Embed Size (px)
DESCRIPTION
law
Citation preview
Consumer Protection Act, 1986
1
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
Why Consumer Protection Act,
1986.
2
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
3WHY CONSUMER PROTECTION ACT, 1986
• A person may be consumer of goods, or services.
• When I purchase a fan, a gas stove or a refrigerator, I could be the
consumer of goods.
• When I open a bank account, take an insurance policy, get my car
repaired, I could be the consumer of services.
• The consumer protection Act, 1986 tries to help a consumer when
for example, the goods purchased are defective or the services
rendered to him are subject to deficiency.
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
4WHY CONSUMER PROTECTION ACT, 1986
• Prior to the consumer Protection Act, 1986 for any consumer
complaint one had to go to an ordinary Civil Court.
• He had to engage a lawyer, pay the necessary fee, and be
harassed for years or decades before any outcome, positive or
negative, was there in that litigation.
• Under the Consumer Protection Act, no Court fee has to be paid
and the decision on the complaint is much quicker, as the Court
can evolve a summary procedure in disposing off the
complaint.
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
OBJECTIVE OF THE ACT
Preamble of the Act
“An Act to provide for better protection of the
interests of consumers and for that purpose to make
provision for the establishment of consumer
councils and other authorities for the settlement of
consumers' disputes and for matters connected
therewith.”
5
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
BRIEF STRUCTURE OF THE CONSUMER
PROTECTION ACT, 1986
Section 1 – Short Title, Extent and Commencement
Section 2 – Definitions
Section 3 to 31 – Other Provisions
6
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
BRIEF STRUCTURE OF THE CONSUMER
PROTECTION ACT, 1986
Section 1
Short Title: Consumer Protection Act, 1986
Extent: CP Act applies to whole of India except
Jammu and Kashmir7
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
BRIEF STRUCTURE OF THE CONSUMER
PROTECTION ACT, 1986
Section 2 : Definitions
8
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
WHO IS A COMPLAINANT
"complainant" means -
(i) a consumer; or
(ii) any voluntary consumer association; or
(iii) the Central Government or any State Government,
(iv) one or more consumers, where there are numerous consumers
having the same interest;
(v) in case of death of a consumer, his legal heir;
9
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
10
WHAT IS A COMPLAINT?
“Complaint” means any allegation in writing made by acomplainant that :
1. An unfair trade practice or a restrictive trade practice hasbeen adopted by any trader or service provider;
Eg. A sold a six months old car to B representing it to be a
new one. Here B can make a complaint against A for
following an unfair trade practice.
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
11
WHAT IS A COMPLAINT?
“Complaint” means any allegation in writing made by acomplainant that :
2. The goods bought by him suffer from one or more defects ;
Eg. : A bought a computer from B. It was not working properly
since day one. A can make a complaint against B for
supplying him a defective computer.
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
12
WHAT IS A COMPLAINT?
“Complaint” means any allegation in writing made by acomplainant that :
3. The services hired or availed of by him suffer from deficiencyin any respect;
Eg. A hired services of an advocate to defend himself against
his landlord. The advocate did not appear every time the case
was scheduled. A can make a complaint against the advocate.
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
13
WHAT IS A COMPLAINT?
“Complaint” means any allegation in writing made by a complainant
that :
4. A trader has charged for the goods mentioned in the complaint
a price in excess of the price fixed under any law or
displayed on the goods or any package containing such
goods.
Example : A bought a sack of cement from B who charged him Rs.
100 over and above the reserve price of the cement declared by the
Government. Here A can make a complaint against B.
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
14
WHAT IS A COMPLAINT?
“Complaint” means any allegation in writing made by a complainant
that :
5. 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 requiring traders to display information
in regard to the contents, manner and effect of use of such
goods.
Example : A bought a tin of disinfectant powder. It had lid which
was to be opened in a specific manner. Trader did not inform A
about this. While opening the lid, some powder flew in the eyes of
A which affected his vision. Here A can make a complaint against
the trader.
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
15
WHO IS A CONSUMER?
Any person who buys goods or avails services for
consideration
Any body who uses the goods or services with the
consent of the consumer.
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
16
WHO IS A CONSUMER?
Legal heir of consumer in case death of consumer
Does not include any person who buys goods for resale
or commercial purpose and services for commercial
purpose
However any person who buys goods for commercial use
but exclusively for his livelihood by means of self
employment is a consumer.
Case Study 1: Who are Consumers
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
17
WHAT IS GOODS?
Every kind of moveable property.
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
18
WHAT IS A DEFECT ?
Any -
Fault
Imperfection
Shortcoming
In the
Quality
Quantity
Potency
Purity Or
Standards
Which is required to be maintained by or under any law
or under contract (implied or expressed).
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
19
WHAT IS A SERVICE?
“Service” means service of any description, which is madeavailable to potential users and includes, but not limited to theprovisions of the facilities in connection with –
1) banking
2) financing
3) insurance
4) transport
5) processing
6) supply of electrical or other energy
7) boarding or lodging or both
8) house construction
9) entertainment
10) amusement or
11) the purveying of news or other information.
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
20
WHAT IS A SERVICE?
Eg.
The subscriber of telephone is availing the services from thetelephone company.
The person who buys life insurance policy is availing servicefrom Insurance company.
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
21
WHAT IS A SERVICE?
But does not include the rendering of any service free ofcharge or under a contract of personal service (master of servant
relation).
Case Study 2: Consumer of Services
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
22
WHAT IS A DEFICIENCY ?
Any
Fault
Imperfection
Shortcoming Or
Inadequacy
In the
Quality
Standard and
Manner of performance
Which is required to be maintained by or under any law
or has been undertaken to be performed by a person in
pursuance of a contract.
