Business Regulations competition and Consumer Laws Unit-4

1. Competition and Consumer
laws
Unit -4
Komala.B
Asst. Professor

2. Competition Act of 2002
 Need
Promote and sustain competition
Freedom of trade
 Scope
Whole of india except J& K
66 sections
Anti competition agreements
Administrative power and duties
Investigation of contraventions offences and penalties

3. Competition Act of 2002
Salient features
 Customer friendly
 Reasonable price
 Fill the gap between the competition and efficiency
 Curbing of monopoly reasonably
 Regulate business especially small business
 Needed for tele communication, public transport, energy and
water

4. Competition Act of 2002
 Competition commission of India
The CCI shall be body corporate by the name aforesaid
having perpetual succession and a common seal with power,
subject to the provision of this Act, to acquire, hold and
dispose of property, both movable and immovable, and to
contract and shall , by the said name, sue or be sued.

5. Competition Act of 2002
Composition of CCI
 It consist of a chairperson and less than 2 and not more than 10 other members
(whole time) Appointed by central government.
The chairperson and other members shall be a person of ability of integrity and
standing And who has been , or is qualified to be, a judge of high court or has special
knowledge of, and professional experience of not less than 15 years in international
trade, economics, business, commerce, law, finance accountancy, management,
industry, public affairs, administration or in any other matter.
 selection of chairperson and other members as prescribed section 9
 Term of office of chairperson and other members
A term of five years from the date on which he enters upon his office and shall be eligible for
reappointment.
 Age limit:
Chairperson-not more than67 years.
other members-not less than 65 years.

6. Competition Act of 2002
OFFENCES AND PENALTIES
 Without prejudice to the provisions of this act, if any person contravenes without
any reasonable ground , any order of the commission, any condition or restriction
subject to which any approval sanction, direction or exemption in relation to any
matter has been accorded, given, made or granted under this act or fails to pay the
penalty imposed under this act, he shall be liable to be detained in civil prision for
a term which may extend to one year and also liable to a penalty not exceeding Rs.
10Lakhs(Section42).
 If any person not inconsistent to the order or issue or directions which given by
commission under this act, shall be liable to be detained in civil prision for a term
which may extend to one year and also liable to a penalty not exceeding Rs.
10Lakhs.

7. Competition Act of 2002
 Penalty for failure to comply with direction of commission and director-general-
Rs.10,000 for each day during which such failure continues (Sec43).
 Penalty for making false statement or omission to furnish material information.- a
penalty which shall not be less than Rs.50,00,000 but which may extend to rupees
one crore, as may be determined by the commission(Sec44).
 Penalty for offences in relation to furnishing of information-a penalty which may
extend to Rs.10,00,000(S.45)

8. Consumer protect Act(1986)
Introduction To Consumer Protection Act (1986)
Consumer Protection Act, 1986 is an Act of the Parliament of India enacted in 1986 to
protect the interests of consumers in India. It makes provision for the establishment of
consumer councils and other authorities for the settlement of consumers' disputes and
for matters connected therewith also.
 Definition Of Consumer:
According to M.K.Gandhi “the consumer is the purpose of all business its cause
and goals. To serve him honestly and faithfully, ought to be every business man’s
endeavor.”
According to Consumer protection act “Any person, who buys any goods against
consideration is a consumer”section2(1)(d).

9. Consumer protect Act(1986)
 Definition Of Consumer Disputes:
Section 2 (1) (e), It refers to a dispute where the person against to whom a complaint
has been made, denies or disputes the allegations contained in the complaint, there is on
Consumer Dispute.
 Definition Of Defect:
Any fault, imperfection or 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
under any contract, express or implied or as is claimed by the trader in any manner
whatsoever in relation to any goods.
 Definition Of Deficiency:
Any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner
of performance which is required to be maintained by or under any law for the time being
in force or has been undertaken to be performed by a person in pursuance of a contract or
otherwise in relation to any service

10. Definition Of Unfair trade Practice and Services:
A trade practice which, for the purpose of promoting the sale, use or supply of
any goods or for the provision of any service, adopts any unfair method, or unfair or
deceptive practice including any of the following practices namely:
 False representation of goods and services.
False representation re-built, second-hand, renovated goods as new goods.
Representation of goods or services have sponsorship, approval, performance and
on, in absence of such goods and services.
False or misleading representation of goods and services.(misleading
Giving the warranty or guarantee of the performance, efficiency or length of life of
product to the public without any base or adequate test.

