CONSUMERPROTECTION ACTPresented By Team No:5Snehal KhannukarSmitha ShrivatsaSanjana JacobSaquib AliShydil MusnasSidharhta BaratShrey. R. D
Consumer Protection Act 1986The Act provides for better protection of the interestsof Consumers and for that purpose to make provision for the establishment of Consumer Councils and other authorities for the settlement of consumer disputes and for matters connected therewith.
Objectives• Right to Consumer education.• Right to safety.• Right to Seek Redressal.• Right to be Heard.• Right to choose.• Right to information.
Who is a Consumer? Sec. 2 (1) (d)Any person who:• Buys any goods for a consideration which has been paid or will be paid.• Hires or avails any service for a consideration which has been paid or will be paid.• It does not include a person who obtains goods for resale or any commercial purpose
Who is not a consumer?An individual who:• Has obtained goods or services for commercial purpose without consideration under a contract of personal service.-Ex: contractors• Tax payers to municipality.• Applicants for jobs.
Rights of Consumer• Right to Safety• Right to be Informed• Right to be Heard• Right to Redressal• Right to Consumer Education
Complaint!• Allegation in writing made by complainant to claim relief.• Goods have defects.• Services have deficiency.• Price charged higher than that is mentioned in the package• An unfair and restrictive trade practice has been adopted Sec. 2 (1) ( r)
Who can make a Complaint? Complaint can be registered at any Quasi Judicial Organs under the CPA,1993 by the following:• Consumer.• Consumer Association.• Central or State government.• Consumer group with the same interest.
Restrictive and Unfair Trade Practices These are unfair trade practices that reduces competition. It is of two types:• Holding of contests and schemes.• Disparaging (Giving false and misleading facts about) the product of competitors.• Hoarding and Destruction of goods.• Not confirming to prescribed standard.
Consumer Protection CouncilsObjectives –Protect consumers against marketing of hazardous goods and servicesEnsure that consumers are informed about the quality, quantity, potency, purity, standard and price of goods or services Ensure that consumers have access to variety of goods of services at competitive pricesTo ensure that consumers are heard and their interest receives due consideration at appropriate forums
Consumer Protection Councils contd…To ensure that consumer can seek redressal against unfair trade practices or unscrupulous exploitationTo ensure the consumer has right to education
District Council• As per newly inserted section-8A the state govt. shall by notification, establish for every District a council to be known as District Protection Council.• It consists of the following members-Collector of the District shall be the Chairman.-Official & unofficial members may be prescribed by the state govt.Objective: To promote & protect within the district the rights of theconsumers as per Sec-6 (a-f)
State Council• The objects of state council shall be the same as the central council• The council consists of minister in charge of consumer affairs in the state government who shall be the chairman• The meeting of this council will be held twice in a year• The transaction of its business shall be prescribed by the state government
Central Council• It is constituted by the Central government• It consists of 150 members (rule 3 of consumer protection rules, 1987)• The minister in charge of the consumer affairs is the chairman of the central council.• The Deputy minister is the vice chairman of the Central Council• The secretary of the civil supplies is the secretary of the council• The meeting of central council will be held once in a year.
Central Council contd…• The working groups of the council shall perform the functions assigned to it by the council• The resolutions passed by the council are recommendary in nature
Consumer Disputes Redressal AgenciesThree different agencies formed at different levels Consumer Disputes Redressal Forum known as the District Forum established by state government in each district of the state. Consumer Disputes Redressal Commission known as State Commission National Consumer Disputes Redressal Commission established by Central Government.
The District ForumA person who is or is qualified to be a district judge acts as the ChairmanA complaint may be filed with a district forum by – A consumer to whom goods/services are sold/delivered/provided or agreed upon. Any recognized consumer association, of which the consumer to whom goods/services are sold/delivered/provided or agreed upon, is a member. One or more consumers, where there are numerous having the same interest, with the permission of the District Forum State or Central Government acting as a representative of interests of consumers in general. Every complaint shall be accompanied by a prescribed fee. A complaint shall not be rejected unheard.
Admission of Complaint - Goods• Reference of complaint to opposite party.• Denial of allegation etc. by the opposite party• Reference of sample to the laboratory if defect cannot be determined without proper analysis or test of goods• Deposit of fees• Remission of fees to laboratory and forwarding of report to opposing party• Objections by any of the parties• Reasonable opportunity to parties of being heard and issue of order.
