Consumer protection act

Consumer Protection Act, 1986

Submitted by : Group No:1

INTRODUCTION

In spite of various provisions providing protection to the consumer and providing action against adulterated and sub-standard articles in the different enactments like Code of Civil Procedure, 1908, the Indian Contract Act, 1872, the Sale of Goods Act, 1930, the Indian Penal Code, 1860, the Standards of Weights and Measures Act,1976 and the Motor Vehicles Act, 1988, very little could be achieved in the field of Consumer Protection.

In order to provide for better protection of the interests of the consumer the Consumer Protection Bill, .1986 was introduced in the LokSabha on 5th December, 1986.

Consumer Protection Act, 1986 The Consumer Protection Act 1986 is a social welfare legislation

which was enacted as a result of widespread consumer protection movement. The main object of the legislature in the enactment of this act is to provide for the better protection of the interests of the consumer and to make provisions for establishment of consumer councils and other authorities for settlement of consumer disputes and matter therewith connected.

In order to promote and protect the rights and interests of consumers, quasi judicial machinery is sought to be set up at district, state and central levels.

The main object of these bodies is to provide speedy and simple redressal to consumer disputes. It is one of the benevolent pieces of legislation intended to protect the consumers at large from exploitation.

Objects of the ActRight to be protected against marketing of goods which are hazardous to life and property.

Right to be informed about the quality, potency, standard, and price of goods to protect the consumer against unfair trade practices.

Right to be heard and to be assured that customers’ interests will receive due consideration at appropriate forums.

Right to seek redressal against unscrupulous exploitation of consumers.

Right to consumer education.

Consumer protection councils – Central & State.

Definitions

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

• Complainant: One or more consumer or any voluntary consumer association registered under the Companies Act or the Central or any State Government who or which makes a complaint.

• Complaint: Any allegation in writing made by a complainant with a view to obtaining any relief provided by under this Act.

Consumer & Rights of consumers

A person who buys any goods for a consideration which has been paid or promised or partly paid and partly promised or under any system of deferred payment i.e. in respect of hire purchase transaction.

A person who hires or avails of any services for consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment.

ORGANIZATIONAL SETUP

Organizational setup

Adjudicative bodies

District forum(580)

State commission(35)

Advisory bodies

National commission(NCDRC)

Central Consumer protection Council

State Consumer Protection council

National Consumer Protection Council

Consumer disputes redressal agencies [sec.9]]

1. A consumer disputes redressal forum to be the ‘district forum’. This is to be established by the state govt. in each district of the state by means of a notification. More than one can also be established in a single district.

2. A consumer disputes redressal commission to be known as the “state commission”. This has also to be established by the govt. in the state by means of a notification.

3. A national consumer disputes redressal commission to be established by the central govt. by means of a notification.

The act thus envisages a hierarchy of three redressal forums:-1. District forum (Less than Rs. 20 Lacs).2. State forum (Between Rs. 20 Lacs-1 Crore).3. National forum (More than Rs. 1 Crore) .

DISTRICT FORUM [Sec-9 (a)]

• Composition

Headed BY Retired Judge

One Women

One Person with economics, law,

commerce, accountancy public affairs background

TERM OF OFFICE :Every person of district form holds 5 years of office or up to age 65 whichever is earlier , no re-

appoinment

District forum dispose a complaint generally within 3months of the receipt of notice by opposite party (within 5months if it requires analysis or testing of commodities by a laboratory).Any person aggrieved by the order made by the district forum may appeal to state commission within 30days from the date of order.District forum shall refer a copy of complaint to the opposite party. District forum shall entertain the complaint up to

the value of Rs20 lakhs.

JURISDICTION (Sec.11)

the opposite party or each of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides or 2[carries on business or has a branch office or] personally works for gain.

Any of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides, or 2[carries on business or has a branch office], or personally works for gain, provided that in such case either the permission of the District Forum is given, or the opposite parties who do not reside, or 2[ carry on business or have a branch office], or personally work for gain, as the case may be, acquiesce in such institution; or

The cause of action, wholly or in part, arises.

State commission [Sec-9 (b)]

• CompositionHeaded BY high court Retired

Judge

One Women –less than 35 yrs, with an

degree




appoinment

• State commission is the higher court after district consumer forum.

• State govt. shall establish state commission.• State commission shall have one president and at least

two member’s, one of whom shall be a women.• The president of state commission shall be the person

who is or has been the judge of a high court.• State commission shall entertain complaints where the

value of claim exceeds Rs20 lakhs but does not exceeds Rs1 crore. Besides, it shall entertain appeals against the order of any district forum within the state also.

Jurisdiction:- [sec.(17)] & Appeals:-[sec.(19)]

Jurisdiction i. To entertain complaint where the value of the goods or services and

compensation, if any, claimed exceeds RS5 lakhs but does not exceeds RS 20 lakhs.

ii. To entertain appeals against the order of any district forum within the state. iii. 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.

