Slide 1

Consumer Protection Act, 1986.[As amended in 2002] Object and Purpose of Consumer Law. 2 A person may be consumer of - goods, or - services. If you purchase a motor bike, a lap-top, or a smart phone for your use or for use of any of your family members, you could be the - consumer of goods.When you book a flight ticket of air ways, take a insurance policy, open a bank account, get your motor bike repaired, or pay prescribed fee and apply for certified copies from Registrar of Companies, you could be the - consumer of services. The consumer protection Act, 1986 tries to - help a consumer when the goods supplied are defective or there is any deficiency in services rendered to him. Prior to the Consumer Protection Act, 1986 for any consumer complaint, one has to - go to an ordinary Civil Court; - engage a lawyer, - pay the necessary fee, and - be subjected to dilatory procedure - wait for years or decades before any decision or order, positive or negative, emerges in that litigation.Now, under the Consumer Protection Act, No Court fee but nominal charges ranging from Rs. 100 - 500/- only are payable. No additional fee in case of Appeal Summary procedure in disposing off the complaint. So Inexpensive & quick remedy expected.

3Consumer Protection Act, 19864Enacted to provide for the better protection of the interest of consumer

Act applies to whole of India except Jammu and Kashmir

Chapter I, II and IV came into force on 15.4.1987. Chapter III came into force on 1.7.1987.

The latest amendment to the Act was in 2002 and the amended Act came into force w.e.f. 15th March 2003. What is a Complaint?5Complaint means - any allegation - in writing - made by a complainantthat:An unfair trade practice or a restrictive trade practice has been adopted by any trader or service provider; The goods bought or agreed to be bought by him suffer from one or more defects;The services hired or availed of or agreed to be hired or availed off by him suffer from deficiency in any respect; 64. A trader or service provider as the case may be has charged for the goods or for the services mentioned in the complaint, a price in excess of the price

fixed by or under any law for the time being in force;

displayed on the goods or any package containing such goods;

displayed on the price list exhibited by him; by or under any law for the time being in force;

agreed between the parties . What is a Complaint? - 2

What is a Complaint? - 3

75. Goods which will be hazardous to life and safety when used are being offered for sale to the public In contravention of any standards relating to safety of such goods as required to be compiled with, by or under any law for the time being in force;If the trader could have known with due diligence that the goods so offered are unsafe to the public; What is a Complaint? - 4 86. Service which is - hazardous or likely to be hazardous - to the life and safety of the public when used, are being - offered by the service provider

which such person (service provider) could have known with due diligence - to be injurious to life and safety.

Who is a Consumer ?

Any Person who buys goods or avails services for consideration

Consideration may be - fully paid, - partially paid or - fully promised to be paid or partially promised to be paid

Any body who uses the goods or services with the consent of the consumer

Legal heir of consumer - in case of death of consumer

Who is not a Consumer ?

10Any Person (1) who buys goods either for resale or for commercial purpose and (2) who avails services for commercial purpose is excluded from the definition; Hence he/she is - not a consumerException: However, any person who buys goods for commercial use but exclusively for his livelihood by means of self employment - is a consumer. What is a Defect ?11Identified as1. Fault2. Imperfection or 3. Shortcoming

In terms of 1. Quality 2. Quantity 3. Potency 4. Purity or 5. Standards

shall fall within the ambit of the definition defect in goods. Goods are required to be maintained - as per specifications prescribed - by or under any law for the time being in forceWhat is a Deficiency ?12Identified as1. Fault2. Imperfection 3. Shortcoming or4. Inadequacy

In terms of 1. Quality 2. Standard and3. Manner of performance

shall fall within the ambit of the definition deficiency in service.

