Consumer Protection Act

1. CONSUMER
Protection
Act
Presented by-
01 -Divya Banga
19 - Ashish Rane
23 - Uddhav Sawant

2. INTRODUCTION
Every human being buy a variety of goods and
services in their day-to-day life. Whatever they
buy have to pay for it and derive satisfaction
from its consumption and use. But sometimes
they do not feel satisfied with the product they
buy. This may be on account of poor quality of
the product, overcharging by the shopkeeper,
lower quantity of contents, misleading
advertisements and so on.

3. PROTECTION LAW
The consumer protection act was enacted to provide a simpler and
quicker read wrestle to consumer grievances. The act seeks to
promote and protect the interest of consumers against deficiency
and defects in goods and services
Consumer is a person who consumes or uses any
goods or services
CONSUMER
CONSUMER & ACT
OBJECTIVE
The consumer protection act provides consumer rights to prevent consumers from fraud
or specified unfair practises it safeguards and encourages and gives an opportunity to
consumers to speak against insufficiency and flaws in goods and services

4. Consumer Satisfaction
NEED FOR CONSUMER PROTECTION
Social Responsibility Survival and Growth Business
Principle of Social Justice
Increasing Awareness

5. CONSUMER PROTECTION ACT - 1986
RIGHT
TO
SAFETY
RIGHT
TO BE
INFORMED
RIGHT
TO
CHOOSE
RIGHT
TO BE
HEARD
RIGHT
TO SEEK
REDRESSAL
RIGHT TO
CONSUMER
EDUCATION
1 2 3
4 5 6

6. RIGHT TO
SAFETY
Protects customers against
Goods & Services which are
Hazardous to health and life.
Eg. Adulteration in Milk
01.

7. RIGHT TO BE
INFORMED
Consumer must have complete
information of the product which he
intents to buy, including its
ingredients, manufacturing &
expiry date, price, quality &
quantity, direction of use,etc
Eg. Nutritional Information.
02.

8. RIGHT TO
CHOOSE
Freedom to choose from a
variety of products at
competitive Prices.
Eg. Choosing your drinks from
shop.
03.

9. RIGHT TO BE
HEARD
Right to file a complaint and to
be heard in case of
dissatisfaction with any goods
or services.
Eg. 1. Grievance cells.
2. Customer Service.
04.

10. RIGHT TO SEEK
REDRESSAL
To get relief incase the product or services fails
to its expectation.
This right affords compensation to the
consumer against unethical trade practices.
05.

11. RIGHT TO
CONSUMER
EDUCATION
Right to acquire knowledge and to be well
informed & educated consumer
throughout life.
Eg. www.consumerhelpline.gov.in
(National Consumer Helpline - NCH)
06.

12. Why there was need to revise 1986 Act ?
● On July 20th, 2020, the new Consumer Protection Act, 2019 came into force in India,
replacing the previous enactment of 1986. The new Act overhauls the administration
and settlement of consumer disputes in India. It provides for strict penalties, including
jail terms for adulteration and for misleading advertisements.
● The first consumer protection legislation Consumer Protection Act, 1986 ('old act') was
introduced with the primary objective of protecting consumer rights. However, with the advent
of technology and the introduction of e-commerce and various other mechanisms of conducting
business, an overhaul of the existing legislation seemed necessary and prudent in order to
better protect modern-day consumers.

13. Consumer Protection Act 2019
● Consumer Protection Councils
● Central Consumer Protection Authority
● Simplified Dispute Resolution Process
● Mediation
● Product Liability
● Rules on e commerce and direct selling
● Penalty for adulteration of products/spurious goods

14. Key Changes
Provision Consumer Protection Act 1986 Consumer Protection Act 2019
Regulator Non Central Regulator Central Consumer Protection Authority to be setup
Filing of complaint A complaint needs to be filed in the
consumer court under whom jurisdiction
of the seller falls under
A complaint can be filed from anywhere or from whom
where the consumer resides
Mediation No Provision Court can work towards settlement through mediation cells
Jurisdiction The jurisdiction at district level was
complaints worth of Rs 20 lakhs
District level authorities can take up complaints with goods
and services worth up to Rs 1. crore
Product Liability No Provision Consumers have the right to seek compensation for any
harm caused.
E- Commerce No Provision E-Commerce transactions will come under the provisions
involving direct sales
Video conferencing No Provision Consumer can seek hearing through VC

15. When goods are bought for commercial purposes and such purchase satisfy the following
criteria :
- the goods are used by the buyer himself;
- exclusively for the purpose of earning his livelihood;
- by means of self-employment,
then such use would not be termed as use for commercial purposes under the Act, and the
user is recognised as a consumer.
Examples :
1. A buys a truck for plying it as a public carrier by himself, A is a consumer.
2. A buys a truck and hires a driver to ply it, A is not a consumer.
The intention of the legislature is to exclude big business houses carrying on business
with profit motive from the purview of the Act. At the same time it is pertinent to save the
interests of small consumers who buy goods for self employment to earn their livelihood,
like a rickshaw puller buying rickshaw for self employment, or a farmer purchasing
fertilizer for his crops, or a taxi driver buying a car to run it as a taxi, etc.
PERSON BUYING GOODS FOR SELF EMPLOYMENT IS A CONSUMER

16. Contract for Service Vs Contract of Service
Description Contract for Service Contract of Service
Meaning An agreement whereby a person is
engaged as an independent contractor,
such as a self-employed person, vendor
or freelancer carrying out an assignment
or a project for his establishment.
An agreement whereby a person
agrees to employ another as an
employee and the employee agrees to
serve his employer as an employee.
Parties Company and third Party e.g. Third party
payroll
Company and employee e.g. on company
payroll
Relationship of the parties Independent contract/ consultancy Employer-Employee
Control over the work The third party is not bound to obey the
instructions of the company
The employee is bound to obey the
instructions of the employer
Ownership of all the rights
arising from the work
created out of contract
The company gets ownership after paying for
the services to the third party
The company is by default the owner of the
work done by the employee, except in
cases of inventions

17. ● Within two years of purchasing the product or services, the complaint should be
filled.
● In the complaint, the customer should mention the details of the problem. This
can be an exchange or replacement of the product, compensation for mental or
physical torture. However the declaration needs to be reasonable.
● All the relevant receipts, bills should be kept and attached to the complaint
letter.
● A written complaint should be then sent to the customer forum via online,
email, registered post, fax or hand delivered. Acknowledgement is important and
should not be forgotten to receive.
● The complaint can be in any preferred language.
● The hiring of a lawyer is not required.
● All the documents sent and received should be kept.
How to File a COMPLAINT?

18. Conclusion
● The Consumer Protection Act, 2019 when compared with the 1986 Act
shows that it provides for greater protection of consumer interests taking
into consideration the current age of digitization.
● The 2019 Act also deals with the technological advancements in the
industry, provides for easier filing of complaints and also imposes strict
liability on businesses including endorsers for violating the interest of the
consumers.