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Transcript of b.consumer Protection Act (1)
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THE CONSUMER PROTECTION ACT
The Consumer Protection Act was enacted in 1986. Amendments
were made in 2002. The Act applies to the whole of India except
the State of Jammu and Kashmir.
An Act to provide for the better protection of the interest of the
consumers. Establishment of Consumer Councils and other
authorities for the settlement of consumers disputes.
Objects and Reasons
Inter alia- to promote and protect.
a) the right to be protected against marketing of goods which are
hazardous to life and property.
b) the right to be informed about the quality, quantity, potency,
purity, standard and price of goods to protect the consumer against
unfair trade practice
c) the right to be assured, wherever possible, access to an authority
of goods at competitive price.
d) the right to be heard and to be assured that consumers interests
will receive due consideration at appropriate forum.
e) the right to seek redressal against unscrupulous exploitation of
consumer.
f) the right to consumer education.
It would be imperative to know some of the important definitions
in the Act.
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Consumer means any person who-
1) buys any goods for a consideration which has been paid or
promised or partly paid and partly promised, or under any systemof 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
2) hires or avails of any services for a consideration which hasbeen paid or 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 or consideration paid or
promised, or partly paid and partly promised, or under any system
of deferred payments, 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 for any commercial purpose
Consumer Dispute means a dispute where the person against
whom a compliant has been made, denies or disputes the
allegations contained in the complaint
Complaint means any allegation in writing made by a
complainant that-
i) an unfair trade practice or a restrictive trade practice adopted byany trader or service provider
ii) the goods bought by him or agreed to be bought by him suffers
from one or more defect
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person in pursuance of a contract or otherwise in relation to any
service.
The aims and objectives of the Act are achieved by the constitution
and creation if District Forum, State Commission and NationalConsumer Disputes Redressal Commission. These agencies are
created to look into the grievance of a consumer and as far as
possible to set right the deficiency either in the goods or the
services.
Consumer Disputes Redressal Forums are established by the
State Government in each District of the State. Each District
Forum shall consist of a person who is or has been or is qualifiedto be a District Judge who shall be its President two other
members, one of whom shall be a woman possessing a bachelors
degree from a recognized university, be a person of ability,
integrity and standing and have adequate knowledge and
experience of at least ten years in dealing with problems related to
economics, law, commerce, accountancy, industry, public affairs
or administration.
Every member of the District Forum shall hold office for a term of
5 years or up to the age of 65 years which ever is earlier.
Subject to the other provisions of the Act a District forum shall
have jurisdiction to entertain complaints where the value of the
goods or services and the compensation, if any, claimed does not
exceed Rs.20 Lakhs.
A District Forum shall have the powers -
a) to remove the defect pointed out by the appropriate laboratory
from the goods in question
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b) to replace the goods with new goods of similar description
which shall be free from any defect
c) to return to the complainant the price, or as the case may be, the
charges paid by the complainant
d) to pay such amount as may be awarded by it as compensation to
the consumer for any loss or injury suffered by the consumer due
to the negligence of the opposite party
Each State Commission shall consist of a person who is or has
been a Judge of a High Court who shall be its President. Not lessthan 2 and not more than such number of members as may be
prescribed, and one of whom shall be a woman, who shall have
similar qualifications as required to be appointed as members of a
District Forum.
Every member of the State Commission shall hold office for a term
of 5 years or up to the age of 67 years which ever is earlier.
Each State Commission shall have jurisdiction to entertain
complaints where the value of the goods or services and
compensation, if any, claimed exceeds Rs. 20 Lakhs but does not
exceed Rs.1 Crore and appeals against the orders of any District
Forum within the State.
For the purpose of filing an appeal, the appellant shall deposit
fifty percent of the amount or rupees thirty five thousand
whichever is less.
The National Commission shall consist of a person who is or has
been a Judge of the Supreme Court, shall be its President. Not less
than 4 and not more than such number of members as may be
prescribed and one of whom shall be a woman with similar
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qualifications as required in the case of appointment as a member
to a District Forum or a State Commission.
