Legal Environment of Business

1. Legal Environment of
Business
“Need for Consumer Protection Act in an Era of Competition
where Consumer is a King. Therefore, King Needs Protection”
Presented By :
Ajit Tokekar, Roll No 8011815001
Dinesh sharma, Roll No 801181500
GS Balaji, Roll No 80118150012
Shashank singh Roll No 80118140004
Term 1 – 16-18 batch
Date – 15-05-2016
consumer protection act 19861 9 October 2016

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3. Consumer Protection
Act,1986
 By spelling out the rights and remedies of the
consumers in a market so far dominated by
organized manufacturers and traders of
goods and providers of various types of
services, the Act makes buyer beware of a
thing of the past.
 The act was amended in 2002 and the
amendments came into force w.e.f. 15th
March 2003.
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4. Salient features of the
act
 The act applies to all goods and services unless
specially exempted by union government.
 It covers all sectors public, private or
cooperative.
 Provisions of the act are compensatory in
nature.
 It empowers consumers seeking discontinuance
of trader’s malpractices, defective goods,
services deficiencies or withdrawal of hazardous
goods from the market.
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5. Objectives of the act
 Provides for promotion and protection of the
rights of the consumers
 Provide remedies for deceived consumers
 Better protection against exploitation
 Make provisions for the establishment of
consumer councils and other authorities for
the settlement of consumer disputes and for
the matters connected with it.
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8. Responsibilities of
consumer
Advertisements
often exaggerate
Filing complaint for
redressal
Quality
conscious
Insist on
cash memo
Cautious
consumer
Must
exercise his
rights
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9. Quality marks
 AGMARK
 FPO
 ISI
 BIS
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10. Definitions
Consumer
An individual who buys products or services for personal use and not for
manufacture or resale. A consumer is someone who can make the decision
whether or not to purchase an item at the store, and someone who can be
influenced by marketing and advertisements. Any time someone goes to a
store and purchases a toy, shirt, beverage, or anything else, they are making
that decision as a consumer.
Complainant
 A consumer
 Any voluntary consumer association registered under the Companies
Act,1956 or under any other law for the time being in force
 The Central Government or any State Government; .
 One or more consumers, where there are numerous consumers having the
same interest
 In case of death of a consumer, his legal heir or representative who or
which makes a complaint;
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11. Complaint
Complaint means any allegation in writing made by a
complainant that :
 An unfair trade practice or a restrictive trade practice has been
adopted by any trader or service provider
 The goods bought by him or agreed to be bought by him suffer
from one or more defects;
 The services hired or availed of or agreed to be hired or availed
f by him suffer from deficiency in any respect;
 A trader or the 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 fixed or displayed
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12.  The right to be protected against marketing of goods which are hazardous
to life and property;
 The right to be informed about the quality, quantity, potency, purity,
standard and price of goods to protect the consumer against unfair trade
practices;
 The right to be assured, wherever possible, access to an authority of goods
at competitive prices;
 The right to be heard and to be assured that consumers interests will
receive due consideration at appropriate forums;
 The right to seek Redressal against unfair trade practices or unscrupulous
exploitation of consumers; and
 The right to consumer education.
Rights of Consumers
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13. Consumer
Protection
Act, 1986
Right to be
Informed
Right to
Choose
Right to be
Heard
Right to
Safety
Right to
Seek
Redressal
Right to
Consumer
Education
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14. Consumer Disputes Redressal Agencies :-
1. District Consumer Disputes Redressal Forum (DCDRF): Also
known as the "District Forum" established by the State
Government in each district of the State. The State Government
may establish more than one District Forum in a district. It is a
district level court that deals with cases valuing up to not
exceeding 20 lakhs rupees.
2. State Consumer Disputes Redressal Commission (SCDRC): Also
known as the "State Commission" established by the State
Government in the State. It is a state level court that takes up
cases valuing less than exceeds 20 lakhs rupees but does not
exceed 1 crore rupees.
3. National Consumer Disputes Redressal Commission (NCDRC):
Established by the Central Government.
