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  1. 1. <ul><li>TWO-THIRDS of spending in the world economy ($ 30 trillion) is by consumers. YET THEY HAVE NO VOICE! </li></ul><ul><li>New Economic Policy floods market with products— YE DIL MAANGE MORE but too little information for informed choice. </li></ul>PROTECTING THE CONSUMER
  2. 2. <ul><li>On 24 December 1986 Govt. of India enacted the Consumer Protection Act 1986 to: </li></ul><ul><li>Ensure Rights of Consumers </li></ul><ul><li>Provide Remedies for deceived Consumers </li></ul><ul><li>Check Unfair Business Practices & Restrictive Trade Practices. </li></ul><ul><li>This is a unique law in the world . </li></ul>CONSUMERS' RIGHTS IN INDIA
  3. 3. C.P. ACT IS UNIQUE <ul><li>Exclusive Fora for consumer disputes in all districts, state and national capitals. </li></ul><ul><li>6 consumer rights specified. </li></ul><ul><li>Consumer Protection Councils from national to state and district levels. </li></ul><ul><li>Covers private, public, cooperative sectors. </li></ul>
  5. 5. Consumer's Rights under Section 6 <ul><li>Right to SAFETY against hazardous goods and services. </li></ul><ul><li>Right to be INFORMED about quality, quantity, purity, standard, price. </li></ul><ul><li>Right to CHOOSE from a variety at competitive prices. </li></ul><ul><li>Right to BE HEARD. </li></ul><ul><li>Right to seek REDRESSAL. </li></ul><ul><li>Right to CONSUMER EDUCATION. </li></ul>
  6. 6. Contd - <ul><li>Applicability – Extends to whole of India except the state of Jammu and Kashmir </li></ul><ul><li>Applies to all goods and service except those notified by the Central Government </li></ul>
  7. 7. WHO IS A CONSUMER? <ul><li>Two kinds of consumer under the Act </li></ul><ul><ul><li>Consumer of goods </li></ul></ul><ul><ul><ul><li>buys or agrees to buy goods </li></ul></ul></ul><ul><ul><ul><li>any user of such goods </li></ul></ul></ul><ul><ul><li>Consumer of services </li></ul></ul><ul><ul><ul><li>hires or avails any services </li></ul></ul></ul><ul><ul><ul><li>any beneficiary of such service </li></ul></ul></ul>
  8. 8. Contd - <ul><li>Service – Service of any description but does not include rendering of any service free of charge or under a contract of personal service. </li></ul>
  9. 9. Complaint <ul><li>Complaint means a formal allegation against a party </li></ul><ul><li>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. </li></ul>
  10. 10. Who can file a complaint <ul><li>A consumer </li></ul><ul><li>Any recognized consumer association </li></ul><ul><li>One or more consumers having the same interest </li></ul><ul><li>The central or the state government as the case maybe </li></ul><ul><li>In case of death of a consumer, his legal heir or representative </li></ul>
  11. 11. Contd - <ul><li>The following are also considered as a consumer and hence they may file a complaint. </li></ul><ul><li>User of goods and beneficiary of services </li></ul><ul><li>Husband of the consumer </li></ul><ul><li>Insurance company </li></ul>
  12. 12. CONSUMERS NEED PROTECTION AGAINST (grounds of complaint) <ul><li>Unfair trade practice </li></ul><ul><li>Restrictive trade practice </li></ul><ul><li>Defects </li></ul><ul><li>Deficiencies </li></ul>
  13. 13. CONSUMERS NEED PROTECTION AGAINST <ul><ul><ul><li>UNFAIR TRADE PRACTICE </li></ul></ul></ul><ul><ul><ul><li>Adopting unfair methods or deception to promote sale, use or supply of goods or services e.g. </li></ul></ul></ul><ul><ul><ul><li>Misleading public about price (e.g. bargain price when it is not so). </li></ul></ul></ul><ul><ul><ul><li>Charging above MRP printed. </li></ul></ul></ul><ul><ul><ul><li>Misleading public about another’s goods or services. </li></ul></ul></ul><ul><ul><ul><li>Falsely claiming a sponsorship, approval or affiliation. </li></ul></ul></ul><ul><ul><ul><li>Offering misleading warranty or guarantee. </li></ul></ul></ul>
  14. 14. CONSUMERS NEED PROTECTION AGAINST <ul><li>RESTRICTIVE TRADE PRACTICE </li></ul><ul><ul><ul><li>Price fixing or output restraint re: delivery/flow of supplies to impose unjustified costs/restrictions on consumers. </li></ul></ul></ul><ul><ul><ul><li>Collusive tendering; market fixing territorially among competing suppliers, depriving consumers of free choice, fair competition. </li></ul></ul></ul><ul><ul><ul><li>Supplying only to particular distributors or on condition of sale only within a territory. </li></ul></ul></ul><ul><ul><ul><li>Delaying in supplying goods/services leading to rise in price. </li></ul></ul></ul><ul><ul><ul><li>Requiring a consumer to buy/hire any goods or services as a pre-condition for buying/hiring other goods or services. </li></ul></ul></ul>
