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Enacted to provide for the better protection of the
interest of consumer.
Act applies to whole of India except Jammu and
Kashmir.
The act was amended in 2002 and the amendments
came into force i.e.. 15th March 2003.
 Two kinds of consumer under the Act
Consumer of goods
 buys or agrees to buy goods
 any user of such goods
Consumer of services
 hires or avails any services
 any beneficiary of such service
 Better protection of interest of consumer.
 Protection of rights of consumers.
 To settle the consumer disputes.
 To make provision for the establishment of consumer
council.
 Unfair trade practice
 Restrictive trade practice
 Defects
 Deficiencies
 UNFAIR TRADE PRACTICE
Adopting unfair methods or deception to promote sale, use
or supply of goods or services e.g. misleading
advertisement
Misleading public about price (e.g. bargain price when it is
not so).
Charging above MRP printed.
Misleading public about another’s goods or
services.
Falsely claiming a sponsorship, approval or
affiliation.
Offering misleading warranty or guarantee.
 RESTRICTIVE TRADE PRACTICE
Price fixing or output restraint re:
delivery/flow of supplies to impose
unjustified costs/restrictions on consumers.
Collusive tendering; market fixing
territorially among competing suppliers,
depriving consumers of free choice, fair
competition.
Supplying only to particular distributors or on
condition of sale only within a territory.
Delaying in supplying goods/services leading to
rise in price.
Requiring a consumer to buy/hire any goods or
services as a pre-condition for buying/hiring
other goods or services.
• Fault
• Imperfection
• Shortcoming
In the
• Quality
• Quantity
• Purity Or
• Standards
Which is required to be maintained by or under any law for the
time being in force
• Fault
• Imperfection
• Shortcoming
In the
 Quality
 Standard and
 Manner of performance
Which is required to be maintained by or under any law for the time
being in force
Right to safety against hazardous goods and services.
Right to be informed about quality, quantity, purity,
standard, price.
Right to choose from a variety at competitive prices
Right to be heard
Right to seek redressal
Right to consumer education
Right to Healthy Environment
Consumer should not make vague or general
complaints and should also have supporting
information and proof such as a bill.
Consumer should try to understand the viewpoint of
the seller.
Consumers in asserting their rights should not
inconvenience or hurt other sections of the public ie
resort to rasta roko movements, bandh etc.
Consumers should complain against a system and
not attack individuals.
Complaints can be filed by any consumer,
"consumer" means any person who-
(i) buys any goods for a consideration which
has been paid or promised or partly paid and
partly promised,hires or avails of any services
for a consideration which has been paid or
promised or partly paid and partly promised
(m) "person" includes,-
(i) a firm whether registered or not;
(ii) a Hindu undivided family;
(iii) a co-operative society;
(iv) every other association of persons
whether registered under the Societies Registration
Act, 1860 (21 of 1860) or not;
 What is the stamp duty required
No stamp or court fee is needed.
But only a nominal fee .
› Name and full address of complainant
› Name and full address of opposite party
› Description of goods and services
› Quality and quantity
› Price
› Date & proof of purchase
› Nature of deception
› Type of redressal prayed for
 Consumerism is a movement directed to protect
the consumer and ensure that the consumer gets
the best return in exchange for the money he
spends.
Consumerism is the reaction of consumer
against unfair trade practices carried out
by the marketers.
 Lengthy and tedious process
 Inactive nature of Indian consumer
 Poverty, illiteracy, lack of information
 Shortage of good & services
 Poor and inefficient roe of pubic sector.
 Failure of govt. to implement law lack of business
ethic
Some of the problems faced by Indian consumers are:
Short supply of items of essential needs.
Lack of effective or workable competition.
Unfamiliarity of product features results in sale of
substandard, inferior or even defective goods .
Due to low literacy levels and unsatisfactory information
flows, Indian consumers are not conscious of their rights.
Consumerism in India is not organized and developed.
Laws to safeguard interests of consumers are not
effectively implemented.
1) A Consumer Dispute Redressal Forum at the
District level.
1) A Consumer Dispute Redressal Commission at the
State level.
1) A National Consumer Dispute Redressal
Commission at national level.
1. A Consumer Disputes Redressal Forum to be known
as the "District Forum". This is to be established by the
state government in each district of the state by means
of a notification.
2. A Consumer Disputes Redressal Commission to be
known as the "State Commission". This has also to
be established by the state government in the state by
means of a notification.