4. Appeals from the orders of national commission shall lie with
the Supreme Court of India
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15. Consumer can make a complaint with
respect to :-
1. Quality of the good is below standard prescribed.
2. Goods are not genuine or are fake or imitated copies.
3. Services that are hired or to be availed suffer from some
deficiency.
4. Price charged for the goods are in excess to the price displayed
on the cover.
5. In case the goods offered are in-contravention to the
prescribed safety
standards
6. Risk to safety of consumer.
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16. Checklist before making a compliant:-
1. A cause-title i.e. The Complaint should, if possible, have a
heading
2. Your name, description and address
3. The name, description and address of the opposite party or
parties
4. Facts about the complaint and when and where it arose
5. How the opposite parties are liable to be proceeded against and
why they are answerable or accountable to this petition.
6. Copies of documents in support of the allegations contained in
the petition.
7. A list of documents should be furnished along with the
complaint, duly signed by you.
8.You would also need to state how the case falls within the
jurisdiction of the forum /commission.
9.You are also entitled to claim the cost of your complaint from
the
opposite party. Hence include that amount in your complaint.
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17. Statutory Deposits:-
District Commission
For claims upto Rs.1 Lakh Rs. 100/- only
For claims of Rs. 1 Lakh upto Rs. 5 Lakhs Rs. 200/- only
For claims of Rs. 5 Lakhs upto Rs. 10 Lakhs Rs. 400/- only
For claims of Rs. 10 Lakhs upto Rs. 20 Lakhs Rs. 500/- only
State Commission
For claims of Rs. 20 Lakhs upto Rs. 50 Lakhs Rs. 2000/-
only
For claims of Rs. 50 Lakhs upto Rs. 1 Crore Rs. 4000/- only
National Commission
A flat fee Rs.5000/- only
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18. The dispute resolution forum on proof of
allegations contained in the complaint may
order:-
1. Removal of the defect pointed out
2. Replacement of the goods with new goods of good quality
3. Return the price paid by the complainant for the goods or
services.
4. Pay as a damage or a compensation for the loss or injury
suffered on account of negligence of the opposite party in case
the forum is authorised to award punitive damages.
5. To remove the defects or deficiency in the goods or services
6. To discontinue the unfair trade or restrictive practice.
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19. CGSI- consumer guidance society of India
 In the early 1960’s , India was facing a state of scarcity in many
essential commodities . We had a war with china and faced defeat.
 Monopolistic trends were prevailing in the country
 An edible oil scam occurred which laid the foundations of
consumerism protection in India proving once again proving
necessity is the mother of invention.
 forty persons suffered dropsy and glaucoma after consuming
groundnut oil adulterated with toxic argemone oil. The victims did
not get any justice and the culprits escaped without punishment.
 Few social workers and educated professionals joined hands in 1966
and formed CGSI in 1966 HQ’ed in Mumbai.
 This outrage energized nine women to organize a movement to fight
and protect consumer rights by establishing the first consumer
organization in India the Consumer Guidance Society of India
(CGSI) to resist the silent suffering of consumers, and exploitation
of all forms. CGSI that has grown in strength and stature celebrates
its Golden Jubilee of its formation in 2016.
 Their major objective is to get the consumer the goods and services
he had paid for but were normally cheated & were unable to get
damages due to the absence of a consumer protection law
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20. Founder Members of CGSI
 Ms. Seeta Gupta Social Worker
 Ms. Indira Mazumdar Social Worker
 Ms. Seeta Nadkarni Social Worker
 Dr. Leela Thorat Doctor
 Ms. Leela Jog Journalist
 Ms. Kamala Mankekar Journalist
 Dr. Shanta S. Rao Scientist
 Ms. Nalini Tulpule Social Worker
 Ms. Shakuntala Kadam Social Worker
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21. CGSI coordinates
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22. Long term Vision of CGSI
 CGSI has an ambitious target to reach more
and more consumers through its consumer
education programs and make India, a
country of aware consumers resulting in
flourishing markets with quality products and
services
 Consumer Education
 Holding talks and exhibitions to spread
consumer rights awareness among urban
poor and rural areas.
