Derived from two Greek words:“Monos” means single “Poly” means seller Monopoly is a term used by economists to refer to the situation in which there is a single seller of a product (i.e., a good or service) for which there are no close substitutes. Monopolies exist because of barriers to entry into the market that prevents competition.

1. “NEED FOR CONSUMER PROTECTION ACT IN AN ERA
OF FREE COMPETITION WHERE CONSUMER IS A KING
THEREFORE , KING NEEDS PROTECTION”

2. INTRODUCTION
1) Caveat Emptor Rule( let the buyer beware) in The Sale of Goods Act, 1930
sprout the root of consumer interest protection.
2) In India The Consumer Protection Act was enacted in 1986 by Loksabha.
3) The act aimed at providing simple,cheap,quick protection of consumer rights.
4) The law relating to consumer protection is contained in the act which applies to
all goods and services.
5) Consumer protection is a socio-economic program to be pursued by the
government as well as the businesses.

3. NEED FOR THE CONSUMER PROTECTION ACT
● Protection from exploitation
● Redressal of complaints
● Bulletins and periodicals
● Encouraging honest businessmen
● Connection Link
● Unity
● Quality life for Consumer
● Ethical obligations

4. SCOPE OF THE ACT
● Applicability- statewise
● Applicability- goods and service wise
● Applicability- cases
● Redressal forum which includes three judicial system that is setup to
provide relief to the consumers.
● A suit pending in civil court cannot be heard in consumer court.

5. OBJECTIVES
● Protection against unfair trade practices - Government initiatives-
Grievances Against Misleading Advertisements (GAMA) and Grahak Suvidha
Kendras
● Protection against all types of pollution - steps being taken by the
Government i.e environment minister Harsh Vardhan to control pollution
● Protection of enjoying the rights - Government Schemes - Jago Grahak
Jago, CGSI, and several NGO’s for the awareness and protection of
consumer rights

6. DEFINITIONS - CONSUMER
For Goods:
A person buys any goods for a consideration which has been paid or promised or partly paid and partly
promised, or under any system of deferred payment includes any user of such goods other than the person
who buys such goods for consideration, when such use is made with the approval of such person.
DOES NOT INCLUDE - a person who obtains such goods for resale or for any commercial purpose.
For Services:
Hiring or Availing of any services for a consideration which has been paid or promised or partly paid and
partly promised, or under any system of deferred payment includes any beneficiary of such services other
than the person who 'hires or avails of the services , when such services are availed of with the approval of
the first mentioned person.
DOES NOT INCLUDE- who avails of such services for any commercial purposes.
AMENDMENT- for this clause buying of goods, hiring/availing of services is inclusive of the transaction
made through online and offline mode.

7. DEFINITION - PERSON(amendment)
"Person" includes,-
● Individual
● A firm whether registered or not;
● A Hindu undivided family;
● A co-operative society;
● Every other association of persons whether registered under the Societies Registration Act, 1860.
● Company
● Partnership firm
● Joint stock company
or any other entity including any government entity or unincorporated association of persons.
- INSTANCES OF PERSON HELD AS CONSUMER
- INSTANCES OF PERSON NOT HELD AS CONSUMER

8. DEFINITIONS- TRADER and MANUFACTURER
I) TRADER
● Sells the goods
● Distributes any goods for sale.
● Manufacturer of goods for sale
● Packer of goods.
II) MANUFACTURER
● Makes or manufactures any goods or parts thereof.
● Assembles parts of the goods made or manufactured by others and claims the end product to be goods
manufactured by himself
● Puts his own mark on any goods aid or manufactured by any other manufacturer and claims such goods to be goods
made or manufactured by him.
AMENDMENT - affixing liability on a manufacturer or producer and even a product seller

9. III) RESALE AND COMMERCIAL PURPOSE
● Person who obtains goods for resale or commercial purpose is not consumer.
● CASE: Laxmi engineering works v/s P.S.G. Industrial Institute - April, 1995
IV) COMPLAINANT
● A consumer
● Any voluntary consumer association registered under Companies Act, 2013.
● The Central Government or any State Government.
● One or more consumers, where there are numerous consumers having the same interest.
● BY PTI FEBRUARY 23, 2017 Landmark decision for home buyers: SC allows flat buyers to directly
approach apex consumer commission

10. COMPLAINT
An allegation in writing to council by an applicant
• It is a formal legal document that sets out the facts and legal reasons
Complaint is filed for
❖ Defects in goods
❖ Deficiency in service
❖ Charging excessive price
❖ Hazardous goods
❖ Unfair trade practices

11. Consumer Dispute:
Where the person against whom a complaint has been made, denies or disputes
the allegations contained in the complaint.
Amendment: Setting up a ‘circuit bench’.
Service:
Service is made available to potential users.
INCLUSION: banking,finance,transport,amusement, providing or supplying of
news,supply of electrical or other energy, housing, construction,etc.
EXCLUSION: Services rendered free of charge or under a contract of personal
service.

12. UNFAIR TRADE PRACTICES
Any unfair method or deceptive practice used for supplying the goods or for the promotion of sales.
TYPES OF UNFAIR TRADE PRACTICES
● False representation.
● False offer of bargain price.
● Free gifts offer and prize scheme.
● Non-compliance of prescribed standards.
Amendment: If a consumer buys goods or services through e-commerce or telemarketing on
being influenced by mere advertisements and has not conducted any inspection or examination of
product or service , then such consumer has a right to ask for return , refund and replacement in
case of non satisfaction.

