consumer protection act new

1. CONSUMER PROTECTION ACT 1986
Consumer Law
• "MODU" or "consumer law" regulates private law relationships between individual consumers
and the businesses that sell those goods and services. • IT deal with credit repair, debt repair,
product safety, service and sales contracts, bill collector regulation, pricing, utility turnoffs,
consolidation, personal loans that may lead to bankruptcy and much more.
CONCEPT OF CONSUMER PROTECTION
• Consumer protection means safeguarding the interest and rights of consumers. In other words,
it refers to the measures adopted for the protection of consumers from unscrupulous and
unethical malpractices by the business and to provide them speedy redressal of their grievances
CPA is an enacted in the parliament of India in 1986 in the context of the International
resolution on consumer rights in 1985. The purpose of the Act is to;
a. Make provision for the establishment of consumer councils.
b. Make provision for the establishment of consumer authorities for settlement of
consumer disputes.
c. and for matters connected there with.
DEFINITIONS UNDER CONSUMER PROTECTION ACT 1986.
Who is a “Consumer”?
According to Section.2 (i) (d) • Consumer is one who :- – Buys any goods for a consideration
and includes a hire-purchaser; – Any user of such goods for consideration but excludes one, who
obtains for re-sale or for commercial purposes; – Hires a service for consideration and includes a
beneficiary of such service, if availed of with the approval of the hirer.
What is “Goods”?
According to Section 2 (7) of the sales of goods ACT, goods means, ― every kind of movable
property other than actionable claims and money. Include stock, shares, grass and things
attached to, or forming part of the land which are agreed to be served before sale or under the
contract of sale.
What is “Services” ?
– According to [section.2(o)] :- ―service‖ means service of any description which is made
available to potential users and includes the provision of facilities in connection with banking,
financing, insurance, transport, processing, supply of electricity or other energy board or lodging
or both purveying of news or other information, but does not include the rendering of any service
free of charge or under a contract of personal service.
What is a “Complaint” ?
An allegation in writing by a complainant that:
 An unfair or restrictive trade practice is practiced by trader or service provider
 Goods bought or to be bought or services hired or to be hired suffered from any
deficiency
 Service hired or availed of or agreed to be hired or availed by him suffers from
deficiency

2.  Trader or service provider has charged excess price
 Goods and services are hazardous or are likely to be hazardous to life and safety.
Who is a “Complainant”?
o A consumer
o Any voluntary consumer association registered under the Companies Act or any other
law
o Central or State Government, if it makes a complaint
o One or more consumers having same interest
o In case of death of a consumer, his legal heir or representative.
A Consumer Dispute arises when a complaint is denied or disputed.
What is “Defect in “Goods”?
According to section.2 (1) (f) - "defect" means any fault, imperfection or shortcoming in the
quality, quantity, potency, purity or standard which is required to be maintained by or under any
law for the time being in force under any contract, express or implied or as is claimed by the
trader in any manner whatsoever in relation to any goods;
What is “Deficiency in Service” ?
• Deficiency means – a fault, imperfection, shortcoming or inadequacy in quality, nature, or
manner of performance than is required.
• Service‘ includes – service in connection with banking, financing, insurance, transport,
processing, supply of electrical and other energy, boarding or lodging, housing construction,
entertainment, amusement or purveying of news and other information – but does not include
any service free of charge or under a personal contract.
What is “Unfair Trade Practices”?
"Unfair Trade Practice" means a trade practice which, for the purpose of promoting the sale, use
or supply of any goods or for the provision of any service, adopts any unfair method or unfair or
deceptive practice
NEED FOR CONSUMER PROTECTION
1. Social responsibility
2. Misleading advertisement
3. Consumer satisfaction
4. Principle of social justice
5. Principle of trusteeship
6. Unfair trade practices
7. Physical protection
SCOPE OF COMSUMER PROTECTION ACT
1. Protect the rights of consumers
2. Redressal to consumer disputes
3. Applied to all goods and services
4. Covers all the sectors
5. Compensatory in nature
6. ACTs are in addition to and not in derogation of the provisions
7. Establishment of protection council
FEATURES OF CONSUMER PROTECTION ACT
1. Provision for better protection
2. Establishment of consumer councils

