Consumer Protection Act presentation

1. CONSUMER PROTECTION ACT

2. Are consumers exploited in
India?

3. How are Indian Consumers
exploited?
 Exorbitant prices of products and services
 Deceptive selling practices
 False and Misleading advertisements
 Defective quality, higher prices
 Sale of hazardous products to ignorant
customers
 Suppression of material information
 False product differentiation

4. How are Indian Consumers
exploited?
 Producers’/ sellers’ collusion
 Supply of adulterated and substandard
products
 Cheating consumers by giving lesser quantity
for the price
 Dishonoured guarantees and warranties
 Poor redressal of customers’ genuine
grievances
 Creating a scare out of scarcity
 Making consumer buy unwanted goods

5. How are Indian Consumers
exploited?
 Fall in prices- never passed to consumers
 Buying unaffordable goods
 Advertisement cost
 Counterfeits
 Hoarding and black-marketing

6. Consumerism
 According to Philip Kotler consumerism is "a
social movement seeking to augment the rights
and powers of the buyers in relation to sellers".
 movement towards consumer protection that
promotes improvement in safety standards and
truthful packaging and advertisement
 the promotion of the consumer's interests
 also seeks to enforce laws against unfair trade
practices and truthful product guarantees.

7. Consumer Protection
 Consumer protection refers to the steps
necessary to be taken or measures required
to be accepted to protect consumers from
business malpractices.
 It may be regarded as a movement like
consumerism.This is primarily necessary
because businesspersons aim at maximizing
profits, often at the expense of consumers.

8. Parties to
Consumer
Protection
Consumers
Government
Businesses

9. Legislations to Protect
Consumers
 Agricultural Products Act, 1937
 Industries Act, 1951
 Prevention of Food Adulteration Act, 1954
 Essential Commodities Act, 1955
 Standards ofWeights and Measures Act, 1956
 Monopolies and RestrictiveTrade Practices Act,
1969
 Prevention of Black- marketing and maintenance
of Essential Supplies Act, 1980
 Bureau of Indian Standards Act, 1986
 Consumer Protection Act, 1986

10. Consumer Protection Act, 1986

11. Introduction
 In order to provide for better protection of the interests of
the consumer the Consumer Protection Bill, .1986 was
introduced in the Lok Sabha on 5th December, 1986.
 The Consumer Protection Act 1986 is a social welfare
legislation which was enacted as a result of widespread
consumer protection movement.
 The Consumer Protection Act, 1986 (COPRA) conferred a
legal right to the individual consumer to seek legal
redress or recover costs and damages for injury or loss
suffered by him or her as a result of faulty, defective
goods and services, bought or secured for valuable
consideration.

12. ObjectivesoftheAct
 to protect the interests and rights of
consumers
 To provide speedy and simple redressal to
consumer disputes.
 To ensure better quality of life by improving
quality of products and services

13. Definitions
 ‘Goods’, under the act mean every kind of
movable property, including stocks and shares,
growing crops and things attached to or forming
part of the land.
 ‘Service’ means service of any description which
is made available to potential users including
facilities in connection with banking, financing,
insurance, transport, processing, supply of
electrical or other energy, boarding or lodging or
both, entertainment, amusement or the
purveying of news or other information.

14. Definitions
 "complainant" means—
 a consumer; or
 any voluntary consumer association registered
under the CompaniesAct, 1956 (1of 1956)or under
any other law for the time being in force; or
 the Central Government or any State
Government,
 one or more consumers, where there are
numerous consumers having the same interest;
 in case of death of a consumer, his legal heir or
representative; who or which makes a complaint;

15. Definitions
Consumer {Sec. 2 (1) (d)}–
Any person who:
 Buys any goods for a consideration which has
been paid or will be paid.
 Hires or avails any service for a consideration
which has been paid or will be paid.
It does not include a person who obtains goods
for resale or any commercial purpose

16. Rights of
Consumer
Right to
Safety
Right to
Choose
Right to be
Informed
Right to be
Heard
Right to
Redressal
Right to
Consumer
Education

17. InstitutionalArrangementsunderthe
COPRA
Institutional
Arrangements
Consumer
Protection
Councils
Central
Consumer
Protection
Council
State
Consumer
Protection
Council
District
Consumer
Protection
Council
Consumer
Dispute
Redressal
Agencies
NATIONAL
COMMISSION
STATE
COMMISSION
DISTRICT
FORUM

18. ConsumerProtectionCouncils
 The act envisages the establishment of
Consumer Protection Councils at the national
and state levels.
 The council is basically advisory in nature.

19. TheCentralConsumerProtectionCouncil
Objects of the Central Council(Sec.6)
 The objects of the central council shall be to
promote and protect the rights of the consumer
 The Central Council shall give wide publicity to the
rights of the consumers and the consumer dispute
redressal agencies and procedure of filing
complaints therein through television, radio,
newspapers and magazines to give impetus to
consumer movement in the country.

20. StateConsumerProtectionCouncil
 The State Consumer Protection Council will be established in
each state by the respective State governments.
 The objects of the State Council are the same as those of the
Central Council
 The council consists of official and non-official members
representing consumer interest, as may be nominated or
appointed by the State government.
 The State Council shall meet as and when necessary, but not
less than two meetings shall be held every year.
 The State Government shall establish for every district, by
notification, a council to be known as the District Consumer
Protection Council with effect from such date as it may specify
in such notification.

