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CONSUMER

PROTECTION ACT
Consumer Protection Act
Enacted by the Parliament in 1986
To provide for better protection of interest
of consumers.
To make provisions for the establishment
of Consumer Councils and other
authorities for the settlement of consumer
disputes.
Who is a Consumer?
Consumer is one who
Buys any goods for a consideration and
includes a hire-purchaser;
Any user of such goods for consideration but
excludes one, who obtains for re-sale or for
commercial purposes;
Hires a service for consideration and includes
a beneficiary of such service, if availed of with
the approval of the hirer.
Deficiency - Service
Deficiency means
a fault, imperfection, shortcoming or inadequacy in
quality, nature, or manner of performance than is
required.
Service includes
service in connection with banking, financing,
insurance, transport, processing, supply of electrical
and other energy, boarding or lodging, housing
construction, entertainment, amusement or purveying
of news and other information
but does not include any service free of charge or
under a personal contract.
What is a Complaint?
An allegation in writing by a complainant that:
An unfair or restrictive trade practice is practised by
trader or service provider
Goods bought or to be bought or services hired or to
be hired suffered from any deficiency
Trader or service provider has charged excess price
Goods and services are hazardous or are likely to be
hazardous to life and safety.
Who is a complainant?
A consumer
Any voluntary consumer association registered
under the Companies Act or any other law
Central or State Government, if it makes a
complaint
One or more consumers having same interest
In case of death of a consumer, his legal heir or
representative.

A Consumer Dispute arises when a


complaint is denied or disputed.
Machinery under the Act

Central Consumer Protection Council


to be established by Central Government
State Consumer Protection Council
to be established by State Government
District Consumer Protection Council
to be established by State Government for
every district
Consumer Dispute Redressal
Machinery
There are Consumer Fora at the District,
State and National level
District Forum At the District level
State Commission At the State level
National Commission At the National level
Pecuniary Jurisdiction
Forum where complaints can be entertained
Depends on value of goods and service and
compensation claimed
Limits are :
District Forum
not exceeding Rs.20 lakhs
State Commission
exceeds Rs.20 lakhs but does not exceed Rs.1
Crore
National Commission
exceeds Rs.1 Crore.
Territorial Jurisdiction
Territorial Jurisdiction lies in the court of
the place
Where the opposite party resides or carries
on business or personally works for gain
Where the cause of action wholly or partly
arose.
Disposal of disputes
District Forum may
ask the opposite party to remove the defect,
replace the goods with new goods and free from defect
to return to the complainant the price of goods or
to pay any amount as compensation
Appeals to be preferred within thirty days
from the order of the District Forum to the State Commission and
from the order of the State Commission to the National
Commission
Can entertain appeals beyond thirty days
on sufficient cause shown for the delay
It has to be disposed within ninety days from its
admission.
Time Limit for filing complaint
Within two years from the date on which
the cause of action arises
Even where the time limit expires, the
complaint can be taken up
provided complainant is able to satisfy the
Forum or Commission about the
reasonableness in the delay
The delay for every single day has to be
explained.
What are the rights of a
consumer?
Protection from hazardous goods and
services
Information about the quality, quantity, purity,
standard and price
Access to a variety of goods and services at
competitive prices.
Assurance that his interest will be considered
at appropriate fora
The right to consumer education
Consumer Rights in India
The definition of Consumer right is 'the
right to have information about the quality,
potency, quantity, purity, price and
standard of goods or services, as it may
be the case, but the consumer is to be
protected against any unfair practices of
trade. It is very essential for the
consumers to know these rights.

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However there are strong and clear laws
in India to defend consumer rights, the
actual plight of consumers of India can be
declared as completely dismal. Out of the
various laws that have been enforced to
protect the consumer rights in India, the
most important is the Consumer Protection
Act, 1986.

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According to this law, everybody, including
individuals, a firm, a Hindu undivided
family and a company, have the right to
exercise their consumer rights for the
purchase of goods and services made by
them.

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It is significant that, as consumer, one
knows the basic rights as well as about the
courts and procedures that follow with the
infringement of ones rights.

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In general, the consumer rights in India
are listed below:
The right to be protected from all kind of
hazardous goods and services
The right to be fully informed about the
performance and quality of all goods and
services
The right to free choice of goods and
services
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he right to be heard in all decision-making
processes related to consumer interests
The right to seek redressal, whenever
consumer rights have been infringed
The right to complete consumer education

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The Consumer Protection Act, 1986 and
several other laws like the Weights,
Standards & Measures Act can be
formulated to make sure that there is fair
competition in the market and free flow of
correct information from goods and
services providers to the ones who
consume them.

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In fact, the degree of consumer protection
in any country is regarded as the right
indicator of the progress of the country.
There is high level of sophistication gained
by the goods and services providers in
their marketing

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and selling practices and different types of
promotional tasks viz. advertising resulted
in an increasing requirement for more
consumer awareness and protection.

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The government of India has realized the
condition of Indian consumers therefore
the Ministry of Consumer Affairs, Food
and Public Distribution has incorporated
the Department of Consumer Affairs as
the nodal organization to protect the
consumer rights, redress the consumer
grievances and promote the standards
governing goods and services provided in
India. 23
If there is infringement of rights of
consumer then a complaint can be made
under the following circumstances and
reported to the close by designated
consumer court:
The goods or services purchased by a
person or agreed to be purchased by a
person has one or more defects or
deficiencies in any respect
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A trader or a service provider resort to
unfair or restrictive practices of trade
A trader or a service provider if charges a
price more than the price displayed on the
goods or the price that was agreed upon
between the parties or the price that was
stipulated under any law that exist

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Goods or services that bring a hazard to
the safety or life of a person offered for
sale, unknowingly or knowingly, that cause
injury to health, safety or life.

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PROBLEM - 1
A had purchased seeds from a party.
The seeds did not germinate.
The party which supplied seeds took the
plea that A was not a consumer.
Is purchase of seeds for the purpose of
agriculture, a purchase for commercial
purpose?
PROBLEM - 2
A had applied for electricity connection.
However, power supply was not provided
to A.
Can A seek redressal of his grievance in
Consumer Court?
PROBLEM - 3
As car met with an accident.
The insurance claim was rejected on the
ground that As driver was not holding
valid driving license.
Should A approach a Consumer Court for
seeking the Insurance claim?
PROBLEM - 4
As grievance is that he had registered
with the M.I.G. Scheme of the Haryana
Housing Board.
The board had escalated the price of the
flats three times within a period of two
years.
Does his case lie within the jurisdiction of
Consumer Foram?
PROBLEM - 5
A registered letter sent to A was not
delivered.
What is the liability of an employee of the
Post Office in this matter?
PROBLEM - 8
A injured his knee in a game of football.
It was diagnosed as ACL TEAR.
For that, he was operated upon in the knee.
After the operation his knee developed stiffness, which is
unusual in such cases.
Even after undergoing physiotherapy for two months he
was unable to bend or straighten his knee.
So after two months of operation his knee was
manipulated under anesthesia to relieve stiffness.
A plaster was put on he knee for one month.
He was told to start walking.
He used to walk with a limp.
For about 8 months he continued to walk with a limp.
Then, his condition deteriorated and he had to start
using crutches to move around.
Both operations were carried out in military hospitals,
and they were done free of cost since he was serving in
army.
Can he sue the doctors and the hospital for negligence
and deficiency of service under Consumer Protection
Act?
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