Consumer Protection Act 1986
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Transcript of Consumer Protection Act 1986
“NEED FOR CONSUMER PROTECTION ACT
IN AN ERA OF FREE COMPETITION
WHERE CONSUMER IS THE KING
THEREFORE, KING NEED PROTECTION”
These PPT is for learning purpose and not for official use
CONSUMER IS THE KING
⋆Markets - guided by customers desire.⋆Customer eccentricity is extremely
essential. ⋆Products seen through consumers’ eyes.⋆“Sellers’ market” to “Buyers’ market.”
INTRODUCTION
⋆ Consumerism - the promotion of the consumer’s interests.⋆ “Let the buyer beware”, has changed to “Let the seller beware”.⋆ Product and services to fulfill needs & wants of customers.⋆ To increase sales - engage in unfair practices.⋆ Consumer protection :-
For protection of buyers from,
• Low quality products,• Dangerous products &
• Deceiving advertisements.
Educating consumers about their rights and responsibilities.
Helping them to seek redressal of their grievances.
PROBLEMS FACED BY CONSUMERS
⋆ Illiteracy and Ignorance,⋆ Unorganised Consumers,⋆ Spurious Goods,⋆ Deceptive Advertising,⋆ Adulteration,⋆ Irregular Supply,⋆ Other Problems.
Play in slide show
EVOLUTION OF CONSUMER PROTECTION RIGHTS IN INDIA
⋆ Prior to independence,
Indian Penal Code, Agricultural Production, Grading and Marketing Act, 1937, Drugs and Cosmetics Act, 1940.
⋆ In 1915 - Passengers and Traffic Relief Association (PATRA). ⋆ In 1978 - Consumer Education and Research Centre in Ahmadabad. ⋆ In 1986 - The Consumer Protection Act was enacted.
⋆ Other acts includes,
Contract Act, Sale of Goods Act,
The Essential Commodities Act, The Agricultural Produce Act,
The Prevention of Food Adulteration Act,
The Standards of Weights and Measures Act.
CONSUMER PROTECTION ACT - 1986
⋆ To provide better protection of the interests of the
consumers in India.
⋆ To make provision for the establishment of consumer councils.
⋆ For the settlement of consumer disputes.
⋆ This act is applicable to all goods and services.
⋆ Amended in 1991, 1993 & 2002.
AMENDMENT - 1991
⋆ It was mainly to incorporate provision for the quorum
of District Forum.
⋆ Appointing persons to preside over State Commission /
District Forum in case of absence of president.
AMENDMENT - 1993
⋆ To find out loopholes in the main act and to overcome them.
⋆ Expand the scope of area covered.
⋆ To give more power to the redressal agencies under the act.
AMENDMENT - 2002
⋆ To facilitate quicker disposal of complaints.
⋆ Enhancing the capabilities of redressal agencies.
⋆ Strengthening them with more power.
⋆ Streamlining the procedure.
⋆ Widening the scope of the act to make it more
functional and effective
CONSUMER
⋆ Buyer of any commodity or service or a user of such commodity or service .
⋆ Must satisfy two condition :-• The service must be rendered to him.• He must have paid or promised to pay for the same.
⋆ If any person buy capital goods to provide services to other individual, then he is also recognised as consumer.
⋆ If any person buys a commodity with an intention to resaleor trade, then he will not be recognised as consumer.
INTERNATIONAL SCENARIO
⋆ Due to increasing globalization.⋆ To unlock consumer power on a global scale.⋆ Consumer International took initiative.⋆ Guidelines for consumer protection.⋆ Specially for - developing countries &
newly independent countries.
⋆ Right to Safety.⋆ Right to Choose.⋆ Right to be Informed.⋆ Right to be Heard.⋆ Right to Seek Redressal. ⋆ Right to Consumer Education.Hall
mark
RIGHTS OF A CONSUMER
COMPLAINT
⋆ Any allegation in writing made by a complain ant.
⋆ Complaint is filed for:-
• Defect in goods,
• Deficiency in service,
• Charging of excess price,
• Hazardous goods or
• Unfair trade practices.
