Cons Pro act

7/30/2019 Cons Pro act

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Consumer Protection Act 1986

Goods & Services


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Objects of the Act

Right to be protected against marketing of goodswhich are hazardous to life and property.

Right to be informed about the quality, potency,

standard, and price of goods to protect the consumeragainst unfair trade practices.

Right to be heard and to be assured that customersinterests will receive due consideration at

appropriate forums. Right to seek redressal against unscrupulous

exploitation of consumers.

Right to consumer education.

Consumer protection councilsCentral & State.


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Definitions

Appropriate laboratory: It is recognized by Central& State governments, which carries out analysis ortest of any goods with a view to determining whethersuch goods suffer from any defect.

Complainant: One or more consumer or anyvoluntary consumer association registered under theCompanies Act or the Central or any StateGovernment who or which makes a complaint.

Complaint: Any allegation in writing made by acomplainant with a view to obtaining any reliefprovided by under this Act.


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Consumer: Any person, who(i) buys any goods

for a consideration which has been paid or promised

or partly paid or promised, or under any system of

deferred payment. (ii) hires or avails of any servicefor a consideration which has been paid or promised

or partly paid or promised, or under any system of

deferred payment.

For (i) Consumer also includes any user other than

buyer himself. It must involve some consideration.

Consumer does not include resale or commercial

useof obtained goods.

For ii Consumer includes an beneficiar of


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Consumer disputecomplaint denied or challenged

Defectfault, imperfection, or shortcoming in the

quality, potency, purity, or standard

Deficiencyfault, imperfection, or inadequacy in the

quality, nature and manner of performance

District ForumConsumer Disputes RedressalForum

National CommissionNational Consumer Disputes

Redressal Commission

Personincludes a firm, a HUF, a cooperative

society, and AOPs

State CommissionConsumer Disputes Redressal

Forum


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Service: It includes, provision of facilities inconnection with banking, financing, insurance,

transport, processing, electrical or other energysupply, boarding & lodging, house construction andplots by Housing & Development Board,entertainment and amusement, and telephone

connection and facility by Telecom Department. Service however does not include the rendering of

any service free of charge or under a contract ofpersonal service.

Spuriousgoods & services which are claimed to begenuine but they are actually not so.

Tradera person who sells, distributes,manufacturers, or a packer of any goods for sale.


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Who is not a Consumer?

A person obtaining goods for resale or for any

commercial purpose; or

Buys goods without Consideration; or

Hires or avails any services without Consideration;

or

Uses the goods without approval of the person who

has bought goods for consideration; or Is beneficiary of services w/o consent of the person

who has hired the services for consideration; or

Obtains service under a contract of personal service.


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Resale and Commercial Purpose

When the goods are re-sold in originalcondition as bought, it is a resale.

When the goods are not purchased for

immediate final consumption, but for transfer,it is resale.

A person buying the goods for resale or

commercial purpose, even if forconsideration, is NOT a consumer.


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Mr. A bought a TV set from an electronicsstore for using it at home. The TV wasdefective. Is Mr. A a consumer?

Mr. A is a consumer as he buys a good for aconsideration.

Bhavesh bought a pressure cooker. In the first

use itself while his wife was using it, thepressure cooker burst, hurting her. Is Bhavesha consumer? Is his wife a consumer?

Bhavesh is the consumer. His wife is also a

consumer as per the provision: and


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Anand runs a laundry shop and he bought awashing machine. The same was installed inhis shop. The machine was defective right

from the day it was delivered. Is Anand aconsumer?

Anand is not a consumer as he is using themachine for consumer purpose.

Balu is a distributor for computer accessories.He bought 100 pen-drives for selling to othercomputer vendors. Is Balu a consumer?

Balu is not a consumer as he has obtained


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Anil bought cycles for the purpose of hiring to

tourists visiting the area. Sunil was a tourist who

had hired a cycle. The cycles were defective. The

handle of the cycle broke, injuring Sunil. Are Aniland Sunil consumers?

