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  2. 2. CONSUMER PROTECTIONACT, 1986Enforced from 10th June 1987 in India to providebetter protection to the interest of consumerAct applies to whole of India except Jammu andKashmirChapter I, II and IV came into force on 15.4.1987.Chapter III came into force on 1.7.1987The act was amended in 2002 and the amendmentscame into force w.e.f. 15thMarch 2003.2
  3. 3. AIMS OF CONSUMERPROTECTION ACT 1986Establishment Of:-•“Consumer Disputes Redressal Forum” (Districtforum)•“Consumer Disputes Redressal commission” (Statecommission)•“National Consumer Disputes Redressal Commission”(National commission)•“ Central Consumer Protection Council ” forpromoting and protecting the rights of the consumers .3
  4. 4. WHO IS A CONSUMER ?A Consumer under the Act is:" One who buys any goods, hires andservice/services for a consideration whichhas been paid or promised or partly paid andpartly paid and partly promised under anysystem of deferred payment.“4
  5. 5. A CONSUMER IS…. Any person who buys goods or avails services forconsideration. (Consideration may be fully or partiallypaid or fully or partially promised to be paid.) Any body who uses the goods or services with theconsent of the consumer Legal heir of consumer in case death of consumer Does not include any person who buys goods andservices for resale or commercial purpose Any person who buys goods for commercial use butexclusively for his livelihood by means of selfemployment.5
  6. 6. OBJECTIVES OF CONSUMERPROTECTION ACT 1986• Better protection of interests of consumers• Consumer protection councils• Quasi-judicial machinery for speedy redressal ofconsumer disputes-(To give relief’s of a specific nature )-(To award, wherever appropriate, compensation toconsumer)• Penalties for non-compliance of the orders given bythe quasi-judicial bodies6
  7. 7. CONT…..• Protection of rights of consumers-Right to be protected against marketing of goods orservices which are hazardous to life and property-To be informed about the quality, quantity, potency,purity, standard and price of goods or services so as toprotect the consumers against unfair trade practices-The right to be assured access to goods and services atcompetitive prices-The right to be heard at appropriate forums.-The right to seek redresses against unfair trade practicesor restrictive trade practices or unscrupulous exploitationof consumers- Right to consumer education7
  8. 8. 8SCOPE OF THE ACT Applies to all states except Jammu and Kashmir Applies to all type of goods and services, public utilities& public sector undertakings All types of complains relating to unfair trade practice Remedies under this act is same as those in other laws. A suit pending in civil court cannot be heard in consumercourt Consumer forums have the power to adjudicatedisputes, but they do not have trappings of a court
  9. 9. WHAT IS A COMPLAINT?“Complaint” means any allegation inwriting made by a compliant that : an unfair trade practice or a restrictive tradepractice has been adopted by any trader or serviceprovider; goods bought by him or agreed to be bought by himsuffer from one or more defects ; service hired or availed of or agreed to be hired oravailed off by him suffer from deficiency in anyrespect; Service which are hazardous or likely to behazardous to the life and safety of the public whenused.9
  10. 10. CONT……A trader or service provider as the case may be hascharged for the goods or for the services mentioned inthe complaint, a price in excess of the pricea) fixed by or under any law for the time being inforce;b) displayed on the goods or any packagecontaining such goods;c) displayed on the price list exhibited by him by orunder any law for the time being in force;d) agreed between the parties .10
  11. 11. CONT…….Goods which will be hazardous to life and safetywhen used are being offered for sale to the public –a) In contravention of any standards relating tosafety of such goods as required to becompiled with, by or under any law for thetime being in force;b) If the trader could have known with duediligence that the goods so offered are unsafeto the public;11
  12. 12. WHO CAN FILE A COMPLAINT?A complaint may be filed by The consumer to whom the goods are sold or servicesare provided Any recognized consumer association One or more consumers with same interest The central government or state government12
  13. 13. 13APPEAL•It shall be filed within thirty days.•Delay in filing appeal may be condoned if there issufficient cause.LIMITATION PERIOD• Within two years from the date on which thecause of action has arisen.
