TWO-THIRDS of spending in the world economy ($ 30 trillion) is by consumers.

YET THEY HAVE NO VOICE! New Economic Policy floods market with

products—YE DIL MAANGE MORE but too little information for informed choice.

On 24 December 1986 Govt. of India enacted the Consumer Protection Act 1986 to:

Ensure Rights of Consumers Provide Remedies for deceived Consumers Check Unfair Business Practices & Restrictive

Trade Practices.This is a unique law in the world.

C.P. ACT IS UNIQUE Exclusive Fora for consumer disputes in all

districts, state and national capitals. 6 consumer rights specified. Consumer Protection Councils from national to

state and district levels. Covers private, public, cooperative sectors.

CONSUMER PROTECTION ACT, 1986

Consumer's Rights under Section 6

1. Right to SAFETY against hazardous goods and services.

2. Right to be INFORMED about quality, quantity, purity, standard, price.

3. Right to CHOOSE from a variety at competitive prices.

4. Right to BE HEARD.5. Right to seek REDRESSAL.6. Right to CONSUMER EDUCATION.

Contd -

Applicability – Extends to whole of India

except the state of Jammu and Kashmir Applies to all goods and service except those

notified by the Central Government

WHO IS A CONSUMER?

Two kinds of consumer under the Act

◦ Consumer of goods buys or agrees to buy goods any user of such goods

◦ Consumer of services

hires or avails any services

any beneficiary of such service

Contd - Service – Service of any description but does

not include rendering of any service free of charge or under a contract of personal service.

Complaint Complaint means a formal allegation against a

party Complaint is an written allegation made in

writing to the National commission, the State Commission, or the District forum by a person competent to file it with a view to obtaining relief provided under the Act.

Who can file a complaint A consumer Any recognized consumer association One or more consumers having the same

interest The central or the state government as the

case maybe In case of death of a consumer, his legal heir

or representative

Contd - The following are also considered as a

consumer and hence they may file a complaint.

User of goods and beneficiary of services Husband of the consumer Insurance company

CONSUMERS NEED PROTECTION AGAINST (grounds of complaint)

Unfair trade practice

Restrictive trade practice

Defects

Deficiencies

CONSUMERS NEED PROTECTION AGAINST

UNFAIR TRADE PRACTICE Adopting unfair methods or deception to promote sale,

use or supply of goods or services e.g.

Misleading public about price (e.g. bargain price when

it is not so).

Charging above MRP printed.

Misleading public about another’s goods or services.

Falsely claiming a sponsorship, approval or affiliation.

Offering misleading warranty or guarantee.

CONSUMERS NEED PROTECTION AGAINST

RESTRICTIVE TRADE PRACTICE Price fixing or output restraint re: delivery/flow of

supplies to impose unjustified costs/restrictions on consumers.

Collusive tendering; market fixing territorially among competing suppliers, depriving consumers of free choice, fair competition.

Supplying only to particular distributors or on condition of sale only within a territory.

Delaying in supplying goods/services leading to rise in price.

Requiring a consumer to buy/hire any goods or services as a pre-condition for buying/hiring other goods or services.

CONSUMERS NEED PROTECTION AGAINST DEFECTS

Any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard which is required to be maintained by or under any law for the time being in force or under any contract express or implied or as is claimed by the trader in any manner whatsoever in relation to any goods.

DEFICIENCY Any fault, imperfection, shortcoming or inadequacy in the

quality, nature and manner of performance which is required to be maintained by or under any law for the time being in force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service

Consumer dispute Sec 2(1) (e) – A dispute where the person

against whom a complaint has been made, denies or disputes the allegation contained in the complaint.

Consumer dispute redressal agencies

District forum Sec 9 of the act provides for the establishment of a

district forum by the state government in each district of the state by notification.

The state government may establish more than one district forum if it deems fit to do so.

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Composition The collector of the district will be its president along with

the two members including atleast one woman who are persons of ability, integrity and standing.

The are appointed by the state government on the recommendation of the selective committee.

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Term of office Every member of the district forum shall hold office for a term of

5 years or up to the age of 65 years, whenever is earlier and shall be eligible for re-appointment.

