TITLE OF THE PAPER:TITLE OF THE PAPER:

CONSUMER CONSUMER PROTECTION AND PROTECTION AND

LEGAL FRAMEWORK LEGAL FRAMEWORK FOR CONSUMER FOR CONSUMER

PROTECTIONPROTECTIONByBy

PROF.CMA.CS. V.N. PROF.CMA.CS. V.N. PARTHIBAN PARTHIBAN

FICWA, ACS, ML, LLM, MBAFICWA, ACS, ML, LLM, MBA

syllabussyllabus

INDIAN CONTRACTS ACT / LAW OF CONTRACT

NEGOTIABLE INSTRUMENTS ACT COMPANY LAW INCOME TAX ACT 1961 THE CENTRAL EXCISE ACT 1944 CENTRAL SALES TAX ACT 1956 Chapter 7: THE CUSTOMS ACT 1962

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Chapter 8 - FOREIGN TRADE POLICY Chapter 9 - THE CONSUMER

PROTECTION ACT , 1986 Chapter 10 - THE ENVIRONMENT

PROTECTION ACT Chapter 11: VAT- VALUE ADDED TAX Chapter 12: FRINGE BENEFIT TAX -

CONCEPT AND COMPLIANCE

CONSUMER PROTECTION ACT, CONSUMER PROTECTION ACT, 19861986

IntroductionIntroduction Meaning – Need for Consumer ProtectionMeaning – Need for Consumer Protection Coverage of the CP Act, 1986Coverage of the CP Act, 1986 Who can file a complaint Who can file a complaint Legal framework for consumer protectionLegal framework for consumer protection Jurisdiction, Limitation period etc.Jurisdiction, Limitation period etc. Legal remedies available to consumerLegal remedies available to consumer ConclusionConclusion

Consumer Protection Act, 1986 the Consumer Protection Act, 1986 the guardian of consumers was enacted guardian of consumers was enacted on 24on 24thth December, 1986 after a long December, 1986 after a long struggle of various social actions struggle of various social actions groups and it was enforced from 15groups and it was enforced from 15thth April, 1987April, 1987

INTRODUCTION:INTRODUCTION:

1.1. Object of the Act is to promote and Object of the Act is to promote and protect the rights of consumers.protect the rights of consumers.

2.2. Legislation gives statutory protection to Legislation gives statutory protection to innocent and ill-informed consumers innocent and ill-informed consumers against unfair trade practices.against unfair trade practices.

3.3. It provides a forum for inexpensive and It provides a forum for inexpensive and speedy justice to the consumers almost speedy justice to the consumers almost at their doorsteps. at their doorsteps.

FEATURE OF C.P. ACTFEATURE OF C.P. ACT

The Act applies to all goods and The Act applies to all goods and services unless specifically exempted services unless specifically exempted by the Central Government, it covers by the Central Government, it covers all the sectors whether public, private all the sectors whether public, private or co-operative, and the provisions of or co-operative, and the provisions of the Act are compensatory in nature.the Act are compensatory in nature.

MEANING OF CONSUMER MEANING OF CONSUMER PROTECTIONPROTECTION

It means protection to every member of It means protection to every member of society from all types of unfair means of society from all types of unfair means of trade practices of market operations and trade practices of market operations and includes within its scope compensatory, includes within its scope compensatory, preventive and punitive protection.preventive and punitive protection.

NEED FOR CONSUMER NEED FOR CONSUMER PROTECTIONPROTECTION

(1) The widening information gap and the unequal (1) The widening information gap and the unequal bargaining power between buyers and sellers in the bargaining power between buyers and sellers in the market place necessitates measures for consumer market place necessitates measures for consumer protection. protection.

(2) The scrupulous sellers are always on the look for (2) The scrupulous sellers are always on the look for devising new means and methods to deceive the devising new means and methods to deceive the consumers for extracting more profits for their sales consumers for extracting more profits for their sales to the later. to the later.

Hence, there is a need for an Hence, there is a need for an appropriate Consumer Protection Act with stringent appropriate Consumer Protection Act with stringent provisions in order to safeguard the interests of the provisions in order to safeguard the interests of the buyersbuyers

COVERAGE OF THE ACTCOVERAGE OF THE ACT

THE ACT APPLIES TO ALL GOODS & THE ACT APPLIES TO ALL GOODS & SERVICES UNLESS SPECIFICALLY SERVICES UNLESS SPECIFICALLY

EXEMPTED BY THE CENTRAL GOVT.EXEMPTED BY THE CENTRAL GOVT.- It covers all the sectors whether private, It covers all the sectors whether private,

public or co-operative.public or co-operative.- The provisions of the Act are The provisions of the Act are

compensatory in nature.compensatory in nature.

WHO CAN FILE A COMPLAINTWHO CAN FILE A COMPLAINT

• A ConsumerA Consumer• Any voluntary consumer organisationAny voluntary consumer organisation• The Central Government.The Central Government.• The State Govt./Union Territory Admn.The State Govt./Union Territory Admn.• One or more consumers on behalf of One or more consumers on behalf of

numerous consumers who are having numerous consumers who are having same interest.same interest.

