3. Consumer Protection Act,1986
Definitions Related To CPA
Consumer Rights
Nature and Scope of Remedies Available to
Consumers
Case Studies
Conclusion
References
3
4. 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.
4
5. On 24 December 1986 Govt. of India enacted the
Consumer Protection Act 1986 to:
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 Jammu and Kashmir
Chapter I, II and IV came into force on 15 april1987.
Chapter III came into force on 1 July 1987
The act was amended in 2002 and the amendments came
into force on 15th March 2003.
5
6. 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 deceived Consumers
6
7. 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.
7
8. Protect from hazard to health & safety;
Promote & protect economic interests;
Provide adequate information for informed choice;
Consumer education;
Provide effective redress—formal and informal procedures;
Freedom to form groups & present views in decision-
making affecting consumers.
8
10. “Complaint” means any allegation in
writing made by a compliant 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;
10
11. IV. 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 .
11
12. V. 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;
12
13. VI. Service which are hazardous or likely t 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.
13
14. 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
In case of consumer , his legal heir or representative.
14
15. 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
15
16. Legal heir of consumer in case 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.
16
17. “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 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
17
18. Unfair trade practice
Restrictive trade practice
Defects
Deficiencies
18
19. UNFAIR TRADE 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.
19
20. 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.
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.
20
21. Fault In the
Imperfection Quality
Shortcoming Quantity
Potency
Purity Or
Standards
Which is required to be maintained by or
under any law for the time being in force
21
22. Fault In the
Imperfection Quality
Shortcoming Or Standard and
Inadequacy Manner of performance
Which is required to be maintained by or
under any law for the time being in force
22
24. To have access to basic, essential goods and services:
adequate food, clothing, shelter, health care, education
and sanitation.
24
25. • 31% respondents believe that the water from these sources is not potable,
hence not safe for drinking
• Only 24% respondents are aware about government Sanitation
Program/schemes
• 77% consumers feel the need of a regulator for private schools.
• Only 4% consumers have access to internet.
• About 74% of the respondents who tried to access govt. housing finance or
bank finance scheme believe that finance is not easily accessible and affordable
• According to 59% respondents doctors do not generally prescribe generic or
competitively priced drugs/medicines.
25
26. Only 44% respondents consider cost of obtaining healthcare services
affordable
About 56% of those who use LPG or kerosene as their primary source of
energy for cooking have reported incidence of obtaining LPG/kerosene from
black market. About 20% of them always obtain LPG or Kerosene from black
market.
Only 22% respondents are satisfied with Government’s effort to ensure
adequacy, accessibility and affordability of basic needs.
53% respondents strongly believe that right to basic needs should be enacted
as a legal right.
26
27. The right to be protected against marketing
of goods and services which are hazardous to
life and property.
27
28. 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 of Acid,
Paints, Mosquito Coils, Beverages and Electronic Items.
28
29. The right to be informed about quality,
quantity, potency, purity, standard and price
of goods and services.
29
32. It means whenever possible ,access to
variety of goods and services at competitive
prices.
32
33. Right to Choice
Products/Services which Should Offer
Only few consumers are aware about Portability
competition issues and their importance to
protect interests of consumers.
only 1.6% respondents were able to correctly Insurance 15
name at least one product/service which has
only one or two producers/providers. LPG
17
Connection
Apart from availability, cost of
alternatives, transaction fee, documentation Electricity 15
are the main barriers before consumers in
choosing alternative service/products. School/College
12
Admission
Consumers believe that there is need to Bank Account
promote more free & fair competition in 60
Aviation, Education, Oil & Gas, Railway and Number
Real –Estate.
0 50 100
33 33
35. Right to be Heard
/Consumer Representation
Hurdles in ensuring effective consumer
representation/ participation
Only 23% are aware about
Participation do not
the process of public result in framing of 5
consultation or consumer consumer friendly…
representation.
Date/time and
In rural area only 18% Objective of public 6
respondents are aware consultation are not…
About 28% of those who
are aware about public Lack of interest among
25
consultation or consumer people to participate
representation have also
participated Lack of awareness
64
among people
0 20 40 60 35
80
35
36. It means right to seek redressal against unfair
practices or restrictive trade practices or
unscrupulous exploitation of consumers.