 Consumer Complaints Redressal
 Testing of Consumer Products
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23. Roll of Honour for CGSI
Today CGSI programs reach out to more than 20,000 consumers
in a year. Now with the help of more and more experts from
various fields, CGSI imparts knowledge about prudent
investment, telecom services, food adulteration detection,
medical negligence, mediation, legal Redressal of complaints
etc.
 CGSI was the first organization to demand a “Consumer
Protection Act‟ with „Consumer Courts‟ to implement it. This
became a reality in 1986.
 To date, CGSI has redressed more than 80% of the
thousands of complaints referred to it by consumers.
 CGSI was the first to establish formal „Consumer Product
Testing‟ in India.
 CGSI was the first to publish a monthly magazine "Keemat"
carrying information of importance to consumers.
 CGSI was the first to promote consumer education; initiate
training projects in rural areas; promote publicity drives; and
represents consumer interests with Government and other
regulatory bodies.
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24. Roll of Honour for CGSI
 CGSI participates in a large number of technical
committees and Government decision-making
bodies.
 CGSI is a member of the Maharashtra State
Consumer Protection Council.
 CGSI has produced a documentary film
“Grahakpal” on consumer rights for easy
dissemination to consumers.
 CGSI is among the top states in terms of number
of complains handled amongst the other Indian
states conducting consumer helpline project.
 CGSI received the National Award for Consumer
Protection in 1991.
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25. VP Shanta Vs Indian Medical Association
 A landmark judgement was delivered on 13th Nov 1995 by a
3 member SC bench headed by Justice Agrawal said
unilaterally that any service rendered by a doctor or
hospital falls under the purview of a service provider and
the one who receives such services is a consumer as
mentioned in the consumer protection act 1986, section 2
(1)(0).
 This came to supreme court when in 1992 when the
national commission in 1989 1992, 1993 gave contrary
decision in saying the services rendered by a hospital to a
patient makes the hospital a service provider and the
patient a consumer provided a consideration was there
 the Indian medical association petitioned to the supreme
court and said making medical services provided with / WO
consideration was in violation of article 14 , 19(1)(g) of the
constitution .The issue of consideration , level of service ,
what tantamount to professional negligence and thereby
damages to such shortfall in service were debated by
eminent lawyers , Harish salve , Manu Singhvi , K Parasaran
for the petitioners and Rajeev Dhawan for the respondents
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26. VP Shanta Vs Indian Medical Association
Following professionals are (i) architects, engineers and
quantity surveyors, (ii) surveyors, (iii) accountants, (iv)
solicitors, (v)barristers, (vi) medical practitioners and (vii)
insurance brokers
Earlier some professionals were exempted but now there is
no exemption now to majority of the professionals
To arrive at this the supreme court saw various case
judgements given by US and UK courts and concluded
Service rendered to a patient by a medical practitioner
(except where the doctor renders service , free of charge to
every patient or under a contract of personal service), by
way of consultation,
diagnosis and treatment, both medicinal and surgical,
would fall within the ambit of 'service' as defined in Section
2(1) (o) of the Act.
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27. OMBUDSMAN in Corporate world
 Ombudsman is a neutral person working in an
organisation to help resolve disputes arising out of
contract or torts
 Corporates have realised that litigation is expensive in
all parts of the world
 Ombudsman helps all stake holders , internal and
external to resolve issues . Helps whistle blowers
maintain their cover .
 Many promoters appoint ombudsman to uplift their
company image .
 Ombudsman can he hired by corporates and need not
permanently be employed
 Concept of Ombudsman originated in Sweden in 19th
century and in US in 1920’s to oversee the
administration and dispute resolution
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28. OMBUDSMAN in Corporate world
 Due to their position in an organisation , they are able to
work on long term changes required in an company
directly with the owners to are interested in change
 The international Ombudsman Association is the body
that recognises professionals and sets the standards for
this profession .
 Ombudsman are used as an alternate dispute resolution
system and part of a overall dispute resolution system in
an organisation
 Role of ombudsman is proactive where as arbitrator is
reactive and more identifying right and wrong after the
problem has happened .
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