2. CONTENT
Consumer Protection Act,1986
Definitions Related To CPA
Consumer Rights
Nature and Scope of Remedies Available to
Consumers
Case Studies
Conclusion
References
2
3. Consumer Protection Act
Consumer protection laws are designed to ensure fair
competition and the free flow of truthful information in
the marketplace.
The laws are designed to prevent businesses that engage
in fraud or specified unfair practices from gaining an
advantage over competitors and may provide additional
protection for all types of consumers.
Consumer Protection laws are a form of government
regulation which protects the interests of consumers.
3
4. BRIEF HISTORICAL
BACKGROUND
On 24 December 1986 Govt. of India enacted the
Consumer Protection Act 1986
Act is claimed to have been designed after an in depth
study of consumer protection laws and arrangements in
UK,USA, Australia and New Zealand.
Act applies to whole of India except The state of Jammu
and Kashmir
The act was amended in 2002 and the amendments came
into force on 15th March 2003.
4
5. OBJECTIVES
To provide better protection of interests of
consumers.
To provide establishment of consumer councils
and other authorities.
To empower the consumer councils and other
authorities to settle consumers disputes and
matters
Ensure Rights of Consumers and provide
Remedies for deceivedConsumers
5
6. SALIENT FEATURES OF
CPA
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 envisages establishment of consumer protection
councils at the central and state levels.
Provisions of this act are in addition to and not in
derogation of the provisions of any other act.
6
7. GUIDELINES FOR THE
CONSUMER PROTECTION
Protect from hazard to health & safety;
Promote & protect economic interests;
Provide adequate information for informed choice;
Consumer education;
Provide effective redressal
7
9. WHAT IS A COMPLAINT?
“Complaint” means any allegation in
writing made by a complainant that :
I. An unfair trade practice or a restrictive trade
practice has been adopted by any trader or service
provider;
II. The goods bought by him or agreed to be bought
by him suffer from one or more defects ;
III. The services hired or availed of or agreed to be
hired or availed off by him suffer from deficiency
in any respect;
9
10. WHAT IS A COMPLAINT?
A trader or 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:
a) fixed by or under any law for the time being
in force;
b) displayed on the goods or any package
containing such goods;
c) displayed on the price list exhibited by him
by or under any law for the time being in
force;
d) agreed between the parties .
10
11. WHAT IS A COMPLAINT?
Goods which will be hazardous to life and
safety when used are being offered for
sale to the public –
a) In contravention of any standards
relating to safety of such goods as
required to be compiled with, by or
under any law for the time being in
force;
b) If the trader could have known with
due diligence that the goods so
offered are unsafe to the public;
11
12. WHAT IS A COMPLAINT?
Service which are hazardous or likely
to be hazardous to the life and safety
of the public when used, are being
offered by the service provider which
such person could have known with
due diligence to be injurious to life
and safety.
12
13. WHO IS COMPLAINANT ?
A Complainant means any of the following and having
made a complaint:
A consumer ;
Any voluntary consumer association registered under
the companies act , 1956 or under any other law .
The Central Government or any State Government
One or more consumers, where there are numerous
having the same interest.
In case of death of consumer , his legal heir or
representative.
13
14. WHO ISA CONSUMER ?
Any person who buys goods or avails
services for consideration
Consideration may be fully paid, partially
paid or fully promised to be paid or partially
promised to be paid
Any body who uses the goods or services
with the consent of the consumer
14
15. WHO IS A CONSUMER ?
Legal heir of consumer in case of death of
consumer
Does not include any person who buys goods for
resale or commercial purpose and services for
commercial purpose
However any person who buys goods for
commercial use but exclusively for his livelihood
by means of self employment is a consumer.
15
16. WHAT IS A SERVICE?
“Service” means service of any description, which is
made available to potential users and includes, but not
limited to the provisions of the facilities in connection
with
1) banking 2) financing 3) insurance 4) transport
5) processing 6) supply of electrical Energy or other energy
7) boarding or lodging or both 8) house construction
9) entertainment 10) amusement or
11) the purveying or new or other information
But does not include the rendering of any service free of
charge or under a contract of personal service
16
18. CONSUMERS NEED
PROTECTION AGAINST
UNFAIRTRADE PRACTICE
Adopting unfair methods or deception to promote sale, use or
supply of goods or services e.g.
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. 18
19. CONSUMERS NEED
PROTECTION AGAINST
RESTRICTIVETRADE PRACTICE
Price fixing or output restraint re: delivery/flow of supplies to
impose unjustified costs/restrictions on consumers.
depriving consumers of free choice, fair competition.