Every member of the National commission shall hold office for a
term of 5 years or up to the age of 70 years which ever is earlier.
The National Commission shall have jurisdiction to entertain
complaints where the value of the goods or services and
compensation, if any, the claim exceeds Rs. 1 Crore and appeals
against the orders of any State Commission.
For the purpose of filing an appeal, the appellant shall deposit
fifty percent of the amount or rupees fifty thousand whicheveris less.
Both the State Commission and the National Commission shall
have powers to carry out all the functions of a District Forum as
mentioned supra.
Every order of a District Forum, State Commission or NationalCommission, shall, if no appeal has been preferred against such
orders under the provisions of this Act, shall be final.
The District Forum, State Commission or the National
Commission shall not admit a complaint unless it is filed within 2
years from the date on which the cause of action has arisen.
Where a trader or a person against whom a complaint is made fails
or omits to comply with any order made by the District Forum, theState Commission, the National Commission, as the case may be,
such trader or person shall be punished with imprisonment for a
term which shall not be less than 1 month but which may extend to
3 years, or with fine which shall be not less than 2,000/- Rs. but
which may extend to 10,000/-Rs., or with both.
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Notwithstanding anything contained in the Code of Criminal
Procedure, 1973, the District Forum or the State Commission or
the National Commission, as the case may be, shall have the power
of a Judicial Magistrate of the first class for the trial of offencesunder this Act.
Development of Consumer Protection Movement in
International Sphere
The increase in the volume of the International Trade and
Commerce has promoted the inter-governmental co-operation. The
expanding role of transnational corporations in the production,distribution and promotion of goods and services have raised a
number of issues which call for international co-ordination.
Many developing countries face the problem of well coordinated
public distribution system. The majority of the consumers are of
low income group and they face non availability of food products
and basic commodities of life of acceptable quality at a reasonable
price.
A consumer protection in developing countries is more of a
necessity rather than of a matter of academic discussion.
How Does The Act Help
1) Physical safety of consumers
2) Protection of economic interest of consumers
3) Consumers access to information needed to make informed
choice
4) Measures enabling consumers to obtain redress
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5) Distribution of essential goods and services
6) Satisfactory production and performance of standard
7) Adequate business practices and informative marketing
Consumer Education is a must as it helps in-
1) Critical awareness
2) Active consumer involvement
3) Imbibing social responsibility
4) Realizing ecological responsibility
5) Solidarity of consumers
The Sale of Goods Act, 1930 contained general provisions as to
conditions and warranties and covered such aspects as, sale bysample, sale by description, implied conditions as to quality or
fitness. But soon it was realized that these provisions were not
adequate in protecting the consumer against the unscrupulous,
greedy and dishonest sellers. The so called guarantees proved to be
mere paper guarantees confined only to the manufacturing defect,
if any, so proved and accepted by the manufacturer himself.
Warranties were subject to the principle ofcaveat emptoror let the
buyer beware.
It was, therefore, necessary that a Forum be created where a
consumer not satisfied with the quality of goods supplied or
services rendered may ventilate his grievance and a machine
devised to afford him adequate protection.
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The Consumer Protection Act, can be described as a magnificent
project heralding a new era and revolutionizing the entire field of
consumer protection, education and guidance.
Its greatest attraction is its convenient channel of justice throughsimple, unfettered, non-cumbersome procedure- no court fees, no
need of a lawyer, can make a complaint on a plain paper and so on.
The Act is aimed at quick disposal.
Concept of Consumer Sovereignty
In a free market economy, producers have to adjust to changingpreferences.
The long skirt manufacturer must adjust to mini-skirt or risk going
out of business!!!
In other words give people what they want instead of what a
particular group (manufacturer) thinks they ought to want.
Purpose of Consumer Law
Law is a set of rules that control the affairs and relationship within
a community. Law is a body of rules or regulation which the
people have established to make it easier to live with one another.
In recent times the consumer protection and consumer movement
has emerged as one of the most important development in business
and law. By gaining a working knowledge of the law, it becomespossible for the consumers to better conduct their affairs and
protect their interests.
