Name of Team Members

Name Roll Call

Akhilesh Kumar 1

Munish Kumar Bakshi 3

Mukesh Cheeta 7

Balasaheb Deshmukh 9

Nawab Abdullah Fakih 11

Sekhar Ghagas 13

Dharmesh Gohel 15

Mahaveer P. Gupta 17

Yogesh Jain 19

ChapterNo Particular Page No.

1 Introduction 2

1.1 Basic Need for the Consumer Protection 2

1.2 Objectives & purpose of the Act 5

1.3 Changing phases & Evolution 5

2 Important definitions 7

3 Right of Consumer 9

4 Dispute Settlement Three tier Mechanism 21

5Government initiatives for protection of consumer rights

28

6 Case Studies 33

7 Conclusion 38

7.1. Issues to be addressed 38

7.2 Future prospects of consumer movement in

39

7.3 Suggestions and Opinions 40

Annexure

i Bibliography & Source of Information 42

Index

India

1

CHAPTER - 1

1. I ntr o duction

Aim of Consumer Protection Act (CPA) is to address the grievances of the

consumers and protecting them from the unethical practices/

behavior or unfair trade practices of the manufacturer/ supplier.

Earlier though there were several legislations to protect the

consumer, but the same never proved adequate to protect

consumer and compensate them for their compliances.

CPA become statutory umbrella which made the consumer feel like a king.

CPA not only enhances the awareness and educate the

consumer but also provide compensation to them by summary

and inexpensive proceedings. This keeps manufacturer and

the trader alert, creative and innovative.

In the era of free competition, market has become very dynamic

and margins have squeezes out. These gave rise to adopt other

means/unfair means or practices in execution of transactions,

which resulted into increased grievances at consumer front.

Hence, the need for the CPA has become more relevant than the

past, where monopoly was the key factor.

1.1 B a s i c N ee d f o r t he Co ns u m e r P r o t e c t i o n Ac t

Today Consumer rights are an integral part of our lives like the consumerist way

of life. We have all made use of them at some point in

our daily lives. Market resources and influences are growing

by the day and so is the awareness of ones consumer rights.

These rights are well defined and there are agencies like

the

2

Government, consumer courts and voluntary organizations

that work towards safeguarding. If these rights are well

defined then the basic question is why at all theconsumer

needs protection?, it has to be followed by

the manufacturers/suppliers.

So let us look at few reasons because of which consumer needs protection

1. Illiteracy and Ignorance: Consumers in India are mostly

illiterate and ignorant. They do not understand their rights.

A system is required to protect them from unscrupulous

businessmen.

2. Unorganized Consumers: In India consumers are widely

dispersed and are not united. They are at the mercy of

businessmen. On the other hand, producers and traders are

organized and powerful.

3. Spurious Goods: There is increasing supply of duplicate

products. It is very difficult for an ordinary consumer to

distinguish between a genuine product and

its imitation. It is necessary to protect consumers from such

exploitation by ensuring compliance with prescribed norms of

quality and safety.

4. Deceptive Advertising: Some businessmen give misleading

information about quality, safety and utility of

products. Consumers are misled by

false advertisement and do not know the real quality of

advertised goods. A mechanism

is needed to prevent misleading advertisements.

5. Malpractices of Businessmen: Fraudulent, unethical and

monopolistic trade practices on the part of businessmen lead to

exploitation of consumers. Consumers often get defective,

inferior and substandard goods and poor service. Certain

measures are required to protect the consumers against such

malpractices.

6. Freedom of Enterprise: Businessmen must ensure

satisfaction of consumers. In the long run, survival and growth

of business is not possible without the support and goodwill of

consumers. If business does not protect consumers'

interests, Government intervention and regulatory measures

will grow to curb unfair trade practices.

3

7. Legitimacy for Existence: Business exists to satisfy the needs and desires of

consumers. Goods are produced with the purpose of selling them.

Goods will, in the long run, sell only when they meet the needs of

consumers.

8. Trusteeship: Businessmen are trustees of the society's

wealth. Therefore, they should use this wealth for the benefit of

people.