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.
19
20. WHAT IS A DEFECT ?
Fault
Imperfection
Shortcoming
In the
Quality
Potency
Purity Or
Standards
20
Which is required to be maintained by or
under any law for the time being in force
21. WHAT IS A DEFICIENCY
?
Fault
Imperfection
Shortcoming Or
Inadequacy
In the
Quantity
Standard and
Manner of performance
21
Which is required to be maintained by or
under any law for the time being in force
23. RIGHT TO SAFETY
The right to be protected against marketing of
goods and services which are hazardous to life
and property.
23
24. Right to Safety
Though about 83% respondents believe that certification and
warnings are an important means to ensure right to safety.
But 40% of respondents do not refer to any safety or quality
certifications such as ISI, ISO, Agmark, Codex etc. before making a
purchase.
ISI is the most known certification
Consumers suggested to make mandatory certification ofAcid,
Paints, Mosquito Coils, Beverages and Electronic Items.
24
25. RIGHT TO BE INFORMED
The right
to be informed about quality, quantity,
potency, purity, standard and price of goods
and services.
25
26. RIGHT TO BE INFORMED
AwarenessRegardingConsumerProtectionRelatedLaws(%)
26
27. RIGHT TO CHOOSE
It means whenever possible ,access to
variety of goods and services at
competitive prices.
27
28. RIGHT TO BE HEARD
The consumer’s interest will receive due
consideration at appropriate forums.
28
29. RIGHT TO SEEK
REDRESSAL
It means right to seek redressal against unfair
practices or restrictive trade practices or
unscrupulous exploitation of consumers.
29
30. 30
Right to Redressal
61% normally voice their complaints to seller, at first point
When it come to actual situation - 93% consumers have never made a formal
complaint
Only 0.3% have approached consumer forum for grievance
redressal,
78% have rated the grievance redressal process as “difficult”.
• 75% cases were not completely redressed while only 18% of such unresolved
cases were taken to a higher authority for redressal.
• 67% cases were not redressed within stipulated time frame
Only 18% consumers are fully satisfied with the existing redressal mechanism
Only 28% of those who know about external redressal mechanism believe that it is
easily accessible by a common man
About 89% aggrieved consumers are represented through advocates in SCDRC and
DCDRC.
32. 32
Right to Consumer
Education
Only 42% respondents have heard about consumer rights
78% of such respondents heard about consumer rights from television
(TV) Almost 50% of respondents are aware of “Jago Grahak Jago
Campaign”.
80% of such respondents learnt about the campaign from Television.
Close to 50% of those who know about “Jago Grahak Jago” campaign have
reported to benefit directly or indirectly from the campaign.
33. RIGHT TO A HEALTHY
ENVIRONMENT
To live and work in an environment which is
non-threatening to the well-being of present
and future generations.
33
34. RIGHT TO A HEALTHY
ENVIRONMENT
Only 9% respondents are aware about
certifications and initiatives.
Awareness about such certifications is
largely among residents of southern (18%)
and northern (12%) region, while eastern
region has lowest level of awareness (2.5%).
About 28% respondents those who know
about such products always tend to buy
such products
About 63% are willing to pay some extra
money to buy such products
34
Awareness regarding environmental
friendly certifications
Yes
9%
No
91%
36. 36
3-Tier Redressal Agency
The aims and objectives of the Act are achieved by the
constitution and creation of 3-tier judicial machinery
depending upon the amount of loss involved
District Forum
State Commission and
National Consumer Disputes
redressal Commission.
NATIONAL COMMISSION
STATE COMMISSION
DISTRICT FORUM
37. JURISDICTION
Forum / Commission Where the value of the goods or
services and the compensation, if
any claimed,
District Forum Below Rs. 20 lakhs
State Commission Rs. 20 lakhs and above but not
exceeding One Crore
National Commission Above One Crore
Besides, State and National Commission have appellate
jurisdiction also.
37
Power or right of a legal or political agency to exercise
its authority over a person ,subject matter, or territory.
38. 38
Consumer Protection
Followed In India
Lok Adalats:
The Consumer can approach the Adalat with his
grievance. The issue is discussed and decision is taken
on the spot. This saves time and money
Lok Adalat has become a speedy, effective and
economical redressal system.
39. FILING OF
COMPLAINTS
A complaint may be filed by:
The consumer to whom the goods are sold or services
are provided
Any recognised consumer association
One or more consumers with same interest
The central government or state government
39
42. MODE OF PAYMENT
The fees shall be paid by Cross demand Draft
drawn on a nationalized bank or through
crossed Indian postal order drawn in favour of
the Registrar of the Sate Commission and
payable at the place of the State Commission
(w.e.f. 5.3.2004.)