Jurisdiction The district forum can entertain complaints up to the dispute of

Rs. 50 lakh only. Who can make complaint: The consumer to whom product is sold or delivered Any recognized consumer association. One or more consumer The central or the state government

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Procedure on filling of complaint The district forum shall refer a copy of the complaint to

the opposite party within 21 days from the date of admission of the complaint.

If other party fails to represent his case with in given time following shall apply:

If the defect in the goods cannot be determined without proper analysis or test of the goods, the district forum shall obtain a sample, seal it and authenticate it and refer the sample to the appropriate laboratory for finding out the defect and report.

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Findings of the district forum If the district forum is satisfied that the allegations about

services are true or loss is suffered by complainant due the goods supplied to him, the forum shall issue one or more of the following orders to the opposite party:

To remove the defect in goods To replace the goods with new goods To return the price to the complainant To remove the defects in the services

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Appeal against order of district forum The aggrived party may appeal against the order of

district forum to the state commission within 30 days of the order.

The state commission has the power to entertain an appeal after the expiry of 30 days if it is satisfied that there was sufficient cause for the delay.

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State Commission The Act provides for the establishment of the state

consumer dispute redressal commission by the state government in the state by notification

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Composition Members should not be less than 35 years of age. A person has the qualification of high court judge is

appointed by the state government in consultation with the chief justice of high court of the state as its president along with 2 or more members including atleast one woman member

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Terms of office Every member of the state commission shall hold office

for a term of 5 years or up to the age of 67 years whichever is earlier.

He may reappointed for 5 years if he fulfils other conditions

Procedure on filling a complaint Finding of the state commission Jurisdiction of the state commission The state commission can entertain complaints ranging

from 50 lakhs to Rs. 1 crore.

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National commission Section 9 provides for the establishment of national

consumer disputes redressal commission by the central government by notification

Composition The national commission consist of: A supreme court judge Four competent persons of different /important areas. The compensation will be as presibed by the central govt.

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Jurisdiction The national commission will have jurisdiction to entertain

complaints for the value exceeding Rs. 1 crore. Power To issue cease and desist order To grant interim injunction To give directions for defective or unsafe products and

replacement of these products or for removal of the deficiency in services.

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Appeal An aggrieved person may appeal against such order to

the supreme court within 30 days from the date of the order

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HOW TO FILE COMPLAINT WITH THE FORUM OR COMMISSION ? File WITHIN 2 YEARS of cause of action in

the District Forum where the seller has his business or lives or where the cause of action arose.

Submit 3 COPIES OF COMPLAINT ON PLAIN PAPER WITH SUPPORTING DOCUMENTS (receipt, bill etc.)

NO LAWYER. MINIMAL FEE IS PAYABLE.

Fees payableDistrict Forum

Value and compensation claimed Fee Up to Rs 1 Lakh Rs 100 Rs 1 lakh & above but less than Rs 5 lakh Rs 200 Rs 5 lakh & above but less than Rs 10 lakh Rs 400 Rs 10 lakh & above but less than Rs 20 lakh Rs 500

Is There Any Prescribed PROFORMA For Filing Complaint ?NO. But the following information must be

furnished with the complaint :- Name and full address of complainant. Name and full address of opposite party. Description of goods and services. Quality and quantity. Price. Date & proof of purchase or hiring. Nature of deception. Type of redressal prayed for.

BENEFITS & RELIEFSRelief

Removal of defects in goods or deficiency in services.

Replacement of defective goods.

Refund against defective goods or deficient services.

Compensation.Benefit

Disposal within 90 days

No adjournment shall ordinarily be granted - Speedy trial

Prohibition on sale of hazardous goods.

Appeals against order of the forums Appellate powers of the State Commission –

appeal can be made to the SC against an order of the district forum within a period of 30 days

Appellate powers of the National Commission – appeal can be made to the NC against an order of the SC within 30 days from the date of the order

Contd - REFUND OF MONEY. REPLACEMENT OF THE GOODS. COMPENSATION FOR LOSS OR

HARASSMENT OR MENTAL AGONY.

Contd - Appeal shall be heard within 90 days from the

date of its admission Appeal to the Supreme Court – Appeal can be

filed against the order of the NC within 30 days from the date of the order

Penalties Failure to comply with an order of DF,SC,NC

shall be punishable with an imprisonment for a term which shall not be less than one month but which may extend to three years, or with fines ranging between 2000 and Rs 10,000 or both.