Consumerism in India

Presented By

Gunjan kumar

Vivek gupta

Sohaib khan

Gaurav chauhan

OUTLINEDEFINITION

REASONS

REMEDIES

CONSUMER PROTECTION ACT

• OBJECTIVES

• CONSUMER RIGHTS

• RELIEF AVAILABLE FOR CONSUMERS

What is Consumerism??..

Consumerism is an organized movement of citizens and government to strengthen the rights and power of buyers in relation to sellers.

WHY IS THIS HAPPENING??Low literacy levels and lack of awareness of rights

encourages businessmen to be indifferent to consumersBackwardness IgnoranceLack of education and information Indian consumers get carried away by clever

advertising Imbalance in demand and supply of commodities

leading to hoarding, black marketing, profiteering.

REMEDIES..• Active participation from the business, Government and consumers.

• Business must ensure efficiency in production and quality of output and must refrain from Unfair Trade Practices

•Government through legislations, statutory bodies etc prevent exploitation of consumers.

• Consumers should assert their rights and protect themselves from business malpractices

CONSUMER PROTECTION ACT,1986

This ACT is a milestone in the history of socio-economic legislation in the country.

The first ever legislation in India of its kind which solely aimed at the grief stricken consumers who were the victims of the unfair trade practices and sub standard services rendered to them.

OBJECTIVES The main objective of the act is to provide for

the better protection of consumers.

The act is intended to provide simple, speedy and inexpensive redressal to the consumers' grievances, and relief of a specific nature and award of compensation wherever appropriate to the consumer.

EXTENT AND COVERGAE OF THE ACT THE SALIENT FEATURES OF THE ACT ARE SUMMED UP AS UNDER :-

• THE ACT APPLIES TO ALL GOODS AND SERVICES UNLESS SPECIFICALLY EXEMPTED

BY THE CENTRAL GOVERNMENT.

• IT COVERS ALL THE SECTORS WHETHER PRIVATE, PUBLIC OR COOPERATIVE.

• THE PROVISIONS OF THE ACT ARE COMPENSATORY IN NATURE.

• THE SETTING UP OF THE DISPUTE REDRESSAL MACHINERY WAS ONLY TO SECURE

AND ENABLE SPEEDY JUSTICE TO THE AGGRIEVED CONSUMERS.

WHO IS A CONSUMER?

TWO KINDS OF CONSUMER UNDER THE ACT

◦ CONSUMER OF GOODS BUYS OR AGREES TO BUY GOODS ANY USER OF SUCH GOODS

◦ CONSUMER OF SERVICES

HIRES OR AVAILS ANY SERVICES

ANY BENEFICIARY OF SUCH SERVICE

CONTD…

• SERVICE – SERVICE OF ANY DESCRIPTION BUT DOES NOT

INCLUDE RENDERING OF ANY SERVICE FREE OF CHARGE OR

UNDER A CONTRACT OF PERSONAL SERVICE.

COMPLAINT• COMPLAINT MEANS A FORMAL ALLEGATION AGAINST A

PARTY

• COMPLAINT IS AN WRITTEN ALLEGATION MADE IN

WRITING TO THE NATIONAL COMMISSION, THE STATE

COMMISSION, OR THE DISTRICT FORUM BY A PERSON

COMPETENT TO FILE IT WITH A VIEW TO OBTAINING

RELIEF PROVIDED UNDER THE ACT.

WHO CAN FILE A COMPLAINT

• A CONSUMER

• ANY RECOGNIZED CONSUMER ASSOCIATION

• ONE OR MORE CONSUMERS HAVING THE SAME INTEREST

• THE CENTRAL OR THE STATE GOVERNMENT AS THE CASE MAYBE

• IN CASE OF DEATH OF A CONSUMER, HIS LEGAL HEIR OR REPRESENTATIVE

CONTD…• THE FOLLOWING ARE ALSO CONSIDERED AS A

CONSUMER AND HENCE THEY MAY FILE A COMPLAINT.