42
43. 43
Information Required for a
Complaint
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 requested
47. 47
Penalty Under Section
27 CPA
• According to CPA ,where a trader or
the complainant fails to comply with an
order made by the relevant consumer
forum , such person is liable to a
punishment with imprisonment for a
term which is not less than 1 month
but which may extend to 3 years or
with fine of not less than 2000 INR
but which may extend to 10000 INR
with both
48. 48
LIMITATION
The District Forum, the State
Commission or the National
Commission shall not admit a
complaint unless it is filed
within two years from the date
on which cause of action has arisen.
49. WHEN COMPLAINT CAN’ T
BE FILED?
# Acomplain on the behalf of the public in
which consumer is unidentifiable.
#AComplain by an individual on behalf
of general public.
#An unregistered association can’t file a
complaint
# AComplain can’t be filed,after expiry of
the date.
49
50. 50
REMEDIES WITH WHICH
CONSUMERS ARE PROVIDED
Depending on the nature of case , consumer
Court may give the order for one or more
remedies which are as under:
* Removal of defects/deficiency from goods
*Replacement of goods
* Refund of price
* Compensation for any loss or damage
Order of discontinuing unfair/restricted trade
practice
* Order for stopping the marketing of
hazardous goods
51. 51
ALERT
BEFORE BUYING ANY GOODS OR SERVICE, BE SATISFIED
ABOUT THE QUALITY OR QUANTITY.
MAKE IT CLEAR THAT ISSUE OF RECEIPT IS MANDATORY
FOR ANY PURCHASE OF Rs.200 AND ABOVE.
IN ANY PACKAGED MATERIAL, THE MONTH & YEAR OF
MANUFACTURE, NET QUANTITY or WEIGHT & M.R.P is
MUST.
52. CASE LAWS ON THE ACT
Doctor ordered to pay Rs 2 lakh as damages to patient
KANPUR: District consumer protection forum on Monday directed a child
specialist, Dr RC Gupta, to pay Rs 2 lakh to complainant Prince, son of Santosh
Kumar, within 30 days.
The complainant had sought a sum of Rs 19 lakh as damages caused by the wrong
treatment given Dr Gupta.
A resident of Bidhuna town in Auraiya district, the complainant stated that he
was suffering from fever in December 2001 and on advice of local doctors he had
visited the clinic of child specialist RC Gupta situated at Chunniganj on January
14, 2002.
The doctor examined him and prescribed medicines and advised him to visit clinic
again for check-up after seven days.The complainant claimed that prescribed
medicine did not provide any relief.When he went again to the doctor on
stipulated time and explained his condition.The doctor enhanced the dose of
medicine prescribed in old prescription..
52
53. CASE LAWS ON THE ACT.
The complainant consulted the child specialist of Etawah and he stated that
wrong treatment was being given to him. He was suffering from meningitis. On
January 29, he again consulted Dr Gupta and he referred him to a home.
During examination doctors, observed there that he was suffering from
meningitis and brainTB and so far he received wrong treatment. Due to wrong
treatment, the complainant got handicapped and lost his eyesight.
The doctor appeared before the forum and admitted that he had treated him on
the basis of external symptoms. He did not return for follow-up check in time and
spent his time in consulting other doctors. On January 29, his condition was
critical and the doctor had advised the patient to get admitted at the nursing
home where meningitis and brainTB was detected.
Forum president LB Singh and member Sumanlata Sharma observed that doctor
was negligent towards his duties and his act comes under the preview of
dereliction of duty, therefore he was liable to pay a sum of Rs 2 lakh as damages
to the complainant. 53
54. CONCLUSION
• A person may be consumer of goods, or services. When I
purchase a fan, a gas stove or a refrigerator, I could be the
consumer of goods.
• When I open a bank account, take an insurance policy, get
my car repaired, I could be the consumer of services.
• The consumer protection Act, 1986 tries to help a consumer
when for example, the goods purchased are defective or the
services rendered to him are subject to so deficiency.
• Prior to the consumer Protection Act, 1986 for any consumer
complaint one had to go to an ordinary Civil Court. He had to
engage a lawyer, pay the necessary fee, and be harassed for
years or decades before any outcome, positive or negative,
was there in that litigation.
• Under the Consumer Protection Act, no Court fee has to be
paid and the decision on the complaint is much quicker, as
the Court can evolve a summary procedure in disposing off
the complaint. 54