3. A National Consumer Disputes Redressal
Commission to be established by the Central
government by means of a notification.
The Act thus envisages a hierarchy of three
redressal forums:
1) District Forum
2) State Forum
3) National Forum
 A District Forum deals with cases where the value of claim is up to Rs.
20 lakhs.
 A consumer dispute redressal forum to be known as district forum
,established by the state government.
 Members:~
 District judge - President
 Two other members – one of whom shall be woman
 Appeal – 30 days
 Cases having a claim exceeding rupees 20 lacks but
up to the limit of Rs. 1 core can go to the State
Commission.
 Members :~
 Judge of high court – president
 Two other members
 National Commission is the highest level of
consumer forums. It may entertain all matters where
the value of claim exceeds Rs. 1 core. The territorial
jurisdiction of the National Commission is whole of
India except the state of Jammu & Kashmir.
It is established by the central government
which consists of the following member.
The minister of consumer affairs chairman and
Such number of other official or non official
members representing such interests as may be
prescribed.
 It is established by the State Government which
consists of the following members:
 The Minister in charge of consumer affairs in the
State Government – Chairman.
 Such number of other official or non-official
members representing such interests as may be
prescribed by the State Government.
 such number of other official or non-official
members, not exceeding ten, as may be
nominated by the Central Government.
 The State Council is required to meet as and
when necessary but not less than two meetings
every year.
 Where a trader or a person against whom a
complaint is made (or the complainant) fails or omits
to comply with any order made by the District
Forum, the State Commission or the National
Commission, such trader or person (or complainant)
shall be punishable with imprisonment for a term
which shall not be less than one month but which
may extend to three years or with fine which shall
not be less than two thousand rupees but which may
extend to ten thousand rupees, or with both.
Benefit
 Disposal within 90 days
 No adjournment shall ordinarily be granted - Speedy trial
Relief
 Removal of defects in goods or deficiency in services.
 Replacement of defective goods.
 Refund against defective goods or deficient services.
 Compensation.
 Prohibition on sale of hazardous goods.
Consumers now feel that they are in a
position to declare “sellers be aware”,
Where as previously it was
“ buyers be aware.”
Consumer protection act-1986

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Consumer protection act-1986

  • 1.
  • 2. Enacted to provide for the better protection of the interest of consumer. Act applies to whole of India except Jammu and Kashmir. The act was amended in 2002 and the amendments came into force i.e.. 15th March 2003.
  • 3.
  • 4.  Two kinds of consumer under the Act Consumer of goods  buys or agrees to buy goods  any user of such goods Consumer of services  hires or avails any services  any beneficiary of such service
  • 5.  Better protection of interest of consumer.  Protection of rights of consumers.  To settle the consumer disputes.  To make provision for the establishment of consumer council.
  • 6.  Unfair trade practice  Restrictive trade practice  Defects  Deficiencies
  • 7.  UNFAIR TRADE PRACTICE Adopting unfair methods or deception to promote sale, use or supply of goods or services e.g. misleading advertisement Misleading public about price (e.g. bargain price when it is not so). Charging above MRP printed.
  • 8. Misleading public about another’s goods or services. Falsely claiming a sponsorship, approval or affiliation. Offering misleading warranty or guarantee.
  • 9.  RESTRICTIVE TRADE PRACTICE Price fixing or output restraint re: delivery/flow of supplies to impose unjustified costs/restrictions on consumers. Collusive tendering; market fixing territorially among competing suppliers, depriving consumers of free choice, fair competition.
  • 10. Supplying only to particular distributors or on condition of sale only within a territory. Delaying in supplying goods/services leading to rise in price. Requiring a consumer to buy/hire any goods or services as a pre-condition for buying/hiring other goods or services.
  • 11. • Fault • Imperfection • Shortcoming In the • Quality • Quantity • Purity Or • Standards Which is required to be maintained by or under any law for the time being in force
  • 12. • Fault • Imperfection • Shortcoming In the  Quality  Standard and  Manner of performance Which is required to be maintained by or under any law for the time being in force
  • 13.
  • 14. Right to safety against hazardous goods and services. Right to be informed about quality, quantity, purity, standard, price. Right to choose from a variety at competitive prices
  • 15. Right to be heard Right to seek redressal Right to consumer education Right to Healthy Environment
  • 16. Consumer should not make vague or general complaints and should also have supporting information and proof such as a bill. Consumer should try to understand the viewpoint of the seller. Consumers in asserting their rights should not inconvenience or hurt other sections of the public ie resort to rasta roko movements, bandh etc. Consumers should complain against a system and not attack individuals.