• USER OF GOODS AND BENEFICIARY OF SERVICES

• HUSBAND OF THE CONSUMER

• INSURANCE COMPANY

CONSUMERS NEED PROTECTION AGAINST (GROUNDS OF COMPLAINT)

UNFAIR TRADE PRACTICE

RESTRICTIVE TRADE PRACTICE

DEFECTS

DEFICIENCIES

CONSUMER DISPUTE

• SEC 2(1) (E) – A DISPUTE WHERE THE PERSON AGAINST

WHOM A COMPLAINT HAS BEEN MADE, DENIES OR

DISPUTES THE ALLEGATION CONTAINED IN THE

COMPLAINT.

CONSUMER DISPUTE REDRESSAL AGENCIES• A QUASI-JUDICIAL AUTHORITY UNDER THE STATUTE TO REDRESS

CONSUMER DISPUTES.

• CONSUMER DISPUTES REDRESSAL FORUMS (DISTRICT FORUM)• CLAIMS LESS THAN OR EQUAL RS.20 LACS.

• CONSUMER DISPUTES REDRESSAL COMMISSIONS (STATE COMMISSION)

• CLAIM MORE THAN RS.20 LACS & LESS THAN RS.1 CRORE & APPEALS.

• NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION (NATIONAL

COMMISSION) • CLAIM EQUAL TO RS.1 CRORE & APPEALS

FEES PAYABLEDISTRICT FORUM

VALUE AND COMPENSATION CLAIMED FEE

• UP TO RS 1 LAKH RS 100• RS 1 LAKH & ABOVE BUT LESS THAN RS 5 LAKH RS 200• RS 5 LAKH & ABOVE BUT LESS THAN RS 10 LAKH RS 400• RS 10 LAKH & ABOVE BUT LESS THAN RS 20 LAKH RS 500

Consumer's Rights under Section 6

1. Right to SAFETY against hazardous goods and services.2. Right to be INFORMED about quality, quantity, purity, standard,

price.3. Right to CHOOSE from a variety at competitive prices.4. Right to BE HEARD.5. Right to seek REDRESSAL.6. Right to CONSUMER EDUCATION.

• Right to safety :- right to be protected against the marketing of goods and services which are hazardous to health, life and property of the consumer.

• Right to be informed :- right to be provided all those information on the basis of which consumer decides to buy goods or services about the quality, quantity, potency, purity, standard and price of goods or services so as to protect the consumer against unfair trade practices.

• Right to be heard :- consumer has the right that his complaint be heard. Under this right the consumer can file complaint against all those things which prejudicial to his interest. Example- the economic times

• Right to choose :- Consumer has the full right to buy good or services of his

choice from among the different goods or services available in the market.

• Right to Seek redress :- Right to seek redressal against unfair trade practices

unscrupulous exploitation of consumers. This Act provides compensation to

consumer against unfair trade practice of the seller.

• Right to consumer education :- Consumer education refers to educate the

consumer constantly with regards to their rights. In other words, consumers

must be aware of the rights they enjoy against the loss they suffer on account of

goods and services purchased by them.

RELIEF AVAILABLE TO CONSUMERS

Depending on the facts and circumstances, the Redressal Forums may

give order for one or more of the following relief :-

• Removal of defects from the goods

• Replacement of the goods

• Refund of the price paid

• Discontinuance of unfair trade practices or restrictive trade practices

• Withdrawal of the hazardous goods from being offered to sale

• Award for adequate costs to parties

Consumer’s Responsibilities

1. Consumer should exercise his right

2. Cautious consumer/ Do not buy blindly

3. Filing complaint for the redressal of genuine grievances

4. Consumer must be quality conscious/Do not compromise on quality

5. Advertisements often exaggerate/Beware of false advertisement

6. Do not forget to get Receipt and Guarantee/warrantee card

7. Do not buy in hurry

Thank You