  15. 15. CONSUMERS NEED PROTECTION AGAINST <ul><li>DEFECTS </li></ul><ul><ul><li>Any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard which is required to be maintained by or under any law for the time being in force or under any contract express or implied or as is claimed by the trader in any manner whatsoever in relation to any goods. </li></ul></ul><ul><li>DEFICIENCY </li></ul><ul><ul><li>Any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance which is required to be maintained by or under any law for the time being in force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service </li></ul></ul>
  16. 16. Consumer dispute <ul><li>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. </li></ul>
  17. 17. Consumer dispute redressal agencies <ul><li>A QUASI-JUDICIAL AUTHORITY UNDER THE STATUTE TO REDRESS CONSUMER DISPUTES. </li></ul><ul><li>Consumer Disputes Redressal Forums (District Forum) </li></ul><ul><ul><li>Claims less than or equal Rs.20 lacs. </li></ul></ul><ul><li>Consumer Disputes Redressal Commissions ( State Commission ) </li></ul><ul><ul><li>Claim more than Rs.20 lacs & less than Rs.1 crore & appeals. </li></ul></ul><ul><li>National Consumer Disputes Redressal Commission (National Commission) </li></ul><ul><ul><li>Claim equal to Rs.1 crore & appeals </li></ul></ul>
  18. 18. HOW TO FILE COMPLAINT WITH THE FORUM OR COMMISSION ? <ul><li>File WITHIN 2 YEARS of cause of action in the District Forum where the seller has his business or lives or where the cause of action arose. </li></ul><ul><li>Submit 3 COPIES OF COMPLAINT ON PLAIN PAPER WITH SUPPORTING DOCUMENTS (receipt, bill etc.) </li></ul><ul><li>NO LAWYER. </li></ul><ul><li>MINIMAL FEE IS PAYABLE. </li></ul>
  19. 19. Fees payable <ul><li>District Forum </li></ul><ul><li>Value and compensation claimed Fee </li></ul><ul><li>Up to Rs 1 Lakh Rs 100 </li></ul><ul><li>Rs 1 lakh & above but </li></ul><ul><li>less than Rs 5 lakh Rs 200 </li></ul><ul><li>Rs 5 lakh & above but </li></ul><ul><li>less than Rs 10 lakh Rs 400 </li></ul><ul><li>Rs 10 lakh & above but </li></ul><ul><li>less than Rs 20 lakh Rs 500 </li></ul>
  20. 20. Is There Any Prescribed PROFORMA For Filing Complaint ? <ul><li>NO . But the following information must be furnished with the complaint :- </li></ul><ul><li>Name and full address of complainant. </li></ul><ul><li>Name and full address of opposite party. </li></ul><ul><li>Description of goods and services. </li></ul><ul><li>Quality and quantity. </li></ul><ul><li>Price. </li></ul><ul><li>Date & proof of purchase or hiring. </li></ul><ul><li>Nature of deception. </li></ul><ul><li>Type of redressal prayed for. </li></ul>
  21. 21. BENEFITS & RELIEFS <ul><li>Relief </li></ul><ul><ul><li>Removal of defects in goods or deficiency in services. </li></ul></ul><ul><ul><li>Replacement of defective goods. </li></ul></ul><ul><ul><li>Refund against defective goods or deficient services. </li></ul></ul><ul><ul><li>Compensation. </li></ul></ul><ul><li>Benefit </li></ul><ul><ul><li>Disposal within 90 days </li></ul></ul><ul><ul><li>No adjournment shall ordinarily be granted - Speedy trial </li></ul></ul><ul><ul><li>Prohibition on sale of hazardous goods. </li></ul></ul>
  22. 22. Appeals against order of the forums <ul><li>Appellate powers of the State Commission – appeal can be made to the SC against an order of the district forum within a period of 30 days </li></ul><ul><li>Appellate powers of the National Commission – appeal can be made to the NC against an order of the SC within 30 days from the date of the order </li></ul>
  23. 23. Contd - <ul><li>REFUND OF MONEY. </li></ul><ul><li>REPLACEMENT OF THE GOODS. </li></ul><ul><li>COMPENSATION FOR LOSS OR HARASSMENT OR MENTAL AGONY. </li></ul>
  24. 24. Contd - <ul><li>Appeal shall be heard within 90 days from the date of its admission </li></ul><ul><li>Appeal to the Supreme Court – Appeal can be filed against the order of the NC within 30 days from the date of the order </li></ul>
  25. 25. Penalties <ul><li>Failure to comply with an order of DF,SC,NC shall be punishable with an imprisonment for a term which shall not be less than one month but which may extend to three years, or with fines ranging between 2000 and Rs 10,000 or both. </li></ul>