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1 Course Name : MFC Faculty Name: SANTOSH KUMARI E-mail : [email protected]

1 Course Name : MFC Faculty Name: SANTOSH KUMARI E-mail : [email protected]

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Page 1: 1 Course Name : MFC Faculty Name: SANTOSH KUMARI E-mail : santoshsrcc@gmail.com

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Course Name : MFC

Faculty Name: SANTOSH KUMARIE-mail : [email protected]

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BY

SANTOSH KUMARI,ASSISTANT PROFESSOR, DEPARTMENT OF COMMERCE,

SHRI RAM COLLEGE OF COMMERCE,(www.srcc.edu)

UNIVERSITY OF DELHI,DELHI-110007.INDIA

CONSUMER PROTECTION

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INTRODUCTION3

Introduction

Now a days every marketer is well aware with the fact that – “consumer is the king”. Consumer is one who is going to ultimately decide the destiny of their product. That is way, now a days marketers are consumer centered / consumer oriented. They are very conscious to know – “What consumers want ? What are their needs ? What they expect from them ? But in spite of that, there are some organizations who cheat consumers by providing deceptive, misleading and false information to their consumers by way of their advertisement. As a result consumer suffer. In order to safeguard consumers in to days world, there is an Act known as “Consumer protection Act” which contains all the provisionsrelating to – how to safeguard consumers right.

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CONSUMER PROTECTION ACT4

Consumer protection Act

Aim of Consumer Protection Act (CPA) is to address the grievances of the consumers and protecting them from the unethical practices / behavior or unfair trade practices of the manufacturer/ supplier.

Earlier though there were several legislations to protect the consumer, but the same never proved adequate to protect consumer and compensate them for their compliances.CPA become statutory umbrella which made the consumer feel like a king.CPA not only enhances the awareness and educate the consumer but also provide compensation to them by summary and inexpensive proceedings. This keeps manufacturer and the trader alert, creative and innovative.

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In the era of free competition, market has become very dynamic and margins have squeezes out. These gave rise to adopt other means/unfair means or practices in execution of transactions, which resulted into increased grievances at consumer front. Hence, the need for the CPA has become more relevant than the past, where monopoly was the key factor.

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1.1 Basic Need for the Consumer Protection Act

Today Consumer rights are an integral part of our lives like the consumerist way of life. We have all made use of them at some point in our daily lives. Market resources and influences are growing by the day and so is the awareness of ones consumer rights. These rights are well defined and there are agencies like the Government, consumer courts and voluntary organizations that work towards safeguarding. If these rights are well defined then the basic question is why at all the consumer needs protection? it has to be followed by the manufacturers / suppliers.

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1.1 Basic Need for the Consumer Protection Act

1. Illiteracy and Ignorance

2. Unorganized Consumers3. Spurious Goods

4. Deceptive Advertising

5. Malpractices of Businessmen

6. Freedom of Enterprise

7. Legitimacy for Existence

8. Trusteeship

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So let us look at few reasons because of which consumer needs protection

1. Illiteracy and Ignorance: Consumers in India are mostly illiterate and ignorant. They do not understand their rights. A system is required to protect them from unscrupulous businessmen.

2. Unorganized Consumers: In India consumers are widely dispersed and are not united. They are at the mercy of businessmen. On the other hand, producers and traders are organized and powerful..

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3. Spurious Goods: There is increasing supply of duplicate products. It is very difficult for an ordinary consumer to distinguish between a genuine product and its imitation. It is necessary to protect consumers from such exploitation by ensuring compliance with prescribed norms of quality and safety.

4. Deceptive Advertising: Some businessmen give misleading information about quality, safety and utility of products. Consumers are misled by false advertisement and do not know the real quality of advertised goods. A mechanism is needed to prevent misleading advertisements.

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5. Malpractices of Businessmen: Fraudulent, unethical and monopolistic trade practices on the part of businessmen lead to exploitation of consumers. Consumers often get defective, inferior and substandard goods and poor service. Certain measures are required to protect the consumers against such malpractices.

6. Freedom of Enterprise: Businessmen must ensure satisfaction of consumers. In the long run, survival and growth of business is not possible without the support and goodwill of consumers. If business does not protect consumer’s interests, Government intervention and regulatory measures will grow to curb unfair trade practices.