36
37. Right to Redressal
61% normally voice their complaints to seller, at first point
When it come to actual situation - 93% respondents have never made a formal
complaint
Only 0.3% respondents have approached consumer for a 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.
37
38. It means the right to acquire the knowledge and
to be an informed consumer.
38
39. 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.
39
40. To live and work in an environment which is
non-threatening to the well-being of present
and future generations.
40
41. RIGHT TO A HEALTHY
ENVIRONMENT
Awareness regarding environmental
friendly certifications
Only 9% respondents are aware about
certifications and initiatives.
Awareness about such certifications is
Yes
largely among residents of southern (18%) 9%
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 No
91%
About 63% are willing to pay some extra
money to buy such products
41
43. 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 NATIONAL COMMISSION
State Commission and
STATE COMMISSION
National Consumer Disputes
DISTRICT FORUM
redressal Commission.
43
44. Power or right of a legal or political agency to exercise its authority over
a person ,subject matter, or territory.
Forum / Commission Where the value of the goods or
services and the compensation, if
any claimed,
District Forum Does not exceed 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.
44
45. 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.
45
46. 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
46
47. The Fee for filing the Complaint for the district forum is as under
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.)
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48. 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
48
50. shall be filed within thirty days.
Delay in filing appeal may be condoned if there is
sufficient cause.
50
51. Within two years from the date on
which the cause of action has arisen.
51
52. 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
52
53. 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.
53
54. National Consumer Helpline
You may call on the following toll free number
1800-11-4000
(from MTNL or BSNL)
for guidance and information on consumer issues
54
55. Remind Ourselves
24 December
National Consumer Day
15 March
World Consumer Rights Day
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56. 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.
56
57. 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..
57
58. 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
brain TB 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 brain TB
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.
58
59. Google to face action over privacy rules
PARIS: European data protection agencies intend to take action against the US
internet giant Google after it failed to follow their orders to comply with EU
privacy laws, a French agency said.
In October the data protection agencies warned Google that its new
confidentiality policy did not comply with EU laws and gave it four months to
make changes or face legal action.
"At the end of a four-month delay accorded to Google to comply with the
European data protection directive and to implement effectively (our)
recommendations, no answer has been given," said France's CNIL data
protection agency.
It said that European data protection agencies planned to set up a working
group to "coordinate their coercive actions which should be implemented
before the summer."
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60. European data agencies are to meet next week to approve the action plan, said CNIL,
which said it is leading the effort.
Google rolled out the new privacy policy in March 2012, allowing it to track users across
various services to develop targeted advertising, despite sharp criticism from US and
European consumer advocacy groups.
It contends the move simplifies and unifies its policies across its various services such
as Gmail,YouTube, Android mobile systems, social networks and Internet search.
But critics argue that the policy, which offers no ability to opt out aside from refraining
from signing into Google services, gives the operator of the world's largest search engine
unprecedented ability to monitor its users.
Google reiterated on Monday that its confidentiality policy is in line with European law.
"Our privacy policy respects European law and allows us to create simpler, more effective
services," Google said in a statement following CNIL's announcement.
60
61. The California-based firm said previously that the changes are designed to improve the
user experience across the various Google products, and give the firm a more integrated
view of its users, an advantage enjoyed by Apple and Facebook.
But critics argue that the policy, which offers no ability to opt out aside from refraining
from signing into Google services, gives the operator of the world's largest search engine
unprecedented ability to monitor its users.
Google reiterated on Monday that its confidentiality policy is in line with European law.
“Our privacy policy respects European law and allows us to create simpler, more effective
services," Google said in a statement following CNIL's announcement.
The California-based firm said previously that the changes are designed to improve the
user experience across the various Google products, and give the firm a more integrated
view of its users, an advantage enjoyed by Apple and Facebook.
"We have engaged fully with the CNIL throughout this process, and we'll continue to do
so going forward," it added.
61
62. European data protection agencies had recommended to Google that it
improve information provided to users, particularly on the categories of
data being processed, and for what purposes and services.
CNIL said they had also asked Google to specify precise periods it would
hold onto personal data.
CNIL said that by Monday that Google had not provided "any precise and
effective answers to their recommendations.“
Given Google's failure to act, "EU data protection authorities are committed
to act and continue their investigations," said CNIL, adding they would
meet on February 26 to approve a working plan on their actions against
Google.
62
63. • 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.
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