1. -MALAY SRIVASTAVA
MALAY SRIVASTAVA
1
-effectiveness of legal machinery in consumer
protection
- consumer welfare & trade practices of MNC’s
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A
PRESENTATION
ON
CONSU MER PROTECTION
ACT
&
IT’S
BU SINESSIMPLICATION

2. CONSUMER PROTECTION ACT
Why this act is needed ???
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MALAY SRIVASTAVA
To pr event the exploitation of
customer s.
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3. CONSUMER PROTECTION ACT
Evolution
1.
2.
3.
4.

MALAY SRIVASTAVA

Every year 15th March is observed as "World Consumer
Rights Day".
It commemorates a historic declaration (1962) by former
US President John F. Kennedy of four basic consumer
rights:
The right to safety
The right to be informed
The right to choose
The right to be heard
Another significant day is 9 April 1985, when the General
Assembly of the United Nations adopted a set of guidelines
for consumer protection and the Secretary General of the
United Nations was authorized to persuade member
countries to adopt these guidelines through policy changes
or law.
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
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4. CONSUMER PROTECTION ACT
In India n context
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MALAY SRIVASTAVA
In India, 24th December is celebrated as"National Consumer Rights Day“
Since the Consumer Protection Act, 1986 was enacted on this
day.
The Consumer Protection Act was enacted in 1986 based on
United Nations guidelines with the objective ‘To provide for the better protection of the interests of
consumers and for the purpose to make provision for
the establishment of consumer council & authorities
for the settlement of consumer disputes and for
matters connected therewith.’
The Act provides for effective safeguards to consumers against
various types of exploitations and unfair dealings
 relying on mainly compensatory rather than a punitive or
preventive approach.
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5. CONSUMER PROTECTION ACT
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Malay srivastava
Who is Consumer ???
 The rights under the Consumer Protection Act,
1986 flow from the rights enshrined in Articles
14 to 19 of the Constitution of India.
As per the Act, a 'Consumer' has been defined
as: 1. Any person who buys goods for consideration,
and any person who uses goods with the approval
of the purchaser.
2. Any person who hires any service's for a
consideration and any beneficiary of such
services, provided the service is availed with the
approval of the person who had hired the service
for a consideration.
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6. CONSUMER PROTECTION ACT
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Areas to promote consumer protection
MALAY SRIVASTAVA
The guidelines provided by UN constituted a
comprehensive policy framework outlining what
Governments need to do to promote consumer protection in
the following areas: 1. Physical safety
2. Protection and promotion of consumer economic
interests
3. Standards for safety and quality of consumer goods
and services
4. Measures relating to specific areas (food, water, and
pharmaceuticals)
5. Consumer education and information program.
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7. CONSUMER PROTECTION ACT
Consumer Protection Act Says :
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MALAY SRIVASTAVA
Right to Safety
 Means right to be protected against the marketing of goods
and services, which are hazardous to life and property.
 The purchased goods and services availed of should not only
meet their immediate needs, but also fulfill long term
interests.
 Before purchasing, consumers should insist on the quality of
the products as well as on the guarantee of the products and
services.
 They should preferably purchase quality marked products
such as BIS, AGMARK, etc.
Right to be Informed
 Means right to be informed about the quality, quantity, purity,
standard and price of goods so as to protect the consumer
against unfair trade practices.
 Consumer should insist on getting all the information about
the product or service before making a choice or a decision.
 This will enable him to act wisely and responsibly .
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8. CONSUMER PROTECTION ACT
Consumer Protection Act Says :
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MALAY SRIVASTAVA
Right to Choose
 Means right to be assured, wherever possible of access to
variety of goods and services at competitive price.
 In case of monopolies, it means right to be assured of
satisfactory quality and service at a fair price.
Right to be Heard
 It also includes right to be represented in various forums
formed to consider the consumer's welfare.
 The consumers should form non-political and noncommercial consumer organizations which can be given
representation in various committees formed by the
Government and other bodies in matters relating to
consumers.
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9. CONSUMER PROTECTION ACT
MALAY SRIVASTAVA
Right to Seek Redressal
 Means right to seek redressal against unfair trade
practices or unscrupulous exploitation of consumers.
 It also includes right to fair settlement of the genuine
grievances of the consumer.
 Consumers must make complaint for their genuine
grievances.
 Many a times their complaint may be of small value
but its impact on the society as a whole may be very
large.
 They can also take the help of consumer
organizations in seeking redressal of their grievances.
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Consumer Protection Act Says
:
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10. CONSUMER PROTECTION ACT
Right to Consumer Education
Means the right to acquire the knowledge and skill to be an
informed consumer throughout life.

Ignorance of consumers, particularly of rural consumers, is
mainly responsible for their exploitation.