PROCEDURE OF FILING A COMPLAINT
Filing a Complaint in Consumer Court
Obtain the documents
Send the Personal or Legal Notice
to Company
Prepare a complaint
Download the
sample format
Complaint filedat District , State
Or National Forum
The Fee
Prepare a bank draft from a Nationalized
Bank to pay court fee.
Get the complaintaffidavit notarized
through a notary
Get the complaint reference number and date for
admission hearing
Case Admitted
Submit the complaint and court fee
The court will send a notice with your
complaint copy to the service/goods provider
asking for replywithin 30 days
Hearing
Ask from the consumer court
Court Order
REDRESSAL AGENCIES UNDER THE ACT
⋆ Consumers can file the complaint at :-
1. District Forum
2. State Commission or
3. National Commission.
⋆ Prescribed fee payable for filling a complaint.⋆ Don’t have to go to through a lawyer.
FORUMS
FORUMSESTABLISHED
BYCOMPOSITION JURISDICTION APPEAL
DistrictForum
StateGovernment
- Chairman & 2 members- One shall be woman Less than
Rs.20 lakhs
To state commission
within 30 days of order
Head: District Judge
State Commission
State Government
- President & - Minimum 2 members- One shall be woman
In range ofRs. 20 lakhs
to Rs. 1 crore
To national commission
within 30 days of order
Head: High Court Judge
National Commission
Central Government
In 1988
- President &- Minimum 4 members- One shall be woman
More than Rs. 1crore
To supreme court within 30 days of
order. Head: Sitting or Retired
Judge of the Supreme Court
MULTIMEDIA CAMPAIGNS
MULTIMEDIA CAMPAIGN
VIDEOS
PRINTED LITERATURE
ADVERTISE-MENTS
MEGHDOOTPOSTCARDS
NUKKAD NATAKS
NATIONAL CONSUMER HELP LINE
ONLINE MEDIUM
JOURNALS
CONSUMER GUIDANCE
SOCIETY OF INDIA (CGSI)⋆ Consumerism - the promotion of the consumer’s interests.⋆ Involved in consumer education.
• For the urban and rural low income consumers.
• School and college students.⋆ 107 training programmes - 5,700 potential activists. ⋆ Monthly magazine - Keemat and Consumer Guides.⋆ Training programme using creative methods such as,
• Games & street plays,
• Through talks,
• Demonstrations and exhibitions.
NO. OF COMPLAINTS FILED/ DISPOSED SINCE INCEPTION
Updated on 10.03.2015
Sr. No.
Name of Agency
Cases filed Since
Inception
Cases Disposed of Since
Inception
Cases Pending
% Of Total Disposal
1National
Commissions93,860 83,294 10,566 88.74%
2State
Commissions6,72,486 5,83,305 89,181 86.74%
3 District Forums 35,32,749 32,62,916 2,69,833 92.36%
TOTAL 42,99,095 39,29,515 3,69,580 91.40%
COMPARISON OF CONSUMER PROTECTION ACT IN INDIA AND BRAZIL
INDIA BRAZIL Consumer Protection Act is an Indian
federation law enacted in 1986. The Government issued the Consumer
Defense Code in 1990.
The Act aims to provide better andall-round protection to consumers.
The Code came to discipline the relations and responsibilities between providers and consumers.
Health Services provided by Government hospitals, Civic amenities provided by municipal authorities.
All suppliers of goods and services, both in the private and in the public sector and the cooperative sector, are covered by the Act.
In Brazil, Article 12 of the CPC deals with defective products, requiring suppliers to provide reparations for any harm caused by defects in a product.
District Forums at the base, the State Commission at the middle level and the National Commission at the apex level.
The National Consumer Defense Policy is coordinated by the Consumer and Protection Defense Department (DPDC) subordinated to the Secretariat of Economic Law of the Ministry of Justice.
CASE 1
DHARAMDAS PRITIANI VS. HDFC ERGO GENERAL INSURANCE COMPANY LTD
⋆ Complainant - Dharamdas Pritiani - Advised by the doctors to undergo treatment for suffering from a heart ailment in 2008-09.
⋆ He then underwent a rare treatment calledEnhanced External Counter Pulsation (EECP).
⋆ The treatment was completed in 45 sittings, costing Rs. 1,18,000.
⋆ HDFC Ergo rejected the complainant’s claim saying the treatment was experimental and not recognized by the insurer.
