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8/4/2019 Consumer Protection Act, 1996
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Consumer ProtectionConsumer Protection
Act, 1986Act, 1986A studyA study
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BackgroundBackground
Consumer is for the market whatair isConsumer is for the market whatair isfor living. Consumption is the fuel forfor living. Consumption is the fuel forproduction.production.
Considering this, various effortsareConsidering this, various effortsaredone by producers to create demand fordone by producers to create demand forgoodsand services.goodsand services.
Powerfulandattractiveadvertisements,Powerfulandattractiveadvertisements,
packaging, salesmanship etcarepackaging, salesmanship etcarebelieved tobelieved to
create consumer wantsan demandscreate consumer wantsan demands
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Need for consumer ProtectionNeed for consumer Protection
But manya times consumersare cheatedandBut manya times consumersare cheatedand
therefore they need protection.therefore they need protection.
Eighteen years back, UnitedNationsadoptedEighteen years back, UnitedNationsadopted
important guidelines for the protection ofimportant guidelines for the protection ofConsumer Interestsandall countries wereConsumer Interestsandall countries were
expected to follow suit.expected to follow suit.
In India the Consumer Protection Act wasIn India the Consumer Protection Act was
enacted in the year1986asa result ofawideenacted in the year1986asa result ofawide
spread consumer Movement.spread consumer Movement.
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Ifa consumer is offered inferior products, ifIfa consumer is offered inferior products, if
pricesare exorbitant, if drugsare unsafe orpricesare exorbitant, if drugsare unsafe or
worthless, if the consumer is unable to chooseworthless, if the consumer is unable to choose
ona
n informed ba
sis, then his dolla
r isona
n informed ba
sis, then his dolla
r iswasted, his healthand safety may bewasted, his healthand safety may be
threatened, and national interest suffers.threatened, and national interest suffers.
John.F.KennedyJohn.F.Kennedy
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Purpose of the ActPurpose of the Act
Better protectionand promotion of consumerBetter protectionand promotion of consumerrights.rights.
Simple , inexpensiveand speedy justice toSimple , inexpensiveand speedy justice toconsumersagainst defective goods , deficientconsumersagainst defective goods , deficientservicesand unfairand restrictive tradeservicesand unfairand restrictive trade
practices.practices.
QuasiQuasi--judicial Redressalat district, stateandjudicial Redressalat district, stateandNational Level.National Level.
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Rights of the Consumers highlighted by the ActRights of the Consumers highlighted by the Act
The Right to SafetyThe Right to Safety
to be protectedagainst the marketing ofto be protectedagainst the marketing ofgoods whichare hazardous to health or life.goods whichare hazardous to health or life.
The Right to ChooseThe Right to Choose to beassured, wherever possible, access toato beassured, wherever possible, access toavariety of productsand servicesatvariety of productsand servicesatcompetitive prices:and in those industriescompetitive prices:and in those industrieswhere competition is not workableandwhere competition is not workableand
Government regulation is substituted, anGovernment regulation is substituted, anassurance of satisfactory qualityand serviceassurance of satisfactory qualityand serviceat fair prices.at fair prices.
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The Right to InformationThe Right to Information
to be protectedagainst fraudulent, deceitfulto be protectedagainst fraudulent, deceitfulor grossly misleading information, advertising,or grossly misleading information, advertising,labeling, or other practices, and to be given thelabeling, or other practices, and to be given the
facts s/he needs to makean informed choice.facts s/he needs to makean informed choice.
The Right to be HeardThe Right to be Heard
to beassured that consumer interests willto beassured that consumer interests will
receive fulland sympathetic consideration inreceive fulland sympathetic consideration inthe formulation of Government policy, and fairthe formulation of Government policy, and fairand expeditious treatment in itsand expeditious treatment in itsadministrative tribunals.administrative tribunals.
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Right to seek redressalRight to seek redressal--
in case ofa consumer dispute right to voice outin case ofa consumer dispute right to voice out
their complaintand reinforcement ofany oftheir complaintand reinforcement ofany of
theabove mentioned rights.theabove mentioned rights.
Right to be educatedRight to be educated--
Making peopleaware of their rightsMaking peopleaware of their rights
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Who isaConsumer?