Today there are so many products for sale that the consumer
cannot understand much of the items put for sale and he may
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require considerable technical ability and education to evaluate the
products and he must depend on workable laws and legal
procedures for protection against shoddy workmanship,
carelessness, hidden defects, other product flaws, various flaws
and swindles practiced by the sellers and misleadingadvertisements.
Another aspect of consumer protection is the problem of claiming
compensation against the large producer where the goods or
services are defective. Litigation is expensive and troublesome to
the small consumer.
So, policy has been to encourage producers to adopt codes ofpractice where under legitimate complaints are promptly dealt
with, encourage small claims and arbitration procedures to solve
dispute expeditiously, inexpensively and relatively informally.
Purpose of Consumer Act
Growth of science and technology, large scale industrialization and
huge population has led to the emergence of modern complexsociety. The chief characteristic of such a society is a large scale
production of various goods by different establishments and the
desire of people to acquire and use or consume those goods.
There are double standards when it comes to consumer who is a
producer and supplier of goods and services. This is the root cause
of manifold problems. It is to suppress and control the exploitative
tendencies of man that various kinds of control such as moral,
ethical, religious, social, legal etc., have operated from time totime.
In India, the problem of exploitation of the people by the people or
even the Government is not a new problem.
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The politician, in the name of serving the country, is seen
exploiting the society,
The administrator, small or big, in the name of advancing the
countrys economic well-being, is seen exploiting its resources,
The seller of goods and services is seen exploiting the customers
and so on.
The desire for rapid material advancement and economic
prosperity has commercialized our life on a gigantic scale. The
most painful casualty of this is the near total collapse of the
nations character and moral fabric.
For making huge profits or becoming rich overnight, all sorts of
abominable means and methods of malpractices are being adopted
by the traders, businessmen, employers, producers and sellers etc.,
at the cost of the consumers interest.
Thus, marketing of goods injurious to health and life, deception of
the consumer through unfair trade practices such as, substandardquality, adulteration, non-supply of correct quantity, excess pricing
etc., are rampant in our society. The plight of the consumer is bad
because of his ignorance, illiteracy and weak economic position.
To tolerate the evil is to spoil the good.
In modern times, law has become a potent instrument through
which the task of nipping the evils afflicting the society is carried
out.
There are various laws which have direct or indirect bearing on
interests of the consumer viz., Civil Procedure Code, Torts, Indian
Penal Code, Negotiable Instruments Act, and Right to Information
Act and so on.
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pulses been artificially coloured? Has starch been added to milk to
give it thickness? Is the grocer trying to palm off vanaspati as pure
ghee?
How to test? for eg. to tell whether starch has been added to milkor curd, perform the following test- add a drop of iodine solution to
a little of the sample , if the colour turns blue it is an indication that
starch has been added.
Consumer Resistance
Consumer resistance is one of the steps of collective self
protection. The birth of the co-operative movement in theScandinavian Countries was the direct result of economic pressures
the exploitation to which the worker and consumer were subjected.
The consumers were forced to enter the field of collective buying,
processing and distribution much to the chagrin of those, who, at
one time thought that their superiority and mastery was
unquestioned. It was not only the refusal to buy but a constructive
step of collective self protection.
Fish prices brought down An out-burst took place in West
Bengal in late 1960s when the price of fish sky rocketed. This
being their staple food, the consumers decided to go on a No buy
campaign within two days, the price came down.
In New Delhi the price of coffee was raised from 50 paisa to 55
paisa in a restaurant. The residents strongly objected and as there
was no justification for the rise, they went on No buy also they
collectively started vending coffee on pavements, forcing therestaurant to bring down the price.
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Laws for the protection of consumers
With a view to protect the interest of the consumers various
legislative steps have been taken and the courts have also beentrying to provide appropriate remedies in common law by
developing various principles of law to suit the needs of the times.
Other methods of protecting the consumer are-
1) Judicial Activism
2) Public Interest Litigation
3) Legal Aid Authorities
Judicial Activism- In one of the land mark judgments of the
Supreme Court of India in the case of S.P.Gupta v/s Union of India
the Honble court held- where the contest is between those who
are socially and economically unequal, the judicial process mayprove disastrous from the point of view of social justice, if the
judge adopts a merely passive or negative role and does not adopt
a positive and creative approach. The Judiciary cannot remain a
mere bystander or spectator but it must become an active
participant in the judicial process ready to use law in the service
of social justice through a proactive and goal oriented approach.
