fe473consumer protection

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Amity Business SchoolMBA, (M&S/ E&L) Semester 2

Business Environment and Law

Ms. Shinu Vig



Amity Business School

Consumer Protection Act, 1986

The objects of the Consumer Protection Act are:

i. To provide for better protection of interests of consumers.

ii. To provide for establishment of consumer councils

and other authorities.

iii. To empower the consumer councils and other authorities to settle consumers¶ disputes and matters

connected therewith.




Salient Features of the Act:

i. The provisions of the Act are compensatory in

nature.

ii. It intends to provide simple, speedy and inexpensive

redressal to the consumers.iii. It applies to all goods and services unless specifically

exempted by the Central government.

iv. It covers all sectors whether private, public or co-

operative.v. It confers certain rights on consumers.




Complainant: A complainant means any of the following and having

made a complaint:

i. A consumer

ii. Any voluntary consumer association registered under the companies act or any other law

iii. The Central Government or any State Government

iv. One or more consumers, where there are numerous

consumers having the same interest.




Complaint:Complaint means any allegation in writing made by a

complainant with a view to obtaining relief under the Act,

that:

Any unfair/ restrictive trade practice has been adoptedby any trader.

The goods bought by him suffer from defect in any

respect.

The services hired or availed by him suffer from

deficiency in any respect

A trader has charged excess price

Goods which are hazardous to life and safety are being

offered for sale to public in contravention of law.




Defect: Any fault, imperfection or short coming in the

quality, quantity, potency, purity or standard

which is required to be maintained

By or under any law or

Under any contract express or

implied or

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

Has been undertaken to be performed in

pursuance of a contract or

Otherwise in relation to any service




Consumer:Consumer means any of the following persons:

A person who buys any goods for consideration which

has been paid/ promised/ partly paid and partly

promised. It includes any other user of such goods when such use

is made with the approval of the buyer.

However, it does not include a person who obtains such

goods for resale or for any commercial purpose.

µCommercial use¶ does not include use by a consumer of

goods bought and used by him exclusively for the purpose

of earning his livelihood by self employment.




Consumer also means:

A person who hires or avails of any services for

consideration which has been paid/ promised/ partly

paid and partly promised. It includes any other beneficiary of such services with

the approval of the buyer.




Rights of Consumers:

i. Right to safety

ii. Right to be informed

iii. Right to chooseiv. Right to be heard

v. Right to seek redressal

vi. Right to consumer education




Consumer Disputes Redressal Agencies:

1. National Consumer Disputes Redressal

Commission: NATIONAL COMMISSION

± costs and compensation higher than Rs. 1 Crore2. State Consumer Disputes Redressal

Commissions: STATE COMMISSION

± costs and compensation higher than Rs. 20 Lakhs & less

than Rs. 1 Crore

3. District Consumer Disputes Redressal Forums:

DISTRICT FORUM

± costs and compensation less than Rs. 20 Lakhs




Appeals:

1. Against District Forum- To the State

Commission

2. Against State Commission- To the National

Commission.

3. Against National Commission- To the

Supreme Court




Reliefs available to Consumers:i. To remove defects in the goods

ii. To replace the goods with new goods

iii. To return to the complainant the price paid

iv. To remove the deficiencies in the servicesv. To discontinue the unfair/ restrictive trade practice

vi. Not to offer the hazardous goods for sale

vii. To withdraw the hazardous goods from being offered

for sale.viii. To pay compensation as may be awarded to the

consumer for any loss or injury suffered by him

ix. To provide for adequate costs to the aggrieved party

fe473consumer protection

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