Consumer protection act 1986 ppt @ bec doms

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Consumer protection act 1986 ppt @ bec doms

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Consumer protection act 1986 ppt @ bec doms

  1. 1. Consumer Protection Act 1986 Goods & Services
  2. 2. Objects of the Act <ul><li>Right to be protected against marketing of goods which are hazardous to life and property. </li></ul><ul><li>Right to be informed about the quality, potency, standard, and price of goods to protect the consumer against unfair trade practices. </li></ul><ul><li>Right to be heard and to be assured that customers’ interests will receive due consideration at appropriate forums. </li></ul><ul><li>Right to seek redressal against unscrupulous exploitation of consumers. </li></ul><ul><li>Right to consumer education . </li></ul><ul><li>Consumer protection councils – Central & State. </li></ul>
  3. 3. Definitions <ul><li>Appropriate laboratory: It is recognized by Central & State governments, which carries out analysis or test of any goods with a view to determining whether such goods suffer from any defect. </li></ul><ul><li>Complainant: One or more consumer or any voluntary consumer association registered under the Companies Act or the Central or any State Government who or which makes a complaint. </li></ul><ul><li>Complaint: Any allegation in writing made by a complainant with a view to obtaining any relief provided by under this Act. </li></ul>
  4. 4. <ul><li>Consumer: Any person, who – (i) buys any goods for a consideration which has been paid or promised or partly paid or promised, or under any system of deferred payment. (ii) hires or avails of any service for a consideration which has been paid or promised or partly paid or promised, or under any system of deferred payment. </li></ul><ul><li>For (i) ‘Consumer’ also includes any user other than buyer himself. It must involve some consideration. ‘Consumer’ does not include resale or commercial use of obtained goods. </li></ul><ul><li>For (ii) ‘Consumer’ includes any beneficiary of services other than the person who hires or avails such services. </li></ul>
  5. 5. <ul><li>Consumer dispute – complaint denied or challenged </li></ul><ul><li>Defect – fault, imperfection, or shortcoming in the quality, potency, purity, or standard </li></ul><ul><li>Deficiency – fault, imperfection, or inadequacy in the quality, nature and manner of performance </li></ul><ul><li>District Forum – Consumer Disputes Redressal Forum </li></ul><ul><li>National Commission – National Consumer Disputes Redressal Commission </li></ul><ul><li>Person – includes a firm, a HUF, a cooperative society, and AOPs </li></ul><ul><li>State Commission – Consumer Disputes Redressal Forum </li></ul>
  6. 6. <ul><li>Service: It includes, provision of facilities in connection with banking, financing, insurance, transport, processing, electrical or other energy supply, boarding & lodging, house construction and plots by Housing & Development Board, entertainment and amusement, and telephone connection and facility by Telecom Department. </li></ul><ul><li>‘ Service’ however does not include the rendering of any service free of charge or under a contract of personal service. </li></ul><ul><li>Spurious – goods & services which are claimed to be genuine but they are actually not so. </li></ul><ul><li>Trader – a person who sells, distributes, manufacturers, or a packer of any goods for sale. </li></ul>
  7. 7. Who is not a Consumer? <ul><li>A person obtaining goods for “resale” or for any “commercial purpose”; or </li></ul><ul><li>Buys goods without Consideration; or </li></ul><ul><li>Hires or avails any services without Consideration; or </li></ul><ul><li>Uses the goods without approval of the person who has bought goods for consideration; or </li></ul><ul><li>Is beneficiary of services w/o consent of the person who has hired the services for consideration; or </li></ul><ul><li>Obtains service under a contract of personal service. </li></ul>
  8. 8. Resale and Commercial Purpose <ul><li>When the goods are re-sold in original condition as bought, it is a resale. </li></ul><ul><li>When the goods are not purchased for immediate final consumption, but for transfer, it is resale. </li></ul><ul><li>A person buying the goods for resale or commercial purpose, even if for consideration, is NOT a consumer. </li></ul>
  9. 9. <ul><li>Mr. A bought a TV set from an electronics store for using it at home. The TV was defective. Is Mr. A a consumer? </li></ul><ul><li>Mr. A is a consumer as he buys a good for a consideration. </li></ul><ul><li>Bhavesh bought a pressure cooker. In the first use itself while his wife was using it, the pressure cooker burst, hurting her. Is Bhavesh a consumer? Is his wife a consumer? </li></ul><ul><li>Bhavesh is the consumer. His wife is also a consumer as per the provision: ‘…and includes any user of goods other than the buyer for consideration’. </li></ul>
  10. 10. <ul><li>Anand runs a laundry shop and he bought a washing machine. The same was installed in his shop. The machine was defective right from the day it was delivered. Is Anand a consumer? </li></ul><ul><li>Anand is not a consumer as he is using the machine for consumer purpose. </li></ul><ul><li>Balu is a distributor for computer accessories. He bought 100 pen-drives for selling to other computer vendors. Is Balu a consumer? </li></ul><ul><li>Balu is not a consumer as he has obtained accessories for resale. </li></ul>
