law consumer protection act
TRANSCRIPT
‘‘NEED FOR CONSUMER PROTECTION ACT IN AN ERA OF FREE COMPETITION WHERE ‘CONSUMER IS A KING’ – SO KING NEEDS PROTECTION’’
INTRODUCTION:
o Consumer protection is a group of laws and organizations designed to ensure the rights of consumers
o Consumer protection Act enacted in 1986
o Separate Consumer Dispute Redressal Forum have been set up throughout India (in each and every district as well)
o The Consumer Protection Act, 1986 aims to provide better protection of interest of consumers
o The Act extends to whole of India except the state of Jammu and Kashmir
o The act was passed in Lok Sabha on 9th December,1986 and Rajya Sabha on 10th December, 1986 and assented by the President of India on 24th December, 1986
o This act was enforced on 15 April, 1987.
SOME IMPORTANT DEFINITIONS:
Any person who buys goods or services for a consideration
Any person means individual company, group/ association of people
User of such goods and services
Movable property including shares, stocks, growing crops
Forming part of the land
Excluding actionable claims and money
Tangible in Nature
1. CONSUMER2. GOODS
Service is made available to potential users
Eg: Provision of facilities - banking, financing, insurance, transport, supply of electrical energy, board or/and lodging
Complaint is a statement made in writing by a person competent to file it
It contains the allegations in detail
Made in view to obtain relief
3. SERVICES
4. COMPLAINT
Unfair trade practice or a restrictive trade practice
Goods having defects
Service having deficiency
Excess price charged
Hazardous goods
Hazardous service
Consumer or consumers
Voluntary consumer association
Government which may be Central or State
In case of death: Legal Heir, Beneficiary, Husband, Relative can file a complaint
COMPLAINT MUST CONTAIN:
5. COMPLAINANT
NEED, PURPOSE AND OBJECTIVE OF CONSUMER PROTECTION
Consumer Protection Caveat Emptor TO
NEED FOR CONSUMER PROTECTION
Protection from Exploitation
Consumer Education
Redressal of Complaints
A Connecting Link
Quality Life for consumer
Ethical Obligations
PURPOSE & OBJECTIVE OF CONSUMER PROTECTION
Protection of Consumer against unfair trade practices
Protection of enjoying the rights
IMPORTANCE OF CONSUMER PROTECTION IN A BUSINESS ORGANIZATION
Public Image
Social Responsibility
Increasing Awareness
Customer Satisfaction
Government Intervention
RIGHTS OF THE CONSUMERS:1. The Right To Safety
2. The Right To Choose
3. The Right To Information
4. The Right To Be Heard
5. The Right To Redressal
6. The Right To Consumer Education
7. The Right For Basic Needs
8. The Right For Healthy Environment
1. THE RIGHT TO SAFETY Before purchasing, consumers should inspect on the quality of the
products as well as on the guarantee of the products and services.
They should preferably purchase quality marked products such as ISI, AGMARK, FPO, Hallmark etc.
2. THE RIGHT TO CHOOSE
The consumer before purchase a product needs to be made aware of:
o Variety of products and serviceso Fair priceso Qualityo Quantityo Competition
Knowing this the consumer can make his/her choice for the product
3. THE RIGHT TO INFORMATION The consumer has the right to be informed about the quality, quantity,
purity, standard and price of goods so as to protect themselves against unfair trade practices.
RTI & THE CONSUMER PROTECTION ACT
The consumer has the right to be heard and be assured that their interests or views or complaints will be considered at consumer forums
4. THE RIGHT TO BE HEARD
5. THE RIGHT TO REDRESSAL
The right to seek redressal against unfair trade practices or restrictive trade practices or exploitation of consumers
6. THE RIGHT TO CONSUMER EDUCATION
The consumers should have access to informational programs and materials that would enable them to make better buying decisions
7. THE RIGHT FOR BASIC NEEDS Every consumer has the right to get the quality basic needs
such as food, clothing and shelter.
