Introduction to ArtificiaI Intelligence in Higher Education
consumerprotection
1. LEGAL ASPECT OF BUSINESS
UNIT 5: CONSUMER PROTECTION ACT AND
INTRODUCTION OF CYBER LAW
Prepared and presented by,
N. Ganesha Pandian,
Assistant professor,
Madurai school of management,
Madurai.
3. INTRODUCTION
The consumer protection act, 1986 is one of the most
beneficent legislations of recent times and it is intended to
protect the legitimate interest of the consumers against
traders, suppliers and etc.,
The consumer protection act is intended to protect the
legitimate interest of the consumers against traders, suppliers
etc.,
The consumer protection act 1986, has opened up a new era
in the field of business in India
4. AIMS AND OBJECT OF THE CONSUMER
PROTECTION ACT,1986
1. Better protection of interests of consumers
2. Protection of rights of consumers
i. right to be protected
ii. right to be informed
iii. right to be assured
iv. right to be heard
v. right to seek redressal
vi. right to consumer education
vii. right to healthy environment
5. 3. Consumer protection council
4.Quasi-judicial machinery for speedy redressal of
consumer disputes
i. To give relief of a specific nature
ii.To award wherever appropriate, compensation to
consumers
6. SALIENT FEATURES OF THE CONSUMER
PROTECTION ACT,1986
1.Principle of compensation
i. District level
ii. State Level
iii. National level
2.Consumer councils
3. Goods and services are covered
4. Rights of consumers
5. Convenient procedures
6. Filing of compliant
7. Effective safeguard to consumer
8. Class action
9. Check on unfair trade practices
10. Inexpensive redressal
machinery
11. Price
12. Social welfare legislation
7. NEED FOR CONSUMER PROTECTION
1, Sellers dominate the market
2, sellers are known to adopt unfair trade practices like adulteration, using
false weights and measures, making exaggerated claims about the
quality of their products or services
3, Buyers do not have adequate education to evaluate products regarding
their genuineness
4, Buyers are generally careless and indifferent to their own interest
5, Buyers do not feel strong enough to protect themselves. They prefer to
accept defective goods rather than returning them
9. DEFINITIONS
1. Commercial purpose: commercial purpose means, “any purpose
whose primary objective is to make profit”
2. Complainant[section 2(1)(b)]: The section provides that complainant
may be:
i. A consumer; or
ii. Any voluntary association registered under companies act 1956
iii. The central government or any state government
iv. One or more consumers where there are numerous consumers
having same interest
v. In case death of consumer, a legal heir or representative
10. 3. Complaint [section 2(1)(c)] – Complaint means “any
allegations made in writing by a complaint that:
Unfair trade practices, defect in goods, defect in services,
price variation, hazardous goods
4.Consumer dispute [section (1)(e)] – Consumer dispute
means “ a dispute where the person against whom a
complaint has been made, denies or disputes the
allegations contained in the complaint”
11. 5. “Defect” in goods [section 2(1)(f)] – Defect is defined as, “
any fault, imperfection, shortcoming in the quality, quantity,
potency, purity or standard which is required to be
maintained by or under any law for the time being in force
or is claimed by the trader in any manner whatsoever in
relation to nay goods”
6.Deficiency in service [section 2(1)(g)] – Deficiency means
“any fault, imperfection, shortcoming or inadequacy in the
quality, nature and manner of performance required to be
maintained”
12. 7. Goods [section 2(1)(i)]
8. Manufacturer [section 2(1)(j)]
9. Person [section 2(1)(m)]
10.Service [section (1)(o)] – Service is defined to mean,
“service of any description which is made available to
potential users and includes the provision of facilities in
connection with service industry or other information”
11. Spurious goods [section 2(1)(oo)]
12. Trader [section 2(1)(q)]
13. CONSUMER RIGHTS
i. right to be protected
ii. right to be informed
iii. right to be assured
iv. right to be heard
v. right to seek redressal
vi. right to consumer education
vii. right to healthy environment
14. CONSUMER DUTIES
1. Duty to be careful
2. Duty to insist on information
3. Duty to inspect goods