⋆ The insurance company also claimed that a policy holder must be hospitalized for at least 24 hours for reimbursement.
CASE 1 DHARAMDAS PRITIANI VS. HDFC ERGO
GENERAL INSURANCE COMPANY LTD ⋆ The complainant claimed - Treatment recognized by the United
States and 40 hospitals in India use EECP method to treat heart patients.
⋆ The forum said the documents furnished by Pritiani support his claim.
⋆ The treatment did not require hospitalization, thus he should be reimbursed Rs. 1,18,000
JUDGEMENT⋆ Consumer redressal forum of India’s - Directed HDFC Ergo General Insurance Company Ltd to pay Rs.1,18,000 towards compensation for refusing a policy holder’s claim.
⋆ Additional compensation of Rs. 5,000 to be paid for mental agony.
CASE 2CHETAN PRAKASH VS. MET INSTITUTE
OF COMPUTER SCIENCE ⋆ Chetan Prakash, final year BSc. Student sought admission in MET
Institute of Comp. SC. for MCS.
⋆ The Institute had stipulated that in order to pursue the MCS course student has to clear III year exams.
⋆ He deposited the fees before declaration of result.
⋆ Seeing that he had failed in exams, he tried to withdraw the admission and requested for a refund, to which the institute did not responded.
⋆ Finally, he sent a legal notice to the institute, and then lodged a complaint in the consumer forum.
CASE 2
CHETAN PRAKASH VS. MET INSTITUTE OF COMPUTER SCIENCE
JUDGEMENT⋆ The Institute had to pay the complainant, Chetan Prakash,
⋆ Rs. 62,200 as refund of course fee and
⋆ Rs. 32,000 as compensation for harassment.
CASE 3KRISHAN KUMAR BAJAJ VS. PEPSICO
⋆ Krishan Bajaj, a resident of Ahmadabad – Purchased “Lay’s (Shipra Tangy Twist Potato Chips)
⋆ Packet on 28 June 2010 and sensed its being underweight.
⋆ He wrote twice to the manufacturer.First letter got no response, In second reply, a gifts hamper was offered to him - which he refused.
⋆ Bajaj approached CERS, who wrote to PepsiCo.
⋆ Company refused to accept their fault and gave severalunsatisfactory clarifications.
CASE 3
KRISHAN KUMAR BAJAJ VS. PEPSICO
⋆ CERS took the issue to the Consumers Dispute Redressal Forum, which also gave a favorable ruling.
⋆ The company asked for the bill of purchase which Bajaj could not produce.
JUDGEMENT⋆The Court overruled the argument of Bajaj for not having a bill.
⋆CERS requested the court to direct PepsiCo.
⋆To stop such unfair practices & to deposit Rs. 2,00,000 in the Consumer Welfare Fund, Rs. 2,75,250 as Punitive Damages and also to give Rs. 75,000 as Costs of Litigation.
⋆ Educating more about - rights and responsibilities as consumer. ⋆ All consumers need to know their rights & practice them. ⋆ Consumers should always conduct market surveys.⋆ Buy from authorised company showrooms & reliable shops.⋆ Obtain bills, receipts and guarantee cards - keep them safe. ⋆ Instead of loose items, prefer properly packed and labelled products.⋆ Read labels carefully for brand names, ingredients, net weight, MRP, expiry date and standardization mark.⋆ Consumers should report any unfair trade practices to redressal agencies.⋆ Procedure for filing a complaint should be known to all.⋆ System to be more transparent.
RECOMMENDATIONS
⋆ Consumer is in a dominant position.⋆ Consumers as a class can be called as king.⋆ Individual consumer barely enjoys such a status.⋆ The king, in this case, is vulnerable and requires
protection form unfair trade practices.
CONCLUSION
http://www.cag.org.in/guidelines-filing-complaint
http://consumerresources.in/2012/09/20/how-to-prepare
-and-submit-a-complaint-to-a-consumer-forum/
http://www.consumerredressal.com/content/contentID/14/
consumerprotection_act
http://consumerresources.in/2012/10/05/pepsico-penalized-for-
shortchanging-consumer/
http://ncdrc.nic.in/statistics.html
Legal aspects of Business By Akhileshwar Pathak
WEBLIOGRAPHY