Anil is not a consumer. However, Sunil is a

consumer as he availed service of hiring from Anil.

Mr. Patel bought a laptop and gifted it to his son,

Amit. Amit is a consultant who uses the laptop for

his business. Are Mr. Patel and Amit consumers?

Mr. Patel was a consumer when he bought the


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Special Note on Commercial Purpose

Not buying for ones own use is not

necessarily buying for commercial purpose.

For example, a purchaser of a cooler is a consumer, even

if the cooler is installed at a bus-stand for the use of publicfree of charge.

In a case, where a lady purchased a Xerox machine for

the purpose of earning her livelihood, was held that it was

not for commercial purpose and that she was a consumer.

The Court should therefore be satisfied that

there is NO large-scale commercial activity.


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For example, Plying of a taxi is purchase of ataxi for commercial purpose.

Commercial purpose is commerce,

mercantile, having profit as the main aim. There should be profit or loss from further

disposal.

Commercial purpose include all businessactivities.

In other words, where there is no profitmotive or business gain, the purchase ofgoods is not for commercial purpose.


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Extent of Consumer Protection

While other legislation may be either punitive or

preventive, the CPA compensates the

consumer.

The CPA gives the consumer an additional

remedy besides those which may be available

under existing laws.

The CPA is a benevolent piece of legislation to

protect a large body of consumers from

exploitation.


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Consumer Dispute

On a complaint before the Consumer

Redressal Forums against a person, who

denies or disputes the allegations contained in

the complaint a consumer dispute arises [Sec.

2(1) (c)].

Separate allegations may form separate

disputes requiring separate finding on eachdispute.


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Who can be a Complainant?

A Consumer; or

Any voluntary consumer associationregistered under the Companies Act; or

The Central or State Government; or

One or more consumers, where there arenumerous consumers having the same

interest; or In case of death of consumerhis legal heir

or representative.


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What is a Complaint?

A complaint is any allegation in writing by acomplainant that

An unfair trade practice or a restrictive

trade practice has been adopted by anytrader or service provider;

The goods bought or agreed to be bought

suffer from one or more defects. The services hired or availed or agree to be

hired or availed suffer from deficiency inany respect.


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A trader or the service provider has chargedfor the goods or services mentioned in thecomplaint, a price in excess of the price

fixed or displayed; Goods which will be hazardous to life and

safety when used are being offered for saleto the public in contravention to any stipulatedstandards;

Services which are hazardous to life andsafety when used are being offered by service

provider.


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Unfair Trade Practice

For which a trader, for promoting sale, use orsupply of any goods or provision of services,adopts any unfair method or deceptive

practice. Includes:

A) The practice of making any statement,

orally, written, or visually anything false ormisleading.

B) Permits the publication of anyadvertisement in any newspaper or otherwise,

for sale or supply at a bargain price of goods/


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Restrictive Trade Practices

Trade practice which tends to bring aboutmanipulation of price or;

its conditions of delivery or;

to affect flow of supplies in the marketrelating to goods or;

services in such a manner as to impose on the

consumers unjustified cost or restrictions.


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Defects and Deficiency

Defect means any fault, imperfection, or

shortcoming in the quality, quantity, potency,

purity or standard which is required to be

maintained by the trader under any law.

It is for the complainant to establish that the

goods mentioned in the complaint suffer from

one or more defects.


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Deficiency means any fault, imperfection,shortcoming, or inadequacy in the quality,nature and manner of performance which is

required to be maintained by or under the law. It is for the complainant to establish that

services mentioned in the complaint sufferfrom deficiency in any respect.

Examples: Lack of facilities by Housing Board isdeficiency. Non-allotment of shares is notdeficiency in service. Failure of insurancecompany to settle claim without sufficient cause isdeficiency Failure of Railways to provide

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Cons Pro act