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Consumer protection act 1986 ppt @ bec doms


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Consumer protection act 1986 ppt @ bec doms

Consumer protection act 1986 ppt @ bec doms

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  • 1. Consumer Protection Act 1986 Goods & Services
  • 2. Objects of the Act
    • Right to be protected against marketing of goods which are hazardous to life and property.
    • Right to be informed about the quality, potency, standard, and price of goods to protect the consumer against unfair trade practices.
    • Right to be heard and to be assured that customers’ interests will receive due consideration at appropriate forums.
    • Right to seek redressal against unscrupulous exploitation of consumers.
    • Right to consumer education .
    • Consumer protection councils – Central & State.
  • 3. Definitions
    • Appropriate laboratory: It is recognized by Central & State governments, which carries out analysis or test of any goods with a view to determining whether such goods suffer from any defect.
    • Complainant: One or more consumer or any voluntary consumer association registered under the Companies Act or the Central or any State Government who or which makes a complaint.
    • Complaint: Any allegation in writing made by a complainant with a view to obtaining any relief provided by under this Act.
  • 4.
    • Consumer: Any person, who – (i) buys any goods for a consideration which has been paid or promised or partly paid or promised, or under any system of deferred payment. (ii) hires or avails of any service for a consideration which has been paid or promised or partly paid or promised, or under any system of deferred payment.
    • For (i) ‘Consumer’ also includes any user other than buyer himself. It must involve some consideration. ‘Consumer’ does not include resale or commercial use of obtained goods.
    • For (ii) ‘Consumer’ includes any beneficiary of services other than the person who hires or avails such services.
  • 5.
    • Consumer dispute – complaint denied or challenged
    • Defect – fault, imperfection, or shortcoming in the quality, potency, purity, or standard
    • Deficiency – fault, imperfection, or inadequacy in the quality, nature and manner of performance
    • District Forum – Consumer Disputes Redressal Forum
    • National Commission – National Consumer Disputes Redressal Commission
    • Person – includes a firm, a HUF, a cooperative society, and AOPs
    • State Commission – Consumer Disputes Redressal Forum
  • 6.
    • Service: It includes, provision of facilities in connection with banking, financing, insurance, transport, processing, electrical or other energy supply, boarding & lodging, house construction and plots by Housing & Development Board, entertainment and amusement, and telephone connection and facility by Telecom Department.
    • ‘ Service’ however does not include the rendering of any service free of charge or under a contract of personal service.
    • Spurious – goods & services which are claimed to be genuine but they are actually not so.
    • Trader – a person who sells, distributes, manufacturers, or a packer of any goods for sale.
  • 7. Who is not a Consumer?
    • A person obtaining goods for “resale” or for any “commercial purpose”; or
    • Buys goods without Consideration; or
    • Hires or avails any services without Consideration; or
    • Uses the goods without approval of the person who has bought goods for consideration; or
    • Is beneficiary of services w/o consent of the person who has hired the services for consideration; or
    • Obtains service under a contract of personal service.
  • 8. Resale and Commercial Purpose
    • When the goods are re-sold in original condition as bought, it is a resale.
    • When the goods are not purchased for immediate final consumption, but for transfer, it is resale.
    • A person buying the goods for resale or commercial purpose, even if for consideration, is NOT a consumer.
  • 9.
    • Mr. A bought a TV set from an electronics store for using it at home. The TV was defective. Is Mr. A a consumer?
    • Mr. A is a consumer as he buys a good for a consideration.
    • Bhavesh bought a pressure cooker. In the first use itself while his wife was using it, the pressure cooker burst, hurting her. Is Bhavesh a consumer? Is his wife a consumer?
    • Bhavesh is the consumer. His wife is also a consumer as per the provision: ‘…and includes any user of goods other than the buyer for consideration’.
  • 10.
    • Anand runs a laundry shop and he bought a washing machine. The same was installed in his shop. The machine was defective right from the day it was delivered. Is Anand a consumer?
    • Anand is not a consumer as he is using the machine for consumer purpose.
    • Balu is a distributor for computer accessories. He bought 100 pen-drives for selling to other computer vendors. Is Balu a consumer?
    • Balu is not a consumer as he has obtained accessories for resale.
  • 11.
