consumer protection act final

“Jago Grahak Jago”

Consumer Protection Act-1986

Presented by:Piyush Kapoor 2K14G065Shreya Tandon 2K14G091Jobin Joseph 2K14G045Shalvika Gangwani 2K14G087Saransh Gakhar 2K14G086

Contents:ABOUT CONSUMER PROTECTION ACT

WHO IS CONSUMER

OBJECTIVES OF THE ACT

WHY THIS ACT

CONSUMER RIGHTS

CONSUMER DISPUTES REDRESSAL AGENCIES

Councils

PROMINENT CONSUMER GROUPS IN INDIA

Functions of dept. of consumer affairs

Consumer responsibilities

PURCHASING UNDER PUBLIC DISTRIBUTION SYSTEM

How consumer are exploited

Case study

Conclusion

ABOUT CONSUMER PROTECTION ACT

• Consumer protection act, 1986 is an act of parliament of India in-acted in 1986 to protect the consumer interests

• The first and the only Act of its kind in India, it has enabled ordinary consumers to secure less expensive and often speedy redressal of their grievances.

• Act applies to whole of India except Jammu and Kashmir.

WHO IS CONSUMER? Any person or individual:

Who buys goods for a consideration which has been paid or will be paid

Hires or avails any service for a consideration which has been paid or will be paid

It does not include a person who obtains goods for resale or any commercial purpose

WHO CAN FILE A COMPLAINT?..

A consumer or Any voluntary consumer association registered under the companies act 1956 or under any other law for the time being in force or

In case of death of a consumer, his legal heir or representative Or,

One or more consumers, where there are numerous consumers having the same interest

The central government or any state government

What constitutes a complaint

If consumers have suffered loss as result of any unfair trade practices adopted by the trader.If the goods purchased suffer from any defectIf the services hired of suffer from deficiencies in any respectIf consumers have been charged a price in excess of the price displayed or fixed

How to file a complaint

The name , description and address of the complainants and the opposite party.

The facts relating to complaint and when and where it arose

Documents in support of allegations in the complaint

The relief which the complainant is seeking

The complaint should be signed by the complainant or his authorized agent.

OBJECTIVES OF THE ACT:

Better protection against exploitation

Provides for promotion and protection of the rights of the consumers

Provide remedies for deceived consumers

To protect consumers through enforcement of weights and measures act

To implement minimum support price scheme

WHAT ARE GOODS?..

According to the “Sales Of Goods Act”- Good means every kind of movable property other than the actionable claims and money; and includes stocks and shared, growing crops, grass and things attached to or forming part of land which are agreed to be severed before sale or under the contract of sale.

Flats and housing was included under goods in 1993

WHAT IS A SERVICE?..

Services of any description which is available of potential users and includes, but not limited to, the provision of facilities in connection with banking, financing, insurance, transport, processing, supply of electrical or other energy, board or lodging or both, housing construction, entertainment, amusement or the purveying of news or other information

Housing construction is a service

WHY THIS ACT ?..

Protection from ExploitationConsumer EducationRedressal of ComplaintsEncouraging Honest BusinessmenUnityQuality life for ConsumerEthical ObligationsGetting Public Support

CONSUMER RIGHTS

Consumer rights

Consumer rights

Right to safety

Right to consumer education

Right to information

Right to seek redressal

Right to be heard

Right to choose

RIGHT TO SAFETY This right is referred to as ‘right to be protected against marketing of goods and services which are hazardous to life and property’.

It is applicable to specific areas like healthcare, pharmaceuticals and food processing, Automobiles, Housing, Domestic Appliances, Travel etc.

The Government of India needs to have world class product testing facilities to test drugs, food, cars or any other consumable product that can prove to be a menace to life.

This right needs each product which can potentially be a danger to our lives to be marketed after adequate and complete verification as well as validation.

RIGHT TO CONSUMER EDUCATION

Means the right to acquire knowledge and skills to be an informed customer

Ignorance of consumer rights is responsible for their exploitation

They should know their rights and must exercise them, they should be an aware, educated consumer

Many campaigns such as “Jago Grahak Jago” have been carried out for this purpose.

