11125 Consumer Protection Act Ppt

8/13/2019 11125 Consumer Protection Act Ppt

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Consumer Protection Act -1986


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Introduction

Caveat emptor rule ( let the buyer beware) in sale ofgoods act of 1930, sprout the root of consumer interestprotection.

United nations passed resolution of consumer protectionin april 1985

In India 1986 was the enactment of consumer protectionact

Aimed at providing simple, quick, and cheaper protectionof consumers interest


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The law relating to consumer protection iscontained in the consumer protection Act

,1986.The Act applies to all goods and services

.The central government may however by

notification published in the official Gazette exempt

any goods or services(sec.1


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objectives

Better protection of interests of consumers

Protection of rights of consumers-Right to be protected against marketing of goods or

services which are hazardous to life and property

-To be informed about the quality, quantity, potency,purity, standard and price of goods or services so asto protect the consumers against unfair trade

practices


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-The right to be assured, where ever possible,access to goods and services at competitive prices

- The right to be heard and to be assured thatconsumers interest will receive due consideration

at appropriate forums- The right to seek redresses against unfair tradepractices or restrictive trade practices or

unscrupulous exploitation of consumers


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- Right to consumer education

Consumer protection councils

Quasi-judicial machinery for speedy redressal of consumer disputes

-quasi-judicial machinery at the district ,State and central levels-(To give reliefs of a specific nature)

-(To award, wherever appropriate, compensation to consumer)

Penalties for non-compliance of the orders given by the

quasi-judicial bodies have also been provided


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Scope of the Act

Applies to whole of the state Exept the state ofJammu and Kashmir

Applies to all type of goods and services, publicutilities & public sector undertakings

All types of complains relating to goods ,unfairtrade practice

Remedies under this act is same as those in otherlaws.

A suit pending in civil court cannot be heard inconsumer court


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Consumer forums have the power to adjudicatedisputes, but they do nat have trappings of a court

The consumer court powers are limited


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Unfair trade practices


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Unfair trade practices [sec.

2(1) (r)]

It means trade practices which a

trader, for the purpose of promoting

the sale, use or supply of any goodsor for the provision of any service,

adopts any unfair method or unfair or

deceptive practice.


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The practices included are:

(1)The practice of making any

statement, whether orally or in writing

or by visible representation which-

Falsely represents that the goods are

of particular standard, quality, quantity,

grade, composition, style or model;

Falsely represents that the servicesare of particular standard, quality or

grade;


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Falsely represents any rebuilt, second hand,renovated, or old goods as new goods;

Represents that the goods or services have

sponsorship, approval, performance,

characteristic, accessories, uses or benefitswhich such goods or services do not have;

Represents that the seller or the supplier has

sponsorship or approval or affiliation which such

seller or supplier does not have;


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Make a false or misleadingrepresentation concerning the needsfor , or the usefulness of, any goods

or services; Gives to the public any warranty or

guarantee of the performance orlength of life of a product or of any

goods that is not based on anadequate or proper test thereof.


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Materially misleading the publicconcerning the price at which a

product or like products or goods or

services, have been or are ordinarilysold or provided.


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Unfair trade practices - contd

2. False offer of bargain price [section

2(1)(r)(2):

A price that is stated in any advertisement tobe a bargain price by reference to ordinary

price or otherwise

A price that a person who reads, hears orsees the advertisement would reasonably

understand to be a bargain price having

regard to the prices at which like products are

sold.


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Contd

3. Schemes offering gifts or prizes [section 2(1)(r)(3)]Offering gifts or prizes or other items with the

intention of not providing them and conductingpromotional contests.

Creating an impression that something is being given

free of charge when it is fully or partly covered by the

amount charged in the transaction.

Conducting of any contest, lottery or game of chances

etc for the purpose of promoting-directly or indirectly-

the sale, use or supply of any product or any business

interest.


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Contd

Society for Civil Rights vs Colgate Palmolive

Eg: A scheme sponsored by Colgate

Palmolive (India) Ltd induced the contestants

to buy a minimum of 2 Trigard toothbrushes

to be able to participate in the contest. The

early bird prizes to be awarded for entriesreceived early had nothing to do with any

skill. It was held not to be in public interest.


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Contd

4. Withholding any schemes [sec 2(1)(r)(3A)]

Withholding from the participants of any

scheme offering gifts, prizes or other itemsfree of charge, on its closure the information

about final result of scheme. The participants

of a scheme shall be deemed to have been

informed of the final results of the schemewhere such results are within a reasonable

time published prominently in the same

newspapers in which the scheme was

originally published.


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Contd

5. Non compliance of prescribed standards[sec 2(1)(r)(4):

The prescribed standard may relate toperformance, composition, contents,design, packaging etc as are necessary toprevent or reduce the risk of injury to the

person using the goods.