Section 2(1)d:Section 2(1)d:
Any person who buys goodsAny person who buys goods fora consideration thatfora consideration that
has been paid or partly paidand partly promised to payhas been paid or partly paidand partly promised to payor underany system of deferred paymentand includesor underany system of deferred paymentand includes
any user of such goods but does not includeapersonany user of such goods but does not includeapersonwho obtains such goods for resale or forany commercialwho obtains such goods for resale or forany commercial
purpose.purpose.
oror
Hires oravails of servicesHires oravails of services fora consideration oranyfora consideration orany
user of such services but does not includeaperson whouser of such services but does not includeaperson whoavails of such services forany commercial purpose.avails of such services forany commercial purpose.
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AnalysisAnalysis
Goodsand services should have been boughtGoodsand services should have been bought
for consideration.for consideration.
Includesa person who uses such goods orIncludesa person who uses such goods or
services for consideration.services for consideration. Used for consumptionand not for resale orUsed for consumptionand not for resale or
commercial use.commercial use.
Can be for selfCan be for self employmentalso.employmentalso.
The person may bean individual, firm,The person may bean individual, firm,company ora consumer organization.company ora consumer organization.
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Goodsand services
Sec2(1)i:Goods means goodsas defined under
the Sale of Goods Act,1930.
Every kind of moveable property other thanactionable claimsand moneyand includes
stocksand shares, growing cropsand things
attached toand forming part of land which
areagreed to be severed before sale or undera
contract of sale.
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Service:-
It means service ofany description madeavailable to
potential users like banking, insurance, transport,processing, supply of electrical or other energy,
boarding or lodging or both, house construction,entertainment, amusement or other purveying of news or
other information.
Service does not include the rendering of service free of
charge or undera contract of personal service
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Advantages under the Consumer
Protection Act
The consumer under this law is not required todeposit court fee, which earlier used to deter theconsumers to approach the Courts. Lawyers are alsonot mandatory and the procedures used are simpleas compared to the normal courts, which helps inquicker redressal of grievances.
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Some examples of consumersSome examples of consumers
A person registering for gas connection.
A patient undergoing operation witha private
hospital
A customer usinga telephone connection.
A student of the institution
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Certain cases relating medical field
Medical negligence means deficiency in service performed by a
medical practitioner including a physician, surgeon, doctor,
nurse etc.
It is the failure on the part of the medical practitioner to
discharge his duty in accordance with medical standards,which are being practiced by any other competent doctor.
However the services rendered by the Government hospitals &
charitable hospitals are exempted from the purview of the
Consumer Protection Act as the services are rendered at such
institutes free of charge.
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Medical Service
Medical Negligence would include amongst other acts theMedical Negligence would include amongst other acts the
followingfollowing
Prescribing the wrong dosage to a patient.Prescribing the wrong dosage to a patient.
Leaving cotton or medical instruments inside the body of aLeaving cotton or medical instruments inside the body of a
patient after a surgery has been performed.patient after a surgery has been performed. failure to give proper instruction while prescribing medicine.failure to give proper instruction while prescribing medicine.
Lack of interest in patients.Lack of interest in patients.
Lack of proper arrangement to meet an emergency. Usage ofLack of proper arrangement to meet an emergency. Usage of
wrong medicines.wrong medicines.
Lack of proper checks to test side effects of various drugs.Lack of proper checks to test side effects of various drugs.
Therefore, a doctor can be termed negligent if his actions are ofTherefore, a doctor can be termed negligent if his actions are of
such a nature as to imply absence of reasonable skill assuch a nature as to imply absence of reasonable skill as
compared to the ordinary level of skill required in thecompared to the ordinary level of skill required in the
profession.profession.
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Education
An educational Institution can also be held liable under the ConsumerProtection Act, 1986. Holding of exams, declarations of results are allservices under the Act & can be looked into by the consumer courts.Consumer courts have also held that it is not within their jurisdiction tolook into whether particular rules in an institutions prospectus areillegal or not.
It is important to note that a University conducting public examinations,announcing results, evaluating answer papers, rechecking markssheets etc, on the application by a student/candidate is not performinga service for hire & there is no question of any service being performedas envisaged under the act. Therefore it may be difficult to maintainany complaint in such cases. Universities are in fact statutory bodies.