RIGHT TO BE INFORMED

The right to information is ‘the right to be informed about the quality, quantity, potency, purity, standard and price of goods or services, as the case may be so as to protect the consumer against unfair trade practices’.

In the market place of India, consumers get information by two ways namely advertising and word of mouth however these sources are considered to be unreliable but still this word of mouth is quite common.

Thus , the Indian consumers hardly have precise and complete information for assessing the true value, safety, suitability, reliability of any product.

RIGHT TO SEEK REDRESSAL Means right to seek redressal against unfair trade practices or exploitation of consumers

It includes right to fair settlement of the genuine grievances of the customer.

Consumer must only make complaints for their genuine grievances

They can also take help of consumer organizations in doing so

RIGHT TO BE HEARD

Means that consumer interest will receive due consideration at the appropriate forums

It includes right to be represented in various forums formed to consider the welfare of consumers

Consumer should form non political consumer organization which can be given representation in committees formed by the government.

There is a website, Consumerdaddy.com, where consumers can upload their criticisms as well as file complaints.

RIGHT TO CHOOSE

Means right to be assured, where every possible of access to variety of goods and services

In case of monopolies, it means right to be assured of satisfactory quality and service

It includes right to be able to choose the goods and services that one wants to buy without any manipulation from the seller.

CONSUMER DISPUTES REDRESSAL AGENCIES

REDRESSAL FORUMS HAVE BEEN ESTABLISHED AT 3 DIFFERENT LEVELS

National Commission

State Commission

District Forum

DISTRICT FORUM

This shall consist of:

A person who is, or has been, or is qualified to be a District Judge, its president

2 other members shall be persons of ability, integrity and standing and have adequate knowledge or experience or have shown capacity

Jurisdiction of the District Forum

The District Forum shall have jurisdiction to entertain complaints where the value of services and compensation claimed does not exceed 5,00,000.

A complaint can be filed by:Ø The consumer to whom such service is provided or is

agreed to be providedØ The Central or the State GovernmentØ Any recognised consumer forumØ One or more consumers

Findings of the District ForumIf, after the proceedings, the District Forum is satisfied that any of the allegations contained in the complaint about the services are proved, it shall issue an order to the opposite party directing him to do one or more of the following things:

1. To return to the complainant the charges paid.

2. 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 the negligence of the opposite party.

3. To remove the deficiency in the services in question.

4. To provide for adequate costs to parties.

STATE COMMISSION

It shall consist of –

1. a person who is or has been a Judge of a High Court , who shall be its President ;

2. two other members ( as for District Forum).

Jurisdiction of the State Commission

The State Commission has jurisdiction to entertain –

1. Complaints where the value of services and compensation claimed exceeds rupees 5 lakhs but does not exceed rupees 20 lakhs;

2. appeals against the orders of any District Forum within the state ;

3. revision petitions against the District Forum.

Procedure to be followed by the State Commission

Same as of district forum

Appeals against the order Any person aggrieved by an order made by the State

Commission may appeal against such order to the National Commission within a period of 30 days. The National Commission may entertain an appeal after 30 days if it is satisfied that there was sufficient cause for not filing it within that period

NATIONAL COMMISSION

This shall consist of –

1. a person who is or has been a Judge of the Supreme Court,

who shall be its President. (No appointment under this

clause shall be made except after consultation with the

Chief Justice of India) .

2. 4 other members qualifications : As for District Forum (State

Commission )

Jurisdiction of the National Commission

The National Commission shall have jurisdiction:

1. To entertain• Complaints where the value of services and compensation

claimed exceeds 20,00,000;

• Appeals against the orders of any State Commission

2. To entertain revision petition against the State Commission

Appeal against the order

Any person, aggrieved by an order made by the National Commission, may appeal against such order to the Supreme Court within a period of 30 days from the date of the order.

Limitation period

The District Forum , the State Commission or the National Commission shall not admit a complaint unless it is filed within 2 years from the date on which the cause of action has arisen.

In case there are sufficient grounds for not filing the complaint within such period, extension may be granted.

PenaltiesWhere 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, as the case may be, such 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 2,000 rupees but which may extend to 10,000 rupees or with both.

In exceptional circumstances the penalties may be reduced further.

