consumer protection act

1. CONSUMER PROTECTION
ACT

2. Introduction
• Before the enactment of the consumer protection Act,1986 a
person aggrieved by the defective goods or deficiency in
service had to approach the ordinary civil court to get his
grievances redressed.
• The proceeding in the ordinary civil court is very complex,
expensive and time consuming.
• In order to give more protection to the interest of consumers
of goods and service the parliament enacted the consumer
protection act 1986.
• The law relating to consumer protection is contained in the
Consumer Protection Act, 1986.
• Aimed at providing simple, quick, and cheaper protection of
consumer interest.

3. Who Is A Consumer
Consumer of Goods
• A person who has purchased goods for a consideration.
The consideration may be paid or promised to pay or
partly paid or partly promised.
• A person who has purchased goods under a system of
deferred payment is also a consumer.
Consumer of Service
• A person who has hired or availed of any service for
consideration .Consideration may be paid or promised to
pay or partly paid.
• A person who has hired or availed of any service under
system of deferred payment.

4. Objectives Of The Act

5. Redressal Agency

6. Scope Of The Act
• Applies to whole India
• Applies to all type of goods and services, public
utilities & public sector undertakings
• All types of complains relating to goods ,unfair trade
practice
• A suit pending in civil court cannot be heard in
consumer court

7. What Is A Complaint
Complaint” means any allegation in writing made my 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.
IV.Goods or Services which are hazardous to life.
V.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 .

8. Who Can File A Complaint
• The consumer to whom the goods are sold or delivered,
or agreed to be sold or delivered , or the service
has been provided, or agreed to be provided.
• Any recognized consumer association , regardless of
whether the consumer is a member of such association
or not.
• One or more consumer , where there are
numerous consumer having the same interest with
permission of the district forum on behalf of or for
the benefit of all consumer so interested.
• The state or central govt. either its individual capacity or
as a representative of the interest of the
consumer in general.

9. Consumer Dispute Redressal Agencies
• District forum headed by District judge , jurisdiction- district.
• State Commission headed by Judge of High Court,
jurisdiction- whole state.
• National Commission headed by Chief Justice Of India,
jurisdiction- entire nation.
Where to File A Complaint
• If the cost of goods or services and compensation asked for
is up to Rs. 20 lakh ,the district where the cause of action has
arisen or where the opposite party resides.
• State Commission - If the cost of goods or services and
compensation asked for is more than rupees 20 lakh , but
less than rupees 1 Crore.
• National Commission at New Delhi. - If the cost of goods or
services and compensation asked for exceed rupees 1 Crore

10. Procedure To File A Complaint
1. Notice to the Opposite Party.
2. Prepare the consumer complaint in the required format
3. Get the complaint affidavit notarized through a notary
4. Submit the complaint and court fee to the receiving clerk in the
consumer court who will give you the date for admission hearing and
complaint reference number
5. On admission hearing, you would be informed whether your case is fit
for acceptance or not. If accepted, you will be given the date for next
hearing
6. The court will send a notice & complaint copy to the opposite party
seeking reply within 30 days
7. Where complaint alleges a defect in the goods which cant be
determined without proper analysis, the forum/commission send it to
the laboratory to find out whether there is any defect in it or not?
8. The hearings will continue till the matter is decided
9. The complaint should be decided within 90 days

11. Time Limit To File A Complain
• Sec. 24A of the Act provides that a consumer dispute can
be filed within 2 years from the date on which the cause
of action arises.
• Appeals are require to be filed within 30 days from
the date of receipt of the court's order

12. Relief To Consumers
1. Repair of defective goods.
2. Replacement of defective goods
3. Refund of price paid for defective good/services
4. Removal of deficiency in service
5. Refund of extra money charge
6. Withdrawal of goods hazardous to life
7. Compensation for the loss due to negligence of opposite party.
Penalties
• If trader fails to follow the order then he shall be punishable with
min. 1 month up to 3yrs with fine of min. Rs.2000 up to Rs.10000
• If frivolous complaint is filed then it shall be dismissed &
complainant is penalized to pay the cost incurred by opposite
party (not more than Rs.10000 )

13. Chetan Prakash v/s MET Institute
• Prakash was in final year of BSc when he sought
admission in the institute for MCS. The institute had
stipulated that in order to pursue the MCS course,
student has to clear III year exams. He deposited the
fees before declaration of result. Seeing that he had
failed in exams, he tried to withdraw the admission and
requested for a refund, to which the institute did not
responded. Finally, he sent a legal notice to the institute,
and then complaint in the consumer forum. lodged a
• Judgement: The institute had to pay the complainant,
Chetan Prakash, Rs 32,000 as compensation for
harassment along with the course fee of Rs.62,200.

14. Krishnan Kumar Bajaj vs. PepsiCo
• Bajaj, a resident of Ahmedabad, had purchased a Lay’s
packet on 28 June 2010 and sensed its being underweight. •
He wrote twice to the manufacturer. While the first letter
got no response, in reply to the second, it offered Bajaj gifts
hamper which he refused. Bajaj approached CERS, who
wrote to PepsiCo. Company refused to accept their fault and
gave several unsatisfactory clarifications. CERS took the issue
to the Consumer Disputes Redressal Forum, which also gave
a favourable ruling. The company asked for the bill of
purchase which Bajaj could not produce
• Judgement: The Court overruled the argument of his not
having a bill. CERS requested the court to direct PepsiCo to
deposit Rs.2,00,000 in the Consumer Welfare Fund and
award Rs.2,75,250 as punitive damages and also to give
Rs.75,000 as costs of litigation.