  11. 11. <ul><li>Anil bought cycles for the purpose of hiring to tourists visiting the area. Sunil was a tourist who had hired a cycle. The cycles were defective. The handle of the cycle broke, injuring Sunil. Are Anil and Sunil consumers? </li></ul><ul><li>Anil is not a consumer. However, Sunil is a consumer as he availed service of hiring from Anil. </li></ul><ul><li>Mr. Patel bought a laptop and gifted it to his son, Amit. Amit is a consultant who uses the laptop for his business. Are Mr. Patel and Amit consumers? </li></ul><ul><li>Mr. Patel was a consumer when he bought the laptop. However, Amit is not a consumer as he is using it for commercial purpose. </li></ul>
  12. 12. Special Note on ‘Commercial Purpose’ <ul><li>Not buying for one’s own use is not necessarily buying for commercial purpose. </li></ul><ul><li>For example, a purchaser of a cooler is a consumer, even if the cooler is installed at a bus-stand for the use of public free of charge. </li></ul><ul><li>In a case, where a lady purchased a Xerox machine for the purpose of earning her livelihood, was held that it was not for commercial purpose and that she was a consumer. </li></ul><ul><li>The Court should therefore be satisfied that there is NO large-scale commercial activity. </li></ul>
  13. 13. <ul><li>For example, Plying of a taxi is purchase of a taxi for commercial purpose. </li></ul><ul><li>Commercial purpose is commerce, mercantile, having profit as the main aim. </li></ul><ul><li>There should be profit or loss from further disposal. </li></ul><ul><li>Commercial purpose include all business activities. </li></ul><ul><li>In other words, where there is no profit motive or business gain, the purchase of goods is not for commercial purpose. </li></ul>
  14. 14. <ul><li>Extent of Consumer Protection </li></ul><ul><li>While other legislation may be either punitive or preventive, the CPA compensates the consumer. </li></ul><ul><li>The CPA gives the consumer an additional remedy besides those which may be available under existing laws. </li></ul><ul><li>The CPA is a benevolent piece of legislation to protect a large body of consumers from exploitation. </li></ul>
  15. 15. Consumer Dispute <ul><li>On a complaint before the Consumer Redressal Forums against a person, who denies or disputes the allegations contained in the complaint a consumer dispute arises [Sec. 2(1) (c)]. </li></ul><ul><li>Separate allegations may form separate disputes requiring separate finding on each dispute. </li></ul>
  16. 16. Who can be a Complainant? <ul><li>A Consumer; or </li></ul><ul><li>Any voluntary consumer association registered under the Companies Act; or </li></ul><ul><li>The Central or State Government; or </li></ul><ul><li>One or more consumers, where there are numerous consumers having the same interest; or </li></ul><ul><li>In case of death of consumer – his legal heir or representative. </li></ul>
  17. 17. What is a Complaint? <ul><li>A complaint is any allegation in writing by a complainant that – </li></ul><ul><li>An “unfair trade practice” or a “restrictive trade practice” has been adopted by any trader or service provider; </li></ul><ul><li>The goods bought or agreed to be bought suffer from one or more “defects”. </li></ul><ul><li>The services hired or availed or agree to be hired or availed suffer from “deficiency” in any respect. </li></ul>
  18. 18. <ul><li>A trader or the service provider has charged for the goods or services mentioned in the complaint, “a price in excess” of the price fixed or displayed; </li></ul><ul><li>Goods which will be “hazardous to life and safety” when used are being offered for sale to the public in contravention to any stipulated standards; </li></ul><ul><li>Services which are hazardous to life and safety when used are being offered by service provider. </li></ul>
  19. 19. Unfair Trade Practice <ul><li>For which a trader, for promoting sale, use or supply of any goods or provision of services, adopts any unfair method or deceptive practice. </li></ul><ul><li>Includes: </li></ul><ul><li>A) The practice of making any statement, orally, written, or visually anything false or misleading. </li></ul><ul><li>B) Permits the publication of any advertisement in any newspaper or otherwise, for sale or supply at a bargain price of goods/ services that are not intended to be offered for sale or supply at the bargain price. </li></ul>
  20. 20. Restrictive Trade Practices <ul><li>Trade practice which tends to bring about manipulation of price or; </li></ul><ul><li>its conditions of delivery or; </li></ul><ul><li>to affect flow of supplies in the market relating to goods or; </li></ul><ul><li>services in such a manner as to impose on the consumers unjustified cost or restrictions. </li></ul>
  21. 21. Defects and Deficiency <ul><li>Defect means any fault, imperfection, or shortcoming in the quality, quantity, potency, purity or standard which is required to be maintained by the trader under any law. </li></ul><ul><li>It is for the complainant to establish that the goods mentioned in the complaint suffer from one or more defects. </li></ul>
  22. 22. <ul><li>Deficiency means any fault, imperfection, shortcoming, or inadequacy in the quality, nature and manner of performance which is required to be maintained by or under the law. </li></ul><ul><li>It is for the complainant to establish that services mentioned in the complaint suffer from deficiency in any respect. </li></ul><ul><li>Examples: Lack of facilities by Housing Board is deficiency. Non-allotment of shares is not deficiency in service. Failure of insurance company to settle claim without sufficient cause is deficiency. Failure of Railways to provide cushioned seats in 1 st class is deficiency of service. </li></ul>

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