Where the student could not get his roll number for which he hadapplied to sit for his exams & as a result of this, he lost a year of hisstudies, the consumer courts have held that it amounted to adeficiency of service.
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Banking Services
The Courts have held it to be adeficiency of servicewhere acheque was wrongly honored
where there was non-refund of amount deposited or wherethere is a deliberate delay in repayment of deposit by the bank
are- valid dishonor of Cheques when the account holder has
sufficient funds, not enchasing a draft issued by another branch,
charging a higher interest rate that what was previouslyagreed upon,
transferring money to another person without the customersdirections
. Where the bank lost a passbook, it is the banks duty toreplace the same
Consumer courts are not allowed to go into the area of pricing ofservices. Consumer courts cannot interfere with the banksdecisions with regard to the sanctioning of credit.
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Telephone
If your telephone is disconnected without giving you
notice,
Disconnection of your second telephone for the non-payment of your bill for the first phone isalsoa
deficiency in service. Delays in shifting your phone toanew location, delays
inattending faults, wrong connection of telephone
cables, delays inallotment of phone connections
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Defectand Deficiency
Defect sec2(1)f:-
It meansany fault, short coming or
imperfection in the quality, potency, purity
stand
ard which is required to be m
aint
ainedunderany law for the time being in force.
Deficiency2(1)g:- It meansany fault, short
coming or imperfection in the quality, nature
and manner of performance which is required
to be maintained.
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Telephone
Delays in shifting your phone to a new location,
delays in attending faults,
wrong connection of telephone cables,
delays in allotment of phone connections,
omission to print a subscribers name in a telephone directory,
these may all be regarded as instances of a deficiency in
service
If your telephone is disconnected without giving younotice.
Disconnection of your second telephone for the non-
payment of your bill for the first phone isalsoadeficiency in service.
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Unfair trade practiceUnfair trade practice
Falsely represents that the goods or servicesFalsely represents that the goods or servicesare ofa particular standard, quality, quantity,are ofa particular standard, quality, quantity,
grade, composition , style or modelgrade, composition , style or model
Falsely represents
any rebuilt, second h
and,F
alsely represents
any rebuilt, second h
and,renovated, reconditioned or old goodsas newrenovated, reconditioned or old goodsas new
goods.goods.
Falsely represents that the goods or servicesFalsely represents that the goods or services
have sponsorship, approval, performance,have sponsorship, approval, performance,
characteristics, accessories, uses or benefitscharacteristics, accessories, uses or benefitswhich such goods or services do not have.which such goods or services do not have.
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Makesa false or misleading representationMakesa false or misleading representation
concerning the need for or the usefulness ofconcerning the need for or the usefulness of
any goods or services.any goods or services.
Gives to the publicany w
arranty or gu
aranteeGives to the public
any w
arranty or gu
aranteeof the performance, efficiency, length of life ofof the performance, efficiency, length of life of
aproduct that is not based onadequate testaproduct that is not based onadequate test
thereof.thereof.
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RestrictiveRestrictive trade practicetrade practice
Restrictive trade practice meansa trade practice whichRestrictive trade practice meansa trade practice which
tends to bringabout manipulation of price, or itstends to bringabout manipulation of price, or itsconditions of delivery or to effect flow of supplies in theconditions of delivery or to effect flow of supplies in the
market relating to goodsand services in suchamannermarket relating to goodsand services in suchamanner
soa
s to impose unjustified costsa
nd includessoa
s to impose unjustified costsa
nd includes
Delay beyonda periodagreed to by the trader which isDelay beyonda periodagreed to by the trader which is
likely to lead to rise in priceslikely to lead to rise in prices
Any trade practice which requiresa consumer to buy,Any trade practice which requiresa consumer to buy,hire oravail ofany goods or servicesasa conditionhire oravail ofany goods or servicesasa condition
precedent to hiring, buying oravailing of such serviceprecedent to hiring, buying oravailing of such service
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ManufacturerManufacturer
Sec2(1)j Manufacturer meansany person who-
Makes or manufacturesany goods or parts
thereof or
Does not make or manufacture butassemblesparts thereof or
Puts or causes to put his own mark onany
goods made or manufactured byany other
manufacturer.