4. Duty to form association
5. Duty to make complaint
6. Duty to aware of rights
15. CONSUMER DISPUTES
Unfair trade practices [section 2(1)(r)] –
1. Misleading advertisement and False representation
2. Bargain scale
3. Offering gifts, prizes, etc., and conducting contests or
lottery
4. Not conforming to prescribed standards
5. Hoarding or destruction of goods
6. Manufacture of spurious goods
16. RESTRICTIVE TRADE PRACTICES [SECTION
2(1)(NNN)]
“Restrictive trade practice means a trade practice which
tends to bring about manipulation of price or its condition
of delivery or to affect flow of supplies in the market
relating to goods or services in such manner as to impose
on the consumers unjustified costs or restrictions”
17. CONSUMER PROTECTION COUNCILS
Central consumer protection council [section 4]
1. Establishment: Section 4 empowers the
establishment of a Central consumer protection
council
2. Membership: 1. Minister in charge of consumer
affairs 2. Such no. of other official and non
officials representing such interest
18. According to rule 3 of the consumer protection rules, 1987, the central council shall
consists of 150 members as follows
1. The minister in charge of consumer affairs
2. The minister of state or deputy minister in the department of civil supplies
3. Minister-in-charge of consumer affairs in state
4. 8 MP’s, 5 from Lok sabha, 3 from Rajya sabha
5. The commissioner for SC and ST
6. Representatives from various organizations not exceeding 20
7. Representatives of the consumer organizations – not less than 35
8. Representatives of women – not less than 10
9. Representatives of farmers, trade and industries – not exceeding 20
10. Representatives of representing consumer interests – not exceeding 15
11. The secretary in the department of civil supplies
19. STATE CONSUMER PROTECTION COUNCIL
[SECTION 7 & 8]
Establishment [section 7]
Membership - 1. Minister in charge of consumer
affairs of state 2. Such no. of other official and non
officials representing such interest
Meetings
Time and place of meetings and procedure
Objects of state council [section 8]
20. DISTRICT CONSUMER PROTECTION COUNCIL
Establishment [section 8-A]
Membership – 1.The collector of the district 2. Such
no. of other official and non officials representing
such interest
Meetings
Time and place of meetings and procedure
Objects of state council [section 6(a) to (f)]
21. PROCEDURE FOR CONSUMER GRIEVANCE
REDRESSAL
Who can file complaint under the Consumer
protection act,1986
1. A consumer
2. Any voluntary consumer association
3. The central government
4. Any state government
5. One or more consumers having same interest
22. DOCUMENTS FOR FILLING COMPLAINT
1. Complaint
2. List of documents
3. Vakalatnama
4. Application for condonation of delay (if any)
5. Affadavit
6. Documents
7. Application for injunction (if any)
23. PROCEDURE FOR COMPLAINT UNDER THE ACT
Entitlement of file complaint
Recognized consumer Association
Procedure to be followed at District
forum or state commission
Procedure applicable to National
commission
Limitation period for Filing of
compliant
24. RECOGNIZED CONSUMER ASSOCIATION
A recognized consumer association means any
voluntary consumer association registered under
the companies act, 1956 or any other law for the
time being in force
25. PROCEDURE TO BE FOLLOWED AT
DISTRICT FORUM OR STATE COMMISSION
Section 13 lays down the procedure to be followed
1. Complaint copy sent to opposite party and directing him
to reply within 30 days or 45 days
2. If opposite party admits the allegations, then complaint
will be based on material on record
3. If opposite party denies – Relating to any goods
sec13(1)(c)
Relating to goods not requiring testing – sec 13(2)(b)
26. PROCEDURE TO BE FOLLOWED
AT NATIONAL COMMISSION
Section 22 lays down the procedure to be followed at the
national commission
1. A complaint containing : a, Name description and
address of complaint b, Name description and address
of opposite party c, facts relating to complaint d,
Documents in support e, The relief claim
2. National commission then follow procedure contained in
sec13(1) & (2)
27. The commission shall decide as soon as possible within 3
months from date of receipt of notice by opposite party or
5 months where no testing or analysis req.