While we like to know about our rights and make full use

of them, consumer responsibility is an area which is still

not demarcated and it is hard to spell out that all the

responsibilities that a consumer is supposed to shoulder.

1.2 O b j e c t i v es & pu r po se o f t he Ac t

The basic objective/purpose of this Act is to provide for better protection of the

interest of the consumers and for that purpose to make

provisions for the establishment of consumer councils and

other authorities for the settlement of consumer’s dispute

and for matters connected therewith. Hence, the basic

objective is to PROTECT and not to provide a loophole and

excuses to well organized traders, producers and big

business houses and manufactures on technical grounds.

Educating the consumer regarding their rights and to

propagate awareness about the Act and the ethical

practices/means was the other purpose of the act.

1.3 C h a n g i n g p h a ses & E v o l u t i o n

In the early years when welfare legislatures like the consumer

protection Act did

not exist, the maxim Caveat emptor (let the buyer beware)

governed the market deals.

4

B r i t i sh r e g i m e :

During the British regime (1765-1947), also known as

the ‘Colonial Era’, Government’s economic polices in India were

concerned more with protecting and promoting the British

interests than with advancing the welfare of the native

population. The administration’s primary per-occupation was

with maintaining law and order, tax collection and defense.

Accordingly much of the legalization enacted during the

British regime was primarily aimed at serving the colonial

rulers intend of the natives. There were, however, some pieces

of legislation which protected the overall public interest through

not necessarily the consumer interest. Prominent among these

were: the Indian Penal code, 1860, the sale of Goods act,

1930, the dangerous drugs act, 1930 and the drugs and

cosmetics act, 1940. In a sense, the sale of good act, and the

principles of the law of torts were more for the protection of the

trader than the consumer.

T he Po s t - I n d e p e n d e n c e S c e n a r i o :

Growing urbanization due to heavy industrialization resulted

in proliferation of human needs-of basic necessaries and

also of luxuries. Due to the shortage of certain necessaries

and even their non-availability at reasonable rates with

growing menace of adulteration, it was found necessary

to empower the Government to control their production,

quality, supply, and distribution. Therefore the decade of

1950s, right from the very beginning, saw the enactment of

a number of laws to safeguard the interests of the consumers from various angles.

The enactment of the Banking Companies Act,1949 (later

called The Banking Regulation Act) to amend and consolidate

the Law related to banking matters as well as the

Industries(Development and Regulation)Act,1951 to implement

the Industrial Policy Resolution of 1948 were among the

earliest stapes taken by the National Government in India in

the direction of consumer protection.

As a result of this change in scenario business has now come to be substantially

regulated by Government and Authorities in favour of consumers.

5

In spite of various provisions providing protection to the consumer and providing

for stringent action against adulterated and substandard

articles in the different enactments like Criminal Procedure

Code, 1908, Indian Contract Act, 1972, Sales of Goods Act, 1930,

Indian Penal Code 1860, Standard of Weights and Measures Act,

1976 and Motor Vehicle Act, 1988, very little could be achieved in the area of

consumer protection.

In order to provide for better protection of the interest of the consumers the

Consumer Protection Bill, 1986 was introduced in the Lok Sabha on December 5th

1986. The CPA 1986 was enacted to provide for better

protection of the interest of consumer and for the purpose to

make provisions for establishment of Consumers Councils and

other authorities for settlement of consumer’s dispute and

for matters connected therewith.

The CPA is only one of the several Laws framed to protect consumers from unfair

and undesirable practices of business community such law became necessary due

to growing frustration of consumers with substandard

quality of goods, unsatisfactory services and unfair business

trade practices.