COUNCILS & CONSUMER GROUPS

Councils

Central council

State council

District council

DISTRICT COUNCIL

Members:District collector is the chairmanother official and non official members are appointed by chairman

Meetings:Number of meetings-not less than 2Time and place-as decided by the chairman

Objective:To protect the consumers within the district laid down and to address their grievances

STATE COUNCIL

MembersChairman- The minister in charge of the consumer affairs of state government The number of other official or non official members representing interests as by state government.

Meetings:Number of meetings-not less than 2Time and place-depends on chairman

Objective:To promote and protect within the state

CENTRAL COUNCIL A central government may establish with effect from such date as it may specify in notification, a council to be known as Central Consumer Protection Council.

The minister in charge of consumer affairs in the Central Government is the chairman

The central council shall meet as and when necessary, but at least one meeting per year is required.

The council will meet as per the time and place as the chairman may think fit.


CGSI MGP CUTS VOICE

CGSIThis stands for “Consumer Guidance Society Of India”

This was the first consumer organization to demand consumer court for redressal of consumers compliant.

CGSI’s activities include Consumer education Holding talks to spread consumer awareness in rural and urban areas Consumer complaint redressal Testing consumer products Publication of “KEEMAT”- a monthly news magazine

MGP

This stands for “Mumbai Grahak Panchayat”

MGP is the largest voluntary consumer organization in India with a membership of 24,500 families

It has been engaged in activities of consumer protection and education for the last 33 years

Its unique collective group buying system provides a best practice model for sustainable consumption

CUTS

This stands for “Consumer Utility And Trust Society”

CUTS International (Consumer Unity & Trust Society) began its journey in 1983 in Rajasthan, from a rural development communication initiative

It is the one of the largest consumer groups in India with overseas centers in Geneva, lusaka and Nairobi.

CUTS has now completed 30 glories years.

VOICE

This stands for “Voluntary Organization in the Interest of Consumer Education”

VOICE has initiated a program of educating farmers in DELHI-NCR on farming without using pesticides

National consumer day 24th Dec National Consumer Rights Day is observed every year in India on December 24,

The Consumer Protection Act was enacted in 1986 with the objective of providing better protection of consumer's interest.

Effective safeguards are provided to the consumer, against various types of exploitations and unfair dealings, relying mainly on compensatory rather than a disciplinary or preventive approach under the Act.

The Act applies to all goods and services unless specifically exempted, which covers the private, public and cooperative sectors. It also provides speedy and inexpensive adjudication.

FUNCTIONS OF DEPT. OF CONSUMER AFFAIRS


•Education

• Licensing

•Complaint resolution

•Enforcement

Education

It helps consumer make wise purchasing decisions by informing them about the laws

It also explains what they should know about protecting themselves.

Licensing

It helps in licensing professionals who pass specialized examinations

Ensures individuals are permitted to provide services.


Complaint resolution

Helps in handling complaints against occupation regulated by the bureaus

Resolutions are faster and less costly.

Enforcement

This is DCA’s primary responsibility

Department has the authority access fines and issues notices of violation


Jago Grahak Jago

It is the consumer awareness program campaign from the ministry of consumer program affairs, government of India

The government has created channels to create consumer awareness like print media advertisement, audio campaigns, video campaigns

It is still in its primitive stage but will emerge to be a successful campaign.

This campaign helps in spreading awareness and saving consumers from the exploitation of the sellers

Implementation of BIS

To ensure a mechanism for standardization and quality, BIS has been identified in the sectors namely

Food Power Steel Automobiles Textiles &Information Technology

Consumer responsibilities

Responsibility of self help

It is always desirable that the consumer should not depend on the seller for information and choice as far as possible .

Proof of transactions.

The proof of purchase and documents related to purchase of durable goods should be invariable obtained and preserved.

Example: invoice

Proper claim

Consumers are expected to bear in mind that while making complaints and claiming compensation for loss or injury they should not make unreasonably large claims

The claim made should be rational and should be made irrespective of the compensation price

Proper use of Products/ Services

Some consumers, especially during the guarantee period,

make rough use of the product, thinking that it will be replaced during the guarantee period.