No appeal has been prefer against the order passed by
the national commission
28. PROCEDURE FOR FILING THE APPEAL
Procedure in respect of goods where the defect
alleged requires no testing or analysis
Procedure in respect of goods where the defect
alleged requires testing or analysis
If the complaint relates to goods in respect of which
the aforesaid procedure cannot be followed or if the
complaint relates to any service
29. TYPES OF CONSUMER REDRESSAL
MACHINERY AND FORUMS
Consumer Redressal machinery and Forums
under COPRA
District forum
For dealing cases involving up to Rs. 20 lac
National commission
For dealing cases involving more than one crore
State commission
For dealing cases involving Rs. 20 lac and less
than one crore
31. INTRODUCTION
Indian government enhancing its thrust on globalization and opened
up its economy removing controls and resorting to liberalization
The ambit of MRTP Act inadequate for fostering competition in the
market and eliminating anti-competitive practices in national and
international trade, the government of India in October 1999
appointed a high level committee on competition policy and law (the
Raghavan committee) to advise on the competition law
Acting on the report of the committee, the government enacted the
new competition act,2002 which has replaced earlier MRTP act,1969
32. OBJECTIVES OF THE COMPETITION ACT
1. To shift the focus from curbing monopolies to promoting competition.
2. To ensure fair competition in India by prohibiting trade practices which
causes adverse effect on competition in markets within India.
3. To establish a quasi-judicial body to be called the Competition
commission of India
4. To curb negative aspects of competition
5. To promote and sustain competition in market
6. To protect the interests of consumers
7. To ensure the freedom of trade carried on in India
8. To create a fund called competition fund
33. FEATURES OF COMPETITION ACT
Competition commission of India (CCI) to be established
Repeal of MRTP act and dissolution of MRTPC
Pre-merger notification made optional
Prohibition of abuse of dominance position
Pending cases of MRTPS to be transferred to CCI
Pending unfair trade practices to be covered under Consumer
protection Act, 1986
Competition fund to be created
34. MAJOR AREAS OF COMPETITION ACT,2002
Prohibition of anti-competitive agreements
Prohibition against abuse of dominant position
Regulation of combinations
Advocacy of competition policy
35. ANTI-COMPETITIVE AGREEMENTS
Section 3 of the act provides
1. Determining sale price or purchase price directly or indirectly
2. Limiting or controlling production, supply, markets, technical
development or investment
3. Sharing markets or resources of supply by territory, type, size or in any
other manner
4. Bid rigging or collusive bidding
5. Tie- in arrangement
6. Exclusive supply agreement
7. Refusal to deal
8. Resale price maintenance
36. ABUSE OF DOMINANT POSITION
According to section 4 of act, no enterprise shall abuse its dominant
position. An abuse of dominant position is said to occur when an
enterprise:
1. Directly or indirectly imposes unfair or discriminatory purchase of
selling prices on condition, including predatory prices;
2. Limits production, markets or technical development to the prejudice
of consumers;
3. Indulges in action resulting in denial of market access
4. Makes the conclusion of contracts subject to acceptance by other
parties
5. Uses dominance in one market to move into or protect other markets
37. DETERMINING MARKET DOMINANCE
For the purpose of determining whether an enterprise enjoys dominant position or
otherwise, one or more of the following factors may be taken into account:
1. Market share
2. Size and resources of enterprise
3. Size and importance of competitors
4. Economic power of enterprise
5. Technical advantages enjoyed by firm
6. Dependence of consumers
7. Monopoly status
8. Entry barriers
9. Countervailing buying power
10. Market structure and size and relevant factors
38. REGULATION COMBINATIONS
Section 5 of the act stipulates that any person who proposes
to enter into an agreement or combination shall give a notice
to commission within 7 days
1. The board of directors of respective companies accepting a
proposal of merger
2. The conclusion of negotiations of an agreement for an
acquisition or acquiring control;
3. The execution of a joint venture agreement or shareholder
agreement or technology agreement
39. COMPETITION COMMISSION OF INDIA