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CONTD

6. Hoarding, destruction or refusal [sec2(1)(r)(5):

Hoarding, destruction or refusal to

sell the goods which raises or tendsto raise the cost of those or other

similar goods or services shall

amount to an unfair trade practice.


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Contd

7. Manufacturing or sale of spuriousgoods [section 2(1)(r)(6):

Spurious goods and services means

such goods and services which areclaimed to be genuine but are not so.


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RESTRICTIVE TRADE

PRACTICE


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DEFINITION Sec. 2 (1) (nn)

A trade practice which tends to bringabout manipulation of price, or its

conditions of delivery or to affect flow

of supplies in the market relating togoods or services in such a manner as

to impose on the consumers

unjustified costs or restrictions


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CONSUMERS NEED PROTECTION AGAINST

Price fixing or output restraint i.e 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.


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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.


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DEFECT Sec 2 (1) (f)

Any fault, imperfection or shortcomingin the quality, quantity, potency, or

standard which is required to be

maintained by or under any law for thetime being in force, or under any

contract, express or implied or as is

claimed by the trader in any mannerwhatsoever in relation to any goods


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CONSUMER PROTECTION

COUNCILS

Central Level

State Level


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Central Consumer Protection

Council

The Central Government may, bynotification, establish with effect from

such date as it may specify in such

notification, a council to be known asthe Central Consumer Protection

Council


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Consists of..

the Minister in charge of consumeraffairs in the Central Government, who

shall be its Chairman

such number of other official or non-official members representing such

interests as may be prescribed


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Procedure for meetings of the

Central Council

The Central Council shall meet as andwhen necessary, but at least one meeting of

the council shall be held every year

The Central Council shall meet at such timeand place as the Chairman may think fit and

shall observe such procedure in regard to

the transaction of its business as may be

prescribed


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State and district Consumer Protection

Councils


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Objects of the central

council(Sec.6) a) The right to be protected against

the marketing of goods and services

which are hazardous to life and

property.

b) The right to be assured ,where

ever possible ,access to a variety ofgoods and services at competitive

price


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c) The right to consumer education.

d) The right to be heard and to be assuredthat consumer interests will receive due

consideration at appropriate forums.

e) The right to be informed about the quality,quantity,potency,purity,standard and priceof goods or services so as to protect theconsumer against unfair trade practices.


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The state consumer protection

councils(Sec.7and 8)

Members :-

Chairman:-The minister in charge of

consumer affairs of the state

government. Such number of other official or non-

official members representing such

interests as may be prescribed by thestate government.


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Meetings:-Number of meetings:-Not less then 2

meetings every year

Time and place:- Depends on the chairman Objective:-

To promote and protect within the states

The rights of the consumer as laid down in

Sec(6)


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The district consumer protection

council

Members:-

District collector is the Chairman

Other official and non-official members are

appointed by the state government


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Meetings:-

Number of meetings:- not less then 2

meetingsTime and place:- as decided by thechairman

Objective:-

To protect and preserve the right of the

consumer within the district laid downunder the Sec(6).


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Nature and scope of remedies &

State commission


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Nature and scope of remedies

Under the Act (sec. 14)

In case the goods complained againstsuffer from any of the allegations

contained in the complaint about the

services are proved, the districtforum/the state commission may pass

one or more of the following orders;


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To remove the defects pointed out by theappropriate laboratory from all the goods inquestion.

To replace the goods of similar description whichshall be free from defect.

To discontinue the unfair trade practice orrestrictive trade practice or not to remove them.

To withdraw the hazardous goods from beingoffered for sale.

In the case of misleading advertisements the otherparty has to pay the cost of the correctiveadvertisements.


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State commission ( secs 16,17,17A

and 17B)

Composition (sec. 16) The state commission should consist the

following;

A. President; He shall be a person who is or

was a judge of the high court. Hisappointment can be made only afterconsultation with the chief justice of highcourt

B. Members; there shall not be less thantwo or not more than the number specified,one of them should be a woman.


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The members should have thefollowing qualifications;

1.Not less than the age of 35.

2.the person should possess abachelor degree from any recognized

university.


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The consumer to whom the goods are

sold or delivered, or agreed to be sold

or delivered , or the service has beenprovided, or agreed to be provided

Any recognized consumer association,

regardless of whether the consumer isa member of such association or not.


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One or more consumer , where there are

numerous consumer having the same

interest with permission of the districtforum on behalf of or for the benefit of all

consumer so interested.

The state or central govt. either its

individual capacity or as a representative

of the interest of the consumer in general.


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COMPLAINT WHERE LABORATORY

TESTING IS POSSIBLE OR

REQUIRED.

COMPLAINT RELATED TO SERVICE,I.E, WHERE LABORATORY TESTING

IS NOT POSSIBLE.

PROCEDURE ON RECEIPT OF

COMPLAINTS


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Disqualification for appointment as

member of the state commission

It is same those for a district forum. Selection commission for appointment

is also similar to that of district forum.

