consumer protection act.pptx

ui

1. 1 CONSUMER PROTECTION ACT, 1986

2. CONTENT C onsumer Protection Act ,1986 Definitions Related To CPA Consumer Rights Nature and Scope of Remedies Available to Consumers Case Studies Conclusion References 2

3. Consumer Protection Act Consumer protection laws are designed to ensure fair competition and the free flow of truthful information in the marketplace. The laws are designed to prevent businesses that engage in fraud or specified unfair practices from gaining an advantage over competitors and may provide additional protection fo r all types of consumers. Consumer Protection laws are a form of government regulation which protects the interests of consumers . 3

4. BRIEF HISTORICAL BACKGROUND On 24 December 1986 Govt. of India enacted the Consumer Protection Act 1986 Act is claimed to have been designed after an in depth study of consumer protection laws and arrangements in UK,USA, Australia and New Zealand. Act applies to whole of India except The state of Jammu and Kashmir The act was amended in 2002 and the amendments came into force on 15 th March 2003. 4

5. OBJECTIVES To provide better protection of interests of consumers. To provide establishment of consumer councils and other authorities. To empower the consumer councils and other authorities to settle consumers disputes and matters Ensure Rights of Consumers and provide Remedies for deceived Consumers 5

6. SALIENT FEATURES OF CPA The Act applies to all goods and services unless specially exempted by Union Government It covers all sectors – public, private or cooperative Provisions of the Act are compensatory in nature . It envisages establishment of consumer protection councils at the central and state levels. Provisions of this act are in addition to and not in derogation of the provisions of any other act. 6

7. GUIDELINES FOR THE CONSUMER PROTECTION Protect from hazard to health & safety; Promote & protect economic interests; Provide adequate information for informed choice; Consumer education; Provide effective redressal 7

8. DEFINITIONS RELATED TO CONSUMER PROTECTION ACT 8

9. WHAT IS A COMPLAINT ? “ Complaint ” means any allegation in writing made b y 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 off by him suffer from deficiency in any respect; 9

10. WHAT IS A COMPLAINT? 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: fixed by or under any law for the time being in force; displayed on the goods or any package containing such goods; displayed on the price list exhibited by him by or under any law for the time being in force; agreed between the parties . 10

11. WHAT IS A COMPLAINT? Goods which will be hazardous to life and safety when used are being offered for sale to the public – 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; If the trader could have known with due diligence that the goods so offered are unsafe to the public; 11

12. WHAT IS A COMPLAINT? 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. 12

13. WHO IS COMPLAINANT ? A Complainant means any of the following and having made a complaint: A consumer ; Any voluntary consumer association registered under the companies act , 1956 or under any other law . The Central Government or any State Government One or more consumers, where there are numerous having the same interest. In case of death of consumer , his legal heir or representative . 13

14. WHO IS A CONSUMER ? Any person who buys goods or avails services for consideration Consideration may be fully paid, partially paid or fully promised to be paid or partially promised to be paid Any body who uses the goods or services with the consent of the consumer 14

15. WHO IS A CONSUMER ? Legal heir of consumer in case of death of consumer Does not include any person who buys goods for resale or commercial purpose and services for commercial purpose However any person who buys goods for commercial use but exclusively for his livelihood by means of self employment is a consumer. 15

16. WHAT IS A SERVICE? “Service” means service of any description, which is made available to potential users and includes, but not limited to the provisions of the facilities in connection with 1 ) banking 2) financing 3) insurance 4) transport 5 ) processing 6) supply of electrical Energy or other energy 7 ) boarding or lodging or both 8) house construction 9 ) entertainment 10) amusement or 11 ) the purveying or new or other information But does not include the rendering of any service free of charge or under a contract of personal service 16

17. CONSUMERS NEED PROTECTION AGAINST Unfair trade practice Restrictive trade practice Defects Deficiencies 17

18. CONSUMERS NEED PROTECTION AGAINST UNFAIR TRADE PRACTICE Adopting unfair methods or deception to promote sale, use or supply of goods or services e.g. Misleading public about price (e.g. bargain price when it is not so). Charging above MRP printed. Misleading public about another’s goods or services. Falsely claiming a sponsorship, approval or affiliation. Offering misleading warranty or guarantee. 18

19. CONSUMERS NEED PROTECTION AGAINST RESTRICTIVE TRADE PRACTICE Price fixing or output restraint re: delivery/flow of supplies to impose unjustified costs/restrictions on consumers. depriving consumers of free choice, fair competition. Delaying in supplying goods/services leading to rise in price. Requiring a consumer to buy/hire any goods or services as a pre-condition for buying/hiring other goods or services. 19

20. WHAT IS A DEFECT ? Fault Imperfection Shortcoming In the Quality Potency Purity Or Standards 20 Which is required to be maintained by or under any law for the time being in force

