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Consumer Protection Act-1986

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Consumer Protection Act-1986

  1. 1. The Consumer Protection Act, 1986
  2. 2. Presented By         Mahesh Damani Bharat Mohite Prathamesh Parab Amey Gondhali Prasad Harwande Rahul Abhang Amogh Kadam Nitin Gupta : : : : : : : : 02 04 06 08 10 12 14 16
  3. 3. INDEX              Introduction. Objective of Consumer Protection Act, 1986. Definitions. Consumer Protection Councils. Composition of Redressal Agencies. Objective of Consumer Protection Councils. Powers of Consumer Disputes Redressal Agencies. Procedure of Complaints-Remedies-Appeal Necessary norms required to be follow by every company. Case Study. Awareness for Consumers Statistical Data Things to Remember 3
  4. 4. INTRODUCTION     Till Lately , Consumers ,particularly in India , was Neglected Lot . The Dominance and Obstinacy of producer ,trader or businessman was felt like a Doctor piercing an injection in the body . Tolerance has Limit . Consumer movements spearheaded the attacks and slowly but surely the lobby grew stronger and stronger day by day . Awareness in a Consumer , that his rights were being sabotaged , grew from day to day. He realised that though on paper he was a KING , nevertheless he remained a slave . The psychology under which the consumer in India had treaded for Decades that he had ‘no choice ‘ needed to be penetrated with an effective dose of making him feel like a ‘KING’ and not merely think like a ‘KING’ . Therefore the Consumer Protection Act 1986 was enacted.
  5. 5. OBJECTIVE The main objective of the Consumer Protection Act, 1986 is to protect the interest and safeguard the rights of the consumers which are as follows:  Right to be protected against the marketing of goods and services which are hazardous to life and property.  Right to be informed about the quality, quantity, potency, purity, standard and price of goods or services so as to protect the consumer against unfair trade practices. 5
  6. 6.     Right to be assured , wherever possible , access to a variety of goods and services at competitive prices Right to be heard and to be assured that consumers' interests will receive due consideration at appropriate forums Right to seek redressal against unfair trade practices and unscrupulous exploitation of consumers Right to consumer education.
  7. 7. DEFINATIONA Consumer “Consumer" means any person who  “who buys any goods for a consideration which has been paid or promised, or partly paid and partly promised, or under a system of deferred payment.  Hires any services for a consideration which has been paid or promised, or partly paid and partly promised, or under a system of deferred payment.
  8. 8. 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 of by him suffer from deficiency in any respect; a trader or service provider, as the case may be, has charged for the goods or for the service mentioned in the complaint a price in excess of the price. Goods / Service which will be hazardous to life and safety when used or being offered for sale to the public. 8
  9. 9. Complainant “Complainant" means—  A consumer; or  Any voluntary consumer association registered under the Companies Act,1956; or  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; 9
  10. 10. Not a Consumer “Not a Consumer" means—         A person who purchased goods for resale; or A person who purchased goods for commercial purpose; or A person who obtains services without consideration; or A person who obtains services under a contract of personal service; or Tax-payers to municipality: or Contractors; or Applicants for jobs; or Persons who filed suits in courts. 10
  11. 11. Rights of Consumers       Right to Safety – Hazardous goods & services Right to be Informed – About the quality, quantity, potency, purity, standard and price of goods Right to Choose – Access to variety of goods and services at competitive price Right to be heard - due consideration at appropriate forums. Right to seek Redressal – Right to seek redressal against unfair trade practices or unscrupulous exploitation of consumers Right to Consumer Education –Right to acquire the knowledge and skill to be an informed consumer throughout life.
  12. 12. Consumer Protection Councils  Central Consumer Protection Council.  The Minister in charge of the consumer affairs in the Central Government, who shall be its Chairman, and such number of other official or non-official members representing such interests as may be prescribed.   State Consumer Protection Council.  the Minister incharge of consumer affairs in the State Government who shall be its 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.    District Consumer Protection Council.  the Collector of the district (by whatever name called), who shall be its Chairman; such number of other official and non-official members representing such interests as may be prescribed by the State Government.  12
  13. 13. Composition of Redressal Agencies National Commission President (a person who is or has been a Judge of the Supreme Court, to be appointed by the Central Govt.) Member Member Member Member State Commission District Forum President President (a person who is or has been a Judge of a High Court, appointed by the State Govt.) (a person who is, or has been, or is qualified to be a District Judge) Member Member Member Member 13
  14. 14. District Forum  Each District Forum shall consist of a person who is or has been or is qualified to be a District Judge who shall be its President two other members, one of whom shall be a woman possessing a bachelor’s degree from a recognized university, be a person of ability, integrity and standing and have adequate knowledge and experience  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.  Subject to the other provisions of the Act a District forum 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.
  15. 15. State Commission    A Consumer Disputes Redressal Commission to be known as the "State Commission" established by the State Government in the State. A person who is or has been a Judge of a High Court, appointed by the State Government, who shall be its President. Each State Commission shall have jurisdiction to entertain complaints where the value of the goods or services and compensation, if any, claimed exceeds Rs. 20 Lakhs but does not exceed Rs.1 Crore and appeals against the orders of any District Forum within the State.