3. 3. Promotion of rights
4. Speedy redressal machinery
5. Provides effective safe guards
6. Manga-Carta of Indian consumers
FEATURES OF CONSUMER PROTECTION ACT
• It applies to all goods, services and unfair trade practices unless specifically exempted by the
Central Government.
• It covers all sectors whether private, public or co-operative.
• It provides for establishment of consumer protection councils at the central, state and district
levels to promote and protect the rights of consumers and a three tier quasijudicial machinery to
deal with consumer grievances and disputes.
OBJECTIVES
• To protect the consumer from abuse.
• To provide a venue for grievance /redress.
• To ensure a better quality of living by improving the quality of consumer products & services.
IMPORTANCE OF CONSUMER PROTECTION ACT
 Importance from Consumer’s Point of view:
o Unorganised Consumers-In developing countries like India, consumers are not
organised.
o Ther are very few consumer organistions which are working to protect the interest
of consumers.
o Consumer protection provides power and rights to these organsation as these
organisations can file a case behalf of customer.
 Consumer Ignorance-
o It spreads awareness so that consumer can know about the various redressal
agencies where they can approach to protect their interests.
o Wide Spread Exploitation of Consumer’s-There is lot of exploitation of consumers as
businessmen use various unfair trade practices to cheat and exploit consumers.Consumer
protection provides safe guard to consumers from such exploitation.
 Importance from Businessmen’s Point of View:
o Businessman Uses Society’s Resources- Businessmen use the resources of society. They
earned profit by supplying goods and services to the members of society. They must use
these resources for the benefits of consumers.
 Social Responsbilities-A businessman has social obligations towards customer. It is
responsbility of businessmen to provide quality goods at reasonable price. Consumer
protection guides businessman to provide social responsibilities.
 Government Intervention-If businessman want to avoid intervention of govt. then
they should not involve in unfair trade practices. Businessman should voluntarly
involve in the activities which protect the interest of consumer
 Consumer is the Purpose of Business-The basic purpose of the business is to create
more and more customers and retain them and businessmen can create more
customers only by satisfying the customers and protecting the interest of consumers.
SCOPE OF CONSUMER PROTECTION ACT
• Requirements to performance, composition, contents, design, construction, finish, packaging
of a consumer product
• Requirements as to kind, class, grade, dimensions, weights, material

4. • Requirements as to the methods of sampling, tests and codes used to check the quality of the
products
• Requirements as to precautions in storage, transporting and packaging
• Requirements that a consumer product be marked with or accompanied by clear and adequate
NEEDS OF CONSUMER PROTECTION ACT
The necessity of adopting measures to protect the interest of consumers arises mainly due to the
helpless position of the consumers.
 Social Responsibility- It is the moral responsibility of the business to serve the interest
of consumers. Keeping in line with this principle, it is the duty of producers and traders to
provide right quality and quantity of goods at fair prices to the consumers.
 Increasing Awareness- The consumers are becoming more mature and conscious of
their rights against the malpractices by the business. There are many consumer
organisations and associations who are making efforts to build consumer awareness
 Consumer Satisfaction- Father of the Nation Mahatma Gandhi had once given a call to
manufactures and traders to “treat your consumers as god”. Consumers’ satisfaction is the
key to success of business. Hence, the businessmen should take every step to serve the
interests of consumers by providing them quality goods and services at reasonable price.
 Survival and Growth of Business- The business has to serve consumer interests for
their own survival and growth. On account of globalisation and increased competition,
any business organisation which indulges in malpractices or fails to provide improved
services to their ultimate consumer shall find it difficult to continue.
 Principle of Trusteeship- Resources are supplied by the society. They are merely the
trustees of the resources and, therefore, they should use such resources effectively for the
benefit of the society, which includes the consumers.
RIGHTS OF CONSUMER
• Right to Safety
• Right to Information
• Right to Choice
• Right to be Heard
• Right to Seek Redressal
• Right to Consumer Education
• Right to Basic Needs
• Right to Healthy Environment
Right to Safety: To be protected against the marketing of goods or the provision of services that
are hazardous to health and life.
Right to Information: To be protected against dishonest or misleading advertising or labeling
and the right to be given the facts and information needed to make an informed choice.
Right to Choice: To choose products at competitive prices with an assurance of satisfactory
quality.
Right to representation: To express consumer interests in the making and execution of
government policies.
Right to Seek Redress:To be compensated for misrepresentation, shoddy goods or
unsatisfactory services.
Right to Consumer Education: To acquire the knowledge and skills necessary to be an
informed customer

