Understanding the Consumer Protection Act, it's objectives and rights of consumers and getting hands on some case studies

1. Presented by :-
Shrishti Jain

3. INTRODUCTION
• Emergence of the laissez-faire economy that thought of consumer is king was widely
followed and accepted.
• The twentieth century was marked by the advent of consumerism where there have
been frequent trade wars and conflicts between markets shareholders with constant
ought to be higher than the rest.
• This resulted in stiff competition with the traders resorting to unfair trade practices and
manipulating the customers and took advantage of the lack of information of the
purchasers.

4. Donoghue vs Stevenson Case study
The leading case of Donoghue v. Stevenson is
taken into account to be the landmark
judgement for laws regarding product liability
where the manufacturer was accountable to
the court for the presence of snail in the ginger
beer bottle.This is the hallmark in the case
regarding consumer protection and called for
the need for legislation to take care of the
customers and protect their interests.

5. • The Consumer Protection Act was passed in 1986 and it came into force on 1st July 1987.
• The main objectives of the act are to provide better and one spherical protection to customers and
effective safeguard against different types of exploitation like defective merchandise, deficient services an
unfair trade practices. It conjointly makes provisions for simple, speedy and cheap machinery for
redressal of consumer's grievances.
• With the speedy growth in trade and commerce, the traders had an unfair favorable position over
the customers and this was an instantaneous consequence of industrialization.The consumer had
very little or no information regarding the rights available to them and thus were pushed to a
disadvantage. But, it had been solely in 1986 that the law markers of the nation decided to
structure and contour the efforts created towards protecting consumers' interest and stressed the
necessity of welfare legislation in the form of the Consumer Protection Act, 1986.

6. FEATURES OF CONSUMER PROTECTION ACT,
1986
• Broad Coverage:The Act applies to all goods and services and covers the private, public,
and cooperative sectors.
• Wide Definition of Consumer:The Act includes not only those who purchase goods or
services but also the users of such goods or services, provided they are used with the
approval of the actual buyer.
• Redressal Mechanism:The Act establishes a three-tier dispute redressal mechanism at the
district, state, and national levels.

7. REDRESSAL:THREETIER SYSTEM UNDER
CONSUMER ACT
District Forum:
• These fora are set by the district of the state concerned in each district wherein it consists of
President and two members of which one should be a woman and is appointed by the State
Government.
• In this, the complaining party should not make a complaint more than 20 Lacs and once the complaint
is filed the goods are sent for testing and if they found defective the accused party should
compensate and if the party is dissatisfied can make an appeal with state commission within 30 days.

8. REDRESSAL:THREETIER SYSTEM UNDER
CONSUMER ACT
State Commission:
• This is set up by each state It consists of President and two members. Complains should
be at least 20 lacs and exceed not more than 1 crore.
• The goods are sent for testing and if found defective are asked for replacement or
compensation. If not satisfied can make an appeal within 30 days in front of the National
Commission.

9. REDRESSAL:THREETIER SYSTEM UNDER
CONSUMER ACT
National Commission:
• Consist of President and 4 members.
• The complaint must exceed an amount of 1 crore.
• The goods are sent for testing and if found defective are asked for replacement or
compensation.

10. FEATURES OF CONSUMER PROTECTION ACT,
1986
• Protection against UnfairTrade Practices:The Act protects consumers from unfair and
deceptive trade practices.
• Provision for Consumer Education:The Act emphasizes consumer education, enabling
consumers to make informed decisions.
• It provides statutory recognition to the six rights of consumers.

11. SIX RIGHTS OF CONSUMERS:

12. AIMS AND OBJECTIVES OF THE ACT
The Consumer Protection Act 1986 was enacted following from the widespread consumer
protection movement.
1. It was recommended by the United Nations Economic and Social Council to establish a
coherent consumer protection policy, On the foundation of the report of the Secretary-General
on Consumer Protection dated 27th May 1983, for social welfare.
2. Governments were required to provide infrastructural and financial facilities for policy
development and monitoring.
3. The Act aimed to interpret relevant laws rationally and achieve its objectives, rather than
relying on a technical approach.

13. AIMS AND OBJECTIVES OF THE ACT
4. The Act was enacted to protect consumers' interests, with the preamble stating that the term
'protection' is key.
5. The act aims to protect the common man from wrongs that ordinary law has become illusory for
various reasons.

14. AIMS AND OBJECTIVES OF THE ACT
The objects of the Centre council shall be to promote and protect the right of
the consumers such as:
• The right to be protected against the marketing of goods[ and services] which are
hazardous to life and property.
• The right to be informed about the quality quantity potency, purity, and standard and
price of goods[ or services] as the case may be so as to protect the consumer against
unfair trade practices.
• The right to be assured wherever possible access to a variety of goods and services are at
a competitive price.

15. AIMS AND OBJECTIVES OF THE ACT
The objects of the Centre council shall be to promote and protect the rights of
the consumers such as:
• The right to be heard and to be assured that the consumer’s interest bill received new
consideration at appropriate forums.
• The right to seek redress against unfair trade practices[ or restrictive trade practices] or
unscrupulous exploitations of consumers.
• The right to consumer education.

16. WHO IS A CONSUMER
• According to Sec-2(1)(d) of the Act, a consumer is a person who purchases any
goods or services or hires or avails the services of some person for his own
personal use and not for manufacturing or resale of that good. For instance, a
person purchasing wheat flour for his own personal use is a consumer but a
person purchasing wheat flour for baking bread which he is going to sell in his
bakery shop is not a consumer.

17. THANK YOU
Presentation details
Presentation name :- Consumer Protection Act,1986
Subject :- Legal Aspect of Business
Under guidance of :- Dr. Pooja Tyagi