21. WHAT IS A DEFICIENCY ? Fault Imperfection Shortcoming Or Inadequacy In the Quantity Standard and Manner of performance 21 Which is required to be maintained by or under any law for the time being in force

22. THE CONSUMER RIGHTS 22

23. RIGHT TO SAFETY The right to be protected against marketing of goods and services which are hazardous to life and property. 23

24. Right to Safety Though about 83% respondents believe that certification and warnings are an important means to ensure right to safety. But 40% of respondents do not refer to any safety or quality certifications such as ISI, ISO, Agmark, Codex etc. before making a purchase. ISI is the most known certification Consumers suggested to make mandatory certification of Acid, Paints, Mosquito Coils, Beverages and Electronic Items. 24

25. RIGHT TO BE INFORMED The right to be informed about quality, quantity, potency, purity, standard and price of goods and services. 25

26. RIGHT TO BE INFORMED Awareness Regarding Consumer Protection Related Laws (%) 26

27. RIGHT TO CHOOSE It means whenever possible ,access to variety of goods and services at competitive prices. 27

28. RIGHT TO BE HEARD The consumer’s interest will receive due consideration at appropriate forums. 28

29. RIGHT TO SEEK REDRESSAL It means right to seek redressal against unfair practices or restrictive trade practices or unscrupulous exploitation of consumers. 29

30. 30 Right to Redressal 61% normally voice their complaints to seller, at first point When it come to actual situation - 93% consumers have never made a formal complaint Only 0.3% have approached consumer forum for grievance redressal, 78% have rated the grievance redressal process as “difficult”. 75% cases were not completely redressed while only 18% of such unresolved cases were taken to a higher authority for redressal. 67% cases were not redressed within stipulated time frame Only 18% consumers are fully satisfied with the existing redressal mechanism Only 28% of those who know about external redressal mechanism believe that it is easily accessible by a common man About 89% aggrieved consumers are represented through advocates in SCDRC and DCDRC.

31. RIGHT TO CONSUMER EDUCATION It means the right to acquire the knowledge and to be an informed consumer . 31

32. 32 Right to Consumer Education Only 42% respondents have heard about consumer rights 78% of such respondents heard about consumer rights from television (TV) Almost 50% of respondents are aware of “Jago Grahak Jago Campaign”. 80% of such respondents learnt about the campaign from Television. Close to 50% of those who know about “Jago Grahak Jago” campaign have reported to benefit directly or indirectly from the campaign.

33. RIGHT TO A HEALTHY ENVIRONMENT To live and work in an environment which is non-threatening to the well-being of present and future generations . 33

34. RIGHT TO A HEALTHY ENVIRONMENT Only 9% respondents are aware about certifications and initiatives. Awareness about such certifications is largely among residents of southern (18%) and northern (12%) region, while eastern region has lowest level of awareness (2.5%). About 28% respondents those who know about such products always tend to buy such products About 63% are willing to pay some extra money to buy such products 34 Awareness regarding environmental friendly certifications

35. 35 Nature and Scope of Remedies Available to Consumers

36. 36 3-Tier Redressal Agency The aims and objectives of the Act are achieved by the constitution and creation of 3-tier judicial machinery depending upon the amount of loss involved District Forum State Commission and National Consumer Disputes redressal Commission . NATIONAL COMMISSION STATE COMMISSION DISTRICT FORUM

37. JURISDICTION Forum / Commission Where the value of the goods or services and the compensation, if any claimed, District Forum Below Rs . 20 lakhs State Commission Rs. 20 lakhs and above but not exceeding One Crore National Commission Above One Crore Besides, State and National Commission have appellate jurisdiction also. 37 Power or right of a legal or political agency to exercise its authority over a person ,subject matter, or territory.

38. 38 Consumer Protection Followed In India Lok Adalats: The Consumer can approach the Adalat with his grievance. The issue is discussed and decision is taken on the spot. This saves time and money Lok Adalat has become a speedy, effective and economical redressal system.

39. FILING OF COMPLAINTS A complaint may be filed by: The consumer to whom the goods are sold or services are provided Any recognised consumer association One or more consumers with same interest The central government or state government 39

40. FILING OF COMPLAINTS The Fee for filing the Complaint for the district forum is as under Sr. No. Value of Goods / Service and Compensation Amount of Fees 1) Upto Rs. 1 lakh rupees Rs. 100 2) Rs. 1 Lakh and above but less than Rs.5 lakhs Rs. 200 3) Rs. 5 Lakhs and above but less than Rs. 10 lakhs Rs. 400 4) Rs. 10 lakhs and above but less than Rs. 20 lakhs Rs. 500 40

41. FILING OF COMPLAINTS The Fee for filing the Complaint for the STATE COMMISSION is as under: Sr. No. Value of Goods / Service and Compensation Amount of Fees 1) Matter related Upto Rs. 20-50 lakh rupees Rs. 2000 2) Matter related b/w Rs 50 lakhs- Rs 1crore Rs. 4000 * Matter above Rs 1 crore are filed under NATIONAL COMMISSION Rs. 5000 41