5. Right to Basic Needs:which guarantee survival, adequate food, clothing, shelter, health care,
education and sanitation
Right to health environment: To live and work in an environment which is neither threatening
nor dangerous and which permits a life of dignity and well-being.
Consumer ProtectionCouncils S4 to 8
Under the Act, consumer protection councils have been established at central and state
level.
Central Council
 Central consumer protection councils consists of 150 members, is chaired by the minister
in charge of food and civil supplies in centre and must meet at least thrice in a year: at
such place and time as the chairman may think fit.
 Minister in charge of consumer affairs [chairman]
 Such other members representing various interests.
Meeting of central council
 At least one an year
 Place as decided by chairman
Objectives of Central council
 Protect against marketing goods / service [hazardous to life and property]
 Protect against unfair trade practices
 Ensure redressal against unfair trade practice
 Ensure competitive prices
 Protect consumer interest at appropriate forums
 Right to consumer education
State Consumer protection council
 Is chaired by Minister incharge of Consumer Affairs or Food and civil supplies.
 The numbers of members in the state council varies from state to state and it meets at
least twice in a year.
Objectives of state consumer protection council
[Same as the CC to protect state]
Consumer Dispute Redressal Agencies
Under the Act envisages setting up a three tier quasi judicial redressal mechanism:

6. 1. DISRICT FORUM
 It consists of a president and two other members. The president can be a retired or
working judge of District Court.
 District forum: This is established by State Government with at least one forum in each
district. Each forum consist of 3 members:
 A person who has been, or is qualified to be a District Judge as the President.
 A person of eminence in field of education, trade or commerce.
 A lady social worker, each of whom hold office
 for a term of five years or upto 65 years of age .
 The pecuniary jurisdiction of this is up to Rs. 5 lakhs.
 Its territorial jurisdiction extends throughout the local limits of the district.
 Any person aggrieved by an order passed by district forum may appeal to State
Commissions within 30 days from date of issue of order.
 Complaints shall be made
 A complaint may be filled with a District Forum by,
i. The consumer
ii. Any recognized consumer association
iii. One or more consumers , where there are numerous consumers having the
same interest, with the permission of the District Forum
iv. Central or State Government
 Every complaint filed shall be accompanied with prescribed fee
 On receipt of a complaint the district Forum may allow the complaints to be
proceeded with or rejected.
COMPLAINT PROCEDURE
Complaint to Dist. Forum
Copy to party by forum
Reply of party
Trial and Settlement
Appeal to State commission if any

