Consumer protection act


Published on

1 Comment
No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Consumer protection act

  1. 1. Presentation OnConsumer Protection Act,1986 Submitted By:Submitted To: Prakhar SinghMrs.Nisha Bano Siddique Pratiksha Jadhav Prince Mohan Das Pritha Upmanyu Priya Nainani 1
  2. 2. 2
  3. 3.  Consumer Protection Act,1986 Definitions Related To CPA Consumer Rights Nature and Scope of Remedies Available to Consumers Case Studies Conclusion References 3
  4. 4.  Consumer protection laws are designed to ensure fair competition and the free flow of truthful information in the marketplace. The laws are designed to prevent businesses that engage in fraud or specified unfair practices from gaining an advantage over competitors and may provide additional protection for all types of consumers. Consumer Protection laws are a form of government regulation which protects the interests of consumers. 4
  5. 5.  On 24 December 1986 Govt. of India enacted the Consumer Protection Act 1986 to:  Act is claimed to have been designed after an in depth study of consumer protection laws and arrangements in UK,USA, Australia and New Zealand. Act applies to whole of India except Jammu and Kashmir Chapter I, II and IV came into force on 15 april1987. Chapter III came into force on 1 July 1987 The act was amended in 2002 and the amendments came into force on 15th March 2003. 5
  6. 6.  To provide better protection of interests of consumers. To provide establishment of consumer councils and other authorities. To empower the consumer councils and other authorities to settle consumers disputes and mattersEnsure Rights of Consumers and provide Remedies for deceived Consumers 6
  7. 7.  The Act applies to all goods and services unless specially exempted by Union Government It covers all sectors – public, private or cooperative Provisions of the Act are compensatory in nature . It envisages establishment of consumer protection councils at the central and state levels. Provisions of this act are in addition to and not in derogation of the provisions of any other act. 7
  8. 8. Protect from hazard to health & safety;Promote & protect economic interests;Provide adequate information for informed choice;Consumer education;Provide effective redress—formal and informal procedures;Freedom to form groups & present views in decision-making affecting consumers. 8
  10. 10. “Complaint” means any allegation in writing made by a compliant that :I. An unfair trade practice or a restrictive trade practice has been adopted by any trader or service provider;II. The goods bought by him or agreed to be bought by him suffer from one or more defects ;III. The services hired or availed of or agreed to be hired or availed off by him suffer from deficiency in any respect; 10
  11. 11. IV. A trader or service provider as the case may be has charged for the goods or for the services mentioned in the complaint, a price in excess of the price a) fixed by or under any law for the time being in force; b) displayed on the goods or any package containing such goods; c) displayed on the price list exhibited by him by or under any law for the time being in force; d) agreed between the parties . 11
  12. 12. V. Goods which will be hazardous to life and safety when used are being offered for sale to the public – a) In contravention of any standards relating to safety of such goods as required to be compiled with, by or under any law for the time being in force; b) If the trader could have known with due diligence that the goods so offered are unsafe to the public; 12
  13. 13. VI. Service which are hazardous or likely t be hazardous to the life and safety of the public when used, are being offered by the service provider which such person could have known with due diligence to be injurious to life and safety. 13
  14. 14. A Complainant means any of the following and having made a complaint: A consumer ; Any voluntary consumer association registered under the companies act , 1956 or under any other law . The Central Government or any State Government One or more consumers, where there are numerous having the same In case of consumer , his legal heir or representative. 14
  15. 15.  Any person who buys goods or avails services for consideration Consideration may be fully paid, partially paid or fully promised to be paid or partially promised to be paid Any body who uses the goods or services with the consent of the consumer 15
  16. 16.  Legal heir of consumer in case death of consumer Does not include any person who buys goods for resale or commercial purpose and services for commercial purpose However any person who buys goods for commercial use but exclusively for his livelihood by means of self employment is a consumer. 16
  17. 17. “Service” means service of any description, which ismade available to potential users and includes, but notlimited to the provisions of the facilities in connectionwith 1) banking 2) financing 3) insurance 4) transport 5) processing 6) supply of electrical or other energy 7) boarding or lodging or both 8) house construction 9) entertainment 10) amusement or 11) the purveying or new or other information But does not include the rendering of any service free of charge or under a contract of personal service 17
  18. 18.  Unfair trade practice Restrictive trade practice Defects Deficiencies 18