42. MODE OF PAYMENT The fees shall be paid by Cross demand Draft drawn on a nationalized bank or through crossed Indian postal order drawn in favour of the Registrar of the Sate Commission and payable at the place of the State Commission (w.e.f. 5.3.2004.) 42

43. 43 Information Required for a Complaint Name and full address of complainant Name and full address of opposite party Description of goods and services Quality and quantity Price Date & proof of purchase Nature of deception Type of redressal requested

44. 44 COMPLAINT FORMS

45. APPEAL shall be filed within thirty days. Delay in filing appeal may be condoned if there is sufficient cause. 45

46. LIMITATION PERIOD Within two years from the date on which the cause of action has arisen. 46

47. 47 Penalty Under Section 27 CPA According to CPA ,where a trader or the complainant fails to comply with an order made by the relevant consumer forum , such person is liable to a punishment with imprisonment for a term which is not less than 1 month but which may extend to 3 years or with fine of not less than 2000 INR but which may extend to 10000 INR with both

48. 48 LIMITATION The District Forum, the State Commission or the National Commission shall not admit a complaint unless it is filed within two years from the date on which cause of action has arisen.

49. WHEN COMPLAINT CAN’ T BE FILED? # A complain on the behalf of the public in which consumer is unidentifiable. # A Complain by an individual on behalf of general public. # An unregistered association can’t file a complaint # A Complain can’t be filed,after expiry of the date. 49

50. 50 REMEDIES WITH WHICH CONSUMERS ARE PROVIDED Depending on the nature of case , consumer Court may give the order for one or more remedies which are as under: * Removal of defects/deficiency from goods *Replacement of goods * Refund of price * Compensation for any loss or damage Order of discontinuing unfair/restricted trade practice * Order for stopping the marketing of hazardous goods

51. 51 ALERT BEFORE BUYING ANY GOODS OR SERVICE, BE SATISFIED ABOUT THE QUALITY OR QUANTITY. MAKE IT CLEAR THAT ISSUE OF RECEIPT IS MANDATORY FOR ANY PURCHASE OF Rs.200 AND ABOVE. IN ANY PACKAGED MATERIAL, THE MONTH & YEAR OF MANUFACTURE, NET QUANTITY or WEIGHT & M.R.P is MUST.

52. CASE LAWS ON THE ACT Doctor ordered to pay Rs 2 lakh as damages to patient     KANPUR: District consumer protection forum on Monday directed a child specialist, Dr RC Gupta, to pay Rs 2 lakh to complainant Prince, son of Santosh Kumar, within 30 days.   The complainant had sought a sum of Rs 19 lakh as damages caused by the wrong treatment given Dr Gupta.   A resident of Bidhuna town in Auraiya district, the complainant stated that he was suffering from fever in December 2001 and on advice of local doctors he had visited the clinic of child specialist RC Gupta situated at Chunniganj on January 14, 2002. The doctor examined him and prescribed medicines and advised him to visit clinic again for check-up after seven days. The complainant claimed that prescribed medicine did not provide any relief. When he went again to the doctor on stipulated time and explained his condition. The doctor enhanced the dose of medicine prescribed in old prescription..   52

53. CASE LAWS ON THE ACT .   The complainant consulted the child specialist of Etawah and he stated that wrong treatment was being given to him. He was suffering from meningitis. On January 29, he again consulted Dr Gupta and he referred him to a home. During examination doctors, observed there that he was suffering from meningitis and brain TB and so far he received wrong treatment. Due to wrong treatment, the complainant got handicapped and lost his eyesight.   The doctor appeared before the forum and admitted that he had treated him on the basis of external symptoms. He did not return for follow-up check in time and spent his time in consulting other doctors. On January 29, his condition was critical and the doctor had advised the patient to get admitted at the nursing home where meningitis and brain TB was detected.  Forum president LB Singh and member Sumanlata Sharma observed that doctor was negligent towards his duties and his act comes under the preview of dereliction of duty, therefore he was liable to pay a sum of Rs 2 lakh as damages to the complainant. 53

54. CONCLUSION A person may be consumer of goods, or services. When I purchase a fan, a gas stove or a refrigerator, I could be the consumer of goods. When I open a bank account, take an insurance policy, get my car repaired, I could be the consumer of services. The consumer protection Act, 1986 tries to help a consumer when for example, the goods purchased are defective or the services rendered to him are subject to so deficiency. Prior to the consumer Protection Act, 1986 for any consumer complaint one had to go to an ordinary Civil Court. He had to engage a lawyer, pay the necessary fee, and be harassed for years or decades before any outcome, positive or negative, was there in that litigation. Under the Consumer Protection Act, no Court fee has to be paid and the decision on the complaint is much quicker, as the Court can evolve a summary procedure in disposing off the complaint. 54