Case Study 3: Deficiency in Services?
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
23
WHAT IS RESTRICTIVE TRADE PRACTICE?
“RTP” means a trade practice which tends to bring about
manipulation of price or conditions of delivery or to affect flow
of supplies in the market relating to goods or services in such a
manner as to impose on the consumers unjustified costs or
restrictions and shall include —
(a) delay beyond the period agreed to by a trader in supply of
such goods or in providing the services which has led or is likely to
lead to rise in the price;
(b) any trade practice which requires a consumer to buy, hire or avail
of any goods or, services as condition precedent to buying, hiring
or availing of other goods or services (tying arrangement);
Case Study 4: Restrictive Trade Practice
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
24
WHAT IS UNFAIR TRADE PRACTICE?
"unfair trade practice" means a trade practice which, for the purpose of
promoting the sale, use or supply of any goods or for the
provision of any service, adopts any unfair method or unfair or
deceptive practice including any of the following practices, namely;—
(1) the practice of making any statement, whether orally or in
writing or by visible representation which,—
(i) falsely represents that the goods are of a particular standard,
quality, quantity, grade, composition, style or model;
(ii) falsely represents that the services are of a particular
standard, quality or grade;
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
25
WHAT IS UNFAIR TRADE PRACTICE?
(iii)falsely represents any re-built, second-hand, renovated,
reconditioned or old goods as new goods;
(iv)represents that the goods or services have sponsorship, approval,
performance, characteristics, accessories, uses or benefits
which such goods or services do not have;
(v) represents that the seller or the supplier has a sponsorship or
approval or affiliation which such seller or supplier does not
have;
(vi)makes a false or misleading representation concerning the
need for, or the usefulness of, any goods or services;
(vii) gives to the public any warranty or guarantee of the
performance, efficacy or length of life of a product that is not based
on an adequate or proper test;
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
26
WHAT IS UNFAIR TRADE PRACTICE?
(vii) gives false or misleading facts disparaging the goods, services
or trade of another person.
(2) permits the publication of any advertisement whether in any
newspaper or otherwise, for the sale or supply at a bargain price, of
goods or services that are not intended to be offered for sale or
supply at the bargain price.
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
27
WHAT IS UNFAIR TRADE PRACTICE?
(3) permits—
(a) the offering of gifts, prizes or other items with the intention
of not providing them as offered or creating impression that
something is being given or offered free of charge when it is
fully or partly covered by the amount charged in the
transaction as a whole;
(b) the conduct of any contest, lottery, game of chance or skill,
for the purpose of promoting, directly or indirectly, the sale, use
or supply of any product or any business interest;
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
28
WHAT IS UNFAIR TRADE PRACTICE?
(4) permits the hoarding or destruction of goods, or refuses to
sell the goods or to make them available for sale or to provide any
service, if such hoarding or destruction or refusal raises or tends to
raise or is intended to raise, the cost of those or other similar
goods or services
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
29
WHAT IS UNFAIR TRADE PRACTICE?
Cure Medical College allege and give wrong impression in the publicity
material that the college is authorised and equipped to impart medical
education leading to MBBS degree.
The college was neither recognised by MCI nor affiliated by any
University. It amounts to Unfair Trade Practice.
Case Study 5: Unfair Trade Practice
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
CONSUMER PROTECTION COUNCIL
Object of Consumer protection Council:
To promote and protect the rights of consumers.
30
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
Consumer Protection Council
31
Central
Consumer
Protection
Council
State
Consumer
Protection
Council
District
Consumer
Protection
Council
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
CONSUMER DISPUTES REDRESSAL AGENCIES
Object :
To redress the complaints of the consumers.
32
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
Consumer Disputes Redressal Agencies
33
District
Forum
State
CommissionCentral
Commission
In each
district by
the State
Govt.
To be
established
by Central
Govt.
In each State
by the State
Govt.
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
34
JURISDICTION OF FORUM /
COMMISSION
Forum / Commission Where the value of the goodsor services and thecompensation, if any claimed,
District Forum Does not exceed Rs. 20 lakhs
State Commission Rs. 20 lakhs & above but not exceeding Rs. 1 Crore
National Commission Above Rs. 1 Crore
Besides, State and National Commission have appellate jurisdiction also.
IIM Indore (2013-15) LAB - Prof. S.N.
Sinha
35
HOW TO FILE A COMPLAIN ?
Procedure for filing complain is simple.
There is nominal fees for filing a complain.
3-5 copies of the complaint on a plain paper.
Complainant or his authorized agent can represent.
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
36
RELIEF TO THE COMPLAINANT ?
If the complaint is proved the forum shall order:
a) to remove defect pointed out from the goods;
b) to replace the goods with new goods which shall be free from
any defect;
c) to return to the complainant the price 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;
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
37
RELIEF TO THE COMPLAINANT ?
f) to discontinue the unfair trade practice or restrictive
trade practice or not to repeat them;
g) to issue corrective advertisements to neutralize the effect of
misleading advertisement;
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
38
APPEAL
Shall be filed within 30 days of the receipt of the
order.
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
39
30 days
30 days
30 days
District
Forum
State
Commission
Central
Commission
Supreme
Court
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
40
LIMITATION PERIOD
File the complain -
Within 2 years from the date on which the cause of
action has arisen.
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
41
DISMISSAL OF FRIVOLOUS OR VEXATIOUS COMPLAINTS
Where a complaint instituted before the District Forum,State Commission or National Commission, is found tobe frivolous or vexatious, it shall, dismiss thecomplaint and make an order that the complainantshall pay to the opposite party such Cost, notexceeding Rs. 10,000/-.
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
THANK YOU
42
IIM In
do
re (2
01
3-1
5) L
AB
-P
rof. S
.N. S
inh
a