  • 17.
  • 18.
  • 19. Complaints can be filed by any consumer, "consumer" means any person who- (i) buys any goods for a consideration which has been paid or promised or partly paid and partly promised,hires or avails of any services for a consideration which has been paid or promised or partly paid and partly promised
  • 20. (m) "person" includes,- (i) a firm whether registered or not; (ii) a Hindu undivided family; (iii) a co-operative society; (iv) every other association of persons whether registered under the Societies Registration Act, 1860 (21 of 1860) or not;
  • 21.  What is the stamp duty required No stamp or court fee is needed. But only a nominal fee .
  • 22. › Name and full address of complainant › Name and full address of opposite party › Description of goods and services › Quality and quantity › Price › Date & proof of purchase › Nature of deception › Type of redressal prayed for
  • 23.
  • 24.  Consumerism is a movement directed to protect the consumer and ensure that the consumer gets the best return in exchange for the money he spends. Consumerism is the reaction of consumer against unfair trade practices carried out by the marketers.
  • 25.
  • 26.  Lengthy and tedious process  Inactive nature of Indian consumer  Poverty, illiteracy, lack of information  Shortage of good & services  Poor and inefficient roe of pubic sector.  Failure of govt. to implement law lack of business ethic
  • 27.
  • 28.
  • 29. Some of the problems faced by Indian consumers are: Short supply of items of essential needs. Lack of effective or workable competition. Unfamiliarity of product features results in sale of substandard, inferior or even defective goods . Due to low literacy levels and unsatisfactory information flows, Indian consumers are not conscious of their rights. Consumerism in India is not organized and developed. Laws to safeguard interests of consumers are not effectively implemented.
  • 30.
  • 31. 1) A Consumer Dispute Redressal Forum at the District level. 1) A Consumer Dispute Redressal Commission at the State level. 1) A National Consumer Dispute Redressal Commission at national level.
  • 32. 1. A Consumer Disputes Redressal Forum to be known as the "District Forum". This is to be established by the state government in each district of the state by means of a notification. 2. A Consumer Disputes Redressal Commission to be known as the "State Commission". This has also to be established by the state government in the state by means of a notification. 3. A National Consumer Disputes Redressal Commission to be established by the Central government by means of a notification.
  • 33. The Act thus envisages a hierarchy of three redressal forums: 1) District Forum 2) State Forum 3) National Forum
  • 34.  A District Forum deals with cases where the value of claim is up to Rs. 20 lakhs.  A consumer dispute redressal forum to be known as district forum ,established by the state government.  Members:~  District judge - President  Two other members – one of whom shall be woman  Appeal – 30 days
  • 35.  Cases having a claim exceeding rupees 20 lacks but up to the limit of Rs. 1 core can go to the State Commission.  Members :~  Judge of high court – president  Two other members
  • 36.  National Commission is the highest level of consumer forums. It may entertain all matters where the value of claim exceeds Rs. 1 core. The territorial jurisdiction of the National Commission is whole of India except the state of Jammu & Kashmir.
  • 37.
  • 38. It is established by the central government which consists of the following member. The minister of consumer affairs chairman and Such number of other official or non official members representing such interests as may be prescribed.
  • 39.  It is established by the State Government which consists of the following members:  The Minister in charge of consumer affairs in the State Government – Chairman.  Such number of other official or non-official members representing such interests as may be prescribed by the State Government.
  • 40.  such number of other official or non-official members, not exceeding ten, as may be nominated by the Central Government.  The State Council is required to meet as and when necessary but not less than two meetings every year.
  • 41.  Where a trader or a person against whom a complaint is made (or the complainant) fails or omits to comply with any order made by the District Forum, the State Commission or the National Commission, such trader or person (or complainant) shall be punishable with imprisonment for a term which shall not be less than one month but which may extend to three years or with fine which shall not be less than two thousand rupees but which may extend to ten thousand rupees, or with both.
  • 42. Benefit  Disposal within 90 days  No adjournment shall ordinarily be granted - Speedy trial Relief  Removal of defects in goods or deficiency in services.  Replacement of defective goods.  Refund against defective goods or deficient services.  Compensation.  Prohibition on sale of hazardous goods.
  • 43. Consumers now feel that they are in a position to declare “sellers be aware”, Where as previously it was “ buyers be aware.”