  16. 16. National Commission  The ‘ National Commission’ shall consist of a person who is or has been a Judge of the Supreme Court, shall be 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 with similar qualifications as required in the case of appointment as a member to a District Forum or a State Commission.  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.  The National Commission 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.
  17. 17. Objective of Consumer Protection Council To promote and protect the rights of the consumers such as,—  • • • • • the right to be protected against the marketing of goods and services which are hazardous to life and property; the right to be assured, wherever possible, access to a variety of goods and services at competitive prices; the right to be heard and to be assured that consumer's interests will receive due consideration at appropriate forums; the right to be informed the right to consumer education. 17
  18. 18. Powers of Consumer Disputes Redressal Agencies         To remove the defect, To replace the goods with new goods of similar description, To return the complainant the price, To pay compensation to the consumer for any loss or injury suffered, To remove the defects in the goods, To discontinue the unfair trade practices, Not to offer hazardous goods for sale, To provide adequate costs to parties, 18
  19. 19. Procedure of Complaint     File WITHIN 2 YEARS of cause of action in the Forum where the seller has his business or lives or where the incident happened. Submit 3 COPIES OF COMPLAINT ON PLAIN PAPER WITH SUPPORTING DOCUMENTS (receipt, bill etc.) NO LAWYER IS NEEDED. There is no fee for filing a complaint. Even an affidavit does not need stamp papers. A complaint can be sent by post or presented in person by complaint or his authorised agent.
  20. 20. Procedure of Complaint The following information must be furnished with the complaint : Name and complete address of complainant  Name and complete address of the opposite party or parties as the case may be.  Date of purchase/service obtained.  Amount paid for consideration.  Items of goods with quantities/nature of service.  Whether the complaint relate to unfair trade practice/ defective goods' deficient service/charging excess price.  Copies of bills/vouchers/receipts and copies of correspondence made, if any.  The relief sought-Under the Act.
  21. 21. Remedies The forums/Commissions can order the following relief:  Removal of defects from the goods  Replacement of the goods  Refund of the price paid.  Award of compensation for the loss or injury suffered.  Removal of defects or deficiencies in the services.  Discontinuance of unfair trade practices/restrictive trade practices and directing not repeating them.  Withdrawal of the hazardous foods from being offered for sale.  Award for adequate costs to practice.
  22. 22. Appeal     Appeals against District Forum ---Within 30 days -- In State Commission State Commission --- Within 30 days -- National Commission National Commission -- Within 30 days -Supreme Court There is no fee for filing appeals in the State and National commissions.
  23. 23. Case Study R630-crore fine on realty major DLF for abusing Recent decision of the Competition Commission of India (CCI) to slap a R630-crore fine on realty major DLF for abusing its dominant position is only a tip of the iceberg. If the records of the Delhi consumer court are taken into account, the maximum number of cases registered are against real estate companies. Out of every 10 complaints which get registered at the Consumer Disputes Redressal Commission (consumer court) in Delhi, eight are against real estate players. Currently, there are around 400 complaints pending before the consumer court with claims amounting to upward of R20 lakh. An official of the consumer court said: “Roughly, more than 60% of the complaints received by the court are against real estate players and the number is rising with each passing day. Till date from January 2011 we have received almost 120 complaints.”
  24. 24. City store to pay Rs 10,000 for delay in payment of Rs 186    A delay in paying out Rs 186 in prize money has cost a cellphone retail chain Rs 10,000 after the aggrieved winner approached a consumer forum, citing mental agony over the 14-month wait. Malad resident Rohit Somani bought a cellphone from the Kandivli outlet of The Mobile Store on October 30, 2009, and received a scratch card with the instrument, as part of an ongoing scheme by the chain. The card entitled him to a return of Rs 186 from the sum he had paid for the cellphone, but Somani — despite repeated follow-up visits — never received the money. In December 2010, Somani approached the Mumbai Suburban District Consumer Disputes Redressal Forum, which ordered the chain to pay Rs 10,000 in compensation.
  25. 25.   Store representatives did not appear before the Forum, despite a notice being served to them. Instead, they offered Somani a cheque for Rs 186. Somani told the forum he wished to pursue the case to seek recompense for the mental stress he suffered while pursuing the matter for over a year. The forum ruled in favour of Somani.
  26. 26. ICICI bank to pay a compensation of Rs 1.46 lakh to an Air Force personnel    Back-tracking from releasing the sanctioned loan to consumer by a bank amounts to unfair trade practice, a consumer court has said while directing ICICI bank to pay a compensation of Rs 1.46 lakh to an Air Force personnel for resorting to such act. “The conduct of the bank makes out a case of unfair trade practice, mal-practice, arbitrariness and gross deficiency in service on its part who even during inquiry proceedings failed to place on record the decision of the competent authority that the loan sanctioned to the complainant was not to be released,” the West Delhi District Consumer Forum said. The Forum passed the order on a petition by Air Force Wing Commander Brij Mohan Tyagi seeking refund of Rs 1.46 lakh which he had to pay to the housing society for delay in payment due to bank’s failure to release the sanctioned loan.