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7. Legitimacy for Existence: Business exists to satisfy the needs and desires of consumers. Goods are produced with the purpose of selling them. Goods will, in the long run, sell only when they meet the needs of consumers.

8. Trusteeship: Businessmen are trustees of the society's wealth. Therefore, they should use this wealth for the benefit of people.

While we like to know about our rights and make full use

of them, consumer responsibility is an area which is still not demarcated and it is hard to spell out that all the responsibilities that a consumer is supposed to shoulder.

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1.2 Objectives & purpose of the Act

The basic objective/purpose of this Act is to provide for better protection of the interest of the consumers and for that purpose to make provisions for the establishment of consumer councils and other authorities for the settlement of consumer’s dispute and for matters connected therewith. Hence, the basic objective is to PROTECT and not to provide a loophole and excuses to well organized traders, producers and big business houses and manufactures on technical grounds. Educating the consumer regarding their rights and to propagate awareness about the Act and the ethical practices/means was the other purpose of the act.

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1.3 Changing phases & Evolution

In the early years when welfare legislatures like the consumer protection Act did not exist, the maxim Caveat emptor (let the buyer beware) governed the market deals.

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14British regime:

During the British regime (1765-1947), also known as the ‘Colonial Era’, Government’s economic polices in India were concerned more with protecting and promoting the British interests than with advancing the welfare of the native population. The administration’s primary per-occupation was with maintaining law and order, tax collection and defense. Accordingly much of the legalization enacted during the British regime was primarily aimed at serving the colonial rulers intend of the natives. There were, however, some pieces of legislation which protected the overall public interest through not necessarily the consumer interest. Prominent among these were: the Indian Penal code, 1860, the sale of Goods act,1930, the dangerous drugs act, 1930 and the drugs and cosmetics act, 1940. In a sense, the sale of good act, and the principles of the law of torts were more for the protection of the trader than the consumer.

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The Post-Independence Scenario:

Growing urbanization due to heavy industrialization resulted in proliferation of human needs-of basic necessaries and also of luxuries. Due to the shortage of certain necessaries and even their non-availability at reasonable rates with growing menace of adulteration, it was found necessary to empower the Government to control their production, quality, supply, and distribution. Therefore the decade of 1950s, right from the very beginning, saw the enactment of a number of laws to safeguard the interests of the consumers from various angles.

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The enactment of the Banking Companies Act,1949 (later called The Banking Regulation Act) to amend and consolidate the Law related to banking matters as well as the Industries(Development and Regulation)Act,1951 to implement the Industrial Policy Resolution of 1948 were among the earliest stapes taken by the National Government in India in the direction of consumer protection.

As a result of this change in scenario business has now come to be substantially regulated by Government and Authorities in favor of consumers.

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COMPLAINT17

2.1. Who can file a complain “Complainant" -

(i) A consumer ; or

(ii) Any voluntary consumer association registered under the Companies Act, 1956 (1 of 1956) or under any other law for the time being in force; or

(iii) The Central Government or any State Government;

(iv) One or more consumers, where there are numerous consumers having the same interest ;

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2.2. “Complaint" means any allegation in writing made by a complainant that-

(i) An unfair trade practice or a restrictive trade practice has been adopted by any trader;

(ii) The goods bought by him or agreed to be bought by him suffer from one or more defects;

(iii) The services hired or availed of or agreed to be hired or availed of by him suffer from deficiency in any respect;

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(iv) a trader has charged for the goods mentioned in the complaint a price in excess of the price fixed by or under any law for the time being in force or displayed on the goods or any package containing such goods;

(v) goods which will be hazardous to life and safety when used, are being offered for sale to the public in contravention of the provisions of any law for the time being in force requiring traders to display information in regard to the contents, manner and effect of use of such goods,

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2.3. “Consumer” means any person who-

(i) Buys any goods for self use or with the approval of self person, but does not include a person who obtains such goods for resale or for any commercial purpose or

(ii) Hires for avails of any services for self use or when such services are availed with the approval the first mentioned person.