50%
25%
25%
BASIC NEEDS
FoodShelterClothing
8. THE RIGHT FOR HEALTHY ENVIRONMENT
The manufacturer should aim at producing more environment friendly and energy efficient products.
The products which can be recycled has the following symbol:
NOTE: Rights number 7 & 8 have been added by the amendment in the act in 1993 and 2002 respectively.
RESPONSIBILITIES OF A CONSUMER
Be aware of various goods & services available in the market
Buy standardize products only (eg: ISI marked products)
Be aware of each & every aspect of the product while purchasing it
Buy legal products Ask & take the proof of the purchase File a complaint in an appropriate consumer
forums Respect the environment
CONSUMER IS THE KING..
FREE MARKET
CONDITIONS FOR A FREE MARKET TO EXIST
2
3
Free Competition
Consumer Rationality
1
The Central
Consumer Protection
Council
The State Consumer Protection
Council
The District
Consumer Protection
Council
CONSUMER PROTECTION COUNCIL
NEED FOR CPC:
To Promote And Protect The Rights Of The Consumers
THE CENTRAL CONSUMER
PROTECTION COUNCIL
• Members: Chairman, Vice Chairman, other members
• Meetings : at least once in a year
THE STATE CONSUMER
PROTECTION COUNCIL
• Members: Chairman, other members prescribed by the State Government, Up to 10 members nominated by Central Government
• Meetings : At least 2 meetings in a year
THE DISTRICT CONSUMER
PROTECTION COUNCIL
• Members: Chairman, other members prescribed by the State Government
• Meetings : Not less than 2 meetings in a year
COMPOSITION OF THESE COUNCILS
National Commission
At State Level
• State Commission
At District Level
• District Forums
CONSUMER DISPUTES REDRESSAL AGENCIES
COMPOSITION
• President : a person who is, or has been, or is qualified to be a District Judge
• Two other members : persons of ability and integrity and have knowledge (or experience) of economics, law, commerce, accountancy, public affairs and administration. One of the member shall be a woman
District Forum
• President: Judge of High Court • Not less than 2 members and not more than the prescribed number (one
of them shall be a woman)
State Commission
• President: Judge of Supreme Court • Members not less than four and not more than the prescribed numbers
(One of whom shall be a woman)
National Commission
1. DISTRICT FORUM
Value of services and compensation claimed does not exceed Rs 5
Lakhs
Complaint can be filed by: Consumer, Consumer
Association, Central or state government
JURISDICTION
PROCEDURE ON RECEIPT OF A COMPLAINT
It is the same for all the 3: District Forum, State Commission & National Commission.
But for the National Commission before the procedure begins following should be kept in mind.
1.The name, description and the address of
the complainant;
2. The name, description and address of the
opposite party or parties, as the case may be, so
far as they can be ascertained;
3. The facts relating to the complaint and
when and where it arose
4. Documents in support of the
allegations contained in the
complaint
5. The relief which the
complainant claims
A complaint containing the following particulars shall be presented by the complainant in person or by his agent to the National Commission or be sent by registered post, addressed to the National Commission
THE PROCEDURE
1. On the basis of evidence brought by complainant and the opposite party denies the allegations
2. On the basis of evidence brought by the complainant and opposite party fails to take action
3. Complainant fails to appear on such day, the CDRA may dismiss the complainant complain, decide on merit or ex-parte
4. Any party fails to produce his evidence or to cause the attendance of witness – CDRA may not withstand
5. On such cases CDRA may adjourn the hearing ( not more than 1 adjournment shall be given)
I] Referral of the complain copy to the opposite party;
II] If Opposite party denies or disputes the allegations or fails to take any action then CDRA shall proceed to settle the dispute
• Any person aggrieved by an order made by the District Forum may appeal against such order to the State Commission within a period of 30 days from the date of the order.
