‘‘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 Cons...
o The act was passed in Lok Sabha on 9th December,1986 and
Rajya Sabha on 10th December, 1986 and assented by the
Presiden...
SOME IMPORTANT DEFINITIONS:
 Any person who buys
goods or services for a
consideration
 Any person means
individual comp...
 Service is made
available to potential
users
 Eg: Provision of
facilities - banking,
financing, insurance,
transport, s...
 Unfair trade practice or a
restrictive trade practice
 Goods having defects
 Service having deficiency
 Excess price ...
NEED, PURPOSE AND OBJECTIVE OF CONSUMER
PROTECTION
Consumer ProtectionCaveat Emptor TO
NEED FOR CONSUMER PROTECTION
 Protection from Exploitation
 Consumer Education
 Redressal of Complaints
 A Connecting ...
PURPOSE & OBJECTIVE OF CONSUMER
PROTECTION
 Protection of Consumer against unfair trade practices
 Protection of enjoyin...
IMPORTANCE OF CONSUMER PROTECTION IN A
BUSINESS ORGANIZATION
 Public Image
 Social Responsibility
 Increasing Awareness...
RIGHTS OF THE CONSUMERS:
1. The Right To Safety
2. The Right To Choose
3. The Right To Information
4. The Right To Be Hear...
1. THE RIGHT TO SAFETY
 Before purchasing, consumers should inspect on the quality of the products as well
as on the guar...
2. THE RIGHT TO CHOOSE
 The consumer before purchase a product needs to be made aware of:
o Variety of products and servi...
3. THE RIGHT TO INFORMATION
 The consumer has the right to be informed about the
quality, quantity, purity, standard and ...
 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 ...
6. THE RIGHT TO CONSUMER EDUCATION
 The consumers should have access to informational programs and
materials that would e...
7. THE RIGHT FOR BASIC NEEDS
 Every consumer has the right to get the quality basic needs such as
food, clothing and shel...
8. THE RIGHT FOR HEALTHY ENVIRONMENT
 The manufacturer should aim at producing more environment friendly and
energy effic...
RESPONSIBILITIES OF A CONSUMER
 Be aware of various goods & services available in
the market
 Buy standardize products o...
CONSUMER IS THE KING..
FREE MARKET
CONDITIONS FOR A FREE MARKET TO EXIST
Freedom Of Choice
Free Competition
Consumer Rationality
2
3
1
The Central
Consumer
Protection
Council
The State
Consumer
Protection
Council
The District
Consumer
Protection
Council
CON...
THE CENTRAL
CONSUMER
PROTECTION COUNCIL
• Members:
Chairman, Vice
Chairman, other
members
• Meetings : at least
once in a ...
At National Level
• National Commission
At State Level
• State Commission
At District Level
• District Forums
CONSUMER DIS...
COMPOSITION
• President : a person who is, or has been, or is qualified to be a District
Judge
• Two other members : perso...
1. DISTRICT
FORUM
Value of services and
compensation claimed
does not exceed Rs 5
Lakhs
Complaint can be filed
by:
Consume...
PROCEDURE ON RECEIPT OF A COMPLAINT
 It is the same for all the 3: District Forum, State
Commission & National Commission...
1.The
name, description
and the address of
the complainant;
2. The name, description
and address of the
opposite party or
...
THE PROCEDURE
1. On the
basis of
evidence
brought by
complainant and
the opposite
party denies the
allegations
2. On the b...
• Any person aggrieved by
an order made by the
District Forum may appeal
against such order to the
State Commission within...
TOTAL NUMBER OF CONSUMER COMPLAINTS
FILED / DISPOSED / PENDING
UNDER CONSUMER PROTECTION LAW
0
100
200
300
400
500
600
700...
CONSUMER GUIDANCE SOCIETY OF INDIA
(CGSI)
 1st consumer organization to demand special Consumer Court for
redressal of co...
MUMBAI GRAHAK PANCHAYAT
 Mumbai Grahak Panchayat (MGP), or Bombay Consumer Forum, started as an
agitation against the inc...
CONSUMER EDUCATION AND
RESEARCH CENTRE
 Protects consumer interest in India through various mediums
 It is an UNITED NAT...
HINDUSTAN UNILEVER CUSTOMER
OMBUDSMAN INITIATIVE
 In 2008, Hindustan Unilever had roped in an ombudsman.
 It was restric...
COMPARATIVE STUDY OF INDIA VS THAILAND
CONSUMER PROTECTION ACT
 Does not focus on the whether the
defendant is negligent....
CASE STUDIES IN INDIA
 SC orders record Rs 5.96 Crore in a Medical Negligence
matter against Kolkata Hospital
 Nokia to ...
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 Starbu...
BIBLIOGRAPHY
 http://en.wikipedia.org/wiki/Consumer_protection#India
 http://www.ncdrc.nic.in/1_1.html
 http://ncdrc.ni...
PRESENTED BY E-MBA(A) GROUP NO.2:
 Abhishek Bhatt - 13003
 Ankish Jain - 13005
 Anubhav Lal - 13007
 Baroz Khan - 1301...
THANK YOU
NEED FOR CONSUMER PROTECTION ACT
NEED FOR CONSUMER PROTECTION ACT
NEED FOR CONSUMER PROTECTION ACT
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‘‘NEED FOR CONSUMER PROTECTION ACT IN AN ERA OF FREE COMPETITION WHERE ‘CONSUMER IS A KING’ – SO KING NEEDS PROTECTION’’

