THE CONSUMER PROTECTION ACT 1986

Presented By Shriram (73)

Salman(59)

Aniket(41)

Kishan(56)

Anuta(43)

Sonal(72)

Kanishka(54)

OBJECT OF THE ACT

The act is basically passed to protect the interest of the consumers.

In order to protect the interest of the consumers, to make provision for establishing necessary consumer councils and other authorities.

It intend to seek speed and simple redressal to consumer disputes through quasi-judicial machinery set-up at distract, state and central levels.

It awards compensation to consumer on the basis of merit of each case.

CONSUMER [sec2(1)(d)]

CONSUMER IS ANY PERSON WHOBuys any goods for a consideration or heirs/avails

of any services for a consideration is a consumer.Any user of the goods with the approval of the

person who has purchased the goods for consideration is also a consumer.

A person hiring or availing of any services for consideration is no doubt a consumer, but any person who is beneficiary of such services with the consent or approval of the original consumer is also a consumer.

To become a consumer, there must be a consideration when he buys goods. Such consideration must have actually been paid or promised or partly paid and partly promised.

Any person claiming himself/ as a consumer must satisfy two important consideration besides the others which are as follows:

The service or services must have been render to him and

He must paid or promised to pay the consideration for the same.

Cont…

The intention of a person purchasing the goods or hiring the services must be consumption not for sale.

Cont…

PERSON [sec2(1)(m)]

A PERSON INCLUDE1. A firm whether registered or not

2. A Hindu undivided family.

3. A co-operative society.

4. Every other association of person whether register under the societies Reg. Act 1960

Consumer need not be an individual to get protection under this act it includes the above

person also.

GOODS [sec 2(1)(i)]

Goods as defined in the sale of GOODS ACT 1930.

The subject matter of the contract of sale must be available property or goods. The

transactions which involve buying and selling of immovable property are

regulated by the transfer of property Act.

SERVICES [sec 2(1)(o)]

Means Service of any description which is made available to potential users. The services related to banking, financing, insurance,

transport, processing, supply of electricity, lodging and boarding etc but it does not include rendering of any service free of charge or under a contract of personal

services.

It implies that services must be of commercial nature i.e. they must be rendered on payment

Even the professional services are included.

Even the beneficiaries of the services are included though they are not directly hirer’s provided they use the service with the approval of the concerned consumers.

Cont…

TRADER [sec2(1)(q)]

MEANS Sells goods or distribute any goods for

sale. Any manufacture of goods selling the

same. Any packer either sells or distribute

goods in package form.

MANUFACTURER [sec 2(1)(f)]

MEANS Makes or manufacturer any goods or part

thereof.

Or Does not make or manufacture any goods but

assembles part thereof made or manufactured by others.

Or Put or causes to be put his own mark on goods

made or manufactured by any other manufacture.

CONSUMER DISPUTE [sec 2(1)(e)]

If there is any dispute between the consumer and manufacturer or trader, as the case may be the consumer gets the

right to seek remedy or filing the complaint under the act. The consumer redressal

forum is a statutory body under the consumer protection act.

RESTRICTIVE TRADE PRACTICE sec 2(1)(n)

MEANS Delay beyond the period agreed to by a

trader in supply of such goods or in providing the service which has led or is likely to lead to rise into price.

Regarding the condition precedent to buying, hire or availing of other goods or service.

UNFAIR TRADE PRACTICE [sec 2(1)(r)]

A trade practice which for the purpose of promoting the sale, use or supply of any goods or for the provisions of any service, adopt any unfair namely.

Falsely represent that the goods are of a particular standard quality, quantity, grade, compensation, style or model.

Makes the false or misleading representation concerning the need for, or the usefulness of any goods or services.

Cont…

Gives false warranty or guarantee about the performance, length of life of a product with any proper test.

Publication of any advertisement for the sale or supply at a bargaining price.

Sale or supply of goods which do not comply any of the standard prescribed by the competitive authorities.

Cont…

Hoarding or destruction the goods or refusing to sell goods with a view to raise the price.

Represents that the seller or the supplier has a sponsorship or approval which such seller does not have.

Materially misleads the public concerning the price at which a products has been sold

Gives false or misleading facts disparaging the goods, services or trade of another person.

Cont…

Publication of any advertisement whether in any newspaper or otherwise,for the sale or supply at a bargaining price.

Bargaining price means A price that is stated in any advertisement to

be a bargain price reference to ordinary price. A price which the person hears/sees the

advertisement, would reasonably understand to be bargain price.

PROTECTION COUNCILS Chapter 2

sec(4 to 8)

Councils

Central Consumer Protection Council

State Consumer Protection Council

District Consumer Protection Council

Sec 4 to 8

• Sec 4 – Establishment of central council by Central government & membership.• Sec 5- Meeting of central council• Sec 6 – Objects of central council• Sec7 – Establishment of state council

by central govt. & its membership• Sec 8 – Objects of state council • Sec 8(A) – Establishment of district

Council by State government• Sec 8(B) – Objects of District Council

CONSUMER DISPUTES REDRESSAL AGENCIES

Chapter III –Sec 9 to27

• District forum ---established by the state govt.in each district of the state.

• State Commission --- established by the state govt. in the state

• National Commission --- established by the central govt.

Sec 9 –Establishment of consumer Dispute Redressal Agencies

There are 3 such agencies –District forum – Sec 10 to 15State commission – Sec 16 to 19National Commisssion – Sec 20 to 23

District Forum

It shall consist of a person who is or has been or is qualified to be a District Judge as its President,2 other members, one of whom shall be a woman

Every member of the District Forum shall hold office for a term of 5 years or up to the age of 65 years which ever is earlier

It shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed does not exceed Rs.20 Lacs.

A District Forum shall have the powers

To remove the 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 the negligence of the opposite party

State Commission

It shall have jurisdiction to entertain complaints where the value of the goods or services and compensation, if any, claimed exceeds Rs. 20 Lacs but does not exceed Rs.1 Crore and appeals against the orders of any District Forum within the State.

National Commission

It shall consist of a person who is or has been a Judge of the Supreme Court, as its President. Not less than 4 members and one of whom shall be a woman

It shall have jurisdiction to entertain complaints where the value of the goods or services and compensation, if any, the claim exceeds Rs. 1 Crore and appeals against the orders of any State Commission.

Case

Chetan Prakash vs MET Institute of computer Science

Overview of the case

Prakash was in final year of BSc when he sought admission in the institute for MCS

The institute had stipulated that in order to pursue the MCS course, student has to clear III year exams

Cont…

He deposited the fees before declaration of result

Seeing that he had failed in exams, he tried to withdraw the admission and requested for a refund, to which the institute did not responded

Finally, he sent a legal notice to the institute, and then lodged a complaint in the consumer forum.

Judgement

• The institute had to pay the complainant, Chetan Prakash, Rs 32,000 as compensation for harassment along with the course fee of Rs.62,200.

Thank You