The Consumer The Consumer Protection Act, 1986Protection Act, 1986

““Consumer is the king of the market”Consumer is the king of the market” ““Sellers market” is now “buyers market”.Sellers market” is now “buyers market”. Industrial development has led to the influx of Industrial development has led to the influx of

various goods and services in the market.various goods and services in the market.

Objects and Application of Objects and Application of the Actthe Act

1.To Provide for better protection of 1.To Provide for better protection of interest of consumers as per IOCU.interest of consumers as per IOCU.

2.To establish the Consumer Councils2.To establish the Consumer Councils

3.To empower the Consumer Councils 3.To empower the Consumer Councils andand

other authorities to settle disputes other authorities to settle disputes andand

matters connected.matters connected.

Consumer RightsSafety

education

Choose Information

Redressal

Heard

CONSUMERCONSUMER A person who buys any goods for a A person who buys any goods for a

consideration which has been paid/ promised/ consideration which has been paid/ promised/ partly paid and partly promised or under partly paid and partly promised or under scheme of deferred payment and includes scheme of deferred payment and includes other user of such goods with the approval of other user of such goods with the approval of the buyer.the buyer.

OROR A person who hires or avails of any services for A person who hires or avails of any services for

consideration which has been paid/ promised / consideration which has been paid/ promised / partly promised or under any system of partly promised or under any system of deferred payment.deferred payment.

((Imp Consumer does not include a person who Imp Consumer does not include a person who obtains goods or avails services for commercial obtains goods or avails services for commercial purpose or re-sale, or given free of charge)purpose or re-sale, or given free of charge)

GOODSGOODS

As per sales of goods actAs per sales of goods act Any kind of movable property other Any kind of movable property other

than actionable claims and monneythan actionable claims and monney

SPURIOUS GOODS AND SPURIOUS GOODS AND SERVICESSERVICES

Such goods and services which are claimed Such goods and services which are claimed to be genuine but they are actually not so.to be genuine but they are actually not so.

ServiceService

Service of any description which is Service of any description which is made available to potential usersmade available to potential users

includes the provisions of facilities in includes the provisions of facilities in connection with banking, financing, connection with banking, financing, insurance, transport, processing, insurance, transport, processing, supply of electrical or other energy, supply of electrical or other energy, boarding or lodging of good, house boarding or lodging of good, house construction, entertainment, construction, entertainment, amusement or other information.amusement or other information.

DEFICIENCYDEFICIENCY

Any fault imperfection ,shortcoming or inadequacy in Any fault imperfection ,shortcoming or inadequacy in the quality , nature and manner of performance to be the quality , nature and manner of performance to be maintained in relation to any services. maintained in relation to any services.

It has two parts Services for which standard has been It has two parts Services for which standard has been prescribedprescribed

and service for which express guarantees and and service for which express guarantees and warranties are given by person concerned.warranties are given by person concerned.

DEFECTDEFECT Any fault ,imperfection ,shortcoming in the Quality, Any fault ,imperfection ,shortcoming in the Quality,

quantity, potency, purity or standard which is to be quantity, potency, purity or standard which is to be maintained in relation to any goodsmaintained in relation to any goods

COMPLAINANTCOMPLAINANT

Is A ConsumerIs A Consumer An Asso. of consumer reg. under Co. ActAn Asso. of consumer reg. under Co. Act The Central or State Govt.The Central or State Govt. One or more consumers having same One or more consumers having same interest.interest. The legal Heir or representative in case of The legal Heir or representative in case of

death of the consumer.death of the consumer.

Consumer ComplaintConsumer ComplaintAny allegation made by the Any allegation made by the complainant in writingcomplainant in writing

Unfair trade practice or RTPUnfair trade practice or RTPDefect in goodsDefect in goodsDeficiency in serviceDeficiency in serviceExcess priceExcess priceHazardous goods or service Hazardous goods or service made available made available to publicto public

CONSUMER DISPUTECONSUMER DISPUTE

The allegation made by consumer with The allegation made by consumer with respect to respect to defect in goods and deficiency defect in goods and deficiency in service provided.in service provided.