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2.4. "Consumer dispute"

"Consumer dispute" means a dispute where the person against whom a complaint has been made, denies or disputes the allegations contained in the complaint;

2.5. "Trader"

"Trader" in relation to any goods means a person who sells or distributes any goods for sale and includes the manufacturer thereof, and where such goods are sold or distributed in package form, includes the packer thereof;

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Rights of Consumer 

22International Consumer Rights:

Webster's dictionary defines consumerism as "a movement for the protection of the consumer against defective products, misleading advertising, etc." Limited consumer protection was present until the 1950s and early 1960s. In the 1950s, a significant breakthrough occurred with the establishment of the product-liability concept, whereby a plaintiff did not have to prove negligence but only had to prove that a defective product caused an injury. In his 1962 speech to Congress, President John F. Kennedy outlined four basic consumer rights, which later became known as the Consumer Bill of Rights. Later, in 1985, the United Nations endorsed Kennedy's Consumer Bill of Rights and expanded it to cover eight consumer rights. Consumer protection can only survive in highly industrialized countries because of the resources needed to finance consumer interests.

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There are two hundred and sixty consumer organizations in over one hundred countries around the world strives to promote a fairer society through defending the rights of all consumers, including the poor and the marginalised, by supporting and strengthening member organisations and the consumer movement in general; campaigning for consumer rights' to be placed at the heart of policy-making to encourage sustainable development.

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There are eight key international consumer rights as defined by the United Nations Guideline for Consumer Protection 1985.They can be simplified into the following:

— The right to access to basic needs

— To safety

— To information

— To choice

— To representation

— To consumer education

— To redress

— Healthy environment

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In India to safeguard consumer interest, following rights were envisioned.

Right to Safety

Right to Information

Right to Choice

Right to be Heard

The Right to Redress

The right to consumer education

The Right to Basic Needs and

The right to a healthy and sustained environment.

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1. Right to Basic Needs

Access to food, water and shelter are the basis of any consumer's life. Without these fundamental amenities, life cannot exist. In September 2001, India's stock of food grains were around 60 million tonnes, yet one third of the Indian population lives below the poverty line and consumers often go hungry or remain severely malnourished, leading to poor health. The recent starvation deaths in Orissa are a case in point. A very crucial objective of the conceptualization and existence of consumer rights is to ensure that consumers have an assured food supply, safe and permanent dwellings, and basic amenities of life like sanitation and potable water, and power supply.

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Urbanizations is seen as a mark of development but for rural migrant population, living conditions in cities is very poor. The population of cities is growing rapidly in India and after 1988, the percentage of urban poor has been more than that of the rural poor. Around 20 to 25 per cent of the urban households live in slums, make-shift colonies or refugee settlements due to non-availability of affordable and decent habitat in urban areas. . According to some estimates, in urban areas alone, there is a housing shortage of 17 million units. This has led to a habitat crisis in Indian cities. In rural India, the situation is equally bad, with a large part of the population still living in make-shift dwellings and hutment. With non-permanent housing comes lack of sanitation facilities and other amenities like running water and electricity supply. Due to burgeoning population, most people do not have access to dry toilets in rural and urban areas.

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2. Right to Safe Environment

For urban consumers, environment means parks, gardens, and deteriorating air and water quality. Most urban areas are bereft of any wildlife and people are unaware of the biodiversity around them. On the other hand, rural consumers rely on their environment for fulfillment of their basic needs.

The need for environmental conservation is seen as a necessary defence against deteriorating quality of life world-wide. We are all victims of contaminated food and water supply, pesticide-ridden food, adulterated milk and choking exhaust fumes emitting from vehicles. According to a World Bank report, India is being pushed back due to its high environmental costs. We lose around Rs 24,500 crores every year in terms of air and water pollution alone.

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If you live in a city, you must have experienced air and water pollution at some point of time. Children often fall ill due to polluted environments, it leads to increased health costs and discomfort for consumers. Valuable resources and man-days are lost due to polluted environment and living conditions. Consumers need to understand that only a safe environment can ensure the fulfilment of their consumer rights.

International Standards for Safeguarding Right to Safe Environment

Consumers International (a nodal agency of consumer organisations from all over the world) has made certain guidelines for ensuring consumers' right to safe environment.

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Consumers should be protected from environmental pollution by:

1. Promoting the use of products which are environmentally sustainable.

2. Encouraging recycling

3. Requiring environmentally dangerous products to carry appropriate warnings and instructions for safe use and disposal.