  14. 14. CONSUMER DISPUTEREDRESSAL AGENCIES District forumHeaded by District judgeJurisdiction-District State CommissionHeaded by Judge of High CourtJurisdiction-Whole state National CommissionHeaded by Chief Justice Of IndiaJurisdiction-Entire nation14
  15. 15. WHERE TO FILE ACOMPLAINT?Cost of goods or services andcompensation askedForum / CommissionDoes not exceed Rs. 20lakhsDistrict Forum (of thedistrict where the cause ofaction has arisen or where theopposite party resides)Rs. 20 lakhs and abovebut not exceeding OneCroreState CommissionAbove One Crore National Commission atNew Delhi15
  16. 16. FILING OF COMPLAINTSThe Fee for filing the Complaint for the district forum isas underSr.No.Value of Goods / Service and Compensation Amountof Fees1) Upto Rs. 1 lakh rupees Rs. 1002) Rs. 1 Lakh and above but less than Rs.5 lakhs Rs. 2003) Rs. 5 Lakhs and above but less than Rs. 10 lakhs Rs. 4004) Rs. 10 lakhs and above but less than Rs. 20 lakhs16The fees shall be paid by Cross demand Draft drawn on anationalized bank or through crossed Indian postal order drawnin favour of the Registrar of the Sate Commission and payable atthe place of the State Commission (w.e.f. 5.3.2004.)
  17. 17. POWER OF CIVIL COURT TODISTRICT FORUMThe District Forum shall have the powers of Civil Courtwhile trying a suit in respect of the following matters ;a) The summoning and enforcing attendance of any defendantor witness and examining the witness on oath.b) The discovery and production of any document or othermaterial object producible as evidence.c) The reception of evidence on affidavitd) The requisition of the report of the concerned analysis ortest from the appropriate laboratory of from any otherrelevant source.e) Any other matter which may be prescribed. 17
  18. 18. RELIEF TO THE COMPLAINANTIF THE COMPLAINT IS PROVED THE FORUM SHALLORDER:a) to remove defect pointed out by the appropriatelaboratory from the goods in question;b) to replace the goods with new goods of similardescription which shall be free from any defect;c) to return to the complainant the price, or , as the casemay be, the charges paid by the complainant;d) to pay such amount as may be awarded by it ascompensation to the consumer for any loss or injurysuffered by the consumer due to negligence of theopposite party;e) To remove the defect in goods or deficiency in theservices in question.18
  19. 19. CONT…..f) to discontinue the unfair trade practice or therestrictive trade practice or not to repeat them;g) not to offer hazardous goods for sale;h) to withdraw the hazardous goods from being offeredfor sale; to cease manufacture of hazardous goods and to desistfrom offering services which are hazardous in nature; to pay such sum as may be determined by it, if it is of theopinion that loss or injury has been suffered by a largenumber of consumers who are not identifiableconveniently. to issue corrective advertisements to neutralize the effectof misleading advertisement at the cost of the oppositeparty responsible for issuing such misleadingadvertisement;i) To provide for adequate cost to parties. 19
  20. 20. DISMISSAL OF FRIVOLOUS ORVEXATIOUS COMPLAINTS Where a complaint instituted before the DistrictForum, the State Commission or the NationalCommission, is found to be frivolous or vexatious,it shall, for reasons to be recorded in writing,dismiss the complaint and make an order that thecomplainant shall pay to the opposite party suchCost, not exceeding ten thousand rupees, as mayspecified in the order.20
  21. 21. PENALTIESWhere a trader or a person against whom acomplaint is made (or the complainant) fails or omitsto comply with any order made by The District Forum The State Commission The National CommissionSuch trader or person shall be punishable withimprisonment term of minimum 1 month up to 3yrswith fine of minimum Rs.2,000 up to Rs.10,000.21
  22. 22. 22THANK YOUTHANK YOU 