Public Interest Litigation- In the case referred to supra theHonble court further held- it may, therefore, now be taken as
well established that where a legal wrong or a legal injury is
caused to a person or to a determinate class of persons by reason
of violation of any constitutional or legal right or any burden is
imposed in contravention of any constitutional or legal provision
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or without authority of law or any such wrong or legal injury or
illegal burden is threatened and such person is by reason of
poverty, helplessness, disability or socially or economically
disadvantaged position, unable to approach the court for relief,
any member of the public can maintain an application for anappropriate direction, order or writ.
The technical rules of locus standi are relaxed through public
interest litigation system.
PIL is an extremely functional instrument for purposes of
consumer protection. The poor, the deprived and the suffering
consumers get justice without involving themselves in themachinery of the law. The courts help the social reformers thereby
removing any strain and stress on the consumer.
Legal Aid Authorities- Under section 4 (d) of the Legal Services
Authorities Act, 1987, the National Legal Services Authority
(called as Central Authority) is bound, subject to the directions of
the Central Government to take necessary steps by way of socialjustice litigation with regard to consumer protection,
environmental protection or any other matter of special concern to
the weaker section of the society.
This is a statutory recognition of PIL. However, the Central
Authority will be guided by the Central Government in the filing
of Social Interest Litigation. In PIL and SIL, the aim is to protect
the public interest at large rather than individual interest.
Protection of community interest will alleviate the suffering ofindividual citizens also.
Thus consumer protection is many sided. The chances of obtaining
of consumer justice today are much more then they existed a
decade or two ago.
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How the Indian Penal Code helps the consumer- Chapter XIII
of the Code relates to the offences dealing with Weights and
Measures. Sections 264-267 provide for the punishment of variousoffences relating to weights and measures. The Code provides for
punishment for fraudulently using any instrument for weighing
which he knows to be false, with a punishment of imprisonment
which may extend to one year or with fine or with both.
Sections 272 & 273 of the Code deal with the offences relating to
the adulteration of food or drinks.
Sections 274-276 deals with the offences relating to the
adulteration of drugs.
Sections 277 & 278 provide for the offences relating to public
health and safety.
Section 486 of the Code relates to offences against counterfeiting.
Recognition of rights of consumers- The consumers in general
and the Indian consumers in particular are disorganized, dispersed
and at a disadvantage. The economic urge of commercialization
dominates business activities. In order to convert the contribution
of science into service of mankind every idea and invention need
to be treated on the anvil of production of feasibility and consumer
utility. The issue is to harmonize the unavoidable need with the
inevitable evil.
Consumer protection has reference to widening range of the
activities of the Government and independent organizations that
are designed to protect individuals form practices of both business
and the Government which infringe upon the rights of consumers.
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6) Right to consumer education
7) Right to healthy environment
8) Right to basic needs
Rights of consumers under the Constitution of India- The
Welfare State owes certain obligations. This throws up the
question of the rights of the consumer. Does he enjoy any rights
including the fundamental rights under the Constitution? Or the
consumer has no link with the constitution?. One might say, what
has the consumer to do with the Constitution or the Constitutionwith the consumer? The two are knitted together. They cannot be
separated. The Constitution is as close to the consumer as to
citizen. After all a consumer is a citizen also. The welfare of a
consumer is no less important than that of a citizen.
Consumer Rights to Healthy Environment- This is an aspect of
right to life. After all who is a consumer? The answer is obvious,one who consumes, one who makes use of various products and
by-products. Therefore, the consumer cannot be divorced from the
environment around him. The surroundings in which he lives and
works are vital for him. He cannot help but consume what is
around him. It is necessary that surroundings and environment
must be healthy. It is asine qua non.
In conclusion we may say that today consumer is the King and the
providers of goods and services are no longer in a dictatorialposition.
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