This is not fair on their part. They should always use the products properly.

PURCHASING UNDER PUBLIC DISTRIBUTION SYSTEM

PURCHASE OF DRUGS

The medicines are to be carefully checked before buying as they are important for one’s health.

The expiry date should also be checked before purchasing.

Without the prescription of the doctor the medicine should not be consumed.

PURCHASE OF CLOTHES

The clothes are also to be dually checked by the consumers.

The instruction on the clothes are to be read carefully

Consumers can also try the clothes before buying them to be sure about the quality of the clothes

PURCHASE OF GOLD

The standardization mark for the purchase of gold is “HALLMARK”

The consumer should before purchasing gold always make sure if it is hallmark certified or not.

Only then the quality is guaranteed.

MISLEADING ADVERTISEMENT

The standardization mark for cosmetics is EU- REGULATIONS 1223/2009

The information on the bottles should be clearly read by the consumer before purchasing.

Eg. An anti-ageing cream advert has been banned for misleading consumers.

PURCHASE OF FOOD PRODUCT

The standardization mark for food products is “AGMARK”

The consumer before buying should check the “AGMARK” label

Expiry date of the food product is also to be checked by the consumer


The following are the forms of consumer exploitation:

Underweight and under measures High prices Substandard quality Duplicate articles Rough behavior and undue conditions Lack of safety devices Poor or in adequate after sales service

Underweight and under measures

The consumers are often cheated into buying less

This can be prevented by having proper predefined criteria for measurement.

This is to prevent them from being exploited and manipulated

High prices The consumers are often demanded extra price for the product

This can be prevented by doing a comparative study before purchasing the product

Consumer education is also important to avoid high prices


Substandard quality

The consumers are often cheated into buying substandard quality products

To avoid this we have standardization marks like AGMARK, HALLMARK etc.

Duplicate articles

The consumer should carry out comparative study before purchasing

This is needed to avoid the duplication of the product as the same product is available at different prices in different outlets.

HOW CONSUMER ARE EXPLOITED

Lack of safety devices The consumers provided with safe products which are not harmful to their health.

The right to safety ensures the consumers safe access to products.


Poor or in adequate after sales service

The consumers are often promised after sales services at the time of purchasing the product.

But this does not happen in practice

After sales services are often a medium to lure the customer into buying the product.

CASE STUDY

CASE LAWS ON THE ACTDoctor ordered to pay Rs 2 lakh as damages to patient

KANPUR: District consumer protection forum on Monday directed a child specialist, Dr RC Gupta, to pay Rs 2 lakh to complainant Prince, son of Santosh Kumar, within 30 days.

The complainant had sought a sum of Rs 19 lakh as damages caused by the wrong treatment given Dr Gupta.

A resident of Bidhuna town in Auraiya district, the complainant stated that he was suffering from fever in December 2001 and on advice of local doctors he had visited the clinic of child specialist RC Gupta situated at Chunniganj on January 14, 2002.

CASE LAWS ON THE ACT.The doctor examined him and prescribed medicines and advised him to visit clinic again for check-up after seven days. The complainant claimed that prescribed medicine did not provide any relief. When he went again to the doctor on stipulated time and explained his condition. The doctor enhanced the dose of medicine prescribed in old prescription..

The complainant consulted the child specialist of Etawah and he stated that wrong treatment was being given to him. He was suffering from meningitis. On January 29, he again consulted Dr Gupta and he referred him to a home.

During examination doctors, observed there that he was suffering from meningitis and brain TB and so far he received wrong treatment. Due to wrong treatment, the complainant got handicapped and lost his eyesight.

The doctor appeared before the forum and admitted that he had treated him on the basis of external symptoms. He did not return for follow-up check in time and spent his time in consulting other doctors. On January 29, his condition was critical and the doctor had advised the patient to get admitted at the nursing home where meningitis and brain TB was detected.

Forum president LB Singh and member Sumanlata Sharma observed that doctor was negligent towards his duties and his act comes under the preview of dereliction of duty, therefore he was liable to pay a sum of Rs. 2 lakh as damages to the complainant.

CASE LAWS ON THE ACT

CONCLUSION• 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 so deficiency.

• 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.

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