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Consumer Protection Act, 1986

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Consumer Protection Act, 1986

  1. 1. CONSUMER PROTECTION ACT, 1986 Rajesh Kumar MBA(Finance), ACS, AIII
  2. 2. OBJECTIVES OF THE ACT Protection from hazard to health & safety; Promote & protect economic interests; Protection of rights of the consumers Consumer education; Provide effective and speedier (90 days) redress; Freedom to form groups & present views in decision-making affecting consumers;
  3. 3. THE CONSUMER PROTECTION ACT, 1986 (ACT) Applicability Amendments Amendments in the year 1993 Amendments in the year 2002
  4. 4. WHO IS A CONSUMER?  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  * Consideration paid fully, partly or agreed to be paid
  5. 5. CONSUMERS PROTECTION AGAINST Unfair trade practice Restrictive trade practice Defects Deficiencies Excessive Price Hazardous goods
  6. 6. UNFAIR TRADE PRACTICE Adopting unfair methods or deception to promote sale, use or supply of goods or services (incl. need and usefulness) Misleading public about price Charging above MRP printed. Misleading public about another’s goods or services. Falsely claiming a sponsorship, approval or affiliation. Offering misleading warranty or guarantee. CONSUMERS’ PROTECTION AGAINST
  7. 7. CONSUMERS NEED PROTECTION AGAINST 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.
  8. 8. 8 WHAT IS A DEFECT ?  Fault  Imperfection  Shortcoming In the  Quality  Quantity  Potency  Purity Or  Standards Which is required to be maintained by or under any law for the time being in force
  9. 9. 9 WHAT IS A DEFICIENCY ?  Fault  Imperfection  Shortcoming Or  Inadequacy 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
  10. 10. CONSUMER'S RIGHTS 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
  11. 11. 11 WHAT IS A COMPLAINT? “Complaint” means any allegation in writing made my 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;
  12. 12. 12 WHAT IS A COMPLAINT? 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 . V. Hazardous Goods
  13. 13. 13 WHO IS A 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. 14. 14 WHO IS A CONSUMER ?  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.
  15. 15. 15 FILING OF COMPLAINTS A complaint may be filed by a) The consumer to whom the goods are sold or services are provided b) Any recognised consumer association c) One or more consumers with same interest d) The central government or state government
  16. 16. FORUM & JURISDICTION  Consumer Disputes Redressal Forums (District Forum)  Claims less than or equal Rs.20 lacs.  Consumer Disputes Redressal Commissions (State Commission) Claim more than Rs.20 lacs & less than Rs.1 crore & appeals.  National Consumer Disputes Redressal Commission (National Commission) Claim equal to Rs.1 crore & appeals
  17. 17. REQUISTIES OF A COMPLAINT  Who can file a complaint  Where to file a complaint  How to file a complaint  What constitutes a complaint?  Procedure for filing the appeal  Time Limit: 2 years
  18. 18. ESSENTIAL INFORMATION IN THE APPLICATION 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
  19. 19. BENEFITS & RELIEFS 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.
  20. 20. THANK YOU

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