  19. 19. UNFAIR TRADE PRACTICE Adopting unfair methods or deception to promote sale, use or supply of goods or services e.g. Misleading public about price (e.g. bargain price when it is not so). Charging above MRP printed. Misleading public about another’s goods or services. Falsely claiming a sponsorship, approval or affiliation. Offering misleading warranty or guarantee. 19
  20. 20. RESTRICTIVE TRADE PRACTICE Price fixing or output restraint re: delivery/flow of supplies to impose unjustified costs/restrictions on consumers. Collusive tendering; market fixing territorially among competing suppliers, depriving consumers of free choice, fair competition. Delaying in supplying goods/services leading to rise in price. Requiring a consumer to buy/hire any goods or services as a pre-condition for buying/hiring other goods or services. 20
  21. 21.  Fault In the  Imperfection  Quality  Shortcoming  Quantity  Potency  Purity Or  StandardsWhich is required to be maintained by orunder any law for the time being in force 21
  22. 22.  Fault In the Imperfection  Quality Shortcoming Or  Standard and Inadequacy  Manner of performanceWhich is required to be maintained by orunder any law for the time being in force 22
  23. 23. 23
  24. 24. To have access to basic, essential goods and services:adequate food, clothing, shelter, health care, educationand sanitation. 24
  25. 25. • 31% respondents believe that the water from these sources is not potable, hence not safe for drinking• Only 24% respondents are aware about government Sanitation Program/schemes• 77% consumers feel the need of a regulator for private schools.• Only 4% consumers have access to internet.• About 74% of the respondents who tried to access govt. housing finance or bank finance scheme believe that finance is not easily accessible and affordable• According to 59% respondents doctors do not generally prescribe generic or competitively priced drugs/medicines. 25
  26. 26.  Only 44% respondents consider cost of obtaining healthcare services affordable About 56% of those who use LPG or kerosene as their primary source of energy for cooking have reported incidence of obtaining LPG/kerosene from black market. About 20% of them always obtain LPG or Kerosene from black market. Only 22% respondents are satisfied with Government’s effort to ensure adequacy, accessibility and affordability of basic needs. 53% respondents strongly believe that right to basic needs should be enacted as a legal right. 26
  27. 27. The right to be protected against marketingof goods and services which are hazardous tolife and property. 27
  28. 28. Though about 83% respondents believe that certification andwarnings are an important means to ensure right to safety. But 40% of respondents do not refer to any safety or qualitycertifications such as ISI, ISO, Agmark, Codex etc. beforemaking a purchase. ISI is the most known certification Consumers suggested to make mandatory certification of Acid, Paints, Mosquito Coils, Beverages and Electronic Items. 28
  29. 29. The right to be informed about quality,quantity, potency, purity, standard and priceof goods and services. 29
  30. 30. 30
  31. 31. Awareness Level ofDifferent Legislations 28 Aware Urban Aware Rural 19 18 16 15 14 13 12 11 9 8 8 6 5 4 4 CPA1986 W&M 1976 SoG 1930 Contract Act Competition FSSA 2006 PSG 2011 LM 2009 1872 2002 31
  32. 32. It means whenever possible ,access tovariety of goods and services at competitiveprices. 32
  33. 33. Right to Choice Products/Services which Should Offer Only few consumers are aware about Portability competition issues and their importance to protect interests of consumers. only 1.6% respondents were able to correctly Insurance 15 name at least one product/service which has only one or two producers/providers. LPG 17 Connection Apart from availability, cost of alternatives, transaction fee, documentation Electricity 15 are the main barriers before consumers in choosing alternative service/products. School/College 12 Admission Consumers believe that there is need to Bank Account promote more free & fair competition in 60 Aviation, Education, Oil & Gas, Railway and Number Real –Estate. 0 50 100 33 33
  34. 34. The consumer’s interest will receive dueconsideration at appropriate forums. 34
  35. 35. Right to be Heard /Consumer Representation Hurdles in ensuring effective consumer representation/ participation Only 23% are aware about Participation do not the process of public result in framing of 5 consultation or consumer consumer friendly… representation. Date/time and In rural area only 18% Objective of public 6 respondents are aware consultation are not… About 28% of those who are aware about public Lack of interest among 25 consultation or consumer people to participate representation have also participated Lack of awareness 64 among people 0 20 40 60 35 80 35
  36. 36. It means right to seek redressal against unfairpractices or restrictive trade practices orunscrupulous exploitation of consumers. 36
  37. 37. Right to Redressal 61% normally voice their complaints to seller, at first point When it come to actual situation - 93% respondents have never made a formal complaint Only 0.3% respondents have approached consumer for a for grievance redressal, 78% have rated the grievance redressal process as “difficult”. • 75% cases were not completely redressed while only 18% of such unresolved cases were taken to a higher authority for redressal. • 67% cases were not redressed within stipulated time frame Only 18% consumers are fully satisfied with the existing redressal mechanism Only 28% of those who know about external redressal mechanism believe that it is easily accessible by a common man About 89% aggrieved consumers are represented through advocates in SCDRC and DCDRC. 37