TRADERTRADER

A person who sells or distributes any A person who sells or distributes any goods for salegoods for saleTrader shall include the packer of those Trader shall include the packer of those goodsgoods

Are the following Are the following consumersconsumers

Passenger traveling by train.Passenger traveling by train. A person registering for gas connection.A person registering for gas connection. Subscriber of telephones.Subscriber of telephones. User of electricity.User of electricity. Purchaser of equipment using it by Purchaser of equipment using it by

himself in the practice of his profession.himself in the practice of his profession. Subscriber to a provident fund.Subscriber to a provident fund. Person buying goods for resale use in Person buying goods for resale use in

large scale profit making activity.large scale profit making activity. Insurance CompanyInsurance Company..

UNFAIR TRADE PRACTICEUNFAIR TRADE PRACTICE

UNFAIR METHOD OR UNFAIR OR DECEPTIVE UNFAIR METHOD OR UNFAIR OR DECEPTIVE PRACTICE ADOPTED FOR PROMOTING THE PRACTICE ADOPTED FOR PROMOTING THE SALE, USE OR SUPPLY OF ANY GOODS OR FOR SALE, USE OR SUPPLY OF ANY GOODS OR FOR THE PROVISION OF ANY SERVICES.THE PROVISION OF ANY SERVICES.

It includesIt includes

1.1. Misleading Advertisements and False Misleading Advertisements and False representationrepresentation

2.2. Sale offer of bargain priceSale offer of bargain price

3.3. Scheme offering gifts or prizesScheme offering gifts or prizes

4.4. Non compliance of prescribed standards Non compliance of prescribed standards

5.5. Hoarding destruction or refusal Hoarding destruction or refusal

Misleading Adv. False Repre.

Any warranty Guaranteeof performance not based

on adequate test

Seller has sponsorship approval

Rebuilt as new goods

Goods are of Q, Q, S, G, Co,S,M

Misleading about the price at which goods ordinarily sold

Disparaging goods of another

About the need Usefulness of goods services

Goods ,services haveSponsorship ,performance

Services are ofS,Q,G

RESTRICTIVE TRADE RESTRICTIVE TRADE PRACTICEPRACTICE

A TRADE PRACTICE WHICH REQUIRES A CONSUMER TO A TRADE PRACTICE WHICH REQUIRES A CONSUMER TO BUY, HIRE OR AVAIL OF ANY GOODS OR SERVICES AS A BUY, HIRE OR AVAIL OF ANY GOODS OR SERVICES AS A CONDITION PRECEEDENT FOR BUYING OR HIRING OF CONDITION PRECEEDENT FOR BUYING OR HIRING OF OTHER GOODS AND SERVICES.OTHER GOODS AND SERVICES.

Interesting CasesInteresting Cases Conducted Tours: RAJ TRAVELS &TOURS Conducted Tours: RAJ TRAVELS &TOURS

PVT. LTDPVT. LTD Educational institutes: KATILA MEDICAL Educational institutes: KATILA MEDICAL

COLL. PATNACOLL. PATNA Offering Gifts: VIMAL POWDER Offering Gifts: VIMAL POWDER SOCIETY for civic rights Vs Colgate UTPSOCIETY for civic rights Vs Colgate UTP

#Reduction/ introductory pricing for #Reduction/ introductory pricing for a particular a particular periodperiod

#3 contest schemes only in an yr. for #3 contest schemes only in an yr. for introductory introductory goodsgoods

#price of product and highest cost of #price of product and highest cost of any prize not any prize not more than 1:10more than 1:10

Redressal AgencyRedressal Agency

The aims and objectives of the Act are The aims and objectives of the Act are achieved by the constitution and achieved by the constitution and creation ofcreation of

District ForumDistrict Forum

State Commission and State Commission and

National Consumer Disputes Redressal National Consumer Disputes Redressal Commission. Commission.