LEGAL FRAMEWORK FOR LEGAL FRAMEWORK FOR CONSUMER PROTECTION:CONSUMER PROTECTION:

District Forum District Forum

State CommissionState Commission

National Commission National Commission

supreme Court supreme Court

JURISDICTION - PECUNARYJURISDICTION - PECUNARY

The pecunary jurisdiction of the District Forum is The pecunary jurisdiction of the District Forum is up to Rs.20 lakh and that of the State up to Rs.20 lakh and that of the State Commission is above Rs.20 lakh and below Commission is above Rs.20 lakh and below Rs.One crore. All claims, involving more than Rs.One crore. All claims, involving more than Rs. one crore are filed directly before the Rs. one crore are filed directly before the National Commission. Appeals from the National Commission. Appeals from the District Forum are to be filed before the State District Forum are to be filed before the State Commission and from there to the National Commission and from there to the National Commission, within thirty days of knowledge Commission, within thirty days of knowledge of the order.of the order.

LIMITATION PERIODLIMITATION PERIOD

A Complaint with the District Forum, the A Complaint with the District Forum, the State Commission or the National State Commission or the National Commission, with their respective Commission, with their respective jurisdiction, must be filed within 2 years jurisdiction, must be filed within 2 years from the date on which the cause of action from the date on which the cause of action has arisen.has arisen.

However, the authority may condone the However, the authority may condone the delaydelay

PRESCRIBED COURT FEEPRESCRIBED COURT FEE

THE DISTRICT FORUM: FEETHE DISTRICT FORUM: FEE i) Rs.100/- if the claim including compensation i) Rs.100/- if the claim including compensation

and cost is less than Rs.1 lakh.and cost is less than Rs.1 lakh. ii) Rs.200/- if the claim as above is less than ii) Rs.200/- if the claim as above is less than

Rs.5 lakh.Rs.5 lakh. iii) Rs.400/- if the claim as above is less than iii) Rs.400/- if the claim as above is less than

Rs.10 lakhRs.10 lakh iv) Rs.500/- If the claim as above is less than iv) Rs.500/- If the claim as above is less than

Rs.20 lakh.Rs.20 lakh.

COURT FEE FOR STATE / COURT FEE FOR STATE / NATIONAL COMMISSIONNATIONAL COMMISSION

i) Rs.2,000/- if the claim including i) Rs.2,000/- if the claim including compensation and cost is less than Rs.50 compensation and cost is less than Rs.50 lakh.lakh.

ii) Rs.4,000/- if the claim as above is less ii) Rs.4,000/- if the claim as above is less than Rs.1 Crore.than Rs.1 Crore.

THE NATIONAL COMMISSION FEE:THE NATIONAL COMMISSION FEE: i) Rs.5,000/- if the claim including i) Rs.5,000/- if the claim including

compensation and cost is Rs.1 Crore and compensation and cost is Rs.1 Crore and aboveabove

RELIEF AVAILABLE TO THE RELIEF AVAILABLE TO THE CONSUMERSCONSUMERS

The Redressal Forums may give orders for one The Redressal Forums may give orders for one ore more of the following reliefs:-ore more of the following reliefs:-

Removal of defects from the goods; Removal of defects from the goods; Replacement of the goods;Replacement of the goods; Refund of the price paid;Refund of the price paid; Removal of defects/deficiencies in the servicesRemoval of defects/deficiencies in the services Discontinuance of UTP or RTP or direction not Discontinuance of UTP or RTP or direction not

to repeat them;to repeat them; Withdrawal of hazardous goods from sale;Withdrawal of hazardous goods from sale; Award for adequate costs to parties.Award for adequate costs to parties.

SALIENT FEATURES OF CP ACTSALIENT FEATURES OF CP ACT

The Consumer Protection Act, 1986 seeks The Consumer Protection Act, 1986 seeks to promote and protect the interest of to promote and protect the interest of consumers against deficiencies and consumers against deficiencies and defects in goods or services. defects in goods or services.

It also seeks to secure the rights of a It also seeks to secure the rights of a consumer against unfair or restrictive trade consumer against unfair or restrictive trade practices, which may be practiced by practices, which may be practiced by manufacturers and traders. manufacturers and traders.

Features of CP ActFeatures of CP Act

The provisions of the Act are The provisions of the Act are compensatory in nature. compensatory in nature.

There are various levels of adjudicatory There are various levels of adjudicatory authorities that are set up under the Act, authorities that are set up under the Act, which provides a forum for consumers to which provides a forum for consumers to seek redressal of their grievances in an seek redressal of their grievances in an effective and simple manner.effective and simple manner.

CONCLUSIONCONCLUSION

- The enactment of the Consumer Protection Act, 1986 is The enactment of the Consumer Protection Act, 1986 is an important landmark in the legal history of our country an important landmark in the legal history of our country and is also vested as a classical example of a legislative and is also vested as a classical example of a legislative measure adopted to achieve the avowed socio-economic measure adopted to achieve the avowed socio-economic goals in the post independence era. goals in the post independence era.

- The availability of a cheap, time bound and speedy The availability of a cheap, time bound and speedy remedy without payment of court fees and reduced remedy without payment of court fees and reduced adherence to procedural formalities and legal adherence to procedural formalities and legal technicalities under the Act, has come as a ray of hope technicalities under the Act, has come as a ray of hope to the common man when he was on the verge of losing to the common man when he was on the verge of losing faith in judicial system .faith in judicial system .

THANK YOUTHANK YOU