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NEED FOR CONSUMER PROTECTION ACT

  1. 1. ‘‘NEED FOR CONSUMER PROTECTION ACT IN AN ERA OF FREE COMPETITION WHERE ‘CONSUMER IS A KING’ – SO KING NEEDS PROTECTION’’
  2. 2. 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
  3. 3. 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.
  4. 4. 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. CONSUMER 2. GOODS
  5. 5.  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
  6. 6.  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, Husban d, Relative can file a complaint COMPLAINT MUST CONTAIN: 5. COMPLAINANT
  7. 7. NEED, PURPOSE AND OBJECTIVE OF CONSUMER PROTECTION Consumer ProtectionCaveat Emptor TO
  8. 8. NEED FOR CONSUMER PROTECTION  Protection from Exploitation  Consumer Education  Redressal of Complaints  A Connecting Link  Quality Life for consumer  Ethical Obligations
  9. 9. PURPOSE & OBJECTIVE OF CONSUMER PROTECTION  Protection of Consumer against unfair trade practices  Protection of enjoying the rights
  10. 10. IMPORTANCE OF CONSUMER PROTECTION IN A BUSINESS ORGANIZATION  Public Image  Social Responsibility  Increasing Awareness  Customer Satisfaction  Government Intervention
  11. 11. 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
  12. 12. 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.
  13. 13. 2. THE RIGHT TO CHOOSE  The consumer before purchase a product needs to be made aware of: o Variety of products and services o Fair prices o Quality o Quantity o Competition  Knowing this the consumer can make his/her choice for the product
  14. 14. 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.
  15. 15.  RTI & THE CONSUMER PROTECTION ACT
  16. 16.  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
  17. 17. 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
  18. 18. 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 Food Shelter Clothing
  19. 19. 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.
  20. 20. 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
  21. 21. CONSUMER IS THE KING..
  22. 22. FREE MARKET
  23. 23. CONDITIONS FOR A FREE MARKET TO EXIST Freedom Of Choice Free Competition Consumer Rationality 2 3 1
  24. 24. 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
  25. 25. 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
  26. 26. At National Level • National Commission At State Level • State Commission At District Level • District Forums CONSUMER DISPUTES REDRESSAL AGENCIES
  27. 27. 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
  28. 28. 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 2. STATE COMMISSION Value of services and compensation claimed exceeds rupees 5 lakhs but does not exceed rupees 20 lakhs Appeals against the orders of any District Forum within the state Complaint can be filed by: Consumer, Consumer Association, Central or state government 3. NATIONAL COMMISSION Value of services and compensation claimed exceeds rupees 20 lakhs Appeals against the orders of any State Commission Complaint can be filed by: Consumer, Consumer Association, Central or state government JURISDICTION
  29. 29. 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.
  30. 30. 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
  31. 31. 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
  32. 32. • 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 • Any person aggrieved by an order made by the State Commission may appeal against such order to the National Commission within a period of 30 days State Commission • Any person, aggrieved by an order made by the National Commission, may appeal against such order to the Supreme Court within a period of 30 days from the date of the order National Commission APPEAL
  33. 33. TOTAL NUMBER OF CONSUMER COMPLAINTS FILED / DISPOSED / PENDING UNDER CONSUMER PROTECTION LAW 0 100 200 300 400 500 600 700 Cases Filed Cases Disposed Cases Pending 84 72 10 618 527 90 333 307 260 National Commission State Commission District Forum NumberOfCases(in‘000)
  34. 34. 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
  35. 35. 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
  36. 36. 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
  37. 37. 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.
  38. 38. 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
  39. 39. 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
  40. 40. CASE STUDIES ABROAD  Case #1: The Disappearing Car  Case #2: The Pickup with Problems  Case#3: The Chair Shortage
  41. 41. CASELETS  Case #1: Jerome and Judith O'Callaghan sued American Airlines for $100,000  Case #2: Zeynep Inanli sued Starbucks for millions of dollars
  42. 42. 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_campai gn=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
  43. 43. PRESENTED BY E-MBA(A) GROUP NO.2:  Abhishek Bhatt - 13003  Ankish Jain - 13005  Anubhav Lal - 13007  Baroz Khan - 13012  Bindi Shah - 13015  Divya Gandhi - 13021  Faraz Patel - 13024
  44. 44. THANK YOU

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