District ForumDistrict Forum It shall consist of a person who is or has been or is It shall consist of a person who is or has been or is

qualified to be a District Judge as its President,2 other qualified to be a District Judge as its President,2 other members, one of whom shall be a woman possessing a members, one of whom shall be a woman possessing a bachelor’s degree from a recognized university, be a bachelor’s degree from a recognized university, be a person of ability, integrity and standing and have person of ability, integrity and standing and have adequate knowledge and experience adequate knowledge and experience

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

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

A District Forum shall have the A District Forum shall have the powerspowers

1.1. to to remove the defectremove the defect pointed out by the pointed out by the appropriate laboratory from the goods in questionappropriate laboratory from the goods in question

2.2. to to replace the goodsreplace the goods with new goods of similar with new goods of similar description which shall be free from any defect description which shall be free from any defect

3.3. to return to the complainant to return to the complainant the pricethe price, or as the , or as the case may be, the charges paid by the complainantcase may be, the charges paid by the complainant

4.4. to pay such amount as may be awarded by it as to pay such amount as may be awarded by it as compensation to the consumercompensation to the consumer for any loss or for any loss or injury suffered by the consumer due to the injury suffered by the consumer due to the negligence of the opposite partynegligence of the opposite party

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

∏ It shall consist of a person who is or has been a It shall consist of a person who is or has been a Judge of the Supreme Court,as its President. Not Judge of the Supreme Court,as its President. Not less than 4 and not more than such number of less than 4 and not more than such number of members as may be prescribed and one of whom members as may be prescribed and one of whom shall be a woman with similar qualifications as shall be a woman with similar qualifications as required in the case of appointment as a member required in the case of appointment as a member to a District Forum or a State Commission.to a District Forum or a State Commission.

∏ Every member of the National commission shall Every member of the National commission shall hold office for a term of 5 years or up to the age of hold office for a term of 5 years or up to the age of 70 years which ever is earlier. 70 years which ever is earlier.

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

National Commission National Commission

Content of Consumer Content of Consumer ComplaintComplaint

Details of the complainant.Details of the complainant.

Details of the opposite party or parties.Details of the opposite party or parties.

The facts relating to complaint and when and The facts relating to complaint and when and where it arose.where it arose.

Documents, if any, in support of the allegations Documents, if any, in support of the allegations contained in the complaint.contained in the complaint.

Relief which the complainant is seeking. Relief which the complainant is seeking.

Where do I file my Where do I file my complaint???complaint???

Pecuniary JurisdictionPecuniary Jurisdiction Territorial JurisdictionTerritorial Jurisdiction Consumer ForumConsumer Forum

Time period for filing Time period for filing complaintcomplaint

Within 2 yearsWithin 2 years

Fees for filing a Fees for filing a complaintcomplaint

Up to 1 Lakh – Rs.100.Up to 1 Lakh – Rs.100. 1 Lakh & above but less that 5 Lakhs – Rs.200.1 Lakh & above but less that 5 Lakhs – Rs.200. 5 Lakhs & above but less that 10 Lakhs – Rs.400.5 Lakhs & above but less that 10 Lakhs – Rs.400. 10 Lakhs & above but less that 20 Lakhs – Rs. 50010 Lakhs & above but less that 20 Lakhs – Rs. 500

Do I have to be there myself to file a complaint?Do I have to be there myself to file a complaint? Ans : NoAns : No

Remedies Under Consumer Remedies Under Consumer

Protection ActProtection Act 1.1. To remove the defects pointed out by the To remove the defects pointed out by the

appropriate laboratory from goods in question.appropriate laboratory from goods in question.

2.2. To replace the goods with new goods of similar To replace the goods with new goods of similar description which shall be free from any defectdescription which shall be free from any defect

3.3. To return to the complainant the price, or, as To return to the complainant the price, or, as the case may be, the charges paid by the the case may be, the charges paid by the complainant.complainant.

4.4. Compensation for loss of negligence on part of Compensation for loss of negligence on part of consumerconsumer

5.5. To remove the defects or deficiencies in the To remove the defects or deficiencies in the services in question.services in question.

6.6. To discontinue the unfair trade practice or the To discontinue the unfair trade practice or the restrictive trade practice or not to repeat them.restrictive trade practice or not to repeat them.

7.7. Not to offer the hazardous goods for sale.Not to offer the hazardous goods for sale.

Continued Continued

88 To withdraw the hazardous goods from To withdraw the hazardous goods from being offered for sale being offered for sale

9.9. To cease from manufacturing of hazardous To cease from manufacturing of hazardous goods goods

10.10. Loss of injury of consumerLoss of injury of consumer

11.11. Issue of corrective advertisementIssue of corrective advertisement

12.12. Provision of adequate costs to parties Provision of adequate costs to parties

LIMITATION PERIOD. LIMITATION PERIOD.