Section 7 to 17 under chapter III provides for the
establishment, compositions, term, resignation,
removal, restriction on the employment of
chairperson, his salary and powers
1. Establishment of commission
2. Composition of commission – not less two or not
more than ten appointed by central government
40. DUTIES OF COMPETITION COMMISSION OF
INDIA
1. To eliminate practices having adverse effect on competition
2. To promote and sustain competition
3. To protect the interest of consumers
4. To ensure the freedom of trade carried on by other
participants, in markets in India
5. To make inquires into certain agreements and dominant
positions of enterprise and about combination
41. POWERS OF COMPETITION COMMISSION OF
INDIA
Power to grant interim relief (sec 33)
Power to award compensation (sec 34)
Power of commission to regulate its own procedure
(sec 36)
Review of orders of commission (sec 37)
Rectification of orders (sec 38)
42. OFFENCES AND PENALTIES
Contravention of orders of commission (section 42) – one year term
in civil prison or 10 lac rupees or both
Penalty for failure to comply with directions of commission and
director general (section 43) – Rs one lac for each day during such
failure continues
Penalty for making false statement or omission to furnish material
information (sec 44) – Not less than 50 lac to on crore
Penalty for offences in relation to furnishing of information (section
45) – extended to 10 lac
43. COMPETITION LAW RELATING TO CONSUMER
PROTECTION
Some of the objectives like:
1. Static efficiency
2. Dynamic efficiency
3. Competition laws can be used to attain consumer
welfare
4. Result in satisfaction in trade
45. INTRODUCTION
Cyber law is a generic term which refers to all the
legal and regulatory aspects of internet and the
world wide web
The growth of cyber space has resulted in the
development of a new and highly specialized
branch of law called CYBERLAWS –Laws of the
Internet and the world wide web
46. CYBER LAWS IN INDIA
In may 2000, both the houses of the Indian
parliament passed the information technology bill.
The bill received the assent of the president in
August 200 and came to be known as the
Information technology Act, 2000.
This Act aims to provide the legal infrastructure for
e-commerce and a framework so that legal sanctity
is accorded to all electronics records
47. HIGHLIGHTS OF THE ACT
Chapter II of act specifically stipulates that any subscriber may
authenticate an electronic record by affixing his digital
signature
Chapter III of the act details about Electronic governance
Chapter IV of the act gives a scheme for regulation of certifying
authorities
Chapter VII of the act details about the scheme of things
relating to Digital signature certificate
48. Chapter IX of the act talks about Penalties and
adjudication for various offences
Chapter X of act talks of the establishment of cyber
regulations appellate tribunal
Chapter XI of act talks about various offences and the said
offences shall be investigated only by a police officer
The act also provides for the constitution of the Cyber
Regulations advisory committee
The best way to enforce internet copyright is through the
Digital millennium copyright act
49. ADVANTAGES OF CYBER LAW
1. IT act 2000 attempts to change outdated law and provides ways to deal with
cyber crimes
2. The Act has proposed a legal framework for the authentication and origin of
electronic records/ communications through digital signature
3. E-mail would be a legal and valid form of communication in context of e-
business
4. Digital signatures have been given legal validity and sanction in the act
5. The act allows government to issue notification on the web – e-governance
6. IT act also addresses the important issues of security
7. The remedy provided by the act is in the form of monetary damages not
exceeding rs. One crore
50. DISADVANTAGES OF CYBER LAW
The law misses out completely the issue of Intellectual property
rights, copyrighting, trade marking, or patenting of electronic
information and data
The law even stays silent over regulation of electronic payment
gateway and segregates the negotiable instrument from the
applicability of IT act
The act empowers DSP to look up into the investigations and
filing of charge sheets
The IT act is silent on filming anyone’s personal actions in public
and then distributing it in e-form
52. INTRODUCTION
E-commerce is fast growing form of carrying out business transactions.