6

CHAPTER - 2

2. Definitions

2.1. “ Co m p l a i n a n t " means-

(i) A consumer; or

(ii) Any voluntary consumer association registered under the Companies Act, 1956

(1 of 1956) or under any other law for the time being in force; or

(iii) The Central Government or any State Government;

(IV) One or more consumers, where there are numerous

consumers having the same interest;]

Who or which makes a complaint;

2.2. “ Co m p l a i n t " means any allegation in writing made by

a complainant that-

(i) An unfair trade practice or a restrictive trade practice has

been adopted by any trader;

(ii) 'The goods bought by him or agreed to be bought by him

suffer from one or more defects;

(iii) 'The services hired or availed of or agreed to be hired or availed of by him]

suffer from deficiency in any respect;

(iv) a trader has charged for the goods mentioned in the complaint a price in excess

of the price fixed by or under any law for the time being in force

or displayed on the goods or any package containing such goods;

(v) goods which will be hazardous to life and safety when used,

are being offered for sale to the public in contravention of

the provisions of any law for the time being in force

requiring traders to display information in regard to the

contents, manner and effect of use of such goods,

7

2.3. “ Consumer ” means any person who-

(i) Buys any goods for self use orwith the approval of self

person, but does not include a person who obtains such

goods for resale or for any commercial purpose or

(ii) Hires for avails of any services for self use or when such services are

availed with the approval the first mentioned person.

2.4. " Co ns u m e r d i s pu t e "

"Consumer dispute" means a dispute where the person against

whom a complaint has been made, denies or disputes the

allegations contained in the complaint;

2.5. "T r a d e r "

"Trader" in relation to any goods means a person who

sells or distributes any goods for sale and includes the

manufacturer thereof, and where such goods are sold or

distributed in package form, includes the packer thereof;

8

CHAPTER- 3

3. Rights of Consumer

International Consumer Rights:

Webster's dictionary defines consumerism as "a movement for

the protection of the consumer against defective products,

misleading advertising, etc." Limited consumer protection

was present until the 1950s and early 1960s. In the 1950s, a

significant breakthrough occurred with the establishment of

the product-liability concept, whereby a plaintiff did not

have to prove negligence but only had to prove that a

defective product caused an injury. In his 1962 speech to

Congress, President John F. Kennedy outlined four basic

consumer rights, which later became known as the Consumer

Bill of Rights. Later, in 1985, the United Nations endorsed

Kennedy's Consumer Bill of Rights and expanded it to

cover eight consumer rights. Consumer protection can only

survive in highly industrialized countries because of the

resources needed to finance consumer interests.

There are two hundred and sixty consumer organizations in

over one hundred countries around the world strives to

promote a fairer society through defending the rights of all

consumers, including the poor and the marginalised, by

supporting and strengthening member organisations and the

consumer movement

in general; campaigning for consumer rights' to be placed at the heart of policy-

making to encourage sustainable development. There are

eight key international consumer rights as defined by the

United Nations Guideline for Consumer Protection 1985.

They can be simplified into the following:

— The right to access to basic needs

— To safety

9

— To information

— To choice

— To representation

— To consumer education

— To redress

— Healthy environment

In India to safeguard consumer interest, following rights were envisioned.

Right to Safety

Right to Information

Right to Choice

Right to be Heard

The Right to Redress

The right to consumer education

The Right to Basic Needs and

The right to a healthy and sustained environment.

1. Right to Basic Needs

Access to food, water and shelter are the basis of any

consumer's life. Without these fundamental amenities, life

cannot exist. In September 2001, India's stock of food grains

were around 60 million tonnes, yet one third of the Indian

population lives below the poverty line and consumers often

go hungry or remain severely malnourished, leading to poor

health. The recent starvation deaths in Orissa are a case in

point. A very crucial objective of the conceptualization and

existence of consumer rights is to ensure that consumers have

an assured food supply, safe and permanent dwellings, and

basic amenities of life like sanitation and potable water, and

power supply.

10

Urbanizations is seen as a mark of development but for rural

migrant population, living conditions in cities is very poor. The

population of cities is growing rapidly

in India and after 1988, the percentage of urban poor has been

more than that of the rural poor. Around 20 to 25 per cent

of the urban households live in slums, make-shift colonies

or refugee settlements due to non-availability of affordable

and decent habitat in urban areas. . According to some

estimates, in urban areas alone, there is a housing shortage of

17 million units. This has led to a habitat crisis

in Indian cities. In rural India, the situation is equally bad, with

a large part of the population still living in make-shift dwellings

and hutment. With non-permanent housing comes lack of

sanitation facilities and other amenities like running water and

electricity supply. Due to burgeoning population, most

people do not have access to dry toilets in rural and urban

areas.