Appointment of state commission isdone by the state government on

recommendation of the president of

the state commission depending onthe work load.


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Continued..

Subsection (1B) of section 16, thejurisdiction, power and authority of the

state commission may be exercised

thereof. State commission consist of the

president and one or more members.

Decisions are taken on the basis ofmajority.

J i di ti f t t


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Jurisdiction of state

commission1) Monetary jurisdiction Deals with complaints only for which the

value does not exceed 1crore.

2) Appellate jurisdiction

It can entertain appeals against any orderdistrict forum within the state.

No appeal by anyone who has beenrequired to pay any amount by order ofdistrict forum shall be entertained unlesshe deposited 50% of the amount or 25000which ever is less.


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Continued..

3) Supervisory jurisdiction Can ask for records or pass an order

for any pending dispute in the district

forum within the state.Territorial jurisdiction of the state commission

can be invoked in the same grounds as

that of the district forum under section

11(2)


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Continued..

Transfer of casesOn the application of a complainant, or of itsown motion, may at any stage of the of theproceeding transfer any complaints pendingbefore the district to another district forumwithin the state.

Circuit benchesState commission ordinarily functions in thestate capital, but may be required to

perform its functions at any other place asthe state government may, in consultationwith the state commission, notify in theofficial gazette.


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Continued..

Tenurethe term of office of a member is

mostly 5 years or 65 years of age.

Which ever is earlier.


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National commission

Section 9 empowers the centralgovernment to establish national

consumer disputes Redressal

Commission.


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Composition

1) PresidentHe has to be a person who is or has beenthe Judge of the Supreme Court. Hisappointment shall be made by the CentralGovernment in consultation by the ChiefJustice of India.

2) MembersThere shall be not less than 4 and notmore than such a number of members as

may be prescribed, processing thequalifications as are prescribed for amember of the State Commission.


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Appointment

Appointment is done by the Central Govt.on recommendation of selection committeeconsisting of a judge of the Supreme Courtnominated by the Chief Justice of India whoshall act as chairman; the Secretary in the

Dept of Legal Affairs and Secretary in theDept dealing with consumer affairs, asmembers.The President and every member shall give

an undertaking that he does have and willnot have any such financial or other interestas is likely to affect prejudicially hisfunctions as such member.


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Tenure

Every member of the national commissionshall hold the office for 5 years or up to the

age of seventy years, whichever is earlier.

A member shall be eligible for reappointmentfor another term of 5 years or up to the age of

seventy years, whichever is earlier.

The reappointment is to be made on the basis

of recommendation of the selection

committee.


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Removal of president or members(rule 13)

Has been adjudged an insolvent.

If any conviction of an offence, Physically or mentally incapable of acting

as a president or member, or

Has acquired such financial or other

interest as is likely to affect prejudicially hisfunction as the president or member, or


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Has so abused his position as to render his

continuance in office prejudicial to public

interest, or

Remains absent in three consecutive

sittings except for reasons beyond hiscontrol.


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COMPLAINTS & WHO CAN

FILE A COMPLAINT?


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Complaint

A complaint is any allegation in writingmade by a complainant that, an unfair

trade practice or a restrictive trade

practice has been adopted by anytrader.

Under sec2(1)c of consumer

protection act, A complaint must bemade with a view to obtaining any

relief provided.

WHO CAN FILE A


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WHO CAN FILE A

COMPLAINT?

A consumer can file a complaint under the Act,

Who is a Consumer?

A Consumer under the Act is:" One who buys any

goods, hires and service/services for a

consideration which has been paid or promisedor partly paid and partly paid and partly promised

under any system of deferred payment."


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A consumer means a person belonging to

the following categories:

i) one who hires or avails of anyservice or services for a consideration,which has been paid or promised orpartly paid and partly promised, orunder any system of deferredpayment.

ii) Any voluntary consumer association

registered under the Companies Act orany other law for the time being inforce.


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Cont

iii) Class action complaints - one or

more consumers, where there are

numerous consumers having the same

interest.

iv) The Central Government

v) The State Government or Union

Territory Administrations.


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TIME FRAME WITHIN WHICH

A COMPLAINT CAN BE FILED

Time frame within which a


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Time frame within which a

complaint can be filed

Section 24A of the Act provides that aconsumer dispute can be filed within two

years from the date on which the cause of

action arises.

The point of time when cause of action

arises is an important factor in determining

the time period available to file a complaint.

There are no set rules to decide such time.It depends on the facts and circumstances

of each case.


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The complaint should be filed within 2 years

from the date of cause of action.

Appeals are require to be filed within 30days from the date of receipt of the court's

order.


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It may be noted that these time framesare not absolute limitations. If the

Consumer Forum is satisfied that

there was sufficient cause for not filingthe complaint within the prescribed

period, it can entertain a complaint

beyond limitation time. However the

Forum must record the reasons for

condensation of delay.

11125 Consumer Protection Act Ppt

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