Jens Martensson 2
This Photo by Unknown Author is licensed under CC BY-SA-NC
Mehak Goyal
Jens Martensson
Summary
Key Terms Which we are going to learn in chapter
• Consumer Protection-Concept
• Consumer Protection-Importance
• Scope of Consumer Protection Act,1986
• Who is a consumer?
• Consumer Rights
• Responsibilities of consumers
• Who can file a case and against whom?
• Legal redressal machinery
• Remedies available to consumer
• Role of Consumer Organisation and NGOs.
3Mehak Goyal
Jens Martensson
Consumer Protection
Introduction
• Consumer is said to be king of market
• Caveat Emptor (let the buyer beware) changed
into Caveat Venditor(let the seller beware)
• Motive to Increase sales results in exploitative,
unfare trade practices like
blackmarketing,adulteration etc.
• To protect the consumer from these unfair trade
practices,cheating etc is called consumer
protection.
4Mehak Goyal
Jens Martensson
Importance of consumer protection
From point of view of consumer and business
From point of view of consumer
• Ignorance of consumer towards
their right and reliefs. It is
necessary to educate them.
• Consumers need to be organized
in the form of consumer
organization to take care of their
interest.
• Consumers are exoploited by
sellers . It is necessary to protect
them from malpractices.
From point of view of Business
• Long term interest of business can
be complete by only satisfying
consumer that will lead to
repeated sales.
• Responsibility towards society as
business is taking resources from
society.
• Social responsibilities towards
consumer as they are taking
money from consumers.
• Moral duty to avoid exploitation.
• To avoid govt intervention.
5Mehak Goyal
Jens MartenssonMehak Goyal
6
Jens Martensson
• Protect the rights of consumers
• Redressal to consumer disputes
• Applied to all goods and services
• Covers all the sectors
• Compensatory in nature
• ACTs are in addition to and not in take away the
provisions
• Establishment of protection council.
Mehak Goyal
7
Consumer Protection Act,1986
Scope of Act
CPA
Unfair trade
practices
Jens Martensson 8Mehak Goyal
• Generally understood as a person who uses
or consumes or avails of any service.
• But under CPA,1986 , a consumer is
 Any person who buys any goods for a
consideration,which has been paid or
promised, partly paid and partly promised,
or under any scheme of deferred payment.
 Any person who hires or avails of any
service for a consideration,which has been
paid or promised, partly paid and partly
promised, or under any scheme of deferred
payment.
 It does not include a person who obtains
goods or services for commercial purposes.
Jens Martensson
• The right to be protected from all kind of
hazardous goods and services
• The right to be fully informed about the
performance and quality of all goods and
services
• The right to free choice of goods and services
• The right to be heard in all decision-making
processes related to consumer interests
• The right to seek redressal, whenever
consumer rights have been infringed
• The right to complete consumer education
Mehak Goyal
9
Consumer Rights
Defined under Consumer Protection Act,1986
Jens Martensson
• Be aware of different goods and services to
make choice.
• Buy standardised good by looking for respective
marks.(given in picture)
• Learn about risk associated ,follow instructions
and use product safely
• Read labels carefully
• Get a fair deal
• Honest in your dealings
• Ask for cash memo which will serve as proof
• File case in approproiate forum
• Respect environment and form consumer
societies.
Mehak Goyal
10
Consumer Protection Act,1986
Consumer Responsibilities
Jens Martensson
Who can file a complaint and against whom?
Who can file a complaint?
• Any consumer can file a complaint
on his/her own and does not need
the services of advocate.
• Registered consumer association
• Central and state government
• One or more customers having
same interest
• Heir/representative of deceased
consumer
• Complaint under sec2(b) of CPA
Against whom
• For defective goods complaint can
be filed against seller and
manufacturer
• For deficiency of services
complaint can be filed against
service providers.
11Mehak Goyal
Jens Martensson
• District Forum:Total 644 in India,consist 1
president and 2 members(1men and 1
women),appointed by state govt
concerned,value of goods and services along
with compensation claimed should not exceed
Rs 20 lakhs, good can be sent for testing if
required,if party is not satisfied, file complaint in
state commission within 30 days of passing of
order.
• State Commission : Total 365 in India,consist 1
president and minimum 2 members(one should
be women),appointed by state govt,value of
goods or services range between 20 lakhs and
1 crore,cases of district forum can be filed,good
can be sent for testing in laboratory,file
complaint against orders before national
commission within 30 days.
Legal Redressal Machinery
Mehak Goyal
12
• National Commission : Has territorial jurisdiction over whole country,consists one president and at
least 4 members,appointed by central govt,value of good should exceed 1 crore,order appealable in
supreme court . When value of good exceed 1 crore.
Jens Martensson
• To remove defect or deficieny in goods and services respectively
• To replace prodect with new one free from defect
• To refund the price or charges
• To pay a reasonable amount of compensation
• To discontinue unfairrestrictive trade practices
• Not to offer and withdraw hazardous goods for sale
• To pay any amount (not less than 5% ) in consumer welfare fund
• To issue corrective advertisement
• To pay adequate cost
Mehak Goyal
13
Relief available to consumers
Jens MartenssonMehak Goyal
14
Role of Consumer organization and NGOs
In consumer protection (last topic)
• Educating general public about consumer rights
• Publishing Perodicals to impart knowledge in
field of consumer protection
• Carry out testing of consumer products and
publishing them for public benefits.
• Encouraging consumers to fight for rights
• Providing legal assistance
• Filing cases in consumer corts in the interest of
general public.
• Some common NGOs are Consumer
Coordination Council ,CGSI in Mumbai,VOICE
in Delhi.