  38. 38. It means the right to acquire the knowledge andto be an informed consumer. 38
  39. 39. Right to Consumer EducationOnly 42% respondents have heard about consumer rights78% of such respondents heard about consumer rights from television (TV) Almost 50% of respondents are aware of “Jago Grahak Jago Campaign”.80% of such respondents learnt about the campaign from Television.Close to 50% of those who know about “Jago Grahak Jago” campaign have reported to benefit directly or indirectly from the campaign. 39
  40. 40. To live and work in an environment which isnon-threatening to the well-being of presentand future generations. 40
  41. 41. RIGHT TO A HEALTHY ENVIRONMENT Awareness regarding environmental friendly certifications Only 9% respondents are aware about certifications and initiatives. Awareness about such certifications is Yes largely among residents of southern (18%) 9% and northern (12%) region, while eastern region has lowest level of awareness (2.5%). About 28% respondents those who know about such products always tend to buy such products No 91% About 63% are willing to pay some extra money to buy such products 41
  42. 42. Nature and Scope of Remedies Available to Consumers 42
  43. 43. 3-Tier Redressal AgencyThe aims and objectives of the Act are achieved by theconstitution and creation of 3-tier judicial machinerydepending upon the amount of loss involved District Forum NATIONAL COMMISSION State Commission and STATE COMMISSION National Consumer Disputes DISTRICT FORUM redressal Commission. 43
  44. 44. Power or right of a legal or political agency to exercise its authority overa person ,subject matter, or territory. Forum / Commission Where the value of the goods or services and the compensation, if any claimed, District Forum Does not exceed Rs. 20 lakhs State Commission Rs. 20 lakhs and above but not exceeding One Crore National Commission Above One Crore Besides, State and National Commission have appellate jurisdiction also. 44
  45. 45. Consumer Protection Followed In IndiaLok Adalats:The Consumer can approach the Adalat with his grievance. The issue is discussed and decision is taken on the spot. This saves time and moneyLok Adalat has become a speedy, effective and economical redressal system. 45
  46. 46. A complaint may be filed by The consumer to whom the goods are sold or services are provided Any recognised consumer association One or more consumers with same interest The central government or state government 46
  47. 47. The Fee for filing the Complaint for the district forum is as underThe fees shall be paid by Cross demand Draft drawn on a nationalizedbank or through crossed Indian postal order drawn in favour of theRegistrar of the Sate Commission and payable at the place of the StateCommission (w.e.f. 5.3.2004.) 47
  48. 48. Information Required for a Complaint Name and full address of complainant Name and full address of opposite party Description of goods and services Quality and quantity Price Date & proof of purchase Nature of deception Type of redressal requested 48
  49. 49. 49
  50. 50.  shall be filed within thirty days. Delay in filing appeal may be condoned if there is sufficient cause. 50
  51. 51. Within two years from the date onwhich the cause of action has arisen. 51
  52. 52. Penalty Under Section 27 CPA • According to CPA ,where a trader or the complainant fails to comply with an order made by the relevant consumer forum , such person is liable to a punishment with imprisonment for a term which is not less than 1 month but which may extend to 3 years or with fine of not less than 2000 INR but which may extend to 10000 INR with both 52
  53. 53. LIMITATIONThe District Forum, the StateCommission or the NationalCommission shall not admit acomplaint unless it is filedwithin two years from the dateon which cause of action has arisen. 53
  54. 54. National Consumer HelplineYou may call on the following toll free number 1800-11-4000 (from MTNL or BSNL)for guidance and information on consumer issues 54
  55. 55. Remind Ourselves 24 December National Consumer Day 15 MarchWorld Consumer Rights Day 55
  57. 57. Doctor ordered to pay Rs 2 lakh as damages to patientKANPUR: District consumer protection forum on Monday directed a child specialist, Dr RCGupta, to pay Rs 2 lakh to complainant Prince, son of Santosh Kumar, within 30 days.The complainant had sought a sum of Rs 19 lakh as damages caused by the wrong treatmentgiven Dr Gupta. A resident of Bidhuna town in Auraiya district, the complainant stated that he was sufferingfrom fever in December 2001 and on advice of local doctors he had visited the clinic of childspecialist RC Gupta situated at Chunniganj on January 14, 2002.The doctor examined him and prescribed medicines and advised him to visit clinic again forcheck-up after seven days. The complainant claimed that prescribed medicine did not provideany relief. When he went again to the doctor on stipulated time and explained his condition.The doctor enhanced the dose of medicine prescribed in old prescription.. 57
