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The Consumer Protection Act, 1986

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“A customer is the most important visitor on our

premises, he is not dependent on us. We are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business. He is part of it. We are not doing him a favor by serving him. He is doing us a favor by giving us an opportunity to do so.” Mahatma Gandhi

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Un-equal relationship between consumer and producer

Caveat emptor rule ( let the buyer beware) in sale of goods act of 1930, sprout the root of consumer interest protection.

15th March 1962, Consumer bill of rights proclamed by U.S. President in message to Congress.

United nations passed resolution of consumer protection on 09th April 1985.

In India 24th Dec 1986 was the enactment of consumer protection act.

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Objective

An Act to provide for better protection of the interests of consumers and for that purpose to make provision for the establishment of consumer councils and other authorities for the settlement of consum ers' disputes and for matters connected therewith.

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Rights of Consumer

Right to be protected against the marketing of goods and services hazardous to life and property.

Right to be informed about the quality, quantity, potency, purity, standard and price of goods or services.

Right to be heard and assured that his interests will receive due consideration at appropriate fora.

Right to access to a variety of goods/services Right to seek redressal against an unfair or restrictive

trade practice or unscrupulous exploitation. Right to consumer education

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Who is consumer. "consumer" means any person who— • buys any goods for a consideration,• hires or avails of any services for a

consideration,• “uses such goods” with the approval of

person who has bought such goods for consideration.

• “is beneficiary of services” with the approval of person who has hired the services for consideration.

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Who is consumer… A Jeep was purchased to run it as taxi.

Whether the buyer of Jeep was a consumer under the Act ?

Rajasthan State Commission held that to use Jeep as a taxi with the object to earn profit was a commercial purpose, and therefore, the buyer/user not a consumer.

ANY PERSON WHO OBTAINS THE GOODS FOR RE-SALE OR COMMERCIAL PURPOSES IS NOT A CONSUMER.

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Who is consumer… “P” an eye surgeon purchased machine from

“R” for the hospital run by him. The machine was found defective. “R” contended that “P” was not a consumer for commercial purpose.

National Commission rejected this contention and held that “P” is a medical practitioner, a professional working by way of self employment by using his knowledge and skill to earn his livelihood ( Rampion Pharmaceuticals Vs Dr. Pritam Shah, 1997).

Person buying good for self employment is a consumer.

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Who is consumer…

“A” purchase the scooter which was in “B”s possession from the date of purchase. “B” was using it and taking to seller for repair and services from time to time. “B” had a complaint regarding the scooter. He filed complaint against the seller.

Delhi State Commission held that “B” was using with the approval of “A”, the buyer, therefore he was consumer(Dinesh Bhagat Vs Bajaj Auto Ltd, 1992).

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Consumer of services.

"service" means service of any description which is made available to 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, …

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Consumer of services…

board or lodging or both, housing

construction, entertainment, amusement or the purveying of news or other information, but does not include the rendering of any service free of charge or under a contract of personal service.

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Consumer of services… “T” was paying property tax for his house to

the local corporation. “T” raised consumer dispute over the inadequate water supply.

The National Commission held that it was not a consumer dispute as water supply was made by the corporation out of statutory duty and not by virtue of payment of taxes (Mayor, CMC Vs T. Chatterjee, 1994).

SERVICES ARE HIRED OR AVAILED OF AND CONSIDERATION MUST OF PAID OR PAYABLE.

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Consumer and Services. Claim of PF member under EPF & MP Act, 1952

not settled in time. Whether PF member is a consumer and

whether Employees’ Provident Fund Scheme is service under Consumer Protection Act ?

Supreme Court of India held on 14.12.1999 that PF member is a consumer and benefits under EPF Scheme are services under the Consumer Protection Act (RPFC Vs Shiv Kr. Joshi)

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Consumer and Services... PF claim of State Govt. employee not settled by O/o Accountant

General. Whether State Govt. employee is consumer and whether O/o

Accountant general is providing service ? State Government employees are governed by the statutory

rules applicable to their respective service and for the purpose of raising service dispute to go the State Administrative Tribunal. Dispute raised by the complainants-respondents is not ‘consumer dispute’ and they are not ‘consumers’ and Accountant Generals are not running any service within the meaning of the Consumer Protection Act, 1986.

Comptroller and Auditor General of India and Anr. Vs. Shivkant Shankar Naik, I (2003) CPJ 276 (NC)

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Consumer and Services... Whether the Petitioner, a pensioner and beneficiary of

the Central Government Health Scheme (C.G.H.S.), would be a consumer under the provisions of the Consumer Protection Act, 1986 (C.P. Act) for the alleged deficiency in service by the C.G.H.S. Medical Officer?

Jagdish Kumar Bajpai vs Union of India, 2002. National Commission held that the complaint is maintainable under Consumer Protection Act.

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Consumer and Services... The applicant was insured with ESIC. The applicant’s wife

was admitted in ESI Dispensary at Sonipat for her treatment for diabetes. The test done revealed that his wife has been diagnosed incorrectly in the ESI dispensary. The applicant filed a complaint under consumer protection act.

Whether the service rendered by an ESI hospital is gratuitous or not and consequently whether it falls within the ambit of “service”.

Whether section read with section 75 of the ESIC ousts the jurisdiction of the consumer forum.

Kishori Lal Vs Chairman, ESIC

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"complaint" means any allegation in writing made by a complainant that— 

• an unfair trade practice or a restrictive trade practice has been adopted by any trader or service provider;

• the goods bought by him or agreed to be bought by him; suffer from one or more defects;

What constitutes complaint.

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• the services hired or availed of or agreed to be hired or availed of by him suffer from deficiency in any respect;

• a trader or service provider, as the case may be,  has charged for the goods or for the service mentioned in the complaint a price in excess of the price.

What constitutes complaint…

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What constitutes complaint…

• goods which will be hazardous to life and safety when used or being offered for sale to the public.

• services which are hazardous or likely to be hazardous to life and safety of the public when used.

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What is consumer dispute.

"consumer dispute" means a dispute where the person against whom a complaint has been made, denies or disputes the allega tions contained in the complaint.

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Who can file a complaint.Who can file a complaint.

The consumer to whom the goods are sold or delivered, or agreed to be sold or delivered, or the service has been provided, or agreed to be provided’

Any recognized consumer association, regardless of whether the consumer is a member of such association or not.

One or more consumer , where there are numerous consumer having the same interest with permission of the district forum 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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Structure of the Redressal Machinery.

Three-tier machinery for the redressal of grievances ‘Consumer Courts’.

A Consumer Disputes Redressal Forum, popularly known as the ‘District Forum’ in each District. (There can be more than on District Forum in a district).(604)( Upto Rs. 20 lakh).

A Consumer Disputes Redressal Commission known as the ‘State Commission’ in each state.(35)(Upto Rs. One crore)

A National Consumer Disputes Redressal Commission known as the ‘National Commission’ at the Centre. (One)(above Rs. One crore)

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Time frame within which a complaint can be filed.

Section 24A of the Act provides that a consumer 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.

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

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Relief available to Consumer.

(i) Removal of defects/ deficiencies from goods/ services(ii) Replacement of goods/ Refund of the price paid(iii) Compensation for any loss or injury suffered due to the

negligence of the opposite party.(iv) Award for adequate costs.(v) Instructions to the opposite party to discontinue the

unfair or restrictive trade practice.(vi) Instruction to the opposite party not to offer hazardous

goods for sale.

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THANK YOU!!!