21. DistrictConsumerProtectionCouncil
 The State Government shall establish for every district, by
notification, a council to be known as the District Consumer
Protection Council with effect from such date as it may specify
in such notification.
 The District Council shall meet at such time and place within
the district as the Chairman may think fit and shall observe
such procedure in regard to the transaction of its business as
may be prescribed by the State Government.
 The objects of every District Council shall be to promote and
protect within the district the rights of the consumers laid down

22. ConsumerDisputeRedressalSystem
Section 9 of the Consumer Protection Act provides
for the establishment of a three-tier system for the
redressal of consumer disputes at the district, state
and national levels
 The objective of the system is to provide cheap
and quick redressal of consumer grievances
 The act stipulates that a complaint relating to
any goods sold or delivered (or agreed to be sold
or delivered), or any service provided (or agreed
to be provided) can be filed with the appropriate
forum.

23. S.
N
o
Points of
Distinction
District Forum State
Commission
National
Commission
1 Territorial
Jurisdiction
One or more district One or more
state
All India
2 Composition President & two
members-one woman
President &
minimum two
members-one
woman
President &
minimum four
members-one
woman
3 Qualifications
for President
Serving or retired or
qualified to be a district
judge
Serving or retired
judge of high court
(appointed in
consultation with
chief justice of high
court necessary)
Serving or retired
judge of supreme
court . (appointed in
consultation with
chief justice of India
necessary)
4 Qualifications of
members
Age :35 years, bachelors
degree, 10 yrs experience in
economics, law,
ecommerce, accountancy
Same as for district
forum
Same as for district
forum

24. S.
N
o
Points of
Distinction
District Forum State
Commission
National
Commission
5 Disqualification
of members
1. Convicted & sentenced
to imprisonment for an
offence of moral turpitude
2. Undischarged solvent
3. Unsound mind
4. Removed or dismissed
from service.
5. has financial or other
interest.
6. Others as may be
prescribed
Same as for district
forum
Same as for district
forum
6 Selection
Committee
Chairman- President of
state commission.
Members – Secretary law ,
Secretary Consumer affairs
of Sate
Same as for district
forum
Chairman- SC judge
Members- Secretary
Deptt of legal affairs,
Secretary Deptt of
consumer affairs.
7 Term 5 yrs or age of 65 yrs
whichever is earlier
5 yrs or age of 67
yrs whichever is
5 yrs or age of 70 yrs
whichever is earlier

25. S.
N
o
Points of
Distinction
District Forum State
Commission
National
Commission
8 Eligibility for
reappointment
Yes Yes Yes
9 Monetary
Jurisdiction
(Ammendment
Act)
Up to 20 lakhs Between 20 lakhs
& one crore
More than one
crore
10 Administrative
control
State Commission National
Commission
Cent Govt
11 Limitation Up to 2 yrs from the date on which the cause of action arose

26. S.
N
o
Points of
Distinction
District Forum State
Commission
National
Commission
12 Appeal State commission
within 30 days of order.
50% of the amount
payable or Rs 25000/= ,
whichever is less to be
deposited by the
appellant
National
commission
within 30 days of
order. 50% of the
amount payable
or Rs 55000/= ,
whichever is less
to be deposited
by the appellant
Supreme court
within 30 days of
order.
13 Enforcement of
the order
As if it is a court order. Forwarded to the appropriate court.
14 Penalties Imprisonment- Not less than one month but may exceed to 3
years- Not less than 200, but may extend to Rs 10,000/= or both
15 Frivolous or
Vexatious
Complaints
Dismiss the complaint & cost up to 10,000/=

27. Consumer Protection
(Ammendment) Act, 2002
 The COPRA, 1986 was found to be suffering from
a number of disabilities.
 With a view to removing these defects and
making it more effective, a bill to amend the
Consumer Protection Act 1986 was introduced in
the Rajya Sabha in April, 2001.
 The amendments aim at
 facilitating quicker disposal of complaints empowering
redressal agencies,
 streamlining procedures and widening the scope of
the Act to make it more functional.

28. Unfair Trade Practices
 An “unfair trade practice” means a trade practice,
which, for the purpose of promoting any sale, use or
supply of any goods or services, adopts unfair
method, or unfair or deceptive practice. Some of
these practices include:
 When goods and services are not of stated standard,
quality or grade;
 When second hand, renovated goods are sold as new ones;
 When goods and service do not have the claimed use,
usefulness or benefit;
 When products / services do not have the claimed warranty
/ guarantee;
 When the price of product or service is misleading.

29. Unfair Trade Practices
 False and Misleading Advertisement of selling at
Bargain price.
 Offering gifts, prizes, etc. to lure customers with no
intention of providing them.
 Selling goods which do not fall within the safety
standards set up by competent authority.
 Hoarding or destroying goods with the intention of
raising the cost of these or similar goods
manufactured in greater number so as to manipulate
higher prices.
 Manufacturing or offering spurious goods or adopting
deceptive practices in the provision of services.

30. Unfair Trade Practices
 The following amount to UnfairTrade Practices and
do not carry any legal weight.
 “Goods once sold will not be taken back” or
 “No exchange”, or
 “No refund under any circumstances”

31. Restrictive Trade Practice
manipulation of price or conditions of delivery or to
affect flow of supplies in the market relating to goods
or services in such a manner as to impose on the
consumers unjustified costs or restrictions and shall
include—
 Delay beyond the period agreed to by a trader in
supply of such goods or in providing the services
which has led or is likely to lead to rise in the price;
 Any trade practice which requires a consumer to
buy, hire or avail of any goods or, as the case may be,
services as condition precedent to buying, hiring or
availing of other goods or services;