  58. 58. The complainant consulted the child specialist of Etawah and he stated that wrongtreatment was being given to him. He was suffering from meningitis. On January 29, heagain consulted Dr Gupta and he referred him to a home.During examination doctors, observed there that he was suffering from meningitis andbrain TB and so far he received wrong treatment. Due to wrong treatment, thecomplainant got handicapped and lost his eyesight.The doctor appeared before the forum and admitted that he had treated him on the basisof external symptoms. He did not return for follow-up check in time and spent his timein consulting other doctors. On January 29, his condition was critical and the doctor hadadvised the patient to get admitted at the nursing home where meningitis and brain TBwas detected. Forum president LB Singh and member Sumanlata Sharma observed that doctor wasnegligent towards his duties and his act comes under the preview of dereliction of duty,therefore he was liable to pay a sum of Rs 2 lakh as damages to the complainant. 58
  59. 59. Google to face action over privacy rules PARIS: European data protection agencies intend to take action against the US internet giant Google after it failed to follow their orders to comply with EU privacy laws, a French agency said. In October the data protection agencies warned Google that its new confidentiality policy did not comply with EU laws and gave it four months to make changes or face legal action. "At the end of a four-month delay accorded to Google to comply with the European data protection directive and to implement effectively (our) recommendations, no answer has been given," said Frances CNIL data protection agency. It said that European data protection agencies planned to set up a working group to "coordinate their coercive actions which should be implemented before the summer." 59
  60. 60. European data agencies are to meet next week to approve the action plan, said CNIL,which said it is leading the effort.Google rolled out the new privacy policy in March 2012, allowing it to track users acrossvarious services to develop targeted advertising, despite sharp criticism from US andEuropean consumer advocacy groups.It contends the move simplifies and unifies its policies across its various services suchas Gmail,YouTube, Android mobile systems, social networks and Internet search.But critics argue that the policy, which offers no ability to opt out aside from refrainingfrom signing into Google services, gives the operator of the worlds largest search engineunprecedented ability to monitor its users. Google reiterated on Monday that its confidentiality policy is in line with European law."Our privacy policy respects European law and allows us to create simpler, more effectiveservices," Google said in a statement following CNILs announcement. 60
  61. 61. The California-based firm said previously that the changes are designed to improve the user experience across the various Google products, and give the firm a more integrated view of its users, an advantage enjoyed by Apple and Facebook.But critics argue that the policy, which offers no ability to opt out aside from refraining from signing into Google services, gives the operator of the worlds largest search engine unprecedented ability to monitor its users.Google reiterated on Monday that its confidentiality policy is in line with European law.“Our privacy policy respects European law and allows us to create simpler, more effectiveservices," Google said in a statement following CNILs announcement.The California-based firm said previously that the changes are designed to improve theuser experience across the various Google products, and give the firm a more integratedview of its users, an advantage enjoyed by Apple and Facebook."We have engaged fully with the CNIL throughout this process, and well continue to doso going forward," it added. 61
  62. 62. European data protection agencies had recommended to Google that itimprove information provided to users, particularly on the categories ofdata being processed, and for what purposes and services.CNIL said they had also asked Google to specify precise periods it wouldhold onto personal data.CNIL said that by Monday that Google had not provided "any precise andeffective answers to their recommendations.“Given Googles failure to act, "EU data protection authorities are committed to act and continue their investigations," said CNIL, adding they would meet on February 26 to approve a working plan on their actions against Google. 62
  63. 63. • A person may be consumer of goods, or services. When I purchase a fan, a gas stove or a refrigerator, I could be the consumer of goods.• When I open a bank account, take an insurance policy, get my car repaired, I could be the consumer of services.• The consumer protection Act, 1986 tries to help a consumer when for example, the goods purchased are defective or the services rendered to him are subject to so deficiency.• Prior to the consumer Protection Act, 1986 for any consumer complaint one had to go to an ordinary Civil Court. He had to engage a lawyer, pay the necessary fee, and be harassed for years or decades before any outcome, positive or negative, was there in that litigation.• Under the Consumer Protection Act, no Court fee has to be paid and the decision on the complaint is much quicker, as the Court can evolve a summary procedure in disposing off the complaint. 63
  64. 64. 64
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.