Services rendered shall - confirm to specifications prescribed - by or under any law for the time being in force.What is a Service?13Service means - service of any description, which ismade available to potential users and includes, butnot limited to the Provisions of the facilities in Connection with banking 2) financing 3) insurance Transport 5) processing 6) supply of electrical or other energy 7) boarding or lodging or both 8) house building 9) entertainment 10) amusement or 11) The purveying new or other informationBut does not include the rendering of any service - free of charge or - under a contract of personal serviceConsumer Dispute Redressal Agencies 14The Act envisages a - Three Tier System

A Consumer Dispute Redressal Forum - at the District level. [DCF]

A Consumer Dispute Redressal Commission - at the State level. [Called State Commission - SCDRC]

A National Consumer Dispute Redressal Commission - at National level.[Called National Commission - NCDRC]

14 Jurisdiction The Four (4) aspects of Jurisdiction are:

Subject matter Jurisdiction

Territorial Jurisdiction

Pecuniary Jurisdiction

Appellate Jurisdiction15Subject matter Jurisdiction All the Thee (3) types of Consumer Disputes Adjudicating Bodies at District, State and National Level have exclusive jurisdiction over the Consumer Disputes contemplated under the Consumer Protection Act 1986, as amended. No Civil Court or High Court or any other Tribunal has jurisdiction over the consumer disputes and as such they cannot entertain or adjudicate upon consumer disputes. Supreme Court is the Court of Last Appeal. Any one who is aggrieved of the decision or order of National Commission may appeal to SC.

1616Territorial JurisdictionName of the BodyLimits of Jurisdiction

District Forum

Geographical area comprising that district.

State Commission

Geographical area comprising that state or Union Territory.National Commission

Whole of the Geographical territory of India

1717Pecuniary Jurisdiction Name of the BodyWhere the value of the goods or services plus (+) the compensation, if any claimed, District Forum Does not exceed Rs. 20 lakhs State Commission Above Rs. 20 lakhs but not exceeding Rs. One CroreNational CommissionAbove One Crore rupees Besides, State and National Commission have appellate jurisdiction. 18Filing of Complaints 19A complaint may be filed by The consumer to whom the - goods are sold or - services are provided

Any - recognised consumer association

One or more consumers with same interest

The central or state government

Certain Power of Civil Court - vested in District Forum 20The District Forum shall have - the powers of Civil Court while trying a suit in respect of the following matters;The summoning and enforcing attendance of any defendant or witness and examining the witness on oath.The discovery and production of any document or other material object producible as evidence. The reception of evidence on affidavit The requisition of the report of the concerned analysis or test from the appropriate laboratory or from any other relevant source.Any other matter which may be prescribed.

Relief to the Complainant ?21If the Complaint is proved, the Forum shall order

- to remove defect pointed out by the appropriate laboratory from the goods in question;- to replace the goods with new goods of similar description which shall be free from any defect; - to return to the complainant the price, or, as the case may be, the charges paid by the complainant;- to 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 negligence of the opposite party;- to remove the defect in goods or deficiency in the services in question.

Direction to the Opposite Party22- to discontinue the unfair trade practice or the restrictive trade practice or not to repeat them;- not to offer hazardous goods for sale;- to withdraw the hazardous goods from being offered for sale;- to cease manufacture of hazardous goods and to desist from offering services which are hazardous in nature;- to pay such sum as may be determined by it, if it is of the opinion that loss or injury has been suffered by a large number of consumers who are not identifiable conveniently.- to issue corrective advertisements to neutralize the effect of misleading advertisement at the cost of the opposite party responsible for issuing such misleading advertisement; - To provide for adequate cost to parties. Appeal 23Shall be filed within thirty (30) days from the - date of receipt of Order.

Delay in filing appeal may be condoned - if there is sufficient cause.

Limitation Period Within two (2) years from the date on which - the cause of action has arisen.

Dismissal of Frivolous or Vexatious Complaints24 Where a complaint instituted - before the District Forum, the State Commission or the National Commission, - is found to be frivolous or vexatious it shall for reasons to be recorded in writing - dismiss the complaint and - make an order that - the complainant shall pay- to the opposite party such, - Cost not exceeding Rs.10,000/- - as may specified in the order.24Penalties25Where a trader or 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, such trader or person (or complainant) shall be 1. punishable with Imprisonment for a term - which shall not be less than one month but - which may extend to three years or 2. with fine - which shall not be less than Rs.200 but - which may extend to Rs.10,000/- or 3. with both. THANK YOU

Prof. Dr. KSN SarmaIcfai Business School (IBS)Hyderabad