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Promote the use of non-toxic products by:

1. Raising consumer awareness of alternatives to toxic products

2. Establishing procedures to ensure that products banned overseas do not enter national markets.

3. Ensure that the social impacts of pollution are minimized.

4. Promote ethical, socially and environmentally responsible practices by producers and suppliers of goods and services.

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Rural consumers are invariably closer to their environment than urban consumers. Their livelihoods and way of life depend on the environment around them. Their firewood and sources of energy come from trees, manure for fields comes from livestock, water is procured either from underground water supply or from rivers, the crops heavily depend on annual rainfall, even pesticides for safeguarding of crops and storage also come from trees like neem. In short, the rural life revolves around natural resources. For them, this dependence on the environment is complete and they have a stake in its preservation, whether it is for building their houses, fodder for their cattle etc.

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3. Right to Safety

Consumer right to safety is as vast in its purview as the market reach itself. It applies to all possible consumption patterns and to all goods and services. In the context of the new market economy and rapid technological advances affecting the market, the right to safety has become a pre-requisite quality in all products and services. For e.g. some Indian products carry the ISI mark, which is a symbol of satisfactory quality of a product? Similarly, the FPO and AGMARK symbolise standard quality of food products. The market has for long made consumers believe that by consuming packaged food or mineral water, consumers can safeguard their health. This notion has been proved wrong time and again due to rampant food adulteration in market products. Right to food safety is an important consumer right since it directly affects the health and quality of life of consumers.

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Earlier, the interpretation of the right to safety was limited to electronic products and other such products. Now, its definition has expanded a lot to include safety aspects of new technologies like GM food, food labeling, chemical ingredients in food products etc. In today's scenario of globalisation, consumers have no control over where the products or commodities they use, come from. For instance, the chocolates or syrups we consume, may be manufactured in countries as far as the U.S. or Australia. Consumers in India would have no control over or knowledge of the manufacturing practices of those countries and will have to rely completely on import regulations of the Indian government and food labelling. This makes the consumer right to safety a very important and critical issue for consumers.

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Safety of natural food products is also a problem of growing concern since due to increased chemical inputs in farms, our food supply is being contaminated with pesticides and chemicals. This poses a grave danger to consumer health. For non- vegetarians, the problem is even more serious since food animals are being fed anti-biotics to fight diseases among animals and boost their growth. This can have serious repercussions on consumer health.

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364. Right to Information

Right to information means the right to be given the facts needed to make an informed choice or decision about factors like quality, quantity, potency, purity standards and price of product or service. The right to information now goes beyond avoiding deception and protection against misleading advertising, improper labelling and other practices. For e.g. when you buy a product or utilise a service, you should be informed about a) how to consume a product b) the adverse health effects of its consumption c) Whether the ingredients used are environment- friendly or not etc .

Due to the ever increasing influence of the market and the ever changing scene with price wars and hard-sell techniques, the consumer's right to information becomes even more important.

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The right to information means much more than simple disclosure of the product's weight or price. A consumer has the right to know how the product has been prepared, whether it has been tested or animals or not, if environmentally-sound techniques and resources have been used in its production processes, what kinds of chemicals are used into its manufacturing and what could be their impact on consumer health. Clearly, a consumer has to consider a lot of factors before s/he buys a product.

Ideally, a consumer should have knowledge of the entire ‘cradle to grave' journey of the product to determine whether its safe and beneficial for use or no. The ‘cradle to grave journey' refers to the processes a product goes through- from the time of it being made out of raw material, the processes of its moulding into its final shape, transportation, labour, ingredients used, to the form in which it ends up on market shelves. It is only when a consumer is aware of the history of the product that he can make informed choices. 

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38An example of this is the GM food controversy. GM food is promoted as the answer to world's hunger and malnutrition but its safety for consumers and the environment is yet to be proved. Despite strong lobbying by pro-GM groups and the market, consumers in Europe have campaigned effectively against the entry of GM food into their food chain and markets. There are information and publicity campaigns that have made consumers rally behind a common consumer stand against GM food. As a result, the governments and the European Union have placed strict restrictions on the trial uses of GM technology in the market or in agriculture.