District Forum
APPEAL
TOTAL NUMBER OF CONSUMER COMPLAINTS FILED / DISPOSED / PENDINGUNDER CONSUMER PROTECTION LAW
Cases Filed
Cases Disposed
Cases Pending
0
100
200
300
400
500
600
700
84
72
10
618
527
90
333
307
260
National Commission State Commission District Forum
Nu
mb
er O
f C
ases
(in
‘00
0)
NON-GOVERNMENTAL
CONSUMER ORGANIZATIONS
INITIATIVES TOWARDS
CONSUMER PROTECTION
CONSUMER GUIDANCE SOCIETY OF INDIA (CGSI)
1st consumer organization to demand special Consumer Court for redressal of consumers' complaints
Founded by nine women in 1966
Monthly magazine - "KEEMAT" (Currently 32nd Year of publication)
Produced consumer guides (electrical appliances, edible oils, pesticides, etc)
Handles consumer complaint & offers legal guidance
The CGSI aims at making consumers conscious of their rights and responsibilities and strives to ensure it
Example :Consumer education for rural consumers
MUMBAI GRAHAK PANCHAYAT Mumbai Grahak Panchayat (MGP), or Bombay Consumer Forum, started
as an agitation against the increase of consumer prices near festival season for fair and free distribution of consumer goods
Indian Societies Registration Act 1960 and Indian Public Trust Act 1950 in the name of MGP
Primary objectives - organizing the consumers for common causes, educating them and protecting consumer interest through legal and other means
More than 27,900 members and it has a presence in Greater Mumbai, Thane, Raigad and Ratnagiri district
Various activities conducted here – Monthly distribution of groceries, Panchayat Peth, Road Shows and Cosumer Clubs
Example: V/S
CONSUMER EDUCATION AND RESEARCH CENTRE
Protects consumer interest in India through various mediums
It is an UNITED NATIONS approved NGO
Mission - environmental protection, creating transparency and accountability in the public, etc
Example: CERC's intervention compels mattress manufacturer to refund partial cost of defective mattress
HINDUSTAN UNILEVER CUSTOMER OMBUDSMAN INITIATIVE
In 2008, Hindustan Unilever had roped in an ombudsman.
It was restricted to end consumers of HUL products.
This was the first time an FMCG company had appointed an independent and expert mediation procedure for the benefit of its consumers.
COMPARATIVE STUDY OF INDIA VS THAILAND CONSUMER PROTECTION ACT
Does not focus on the whether the defendant is negligent. Plaintiffs just have to Prove that the loss is caused due to the product
Special masters are appointed for speedy and fair proceedings
NO FAULT COMPENSATION SCHEME
o Focus is to prove that the product is defective, not necessarily unsafe
o Three-tier quasi-judicial system
o Defendant responsible for paying compensation only if proved guilty or negligent
THAILAND INDIA
1.The Act on Liability for Injury from Unsafe Products
2. The Act on Court Proceedings for Consumer Cases
3.The Medical Malpractice Victim Fund Bill
CASE STUDIES IN INDIA
SC orders record Rs 5.96 Crore in a Medical Negligence matter against Kolkata Hospital
Nokia to pay Rs 67,000 for selling Defective Cell Phones
Punjab Institute fined Rs 38 Lakhs for selling Diploma as MBA
CASE STUDIES ABROAD
Case #1: The Disappearing Car
Case #2: The Pickup with Problems
Case#3: The Chair Shortage
CASELETS Case #1: Jerome and Judith O'Callaghan sued American
Airlines for $100,000
Case #2: Zeynep Inanli sued Starbucks for millions of dollars
BIBLIOGRAPHY
http://en.wikipedia.org/wiki/Consumer_protection#India http://www.ncdrc.nic.in/1_1.html http://ncdrc.nic.in/statistics.html http://www.gizmopod.com/gallery/2868/10-ridiculous-lawsuits?
utm_content=buffer4049a&utm_medium=social&utm_campaign=buffer&utm_sorce=twitter.com
http://articles-junction.blogspot.in/2013/06/what-is-need-and-
importance-of-consumer.html?m=1 http://www.ask.com/question/why-do-we-need-consumer-protection http://agmarknet.nic.in/amrscheme/armstandconsu.htm http://ncdrc.nic.in/1_1_2.html
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