(1) The District Forum, the State (1) The District Forum, the State Commission or the National Commission Commission or the National Commission shall not admit a complaint unless it is filed shall not admit a complaint unless it is filed within two years from the date on which within two years from the date on which the cause of action has arisen. the cause of action has arisen.

Provided that no such complaint shall be Provided that no such complaint shall be entertained unless the National entertained unless the National Commission, the State Commission or the Commission, the State Commission or the District Forum, as the case may be, District Forum, as the case may be, records its reasons for condoning such records its reasons for condoning such delay.delay.

Objects of CouncilObjects of Council To To promote and protect the rightspromote and protect the rights of the consumers of the consumers

such as, - such as, -

(a) To be (a) To be protected against the marketingprotected against the marketing of goods of goods and services which are hazardous to life and property;and services which are hazardous to life and property;

(b) T(b) To be informedo be informed about the Q,Q,P,P,S and price of about the Q,Q,P,P,S and price of goods or services, and against UTP; goods or services, and against UTP;

©To©To be assured be assured,, wherever possible, access to a wherever possible, access to a variety of goods  and services  at competitive prices;variety of goods  and services  at competitive prices;

(d) T(d) To be heardo be heard and to be assured that consumers' and to be assured that consumers' interests will receive due consideration at appropriate interests will receive due consideration at appropriate forums;forums;

e) Te) To seek redressedo seek redressed against UTP or RTP or against UTP or RTP or unscrupulous exploitation of consumers; and unscrupulous exploitation of consumers; and

(f) To (f) To consumer educationconsumer education. .

CouncilsCouncils The District Consumer Protection CouncilThe District Consumer Protection Council..

(1) The SG will establish for every district, (1) The SG will establish for every district, by notification.by notification.(2) It shall consist of the foll. members, (2) It shall consist of the foll. members, namely:-namely:-

(a) the Collector of the district (by whatever (a) the Collector of the district (by whatever name called), as its Chairman; andname called), as its Chairman; and(b) such number of other official and non-(b) such number of other official and non-official members as may be prescribed by the official members as may be prescribed by the SGSG

(3) The District Council shall meet at least (3) The District Council shall meet at least twice in an year.twice in an year.

(4)The procedure will be set by SG(4)The procedure will be set by SG

State CouncilState Council THE STATE CONSUMER PROTECTION COUNCILS. THE STATE CONSUMER PROTECTION COUNCILS.

(1) The SG will establish State Council by (1) The SG will establish State Council by notificationnotification

(2) It shall consist of the foll. members, namely (2) It shall consist of the foll. members, namely :- :- (a) the Minister in-charge of consumer affairs (a) the Minister in-charge of consumer affairs in the SG as its Chairman; in the SG as its Chairman; (b) such number of other official or non-official (b) such number of other official or non-official members as may be prescribed by the State members as may be prescribed by the State Government. Government.

(3) The State Council shall meet at least twice (3) The State Council shall meet at least twice in an year. in an year.

(4) The procedure will be prescribed by the SG(4) The procedure will be prescribed by the SG

Central CouncilCentral Council THE CENTRAL CONSUMER PROTECTION THE CENTRAL CONSUMER PROTECTION

COUNCIL. COUNCIL.

(1) The CG will establish Central Consumer (1) The CG will establish Central Consumer Protection Council by notificationProtection Council by notification(2)It shall onsist of the foll. members, namely (2)It shall onsist of the foll. members, namely :- :-

(a) the Minister in charge of Consumer (a) the Minister in charge of Consumer Affairs in the  CG as its Chairman, and Affairs in the  CG as its Chairman, and

(b) such number of other official or non-(b) such number of other official or non-official members as may be prescribed.official members as may be prescribed.3. The Council shall meet at least once an 3. The Council shall meet at least once an year. year.

CONCLUSIONCONCLUSION Benevolent Piece Social LegislationBenevolent Piece Social Legislation

Issue of Consumer Welfare Issue of Consumer Welfare

Special feature of this actSpecial feature of this act

Role of Three Tier Quasi judiciary Role of Three Tier Quasi judiciary

Concept of Consumers Sovereignty ”Concept of Consumers Sovereignty ”

Overall Effect of Consumer Protection Overall Effect of Consumer Protection