Recently, it has come to light that most cosmetics like lipsticks, kajal and mascara are tested on animals in laboratories to see whether they have any adverse effects on them or no. There was also a controversy about how Nike shoe company was using sweat labour in South Asian countries, paying its workers abysmally low wages for manufacturing shoes. Similarly, there was a ‘McLibel' case against McDonald's alleging that Mc Donald's generated a lot lot of unwanted waste due to its excessive packaging and harmed the environment.

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The advertising techniques of many products, directly targeting and featuring children have also been questioned. Many parents don't even know that their children are being targeted by market surveyors to determine their consumption habits by collecting data through surveys, interviews and by offering free sample of products.

It is not just the consumers who use information gathering or disseminating techniques and tools to protect their consumer rights. Information dissemination is also used very extensively by advertisers and the market to get their message across to the consumer. Tools and agencies of information like newspapers, print media, television and the Internet are utilised by marketing of consumer products and services. This has made advertising a multi-million dollar industry in India and also world-wide.

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5. Right to Redress

Competition is the by-product of the market economy. Everyday, manufacturers are discovering newer ways of cheating and duping consumers. Unscrupulous market practices are finding their way into consumer homes, violating consumer rights and jeopardising their safety. It is to protect consumer interests that consumers have been given the right to obtain redress. In India, we have a redress machinery called Consumer Courts constituted under the Consumer Protection Act (1986), functioning at national state and district levels. But it has not been made complete use of under due to lack of awareness of basic consumer rights among consumers themselves.

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While in the developed world, right to redress is perhaps the most commonly exercised consumer right, in developing countries, consumers are still wary of getting involved in legal redress system. There are consumer courts in India where any consumer can lodge a case if s/he thinks he or she has been cheated. The details of how to lodge a complaint have been explained elsewhere in the manual.

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6. Right to Consumer Education

Consumer education empowers consumers to exercise their consumer rights. It is perhaps the single most powerful tool that can take consumers from their present disadvantageous position to one of strength in the marketplace. Consumer education is dynamic, participatory and is mostly acquired by hands-on and practical experience. For instance, a woman who makes purchase decisions for the household and does the actual buying in the marketplace would be more educated about market conditions and ‘best buys' than a person who educates himself about the market with the help of newspapers or television. Also, today, it is not just the market or products that a consumer needs to educate him about but s/he also needs to know about company profile, government policies and introduction of new technology.

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43Market influences have grown so much that, not just wholesale and retail sellers but even medical practitioners are falling prey to their pressures. The pharmaceutical industry is one such example. India, with its 1 billion population and largely uneducated consumers, is a very lucrative market for this industry. Thepharmaceutical industry, to boost its sales, offers freesamplesof medicines, freebies, and even free luxury holidays to physicians to influence them to use their brands and give them preference over other brand names. There have been many instances when drugs banned in countries like US, have been prescribed to Indian consumers and are readily available as over-the-counter drugs. It is a sad example of gross violation of consumer trust by medical practitioners. This situation is rampant not just in rural areas but also among educated urban consumers. The reason why the market, in connivance with physicians, is able to exploit consumers is that Indian consumers are not aware of the prevailing situation and do not keep themselves abreast with latest developments taking place around them. Consumer education can play a crucial role in protecting consumers against such dangers.

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In the Indian context, sustainability and traditional knowledge can play a vital role in empowering consumers but consumers are unable to connect to their knowledge base. Consumer education can rejoin the broken link and make traditional knowledge accessible to consumers again. Some sources of consumer education are past experiences of consumers, information dissemination by government agencies and NGOs, classroom teaching by teachers and informal lessons by parents

.

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Dispute Settlement45

4. Dispute Settlement Three tier Mechanism

The Consumer Production Act provides for a three tier system of redressal agencies:

(1) District level known as ‘District Forum’ ;

(2) State level known as 'State Commission', and

(3) National level known as 'National Commission'.

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A complaint is to be made to the district forum of the concerned district where the value of goods and services and compensation, if any, is up to Rs 20 lakhs.

A complaint is to be made to the 'State Commission' between Rs 20 lakhs and Rs 100 lakhs.

A complaint is to be made to the National Commission for more than Rs 100 lakhs.

Interestingly, there is provision for appeals against the orders of a particular redessal forum by the aggrieved party before the next higher echelon and even from the findings of the National Commission before the Supreme Court.