7. 2. State Commission:
 It is at the level of state and compromise of following members:
(a) A person who is or has been a judge of a High court shall be the president.
(b) Two others members who shall be persons of ability, integrity and standing and
have adequate knowledge, or experience of, or have shown capacity in dealing with
problems relating to economics, law, commerce, accountancy, industry, public
affairs or administration; one of whom has to be a woman.
 State Commissions has jurisdiction to entertain complaints where value of
goods/services exceeds 5 lakhs rupees but is less than Rs. 20 lakhs.
 Appeals against the orders of any District Forum in the state.
 To call for case records of district forum and pass appropriate orders in any
consumer dispute pending before or decided by district forum.
 Any person aggrieved by an order made by state commission may appeal to
National commission within 30 days.
3. National Commission
 It is situated at New Delhi and consists of 5 members as follows:
o A person who is or has been a judge of supreme court shall be the president.
o Four other members who shall be persons of ability, Integrity and standing
and have knowledge or experience of, or have shown capacity in dealing
with problems relating to economics, law, commerce, accountancy, industry,
public affairs or administration, of which has to be a woman.
 Jurisdiction is to entertain complaints where the value of goods/services and the
compensation claimed is more than 20 lakhs.
 Appeals against the orders of any state commissions; to call for the case records
and pass appropriate orders in any consumer dispute which is pending/has been
decided by any state commissions.
 Any persons aggrieved by any order made by National Commission may appeal to
supreme court within 30 days of date of order.
Penalties: a party or person failing to comply with any order made by District Forum, state or
National commissions, shall be punishable :
(a) With imprisonment for a term more than month up to three years.
(b) With fine not less than Rs. 2,000 to Rs. 10,000.

8. Application of Consumer Protection Act In Hospitals
Who is liable?
• All medical/dental practitioners doing independent medical/dental practice unless rendering
only free service.
• All Private hospitals charging patients.
• All hospitals having free as well as paying patients and all the paying and free category patients
receiving treatment in such hospitals.
• Medical/dental practitioners and hospitals paid by an insurance firm for the treatment of a client
or an employment for that of an employee.
Duties of a doctor
On the basis of Codes of Ethics (MCI, 2002) and Declarations, the duties of a doctor are - • 1.
Duties to the Patient:
These are :
 Standard Care, Providing Information to the Patient /Attendant , Consent for Treatment,
and Emergency Care.
 Duties to the Public.
 Duties towards Law Enforcers.
 Duties not to violate Professional Ethics.
 Duties not to do anything illegal or hide illegal acts. 6. Duties to each other.
a) Doctor - patient Contract
• The doctor-patient contract is almost always of the implied type, except where a written
informed consent is obtained.
• An implied contract is where one person renders services under circumstances
indicating that he expects to be paid and the other person knowing such circumstances,
avails himself of benefit of those services Express consent
• Express oral consent is obtained for relatively minor examinations or therapeutic
procedures, preferably in the presence of a disinterested third party.
b) Informed Consent.
• Express written consent is to be obtained for :
o all major diagnostic procedures and surgical operations
o general anesthesia
o intimate examinations
o examination for determining age, potency and virginity, and in medico-legal cases
• Must be explained in comprehensible non-medical terms preferably in local language
about the
(a) diagnosis, (b) nature of treatment,(c) risks involved, (d) prospects of success, ( e)
prognosis if the procedure is not performed, and (f) alternative methods of treatment.
c) Reasonable Care
• It means that the degree of care and competence that an “ordinary competent member of
the profession who professes to have those skills would exercise in the circumstance in
question.”