    • Anil bought cycles for the purpose of hiring to tourists visiting the area. Sunil was a tourist who had hired a cycle. The cycles were defective. The handle of the cycle broke, injuring Sunil. Are Anil and Sunil consumers?
    • Anil is not a consumer. However, Sunil is a consumer as he availed service of hiring from Anil.
    • Mr. Patel bought a laptop and gifted it to his son, Amit. Amit is a consultant who uses the laptop for his business. Are Mr. Patel and Amit consumers?
    • Mr. Patel was a consumer when he bought the laptop. However, Amit is not a consumer as he is using it for commercial purpose.
  • 12. Special Note on ‘Commercial Purpose’
    • Not buying for one’s own use is not necessarily buying for commercial purpose.
    • For example, a purchaser of a cooler is a consumer, even if the cooler is installed at a bus-stand for the use of public free of charge.
    • In a case, where a lady purchased a Xerox machine for the purpose of earning her livelihood, was held that it was not for commercial purpose and that she was a consumer.
    • The Court should therefore be satisfied that there is NO large-scale commercial activity.
  • 13.
    • For example, Plying of a taxi is purchase of a taxi for commercial purpose.
    • Commercial purpose is commerce, mercantile, having profit as the main aim.
    • There should be profit or loss from further disposal.
    • Commercial purpose include all business activities.
    • In other words, where there is no profit motive or business gain, the purchase of goods is not for commercial purpose.
  • 14.
    • Extent of Consumer Protection
    • While other legislation may be either punitive or preventive, the CPA compensates the consumer.
    • The CPA gives the consumer an additional remedy besides those which may be available under existing laws.
    • The CPA is a benevolent piece of legislation to protect a large body of consumers from exploitation.
  • 15. Consumer Dispute
    • On a complaint before the Consumer Redressal Forums against a person, who denies or disputes the allegations contained in the complaint a consumer dispute arises [Sec. 2(1) (c)].
    • Separate allegations may form separate disputes requiring separate finding on each dispute.
  • 16. Who can be a Complainant?
    • A Consumer; or
    • Any voluntary consumer association registered under the Companies Act; or
    • The Central or State Government; or
    • One or more consumers, where there are numerous consumers having the same interest; or
    • In case of death of consumer – his legal heir or representative.
  • 17. What is a Complaint?
    • A complaint is any allegation in writing by a complainant that –
    • An “unfair trade practice” or a “restrictive trade practice” has been adopted by any trader or service provider;
    • The goods bought or agreed to be bought suffer from one or more “defects”.
    • The services hired or availed or agree to be hired or availed suffer from “deficiency” in any respect.
  • 18.
    • A trader or the service provider has charged for the goods or services mentioned in the complaint, “a price in excess” of the price fixed or displayed;
    • Goods which will be “hazardous to life and safety” when used are being offered for sale to the public in contravention to any stipulated standards;
    • Services which are hazardous to life and safety when used are being offered by service provider.
  • 19. Unfair Trade Practice
    • For which a trader, for promoting sale, use or supply of any goods or provision of services, adopts any unfair method or deceptive practice.
    • Includes:
    • A) The practice of making any statement, orally, written, or visually anything false or misleading.
    • B) Permits the publication of any advertisement in any newspaper or otherwise, for sale or supply at a bargain price of goods/ services that are not intended to be offered for sale or supply at the bargain price.
  • 20. Restrictive Trade Practices
    • Trade practice which tends to bring about manipulation of price or;
    • its conditions of delivery or;
    • to affect flow of supplies in the market relating to goods or;
    • services in such a manner as to impose on the consumers unjustified cost or restrictions.
  • 21. Defects and Deficiency
    • Defect means any fault, imperfection, or shortcoming in the quality, quantity, potency, purity or standard which is required to be maintained by the trader under any law.
    • It is for the complainant to establish that the goods mentioned in the complaint suffer from one or more defects.
  • 22.
    • Deficiency means any fault, imperfection, shortcoming, or inadequacy in the quality, nature and manner of performance which is required to be maintained by or under the law.
    • It is for the complainant to establish that services mentioned in the complaint suffer from deficiency in any respect.
    • Examples: Lack of facilities by Housing Board is deficiency. Non-allotment of shares is not deficiency in service. Failure of insurance company to settle claim without sufficient cause is deficiency. Failure of Railways to provide cushioned seats in 1 st class is deficiency of service.