11. Appropriate laboratory [sec.2 (1)a]
It means a laboratory or organisation1) Recognized by the central government 2)
Recognized by a state government 3)Any laboratory or organization established by or
any law for the time being in force ,which is maintained, financed or aided by the central
government or state government.
COMPLAINANT
1) A consumer
2)Any voluntary consumer association registered under the companies act,1956, or under any other
law for the time being in force
3)The central government or any state government, who or which makes a complaint
4) One or more consumers, where there are numerous consumers having the same intrest.
5) In case of death of a consumer, his legal heir or representative. (this clause has been introduced
the CPA amendment act, 2002).

12. Complaint
It means any allegation in writing made by a complainant with a view to
obtaining any relief provided by or under this act. This allegation in writing
must be that
1) an unfair trade practice or a restrictive trade practice has been adopted by
any trader or service provider.
2) the goods bought by him or agreed to be bought by him suffer from one
more defects 3) the services hired or availed of or agreed to be hired or
availed by him suffer from deficiency in any respect.

14. Consumer protect Act(1986)

15. Consumer protect Act(1986)
 District Forum
• It shall consist of a person who is or has been or is qualified to be a District Judge
as its President,2 other members, one of whom shall be a woman
• Every member of the District Forum shall hold office for a term of 5 years or up to
the age of 65 years which ever is earlier
• It shall have jurisdiction to entertain complaints where the value of the goods or
services and the compensation, if any, claimed does not exceed Rs.20 Lakhs.

16. Consumer protect Act(1986)
 A District Forum shall have the powers
I. To remove the defect pointed out by the appropriate laboratory from the goods in
question
II. To replace the goods with new goods of similar description which shall be free from
any defect
III. To return to the complainant the price, or as the case may be, the charges paid by
the complainant
IV. To pay such amount as may be awarded by it as compensation to the consumer for
any loss or injury suffered by the consumer due to the negligence of the opposite
party

17. Consumer protect Act(1986)
 State Commission
•It is established by SG by notification
•It shall have jurisdiction to entertain complaints where the value of the goods or
services and compensation, if any, claimed exceeds Rs. 20 Lacs but does not exceed
Rs.1 Crore and appeals against the orders of any District Forum within the State.

18. Consumer protect Act(1986)
 National Commission
• It shall consist of a person who is or has been a Judge of the Supreme Court, as its
President. Not less than 4 and not more than such number of members as may be
prescribed and one of whom shall be a woman
• Every member of the National commission shall hold office for a term of 5 years or
up to the age of 70 years which ever is earlier.
• It shall have jurisdiction to entertain complaints where the value of the goods or
services and compensation, if any, the claim exceeds Rs. 1 Crore and appeals against
the orders of any State Commission.

19. Consumer protect Act(1986)

20. Consumer protect Act(1986)
 The District Consumer Protection Council
• It shall consist of the following members, namely:-
(a) the Collector of the district (by whatever name called), as its Chairman;
and
(b) such number of other official and non-official members as may be
prescribed by the SG
• The District Council shall meet at least twice in an year. • The procedure will be set by
SG

21. Consumer protect Act(1986)
 The State Consumer Protection Council
• It shall consist of the following members, namely: (a) the Minister in- charge of
consumer affairs in the SG as its Chairman; (b) such number of other official or non-
official members as may be prescribed by the State Government.
• The State Council shall meet at least twice in an year. • The procedure will be
prescribed by the SG
.

22. Consumer protect Act(1986)
 The Central Consumer Protection Council
• It shall consist of the following members, namely
(a) the Minister in charge of Consumer Affairs in the CG as its Chairman, and (b)
such number of other official or non-official members as may be prescribed.
• The Council shall meet at least once an year