  27. 27. Club Mahindra told to refund Rs 2.08 lakh   The Pune District Consumer Disputes Redressal Forum has directed Chennai-based Mahindra Holidays and Resorts India Ltd., also known as Club Mahindra, to pay Rs 2.08 lakh with 9% annual interest rate to a complainant who was not able avail of its services even after becoming a member. The forum has also directed the club to pay Rs 10,000 as compensation and `1,000 as litigation cost to the complainant within six weeks.
  28. 28. Harassment by loan agents:Bank told to pay damages  A District Consumer Forum has ordered Standard Chartered Bank to pay Rs 6,000 to a man for harassment by loan recovery agents. In December 2007, Nerul-based Subhashish Mitra took a loan of Rs 1,20,000 from Standard Chartered Bank. Mitra claims to have repaid the money within a year and the loan account opened with the bank was closed. In 2009, however, he was served a legal notice stating that a case was pending against him before the Lok Adalat. In his complaint before the forum, Mitra said that even after he had repaid the amount, the bank’s recovery department in Delhi kept calling him for money.
  29. 29. Insurance Co told to pay for 26/7 loss due to Mumbai flood   Five years after the 26/7 deluge, the consumer forum has ordered an insurance firm to pay compensation to an Andheri shop owner, who suffered major losses in the floods. The forum said the insurance firm repudiated the claim with “a mala fide intention and merely on a technical ground”. The insurance company will now pay the policy holder Rs 1.92 lakh together with an interest of 9% from March 2006 till the realisation of the entire amount and Rs 5,000 towards costs. The policy holder, Nishat Enterprises, is a partnership firm that owns GKB Eyecare, an optical shop in Andheri (W). In the complaint filed by one of the partners, Ali Hussain Khan, the firm said it had taken an insurance policy from Oriental Insurance Company in respect of goods and property at the shop premises, valid from December 2004 to December 2005. On July 26, 2005, flood water entered the shop and all furniture and optical stock were totally destroyed.
  30. 30.    The insurance company was intimated about the loss. When a surveyor visited the shop, the complainant said that the policy had wrongly mentioned the shop number as 18 when it was actually 10. However, the insurance company rejected the claim, saying that as per the survey report, the policy was taken for shop number 18, whereas the complainant’s shop was 10. Khan then filed a complaint with the Mumbai Suburban District Consumer Disputes Redressal Forum. In their defence, the insurance company contested that the alleged loss occurred at shop 10, whereas shop 18 was insured, and it was not liable for any loss occurred at shop number 10. The forum presided by J L Deshpande and members D S Bidnurkar and V G Joshi said that the firm had requested the insurance company to make the correction. The forum observed that there were only 12 shops and there was no shop 18. The insurance firm also argued that the policy was taken for commercial purpose and so, the firm is not a consumer within the meaning of the provisions of the Consumer Protection Act. The consumer said it had wrongly applied to the provisions of the Consumer Protection Act. “The firm had not taken the insurance policy to acquire and sell it…it was not the subject of its commercial activity or business.”
  31. 31. Necessary norms required to be follow by every company 31
  32. 32. 32
  33. 33. Awareness for Consumers         NATIONAL CONSUMER HELPLINE: 1800-11-4000 formed the Consumer Guidance Society of India (CGSI) to resist consumer exploitation of all forms. ALWAYS INSIST ON CASH MEMO LOOK FOR THE “BEST BEFORE” OR “EXPIRY DATE” WHEN BUYING FOOD OR MEDICAL PRODUCTS ALWAYS LOOK FOR STANDARD MARKS LIKE ISI, FPO, AGMARK ETC.. DO NOT PAY MORE THAN MRP. ALWAYS FIGHT FOR YOUR RIGHTS IN THE CONSUMER FORA, THE CONSUMER IS ALWAYS STRONG.
  34. 34.  Standardization mark is a mark or symbol given to a product, which meets certain standards with respect to the quality in terms of material used, methods of manufacturing, labeling, packaging and performance.
  35. 35. Total Number of Consumer Complaints Filed / Disposed since inception Under Consumer Protection Law (Update on 05.08.2011) Sl. N Name of Agency o . Cases filed since inception Cases disposed of since inception Cases Pending % of total Disposal 1 National Commission 70787 61484 9303 86.86% 2 State Commissions 546134 446440 99694 81.75% 3 District Forums 3010281 2755418 254863 91.53% TOTAL 3627202 3263342 363860 89.97%
  36. 36. THINGS TO REMEMBER       Always insist on Cash Memo. Look for the“BEST BEFORE” or “EXPIRY DATE” when buying goods or medical products. Always look for STANDARD MARKS like ISI, FPO, AGMARK, etc. DO NOT pay more than MRP. Always fight for YOUR RIGHTS. In the consumer forum, THE CONSUMER IS ALWAYS STRONG.
  37. 37. THANK YOU!!! 41

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