They should know their rights and must exercise them. Only then
real consumer protection can be achieved with success.
MALAYSRIVASTAVA

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Continues…
Thus, the concern of consumer protection is to ensure fair trade
practices; quality of goods and efficient services with information
to the consumer with regard to quality, quantity, potency,
composition and price for their choice of purchase. Such a
consumer protection policy creates an environment whereby the
clients, customers, and consumers receive satisfaction from the
delivery of goods and services needed by them.
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11. CONSUMER PROTECTION ACT
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MALAY SRIVASTAVA
Consumer protection council
 The establishment of central council takes placed
by central govt. and same as in case of state
councils.
 The council shall meet as and when necessary
but at least one meeting of the council shell be
held every year.
 Central council shall consist of the minister in
charge of consumer affairs in the central govt.
who shall be its chairman.
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12. CONSUMER PROTECTION ACT
The objective of the central council are to promote and to
protect the right to the consumers such as:
The right to be protected against marketing of goods and services
which are hazardous to life and property.
2.
The right to be assured ,whenever possible , access to a variety of
goods at competitive price.
3.
The right to be heard and assured that consumers interest will
receive due consideration at appropriate forums.
4.
The Right to consumer education
5.
The right to seek redressal against UTP or unscrupulous
exploitation of consumers.
6.
The right to be informed about the quality ,quantity ,potency
,purity ,standard and price of goods and services so as to protect
the consumer against UTP’s.
Malay srivastava
1.
02/28/14
Objective of council
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13. CONSUMER PROTECTION ACT
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MALAY SRIVASTAVA
Consumer complaints
A complaint in relation to any goods sold or
delivered or any service provided may be filed
with the redressal agency by1. The consumer to whom such goods are sold or
delivered or such service provided.
2. Any recognized consumer association ,whether
the consumer is a member of such association.
3. One or more consumers where there are
numerous consumers are having the same
interests.
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14. CONSUMER PROTECTION ACT
Remedial actions & penalties
3.
4.
MALAY SRIVASTAVA
2.
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1.
If the consumer disputes redressal agency is satisfied that
any of the allegations contained in the complaint is true ,it
shall issue an order to the opposite party directing him to
take one r more of the following things, namelyTo remove the defect pointed out by appropriate laboratory
from the goods in questions
To replace the goods with new goods of similar description
which shall be free from all defects
To return to the complainant the price ,or as the case may
be ,the charge paid by the complainant.
To pay such amount as may be awarded by it as
compensation to the consumer by any loss or injury
suffered by the consumer due to the negligence of the
opposite party.
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15. CONSUMER PROTECTION ACT
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MALAY SRIVASTAVA
Continues…
5. To remove the defect or deficiencies in the
service in questions.
6. To discontinue the UTP or not to repeat them.
7. To provide the adequate cost to the party .
8. To withdraw the hazardous goods from being
offered for sale.
If a trader or person against whom a complaint is
made or the complainant fails or omits to comply
with any order made by redressal agency –
He shall be punishable with imprisonment for
any term not exceeding three years or with the
fine not exceeding ten thousand rupees or with
both.
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16. CONSUMER PROTECTION ACT
RESPONSIBILITIES OF CONSUMERS



, but have a specific complaint ,with supporting
information and proof such as a bill.
Consumer ,in asserting their rights, should not
inconvenience or hurt other sections of the public.
for instance- Rasta roko ,satyagraha ,dharna ,bandh etc.
In some situations ,consumer have to cooperate with the
sellers. For instance, in observing a queue ,or in a situation
of coin shortage using the coupons issued by the bus
transport systems.
The consumer should ,as a rule ,complain against a system
and not attack individuals who are incumbents of posts.
MALAY SRIVASTAVA
 the consumer should not make vague or general complaint
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Like a coin which has obverse and reverse , consumer rights
on the other side ,consumer responsibilities are as-
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17. BUSINESS IMPLICATIONS OF
CONSUMER PROTECTION ACT
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MALAY SRIVASTAVA
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18. BUSINESS IMPLICATIONS OF CP ACT
3.
4.
MALAY SRIVASTAVA
2.
02/28/14
1.
Opportunity for the Industry
T.Thomas (former chairman ,HLL) observes that,
by such acts the responsibility of the company
towards society increased .
Industries are investing increasingly in testing
the safety of the products in use.
Dealing with consumer complaint satisfactorily is
yet another responsibility of company.
To cope up with consumer need industry has to
invest in R&D in such a manner that
consumerism should be their.
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19. ROLE OF LEGAL MACHINERY
IN CONSUMER PROTECTION
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MALAY SRIVASTAVA
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20. TRADE PRACTICES OF MNC’S
Now a days CGSI (consumer guidance society of
India)and CERC (consumer education and
research centre) are doing commendable work.
 It was reported that Kellogg ,manufacturers of
Kellogg's brand of breakfast cereals , in
corporation with CERC , was recalling Kellogg's
pull N go cars which were offered free inside
specially marked package certain brands of
Kellogg’s product as it was found that the tyres of
these can separate from the wheels and present a
choking hazards for children under three years.
 Many toys available in the market globally are
hazards to health & life of children's.

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MALAYSRIVASTAVA
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21. 02/28/14
MALAYSRIVASTAVA
THANK
YOU
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