13. RESTRICTIVE TRADE PRACTICE
Any trade practice which requires a consumer to buy, hire or avail of any goods or services
as a condition precedent for buying, hiring or availing of other goods or services”.
Example : A, gas distributor insisted his customers to buy gas stove as a condition to give
gas connection.
Defect: It means any fault, imperfection or shortcoming in the quality, quantity, purity or
standard in relation to any goods.
Deficiency: It means any fault, imperfection, shortcoming or inadequacy in the quality,
nature and manner of performance of services.
Amendment: Disclosure of personal information under provisions of law is not construed as
deficiency of service.

14. RIGHTS OF THE CONSUMER

15. 1) Right to Safety
Right to be protected against marketing of goods which are hazardous to life and property.

16. 2) Right to be Informed
Right to be informed about the quantity, potency, purity, standard and price of goods to
protect the consumer against unfair trade practices.

17. 3) Right to be Heard
Right to be heard and to be assured that customer’ interests will receive due consideration
at appropriate forums.

18. 4) Right to Consumer Education
To acquire the knowledge and skills
necessary to be an informed customer.

19. 5) Right to Choice
To choose products at competitive prices with
an assurance of satisfactory quality.
6) Right to Redress
To be compensated for misrepresentation, defective goods or unsatisfactory
services.

20. COMPUTERISATION AND COMPUTER NETWORKING OF
CONSUMER FORA: (CONFONET)
● To enable dissemination of information leading to quicker disposal of cases.
● To strengthen the infrastructure on Consumer Fora through computerization and computer networking
across the country
● To assist Consumers by giving advice and guidance in Consumer related issues through National
Consumer Helpline and State Consumer Help line functioning in States/UTs across the country.
● To create avenues for Consumers for settlement of Consumer related cases through Mediation process
involving Voluntary Organizations and settlement of Grievances.
Amendment: Consumer Fora will have electronic form for filing complaints. Members of the political
parties are not allowed to be a President of Consumer Fora.

21. CGSI
● The Consumer Guidance Society of India (CGSI) is the first and foremost
consumer body of the country.The Society was founded by women activists in
the year 1966. Their aim was to protect the rights of consumers, who found
themselves helpless whenever they were supplied with defective goods or
services.
● CGSI’s involvement in consumer education is concentrated in rural areas on
the outskirts of Mumbai and among the urban poor.
● Over 32,000 people received consumer education in two years, through talks,
demonstrations and exhibitions. 107 training programs were organized and
5,700 potential activists were given special training in consumer activism.
This resulted in many local consumer groups in remote villages, set up by the
consumers themselves.

23. Jago Grahak Jago is a consumer awareness programme from Ministry of Consumer
Affairs, Government of India.The slogan 'Jago Grahak Jago' has now become a household
name as a result of the publicity campaign undertaken in the last 5 years. As part of the
consumer awareness scheme, the rural and remote areas have been given the top priority.
The Government has used multiple channels to create awareness it includes:
1.Printed Literature
2. Advertisement
3.Nukkad Nataks, etc.
JAGO GRAHAK JAGO

26. PENALTY
Where a trader or a person against whom a complaint is made or the complainant fails or
omits to comply with any order made by the District Forum, the State Commission or the
National Commission, as the case may be, such trader or person or complainant shall be
punishable with imprisonment for a term which shall not be less than one month but which
may extend to three years, or with fine which shall not be less than two thousands rupees
but which may extend to ten thousand rupees, or with both.
Amendment: The penalty for filing a frivolous complaint has also been proposed to be enhanced
from Rs 10,000 to Rs 50,000 to minimize baseless and false complaints.

27. RELIEF AVAILABLE TO THE CUSTOMERS
● Removal of defects from the goods
● Replacement of the goods
● Refund of the price paid
● Award of compensation for the loss or injury suffered
● Removal of defects or deficiencies in the services
● Discontinuance of unfair trade practices or restrictive trade practices or
direction not to repeat them
● Withdrawal of the hazardous goods from being offered to sale

28. COMPARISON OF INDIAN LAW WITH INTERNATIONAL LAW

29. Case study-1 Indian Medical Association vs VP
Shantha (1992)
1st Argument:
There was a difference in occupation and service. In law occupation was
included and not professional service. It was said that medical services are
contract of personal service.
Definition of service had 3 parts:
It included the main part the inclusionary and exclusionary. After the law was
passed it was declared that medical services are treated as services and the
potential users as consumer.

30. HIGHLIGHTS OF THE SUPREME COURT
● All medical practitioners doing independent practice unless rendering only
free services.
● Private hospitals charging all patients.
● All hospitals having free as well as paying patients .
● All the paying & free category patient receiving treatment in such hospitals.
● Medical practitioners and hospitals paid by an insurance firm for the treatment
of a client or an employment for that of an employee.

31. Case study-2 Maggi Ban
● The government of India filed a class action suit against Nestle.
● Seeking about RS 640 crore in damages for alleged unfair trade practice, false
labelling & misleading advertisement.
● After that Nestle had to withdraw it’s instant noodles brand maggi from the market
over allegations of high lead content .
● The ministry’s complaint accused Nestle of causing damage to Indian consumers
involving in unfair practice.