9. • Generalist and specialist are expected to take reasonable care but what amounts to
reasonable care with regard to the specialist differs from what amount of reasonable care
is standard for the generalist.
• The law expects the specialist to exercise the ordinary skill of his speciality and not of
any ordinary doctor.
d) Professional Secrets
• A professional secret is one which a doctor comes to learn in confidence from his
patients, on examination, investigations or which is noticed in the ordinary privacies of
domestic life.
• A doctor is under a moral and legal obligation not to divulge any such secret except
under certain circumstances.
• Privileged communication is defined as a communication made by a doctor to a proper
authority who has corresponding legal, social and moral duties to protect the public.
Duty not to violate Professional Ethics
 Not to run a medical store / open shop for sale of medical and surgical instruments.
 Not to indulge in self-advertisement
 Not to associate with unregistered medical practitioner and not allow them to practice
 Not to issue false certificates and bills India
 Not to attend patient when under the effect of alcohol No fee sharing
 Not to talk loose about colleagues
 Not to refuse professional service on grounds of religion, nationality, race, party politics
or social status.
Duty not to do anything illegal or hide illegal acts
1. Perform illegal abortions / sterilization’s
2. Issue death certificates where cause of death is not known.
3. Not informing police a case of accident, burns, poisoning, suicide, grievous hurt, gas
gangrene.
4. Not calling Magistrate for recording dying declaration.
5. Unauthorized, unnecessary, uninformed treatment and surgery or procedure. Sex
determination
Prevention
• PREVENTION AT PERSONAL LEVEL
• PREVENTION AT PRACTICE
• PREVENTION BY PROFESSIONAL INDEMNITY
• PREVENTION BY PEOPLE SUPPORT GROUPS
PREVENTION AT PERSONAL LEVEL
• True and M.C.I. approved qualification, training & experience of recognized centers are the
primary safeguards against any litigation.
• Refrain from claims of guarantee of results.
Communication:
 This is the key to doctor-patient relationship.
 Increasing crowds of patients and improper communication to patient about diagnostics
and treatment procedures, complications and claims of guarantee success are main
reasons for patient dissatisfaction.
 Answer all queries of the patients/relative without getting irritated and patiently.
 Do not be averse of any demand/suggestion for second opinion by patient/relatives.

10.  Keep empathy
Interpersonal behaviour
 The whole system of medical establishment should be made courteous, and polite.
 The special training should be imparted to experts about dealing with patients/relatives
under grievous mental stress due to some loss/injury.
Academic & technical up gradation
 To keep pace with fast changing scenario of technical advancement, one should regularly
attend CME’s, workshops and other academic sessions should also be organized to
upgrade our junior staff and nursing team.
 A thorough knowledge of medical ethics and laws is essential for all medical
professionals.
 The key steps are exercising reasonable skill and care in diagnosis and treatment,
documentation and legally valid informed consent.
 The reasonable skill & care
 There are 3 aspects of reasonable skill and care
1. Medical
Medical aspect First and foremost it is imperative for every doctor/hospital/nursing
home to exercise reasonable skill and care expected of an average person with
equivalent qualification and experience in similar circumstances
2. Social
Social aspect We should always exhibit our reasonable skill and care to the
patient/attendants/relatives, through expressions, body language, actions and discussions.
These must be visibly palpable
3. Legal
• Make good clinical notes of findings on examination and treatment given with
specific dates and time.
• Negative records act as important tool while defending the cases in court of law.
• Please make sure that your handwriting is legible.
4. Medical ethics laws: A through knowledge of medical ethics and laws is essential
for all medical professionals. Unless we know about something we can not
improve/correct our practice standards so We should always try to get feedback
from our patients about our setup, our staff, charges etc.
5. Proper Documentation: Please make sure that handwriting is legible.
PREVENTION BY PROFESSIONAL INDEMNITY
• " indemnity " means reimbursement, to compensate. Insurance cover
• Provides the claim of compensation awarded against doctor/hospital
• Gives a sense of mental security (even in cases of same negligence).
• Arrange advocates for the legal help
 Insurance cover: Profession indemnity insurance is a tool which not only meets the
claim of compensation awarded against doctor/ hospital but also gives a sense of mental
security that even if same negligence is proved the insurance company will take care of it.
 Please clarify in detail about different individual premium rates of insurance in case of
insurance, Doctor/nursing home/hospital with qualified staff and unqualified but trained