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Trader
Sec2(1)q
Trader in relation toany goods meansa
person who sells or distributesany goods for
sa
leand includes the m
anuf
acturer thereof,
and where such goods or distributed in
package form, includes the packer thereof
A middlemen bringing the buyerand the seller
togetherand receivingany commission is nota
trader.
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Complainant
MeansMeans
A consumer orA consumer or
Any voluntary consumerassociation registeredAny voluntary consumerassociation registered
underany law.underany law. The Central government or the stateThe Central government or the state
government which makesa complaint.government which makesa complaint.
One or more consumers where thereareOne or more consumers where thereare
numerous consumers having the s
ame interest.numerous consumers h
aving the s
ame interest.
In case of the death ofa consumer, his legalIn case of the death ofa consumer, his legal
heir or representationheir or representation
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What can we be complainingabout
Any unfair or restrictive trade practice.
Any defect in the goods or deficiency in
service.
Any price that has been charged in excess of:-1. Fixed by the law.
2. Displayed on the goods.
3. Displayed on the price list.
4. Price that has beenagreed between them. Goods whichare hazardous to lifeand safety
are being offered for sale.
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What justice can one get from the
consumer courts
Removal of defects from the goods
Replacement of the goods.
Refund of the price paid.
Award of compensation for the loss or injurysuffered.
Discontinuance of unfairand restrictive trade
practices.
Withdrawal of hazardous goods from beingoffered for sale
To issue correctiveadvertisement.
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Consumer Protection Council
They have been established to protect the
interests of the consumers.
Classes of Councils:-
The Central consumer Protection Council
The State Consumer Protection Council The District Consumer Protection Council.
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Central Consumer Protection Council
Central Consumer Protection CouncilCentral Consumer Protection Council
ChairmanChairman
(Minister in Charge of(Minister in Charge ofConsumer Affairs)Consumer Affairs)
Officialand non officialOfficialand non official
members not more thanmembers not more than
150150
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Consumer Disputes
redressalagencies
Theyare basically consumer courts to settle
consumer Disputes.
Theyarea three tier system comprising of:-
1. Consumer disputes redressal forum Districtforum
2. Consumer disputes redressal commission-
state commission. [SCDRC]
3.Na
tional consumer disputes redress
alcommission National commission [NCDRC]
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Where to filea complaint
Complaint can be filedat the district forum
where the cause ofaction hasarisen or where
the branch office of the opposite party is
located.
Jurisdiction of the Consumer courts:-
Value of the goods/services/compensation is
Upto 20 lacs District forum
20 ---1 crore St a
te Commission Above 1 crore National commission
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Procedure on receiving complaint
On receiving the complaint in the written form, the
forum will refer the complaint to the opposite party
within 30 days of making the complaint.
Then opposite party will be asked to defend the casewithin 30 days in case it wants to deny or dispute its
allegations.
In case the defect in the good cannot be determined
without testing. The goods are sent to the
appropriate laboratory for testing.
The laboratory shall come up within its finding
within 45 days
The complainant shall have a deposit a fees for the
purpose of testing.
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On the basis of the findings of the lab test the
District forum shall make its remarks.
In caseany of the parties want to dispute the
findings of the la
b test they ca
n refute theclaims of the same in writing.
The forum will givea reasonable opportunity
of being heardand shallaward justice.
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In case of services
On receipt of complainta copy of the
same is forwarded to the opposite party
directing them to give their version of
the case. On the basis of evidence given by the
complainantand the opposite party the
forum willaward justice.
Any default in complying with the order
of the district will Invite penalty.
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Practice and ProceduresPractice and Procedures
First understandare youa consumer?
Do you know your rights?
Your responsibilities?
Let the seller beware Caveat Venditor
Purchase goods froma reliable shop. Always purchase standard goods with quality marks
patented by the govt. suchas I.SI, WOOLMARK, AGMARK
Dont buy cheap goods-cheapalways weeps but dear
weeps only once.
Always take cash memo or receipt
The Guarantee card
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Be watchful of the fine print.
Contract trader before taking action.
Notice of complaint
Filing of complaint. Drafting of complaint
Written statement