Admission of Complaint - Services• Reference of claim to opposite party• Denial etc. of allegations by the opposite party• Settlement of dispute: - Ex-parte where the opposite party denies or disputes the allegations - Ex-parte where the opposite party omits or fails to take any action torepresent the case within the given time - If the complainant fails to appear on the date of hearing Proceedings of district forum final Death of complainant Time period of redressal [3Months &/or 5Months]
The State Commission• A judge of the high court, appointed by the state government, acts as the President• Entertained if value of goods or services and compensation exceeds 20 lakhs• Calls for records if it feels that the district forum has• (i) Exercised a jurisdiction not vested in the law• (ii) Has failed to exercise a jurisdiction so vested• (iii) Acted in exercise of it’s jurisdiction illegally or with material irregularity
National Commission• A person who is or has been a judge of the Supreme Court is appointed by the Central Government as the Chairman (Sec 20 Consumer Protection Amendment Act, 2002)• The office is at New Delhi (Rule 5 of the Consumer Protection Rules, 1987)• Entertains complaints where the value of goods or services and compensation claimed exceeds 1 crore• Call for records and pass appropriate records which is pending before or has been decided by the State Commission such that the State Commission (i) has exercised a jurisdiction not vested in it by the law (ii) has failed to exercise a jurisdiction so vested (iii) has acted in the exercise of it’s jurisdiction illegally or with material irregularity
National Commission contd… Any person, aggrieved by the order, made by the National Commission in exercise of it’s powers, may appeal against such order to the Supreme Court within a period of 30 days from the date of the order
Finality of OrdersEvery order of district forum, the State Commission or theNational Commission shall, if no appeal, has been madeagainst such order, within the limitation period andadministrative control, under the provision of this act, befinal (Sec 24-a and Sec24-b of Consumer Protection(Ammendment) Act, 2002
Enforcement of Orders• Within 3 months of passing of interim order - District Forum, State Commission or the NationalCommission may attach the property of the person notcomplying with the order• After 3 months - Property or assets to be sold and out of the proceeds,damages awarded to the complainant and shall pay thebalance, if any, to the party entitled
Dismissal of Frivolous ComplaintsIf a complaint is found to frivolous or vexations(annoying,nuisance) , the commissions shall dismiss the complaintand pass an order that the complainant shall pay theopposite party such costs, not exceeding Rs 10,000.
Example of Redressal (1)Manoj Kumar vs LIC filed in Delhi Consumer Forum• Mr. Manoj Kumar had approached the District Consumer Disputes Redressal Forum complaining that when he went to LIC to deposit the premium for 2009 of the policy which was purchased in the name of his minor daughter in May 2008 and was to mature in May 2017, he got to know about the policy that had lapsed because of non-payment of the last premium. But in fact, he was paying all the premiums very regularly.• Following this he approached the LIC and showed them the receipt by which he had paid the premium for 2008.• However, the officials ignored the matter and refused to listen to his complaint. He also mentioned, very importantly that even a legal notice of March 19, 2010 did not bring out any favourable response from the LIC.
Manoj Kumar vs LIC contd…Verdict• The Forum presided by Mr. Rakesh Kapoor instructed Life Insurance Corporation of India to pay compensation of Rs 60,000 to Kumar for mental suffering that he underwent due to the company’s reckless ignorance and directed it to revive the policy of Rs 1 lakh.
Example of Redressal (2)Sunil Kumar Nair v The General Manager, International Airport Authority of India and Another (1996) I CPR 361 (Tamil Nadu CDRC)• The complainant stated he was at the Madras International Airport to board a flight to the US. Suddenly, the victim got hit by a heavy iron rod on his foot. The iron rod fell from the scanning machine. He alleged negligence on the part of the Airways.• The Tamil Nadu State Commission held the airways liable for failure to maintain the machine properly and awarded the victim a compensation of Rs.30000.
List of Consumer Redressal Forums in Bangalore• Bangalore Urban District Consumer Disputes Redressal. Basava Bhavan,Sri Basaveshwara Circle, High Grounds, Bangalore-560001 080-2262865 080- 2260590• 2. Banglore Urban District Forum, Cauvery Bhavan, 8th Floor, BWSSB Wing, Kempe Gawda Road, Bangalore-560009 Telefax 080-22211137• 3. Banglore Rural & Urban I Addl. District Forum, 1/7, Swathi Complex, Seshadripuram, Bangalore-560020. 080-23442670 Fax : 080- 23140797• 4. Bangalore II Additional District Forum, 1/7, Swathi Complex, Seshadripuram, Bangalore-560020. 080-23468596 Fax : 080- 26673982• 5 Banglore Urban III Addl. District Forum No.8, VI floor, Cunningham Road, Banglore-560052 080-22352623• 6 Banglore Urban IV Addl. District Forum No.8, VI floor, Cunningham Road, Banglore-560052 080-22352624(source -http://consumerredressal.com/Karnataka.aspx)