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CONSUMER DISPUTES REDRESSAL AGENCIES

 47

1) District Forum

Composition of the District Forum. —

1. Each District Forum shall consist of,—

(a) President: a person who is, or has been, or is qualified to be a District Judge, who shall be its President;

(b) Member: two other members, one of whom shall be a woman, who shall have the following qualifications, namely:—

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(i) be not less than thirty-five years of age,

(ii) Possess a bachelor's degree from a recognized university,

(iii) be persons of ability, integrity and standing, and have adequate knowledge and experience of at least ten years in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or administration:

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Every appointment under sub-section (I) shall be made by the State Government on the recommendation of a selection committee consisting of the following, namely:—

(i) The President of the State Commission — Chairman.

(ii) Secretary, Law Department of the State — Member.

(iii) Secretary in charge of the Department dealing with

Consumer affairs in the State — Member.

2. Every member of the District Forum shall hold office for a term of five years or up to the age of sixty-five years, whichever is earlier:

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50Jurisdiction of the District Forum.—

1. Monetary: 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 rupees twenty lakhs.

2. Territorial: A complaint shall be instituted in a District Forum within the local limits of whose jurisdiction,—

a ) The opposite party or each of the opposite parties ,actually and voluntarily resides

b) Any of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides,in such cases, either the permission of the District Forum is given or the consent of the opposite party is necessary.

c) If the dispute is pending the civil court,the consumer forum has no jurisdiction to entertain the same.

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3) Manner in which complaint shall be made.—

(1) A complaint in relation to any goods sold or delivered or agreed to be sold or delivered or any service provided or agreed to be provided may be filed with a District Forum by –

(a) the consumer,

(b) any recognized consumer association whether the consumer is a member of such association or not;

(c) one or more consumers, where there are numerous consumers having the same interest, with the permission of the District Forum

(d) The Central Government or the State Government as a representative of interests of the consumers in general.

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A complaint has been admitted by the District Forum, it shall not be transferred to any other court or tribunal or any authority set up by or under any other law for the time being in force.

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4) Procedure on admission of complaint. —

(1) The District Forum shall, on admission of a complaint, if it relates to any goods,—

(a) Refer a copy of the admitted complaint, within 21 days from the date of its admission to the opposite & such extended period not exceeding fifteen days as may be granted by the District Forum;

(b) Where the opposite party on receipt of a complaint referred to him under clause (a) denies or disputes the allegations contained in the complaint to take any action to represent his case within the time given by the District Forum

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5) Powers of District Forum

(a) Summoning & enforcing attendance of defendant or witness & examining the witness on oath.

(b) The discovery & production of any document or other material ,object producible as an evidence

(c) Receipt of evidence on affidavits

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556) Finding of the District Forum. —

(1) Remove the defect pointed out by the appropriate laboratory from the goods ; or

2) To replace the goods with new goods of similar description which shall be free from any defect; or

(3) To return to the complainant the price, or, as the case may be, the charges paid by the complainant; or

(4) To remove the defects in goods or deficiencies in the services in

(5) question; or

(6) To discontinue the unfair trade practice or the restrictive trade practice or not to repeat it;

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562. State Commission

Composition of the State Commission. —

(1) Each State Commission shall consist of—

(a) President: A person who is or has been a Judge of a High Court, appointed by the State Government.

(b) Member: Two other members who shall be persons of ability, integrity and standing, and have adequate knowledge and experience of at least ten years in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or administration:

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Every appointment under sub-section (1) shall be made by the State Government on the recommendation of a Selection Committee consisting of the following members, namely:—

Secretary incharge of the Department dealing with Consumer Affairs in the

State -- Member:

(2) Every member of the State Commission shall hold office for a term of five years or up to the age of sixty-seven years, whichever is earlier

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Jurisdiction of the State Commission. —

(1) Subject to the other provisions of this Act, the State Commission shall have jurisdiction—

(a) Monitory- Originally, to entertain complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees twenty lakhs but does not exceed rupees one crore; and

(b) Appellate: To entertain appeals against the orders of any District Forum within the State; and

(c) Supervisory or Revisional : To call for the records and pass appropriate orders in any consumer dispute which is pending before or has been decided by any District Forum within the State.