11. staff because at time of paying compensation there are many such enquiries are made by
insurance company.
 The insurance companies not only pay the compensation to other party but also arrange
for the legal help from advocates because they some time join hand with other party for
monetary gains with an excuse that it’s the insurance not the doctor who is to pay the
compensation.
PREVENTION BY PEOPLE SUPPORT GROUPS
• Societies – – Provides social security – regular fellowship that prohibit the doctors speaking
foul against their own colleague.
• Acts as an update as time to time discussions about various provisions of acts, cases fought and
their results and the lessons learnt from them.
• Acts as a pressure group on the dissatisfied patient on moral and emotional grounds.
Implications For Health Professionals
o The doctor patient relationship is a “contract” under which the doctor must continue to
provide “reasonable” care as long as the patient is being treated by him/her.
o There are some high risk which need caution:
 Failure to attend to patients: Especially children with acute conditions.
 Retention of objects in operation sites: Swabs, packs, instruments can be left
behind if proper counting and retrieval is not done.
 Amputation of wrong limb or digit, extraction of wrong eye or tooth: The
reasons are carelessness in hospital notes, errors in pre-operative skin marking
and failure to check the name of patient in OT.
 Therapeutic Hazards: These can be avoided by administration of the right drug
in the right dose via the right route and informing patient/attendants of potential
risk of treatment.
 Medical Case Records: It is extremely important to fill up the case sheets
carefully and properly; as these can be produced in courts as evidence. In
complicated cases, negative findings should be mentioned.
 Consultations And referrals: These should be done in writing wherever
required.
 Channels of communications: it has often been found that lack or improper
communication regarding patient health/illness, leads to litigations. Hence, it is
important that patient or attendants should be informed about the diagnosis,
treatment and prognosis in Simple and understandable language.
 Prescription of non specific/Ayurvedic preparation: It is advisable not to
prescribe non specific or Ayurvedic preparation; as the knowledge regarding
constituents is not known.
CONSUMER PROTECTION IN HEALTH CARE
NEGLIGENCE
• Negligence is the conduct that falls below the standard of care.
• The standard of care is established by the law for the protection of consumers against
unreasonable practices which create risk or harm.
• Nursing Practice Act describe and define the legal boundaries of nursing practice within each
state. • The INC & SNC & the Universities regulate the standards of practice.

12. SOURCES OF NEGLIGENCE
• Medication errors.
• Intravenous therapy errors.
• Burn to client caused by equipment.
• Falls resulting in injury to the clients.
• Failure to use aseptic technique when required.
• Errors in sponge, instruments, needle etc.
• Failure to give report/ incomplete report.
• Failure to monitor a client’s condition.
• Failure to notify a physician a significant change in the client’s condition.
• With advancement in nursing and expanded role of nurses, nurses are in a position to take
independent decision.
• This increases their responsibility and commitment.
Nurse have to abide by the laws related to:
• Informed Consent for operation. • Invasive procedure.
• Correct identity.
• Correct medication and drugs.
• Medico legal records.
• Accuracy in documentation.
• Not to cross the line if some error has occurred.
• Care of valuables and money.
• Death and dying issues.
• Birth and death certificate.
• Procedures related to resuscitation, organ donation, autopsy, will.
ROLES / RESPONSIBILITIES OF A NURSE
• Nurses should not indulge in malpractice.
• Refuse medical practitioner indulging in malpractices.
• Organize health Education Programmes for the public and nurses regarding CPA.
PREVENTION OF ERROR
• Several suggestions are made for reducing error
• Leape suggests that many health care delivery systems, especially in hospital could be
redesigned to significantly reduce the likelihood of error.
1. Reduced reliance on memory by using checklists protocols and computerized decision
aids for prescription writing.
2. Improved information access with availability of computerized medical record at bedside.
3. Error proofing - use of forcing function in computer programmes so that a physician
cannot enter an overdose or prescribe a medication to which the patient is allergic.
4. Standardisation of drug doses and time of administration, of information displays,
equipment and supplies location in hospital.
5. Training of doctors, nursing and other staff in safe practice.