Slides are designed by
Jens Martensson taken by
internet.

Consumer Protection

  • 2.
    Jens Martensson 2 ThisPhoto by Unknown Author is licensed under CC BY-SA-NC Mehak Goyal
  • 3.
    Jens Martensson Summary Key TermsWhich we are going to learn in chapter • Consumer Protection-Concept • Consumer Protection-Importance • Scope of Consumer Protection Act,1986 • Who is a consumer? • Consumer Rights • Responsibilities of consumers • Who can file a case and against whom? • Legal redressal machinery • Remedies available to consumer • Role of Consumer Organisation and NGOs. 3Mehak Goyal
  • 4.
    Jens Martensson Consumer Protection Introduction •Consumer is said to be king of market • Caveat Emptor (let the buyer beware) changed into Caveat Venditor(let the seller beware) • Motive to Increase sales results in exploitative, unfare trade practices like blackmarketing,adulteration etc. • To protect the consumer from these unfair trade practices,cheating etc is called consumer protection. 4Mehak Goyal
  • 5.
    Jens Martensson Importance ofconsumer protection From point of view of consumer and business From point of view of consumer • Ignorance of consumer towards their right and reliefs. It is necessary to educate them. • Consumers need to be organized in the form of consumer organization to take care of their interest. • Consumers are exoploited by sellers . It is necessary to protect them from malpractices. From point of view of Business • Long term interest of business can be complete by only satisfying consumer that will lead to repeated sales. • Responsibility towards society as business is taking resources from society. • Social responsibilities towards consumer as they are taking money from consumers. • Moral duty to avoid exploitation. • To avoid govt intervention. 5Mehak Goyal
  • 6.
  • 7.
    Jens Martensson • Protectthe rights of consumers • Redressal to consumer disputes • Applied to all goods and services • Covers all the sectors • Compensatory in nature • ACTs are in addition to and not in take away the provisions • Establishment of protection council. Mehak Goyal 7 Consumer Protection Act,1986 Scope of Act CPA Unfair trade practices
  • 8.
    Jens Martensson 8MehakGoyal • Generally understood as a person who uses or consumes or avails of any service. • But under CPA,1986 , a consumer is  Any person who buys any goods for a consideration,which has been paid or promised, partly paid and partly promised, or under any scheme of deferred payment.  Any person who hires or avails of any service for a consideration,which has been paid or promised, partly paid and partly promised, or under any scheme of deferred payment.  It does not include a person who obtains goods or services for commercial purposes.
  • 9.
    Jens Martensson • Theright to be protected from all kind of hazardous goods and services • The right to be fully informed about the performance and quality of all goods and services • The right to free choice of goods and services • The right to be heard in all decision-making processes related to consumer interests • The right to seek redressal, whenever consumer rights have been infringed • The right to complete consumer education Mehak Goyal 9 Consumer Rights Defined under Consumer Protection Act,1986
  • 10.
    Jens Martensson • Beaware of different goods and services to make choice. • Buy standardised good by looking for respective marks.(given in picture) • Learn about risk associated ,follow instructions and use product safely • Read labels carefully • Get a fair deal • Honest in your dealings • Ask for cash memo which will serve as proof • File case in approproiate forum • Respect environment and form consumer societies. Mehak Goyal 10 Consumer Protection Act,1986 Consumer Responsibilities
  • 11.
    Jens Martensson Who canfile a complaint and against whom? Who can file a complaint? • Any consumer can file a complaint on his/her own and does not need the services of advocate. • Registered consumer association • Central and state government • One or more customers having same interest • Heir/representative of deceased consumer • Complaint under sec2(b) of CPA Against whom • For defective goods complaint can be filed against seller and manufacturer • For deficiency of services complaint can be filed against service providers. 11Mehak Goyal
  • 12.
    Jens Martensson • DistrictForum:Total 644 in India,consist 1 president and 2 members(1men and 1 women),appointed by state govt concerned,value of goods and services along with compensation claimed should not exceed Rs 20 lakhs, good can be sent for testing if required,if party is not satisfied, file complaint in state commission within 30 days of passing of order. • State Commission : Total 365 in India,consist 1 president and minimum 2 members(one should be women),appointed by state govt,value of goods or services range between 20 lakhs and 1 crore,cases of district forum can be filed,good can be sent for testing in laboratory,file complaint against orders before national commission within 30 days. Legal Redressal Machinery Mehak Goyal 12 • National Commission : Has territorial jurisdiction over whole country,consists one president and at least 4 members,appointed by central govt,value of good should exceed 1 crore,order appealable in supreme court . When value of good exceed 1 crore.
  • 13.
    Jens Martensson • Toremove defect or deficieny in goods and services respectively • To replace prodect with new one free from defect • To refund the price or charges • To pay a reasonable amount of compensation • To discontinue unfairrestrictive trade practices • Not to offer and withdraw hazardous goods for sale • To pay any amount (not less than 5% ) in consumer welfare fund • To issue corrective advertisement • To pay adequate cost Mehak Goyal 13 Relief available to consumers
  • 14.
    Jens MartenssonMehak Goyal 14 Roleof Consumer organization and NGOs In consumer protection (last topic) • Educating general public about consumer rights • Publishing Perodicals to impart knowledge in field of consumer protection • Carry out testing of consumer products and publishing them for public benefits. • Encouraging consumers to fight for rights • Providing legal assistance • Filing cases in consumer corts in the interest of general public. • Some common NGOs are Consumer Coordination Council ,CGSI in Mumbai,VOICE in Delhi.
  • 15.
    Slides are designedby Jens Martensson taken by internet.