Any business transaction has to pass through several stages to be given
effect to.
Each stage consists of various types of exchange consists of various
types of exchanges between two sides:
1. Information
2. Documents
3. Goods
4. Services
5. Money , etc.,
53. OBJECTIVES OF IT ACT 2000
To grant legal recognition for transaction
means of electronic data interchange .
carried-out by
To give legal recognition to digital
authentication of any information.
To facilitate electronic filing of documents.
To facilitate electronic storage of data.
signature for
To facilitate and give legal sanction to electronic fund
between bank and financial institution.
To give legal recognition for keeping books of account by
bankers in electronic form.
54. FEATURES OF THE IT ACT, 2000
Electronic contracts have been made legally valid if made
through ‘secure electronic communication’.
Legal recognition has been granted to digital signature.
Security procedures for electronic records and digital
signatures have been laid down.
Recognition has been granted to the right of licensed
certifying authorities to issue digital signature certificates.
The controller is to act as repository of all digital signature
certificates.
55. To facilitate e-governance, provisions have been
included to build the required system.
Various types of computer related crimes have been
defined and stringent penalties provided under this act.
A procedure has been laid down under the act for
appointment of adjudicating officers for holding enquires.
A provision has been made under the act for the
establishment of cyber regulatory appellate tribunal and
appeal can be made in high court.
56. SCOPE AND APPLICABILITY OF IT ACT 2000
A negotiable instrument (other than cheque) as defined in section
13 of negotiable instrument act 1881
A power of attorney as defined in section1A of the power of
attorneys act,1882
A trust defined as defined in sec3 of the Indian trusts act 1882
A will as defined in clause (h) of section 2 of the Indian
succession act 1925
Any contract for the sale or conveyance of immovable property
Any such class of documents or transactions as may be notified
by the central government
60. DIGITAL AND ELECTRONIC SIGNATURES
Digital signature means authentication of any electronic
record by a subscriber by means of an electronic method
or procedure in accordance with section 3
Section 3 provides that any subscriber may authenticate
an electronic record by affixing his digital signature. The
authentication of the electronic record shall be affected
by the use of asymmetric crypto system and hash
function which envelop and transform the initial
electronic record into another electronic record
61. DUTIES OF SUBSCRIBERS
Generating key pair [section 40]
Acceptance of digital signature [section 41]
Control of private key [section 42]
62. ELECTRONIC GOVERNANCE - MODEL
Community
management
system
Infrastructure
management
system
Knowledge
management
system
Transition
management
system
E-Governance
63. OBJECTIVES OF E-GOVERNANCE
Build services around citizen’s choice
Make government more accessible
Facilitate social inclusion
Provide information responsibly
Use government resources effectively
Reduce government spending
Deliver online services
Involve citizen in the governing process
64. SIGNIFICANCE OF ELECTRONIC GOVERNANCE
Record-keeping and reduction in files
Automation of processes
Effective co-ordination, supervision and integration
Elimination of hierarchy and delay
Change towards transparent and accountable
administration culture
Better quality and effective delivery of public services
Citizens empowerment
Helps in taking strategic decision at appropriate time
65. ELECTRONIC RECORD
Meaning of electronic record
Attribution of electronic record
Acknowledgement of receipt
Time and place of dispatch and receipt of electronic
record
Usual place of residence
Controlling and certifying authority
66. CYBER CRIMES
Data diddling
Internet time theft
Salami slicing
Virus attack
Phreaking
Pornography
Cloning
Carding
Piggy-backing or shoulder-
surfing(ATM fraud)
Social engineering
Mail bombing
Dumpster diving
Software piracy
Identity theft
Spoofing
Phishing
Sniffing
68. INTRODUCTION
Every kind of intellectual property is in nature of
intangible property.
