS DISTRICT FORUM STATE FORUM SUPREME COURT NATIONAL FORUM

29. 25-11-2024 Consumer Protection Act 1986 29 F EW CASES CASE 1: V.N. Shrikhande Vs. Anita Sena Fernandes Case:  Anita Sena, a nurse by profession, underwent a stone removal surgery from her gall bladder. Despite the surgery, she continued to experience pain. Nine years later, it was discovered that a gauge was left in her abdomen by the surgeon, necessitating a second surgery. She filed charges for negligence and demanded compensation of Rs. 50 lakhs from the doctor, ultimately taking the case to the Supreme Court. Judgment: The Supreme Court rejected the case because the nurse took too long to raise her complaint and did not provide enough evidence. The court said that since she worked in the same hospital where the surgery was done, she had plenty of chances over nine years to discuss her problems with the doctor. Instead, she kept taking painkillers and didn’t act sooner. Because of this delay and her inaction, the court decided she was not eligible for any compensation.

30. 25-11-2024 Consumer Protection Act 1986 30 CONTD…. CASE 2: Nizam Institute of Medical Sciences v Prasanth S. Dhananka & Ors Case:  Prasanth S. Dhananka , a 20-year-old engineering student, was admitted to Nizam Institute of Medical Sciences (NIMS) with acute chest pain. Tests revealed a tumor, but its malignancy could not be confirmed. He underwent surgery to remove the tumor, after which he developed paralysis, losing control over his lower limbs and suffering complications such as urinary tract infections and bedsores. The family accused NIMS and the State of Andhra Pradesh of gross negligence, highlighting that no pre-operative tests were conducted, no neurosurgeon was present during the surgery and the consent was only for tumor excision, yet ribs and blood vessels were removed, leading to paralysis. Judgment: The Supreme Court found significant negligence on the part of the doctors and the hospital. The court awarded damages worth Rs. 1 crore to compensate for present and future medical expenses and the suffering endured by the patient.

31. 25-11-2024 Consumer Protection Act 1986 31 CONCLUSION The Consumer Protection Act of 1986 has been a cornerstone in safeguarding the rights of consumers in India. By addressing grievances related to unfair trade practices, medical negligence, and insurance disputes, it has empowered consumers and upheld the principles of justice and accountability. Landmark judgments under this Act have not only delivered justice but also established significant precedents, fostering trust and promoting ethical practices across industries. The Act remains a vital tool in protecting consumer interests and ensuring a fair marketplace.