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3. National Commission

Composition of the National Commission.—

(1) The National Commission shall consist of—

(a) President : A person who is or has been a Judge of the Supreme Court, to be appointed by the Central Government.

(b) Member: Two other members who shall be persons of ability, integrity and standing and have adequate knowledge and experience of at least ten years in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or administration

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Every appointment under this clause shall be made by the Central Government on the recommendation of a selection committee consisting of the following, namely:—

(a) A person who is a Judge of the Supreme Court,— Chairman; To be nominated by the Chief Justice of India

(b) The Secretary in the Department of Legal Affairs —Member; In the Government of India

(c) Secretary of the Department dealing with consumer—MemberAffairs in the Government of India

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61Jurisdiction of the National Commission. —

Subject to the other provisions of this Act, the National Commission shall have jurisdiction—

(a) Monetary: To entertain complaints where, the value of the goods or services and compensation, if any, claimed exceeds rupees one crore;

(b) Appellate: To entertain appeals against the orders of any State Commission;

(c) Supervisory or Revisional: To call for the records and pass appropriate orders in any consumer dispute which is pending before or has been decided by any State Commission where it appears to the National Commission

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Appeal. — Any person aggrieved by an order made by the Redressal agency may prefer an appeal against such order to the next higher level of agency within a specified period from the date of the order.

Appeal to the State Commission: Any person aggrieved by an order made by the District Forum, may prefer an appeal against such order to the State Commission within a period of 30 days from the date of the order.

Appeal to the National Commission: Any person aggrieved by an order made by the State Commission, may prefer an appeal against such order to the National Commission within a period of 30 days from the date of the order.

Appeal to the Supreme Court: Any person aggrieved by an order made by the National Commission, may prefer an appeal against such order to the Supreme Court within a period of 30 days from the date of the order.

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Procedure for hearing the Appeal by National Commission

1. Memorandum of Appeal: An appeal memorandum shall be presented by the appellant or his/her agent to the national commission in person or be sent by registered post addressed to the commission.

2. Appeal After Limited Period: In this, the memorandum shall be accompaniedby an application supported by an affidavit to satisfy the national commission that he/she had a sufficient cause for not to appeal within a period of limitation.

3. Appearance of Parties to the Appeals: On the date of hearing, if the party or their agent fails to appear on such date, the national commission either dismisses the appeal or decide ex parte on merits.

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4. Grounds not urged: The appellant shall not urge or be heard in support of any ground of objection not set forth in the memorandum, except by leave of the national commission.

5. Penalty of Orders: Every order of a District forum commission or national commission, if no appeal has been preferred against such order, shall be final.

6. Enforcement of Orders: Every order of a District forum commission or national commission may be enforced as if it were decree or order made by the court.

7. Penalties: Where a trader or a person against whom a complaint is made , or the complainant fails or omits to comply with any order made by redressal agencies , as the case may be, such trader or person or complainant shall be punishable as per the prescribed norms of the agencies .

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5. Government initiatives for protection of consumer rights Steps Undertaken By the Government for Creating Consumer Awareness:

Public campaign like Grahak Jago Grahak, Grahak Dost etc.

Conduct Street shows, dramas, street plays depicting mock characters.

Hold drawing competitions in the schools by giving relevant themes.

Make people aware about their rights through hoardings. T.V. advertisements etc.

Publicity though print media using newspaper advertisements

Publicity through electronic medium by telecast of video spots

Telecast of video spots in north eastern states:

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Meghdoot postcards

Printed literature

Exhibition in Indian science congress at shillong

Nukkad natak contest on consumer issues

National consumer helpline

Core centre

Participation in India international trade-fair-2008

Participation in MTNL health mela

Use of sports events

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Outdoor publicity

Joint publicity campaign

Use of internet to generate consumer awareness

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7. Conclusion

Consumer protection movement has got a bright future in India. A part from Governmental seriousness in the matter, consumer activism, organizations, civil society and other voluntary associations needs to play their part in the furtherance of consumer movement. In the current scenario media can play a vital role in infusing the consumer behavior and can easily generate opinions or enhance awareness about the possible unfair practices in the market. Above all, the consumers have to be aware of their rights and should assert them selves in the market place.

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LAWS RELATING TO CONSUMER PROTECTION69

Procedure for filing complaints

Consumer complaint format