2. WHO IS A CONSUMER ?
• Consumer refers to any individuals or households that use goods and services generated within
the economy.
• Consumer is defined as someone who acquires goods or services for direct use or ownership
rather than for resale or use in production and manufacturing.
• For example, When your father buys apple for you and you consume them, your father as well as
yourself are treated as consumers. The same thing applies to hiring a taxi to go to school.
• According to Section 2(1) (d) (ii) of the Consumer Protection Act, a consumer is a person
who gets the service or work for which he/she has been paid or promised to be paid or
partly paid and partly promised or is under any other system of deferred payment.
3. 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 businesses and to provide
them speedy redressal of their grievances
4. WHY PROTECT THE CONSUMERS?
• Reasons for Enacting the Act
• Collective bargaining - sellers lobby or cartels (associations) artificially
keeping the prices high
• Multiple laws – like India contract act, sale of goods act, essential
commodities act governing the consumers
• Hurdles in the litigation - going to regular court is expensive & time
consuming
• Remedy punishment - in the form of punitive & deterrent measure (to
discourage someone from doing something)
5. CONSUMER PROTECTION ACT
• Consumer Protection Act was passed by parliament in 1986 and enacted for better protection of the
interests of consumers.
• In 1993, the Supreme Court brought the medical profession under the Section 2(1) (o) of CPA. Features: •
safeguard and protect the interest of consumers. • simplification of procedures for seeking redressal of
grievances of patients or their relatives. • less expensive • within a limited time framessssss
• Consumer Protection Act imposes strict liability on a manufacturer, in case of supply of defective
goods by him, and a service provider, in case of deficiency in rendering of its services.
• The scope of the act is wide enough to include a vast variety of services. Patients can also make a
complaint to a redressal forum in respect of defective services provided in their care
• This act concentrates on justice through consumer council authorities that finalize the related disputes.
Under this act the consumer can complain in a redressal forum.
6. NEED FOR CPA
• Drawbacks Indian Penal Code, Law of Contracts, Law of Torts and other specific
Legislation:
• (i) Delay to decisions
• (ii) High cost of bringing an actions
• (iii) limited access to the courts
• (iv) Difficult to prove both negligence and causation.
• No provisions in the Indian Medical Council Act, 1956 ; • (i) to entertain any
complaint from the patient ; (ii) to award any compensation, etc. in case the
negligence is proved
7. SALIENT FEATURES
• Through CPA, services rendered by medical practitioners for consultation and
treatment are kept free of charge.
• Under CPA, service charges are borne by the insurance company where relevant
and claimed by the affected person.
• CPA is not applicable in case of free health care service where no charge is made
to any per son, whether rich or poor.
8. OBJECTIVES
• Consumer does not permit any new right to the patient or their relatives. It is to-
• To create awareness among public about their rights.
• To protect the consumers from abuse.
• To provide a venue for grievance redressal when there is deficiency in services
and claims are made for damages arising out of such deficiencies.
• To ensure a better quality of living by improving the quality of consumer
products & services.
9. IMPORTANCE OF CONSUMER PROTECTION ACT
• Unorganized Consumers-In developing countries like India, consumers are not
organized. There are very few consumer organizations which are working to
protect the interest of consumers. Consumer protection provides power and
rights to these organization as these organizations can file a case behalf of
customer.
• Consumer Ignorance-It spreads awareness so that consumer can know about the
various redressal agencies where they can approach to protect their interests.
• Wide Spread Exploitation of Consumer's-There is lot of exploitation of consumers
as businessmen use various unfair trade practices to and exploit consumers.
Consumer protection provides safe guard to consumers from such exploitation.
10. 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
11. • 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.
12. • Right to Seek Redressal: 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
• Right to Basic Needs: which guarantee survival, adequate food, clothing, shelter, health
care, education and sanitation
• Right to healthy environment: To live and work in an environment which is neither
threatening nor dangerous and which permits a life of dignity and well-being.
13. THREE TIER CONSUMER GRIEVANCES
Machinery under the Consumer Protection Act, 1986 and their Jurisdiction
• District Forum
• State Forum
• National Forum
14. DISRICT FORUM
• It consists of a president and two other members. The president can be a retired
or working judge of District Court. Other two person’s are who have adequate
knowledge or experience in dealing with problems relating to various fields such as law,
economics, commerce, accounting, They are appointed by state.
• In 1986 it had jurisdiction to entertain complaints where the value of goods or
services does not exceeds Rs.5,00,000 but now the limit is raised to Rs.20 lakh.
• If the aggrieved party is not satisfied by the judgment of district forum then they
can file an appeal in State Commission within 30 days from the date of the order.
15. STATE FORUM
• It consists of a president and two other members. The president must be a retired or
working judge of high court.
• Two members (at least one of them should be a woman) who are specialists in
industry, commerce, law, accounting, administration or economics. They all are
appointed by state govt.
• In 1986, it had a jurisdiction to entertain complaints when the value of goods or
services between 5-20 lakh but now the limit is raised up to Rs.1 crore.
• If the upset party is not satisfied with the judgment then they can file an appeal in
National Commission within 30 days of the order.
16. NATIONAL FORUM
• It consists of total 5 members- one president and four members. A Supreme
Court judge will be the president of the commission and Four members who are
specialists in economics, commerce, law, accounting, administration or industry.
At least one of them should be a woman. They are appointed by Central Govt.
• In 1986,it had jurisdiction to entertain complaints where the value of goods or
services exceeds Rs.20 lakh but now exceeds Rs.1 crore.