Appeals:iv. An aggrieved person of state commission can appeal to the national

commission.

v. 30days period from the order of the state commission is allowed for carrying the matter before the national commission.

vi. A late appeal may also be entertained provided that the commission is satisfied that there was a sufficient cause for not preferring an appeal within the prescribed period.

National commission (sec. 9 and 20 to 23)

• CompositionHeaded BY

Supreme court Retired Judge

One Women –less than 35 yrs, with an

degree




appoinment

National commission shall entertain complaint where the value of claim exceeds Rs1 crore.

National commission enjoys all power which are enjoyed by a civil court.

Any person aggrieved by the order made by national commission may prefer an appeal to supreme court within 30days from the date of order.

Jurisdiction:- [sec.(21)] & Appeals:-[sec.(23)]

Jurisdiction

i. The national commission is to entertain complaints where the value of the goods or services and compensation claimed exceeds RS20 lakhs.

ii. The appellate jurisdiction is to entertain appeals against orders of any of the state commission

Appeals: The working procedure is the same as that of the Forum U/S

[13(4)], (5) and (6) and for the rest it has been prescribed by the central govt.

The national commission has the power to issue an order to the opposite party directing him to do any 1 or more of the things referred to sec.14(1)(a) to(i).

FILING OF COMPLAINTS

A complaint may be filed by

a) The consumer to whom the goods are sold

or services are provided

b) Any recognized consumer association

c) One or more consumers with same interest

d) The central government or state

government

RELIEF TO THE COMPLAINANT ?

IF THE COMPLAINT IS PROVED THE FORUM SHALL ORDER

a) to remove defect pointed out by the appropriate laboratory from the goods in question;

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 negligence of the opposite party;

e) to remove the defect in goods or deficiency in the services in question.

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 the District Forum, the State Commission or the National Commission, such trader or person (or complainant) shall be punishable with imprisonment for a term which shall not be less than one month but which may extend to three years or with fine which shall not be less than two thousand rupees but which may extend to ten thousand rupees, or with both.

ExampleJet Airways to pay Rs 71K compensation

• Jet Airways has been ordered by a consumer forum here to pay over Rs 71,000 as compensation to a family of four for not communicating their food preference to the connecting airline and making them go hungry for over 10 hours during their flight to Toronto from London.

• The district forum asked Jet Airways to compensate the family while also holding it guilty of rendering deficient service and not informing the family, the Sharmas, about the number of bags allowed on the connecting Air Canada flight, due to which they had to pay an additional expense of Rs 4,500 (approx) and also discard a bag worth Rs 2,000.

• "The tickets were booked at Delhi and with the particulars of the allowable baggage while going to London. Jet Airways was responsible for not clarifying the correct position to the complainant about baggages.

• "The Jet Airways was also responsible for not informing the food choice to the connecting flight to Canada from London. We, therefore, hold it responsible for both deficiencies," said the New Delhi district consumer forum.

• The Sharmas, residing in Rohini, in their plea, had said they had booked four tickets through a travel agent of the Jet Airways for a journey from Delhi to Toronto via London and back.

Jet Airways to pay Rs 71K compensation

• While booking the tickets, they had mentioned their meal choice as vegetarian, said Sharmas adding that when they took the connecting Air Canada flight to Toronto at London, they found their meal choice had not been communicated to Air Canada, due to which they had to go hungry during the 10-hour flight.

• They also said according to the tickets issued by Jet Airways two bags of upto 23 kg weight could be carried by each passenger, but Air Canada informed them that only one bag per traveller was allowed, due to which they had to pay Rs 4,500 and also discard a bag worth Rs 2,000.

• Jet Airways, in their reply to a email sent by the Sharmas had said the rules of Air Canada were to be followed and had also shifted the blame on to the travel agent.

• The forum, however, rejected Jet Airways' contention that Air Canada rules would apply and it was the travel agent's fault for not informing the family about luggage rules.

• "We fail to appreciate the contention raised by Jet Airways. The tickets were booked at Delhi and with the particulars of the allowable baggage while going to London.

• Any change of that position in respect of baggages to be carried till Toronto by Air Canada cannot be introduced mid-way in the journey.

• "We allow the expenses incurred of Rs 6,200 paid by the complainants for the baggages and allow compensation of Rs 10,000 for each of the complainants for going without food for 10 long hours of flight. We also allow another compensation for harassment of Rs 25,000 to all complainants including litigation expenses," the forum said.

Conclusion

• Consumer Protection Law are designed to ensure fair competition and the free flow of truthful information in the market place.

• The law are designed to prevent business that engages in fraud or specified unfair trade practices (UTP) from gaining an advantage over competitors and way providing additional protection for the weak and those unable to take care of themselves.

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Consumer protection act