IP is the creation of human intellect. It refers to the
ideas, knowledge, invention, innovation , creativity and
etc.,
It is similar to property whether it is movable or
immovable. The rights relating to intellectual property is
called “Intellectual property rights”
70. COPYRIGHTS - MEANING
Copyrights gives protection for the expression of an
idea and not for the idea itself.
Copyrights are similar to patents in establishing
ownership and protection for creative endeavor but
they pertain to intellectual property
The Copyright only prevents the copying of the
content but not the subject matter
71. VIRTUAL MATTERS UNDER COPYRIGHTS
PROTECTION
1. Photographs
2. Poems
3. Books
4. Motion pictures
6. Choreographic works
7. Paintings
8. Articles
5. Computer punch cards 13.
9. Music
10. Audio – Visual works
11. Microfilms
12. Sculptures
Stories
14. Sound recordings
15. Periodicals
16. Pantomimes
17. And etc
72. OBJECTS OF COPYRIGHT
Copyrights ensure certain minimum safeguards of
the rights of authors over their creations, thereby
protecting and rewarding creativity
Indian Copyrights act,1957
The copyright act,1957 protects original literary,
dramatic, musical and artistic works and
cinematographic works and sound recordings
Copyrights protect the expressions not the ideas
73. CLASS OF WORKS
Section 13(1) – provision of copyrights
Artistic work – section 2(b)
Dramatic work
Literary work – Section 2(o)
Computer program – section 2(ffc) & 2(ffb)
Musical work – section 2(p)& 2(ffa)
Cinematograph films
Sound recordings Section 2(xx)
74. TERM/DURATION AND REGISTERATION OF
COPYRIGHTS
After publication, until 60 years from the beginning of the calendar year
or next following year which the author dies
The register of copyrights maintained in copyright office of the
Department of education consists of 6 parts
1. Literary works
2. Musical works
3. Artistic works
4. Cinematograph films
5. Sound recordings
6. Computer program, tables and compilations, including computer
databases
75. TRADE MARKS
The brand name, label or logo of a company can be
registered as a Trade marks
Once it is registered then it is protected against the
misuse by third parties
The registered trademark is a valuable property, which
can be transferred or sold or licensed to third party
The trademark act 1999, governs this and law
encourages registration of trademark, as registration
confers on the owner as exclusive right to use the mark
76. MEANING
Service mark: it means service of any description
which is made available to potential users and
includes the provision of services in connection
with business in any industrial or commercial
matter.
Good trade marks: Any device or word which has
no direct reference ton the quality or character of
the goods or services is a good trade mark
77. TRADE MARKS NOT REGISTERABLE
No trademark shall be registered in respect of
goods, descriptive of goods or a service which is
identical with or deceptively similar to trademark
which is already registered
Descriptive words, surnames and geographical
names are not register able
78. PROCEDURE FOR REGISTRATION
The application is filed
The application is examined by the trademarks
office and objections
The marks is advertised in Trademarks journal and
is open to opposition by third party
The registration certificate is issued in 4-6 months
79. CONTD…
Requirements for making an application
Revocation of registration
Duration, removal and restoration and registration
80. REMEDIES IN CASE OF BREACH/OFFENCES AND
PENALTIES RELATING TO TRADEMARKS
Falsifying the trademarks
Falsely apply a trademarks
Making or possessing instruments for falsifying trademarks
Applying false trade description
Applying false indication of country of origin
Tampering with an indication of origin already applied to goods
Selling goods falsely marked
Removing piece goods
Falsely representing a trademark registered
Falsely describing a place of business as connected with the trademark office
Falsification of entries in register
82. MEANING OF PATENT
A patent is, “an exclusive right granted by a country
to the owner of an invention to make use,
manufacture and market the invention provided the
invention satisfies certain conditions stipulated in
law
83. CONCEPTS
Characteristics of patent
Indian patent act 1970
Invention
Non patentable inventions
Application for patents
Registration of patents
Revocation of patents [section 64,66 and 85]
Remedies for infringement [section 108]
Grant of patent
Term of patent