2. Right to Safe Environment

For urban consumers, environment means parks, gardens,

and deteriorating air and water quality. Most urban areas

are bereft of any wildlife and people are unaware of the

biodiversity around them. On the other hand, rural consumers

rely

on their environment for fulfillment of their basic needs.

The need for environmental conservation is seen as a

necessary defence against deteriorating quality of life world-

wide. We are all victims of contaminated food and water

supply, pesticide-ridden food, adulterated milk and choking

exhaust fumes emitting from vehicles. According to a World

Bank report, India is being pushed back due to its high

environmental costs. We lose around Rs 24,500 crores every

year in terms of air and water pollution alone. If you live in a

city, you must have experienced air and water pollution at some

point of time. Children often fall

ill due to polluted environments, it leads to increased health costs and discomfort

for consumers. Valuable resources and man-days are lost due to polluted

11

environment and living conditions. Consumers need to understand

that only a safe environment can ensure the fulfilment of their

consumer rights.

International Standards for Safeguarding Right to Safe Environment

Consumers International (a nodal agency of consumer

organisations from all over the world) has made certain

guidelines for ensuring consumers' right to safe

environment.

Consumers should be protected from environmental pollution by:

1. Promoting the use of products which are environmentally sustainable.

2. Encouraging recycling

3. Requiring environmentally dangerous products to carry

appropriate warnings and instructions for safe use and disposal.

Promote the use of non-toxic products by:

1. Raising consumer awareness of alternatives to toxic products

2. Establishing procedures to ensure that products banned

overseas do not enter national markets.

3. Ensure that the social impacts of pollution are minimized.

4. Promote ethical,socially and

environmentally responsible practices

by producers and suppliers of goods and services.

Rural consumers are invariably closer to their environment than

urban consumers. Their livelihoods and way of life depend on

the environment around them. Their firewood and sources of

energy come from trees, manure for fields comes from

livestock, water is procured either from underground water

supply or from rivers, the crops heavily depend on annual

rainfall, even pesticides for safeguarding of crops and

storage also come from trees like neem. In short, the rural life

revolves around natural resources. For them, this

dependence on the environment is complete and they have a

stake in its preservation, whether it is for building their houses,

fodder for their cattle etc.

12

3. Right to Safety

Consumer right to safety is as vast in its purview as the

market reach itself. It applies to all possible consumption

patterns and to all goods and services. In the context of the new

market economy and rapid technological advances affecting the

market, the right to safety has become a pre-requisite quality in

all products and services. For e.g. some Indian products carry

the ISI mark, which is a symbol of satisfactory quality of a

product? Similarly, the FPO and AGMARK symbolise standard

quality of food products. The market has for long made

consumers believe that by consuming packaged food or

mineral water, consumers can safeguard their health. This

notion has been proved wrong time and again due to rampant

food adulteration in market products. Right to food safety is an

important consumer right since it directly affects the health and

quality of life of consumers. Earlier, the interpretation of the right

to safety was limited to electronic products and other such

products. Now, its definition has expanded a lot to include safety

aspects of new technologies like GM food, food labeling,

chemical ingredients in food products etc. In today's scenario of

globalisation, consumers have no control over where the

products or commodities they use, come from. For instance,

the chocolates or syrups we consume, may be manufactured in

countries as far as the U.S. or Australia. Consumers in India would

have no control over or knowledge of the manufacturing practices

of those countries and will have to rely completely on import

regulations of the Indian government and food labelling. This

makes the consumer right to safety a very important and critical

issue for consumers.

Safety of natural food products is also a problem of growing

concern since due to increased chemical inputs in farms, our

food supply is being contaminated with pesticides and

chemicals. This poses a grave danger to consumer health. For

non- vegetarians, the problem is even more serious since

food animals are being fed

13

anti-biotics to fight diseases among animals and boost their

growth. This can have serious repercussions on consumer health.

4. Right to Information

Right to information means the right to be given the facts

needed to make an informed choice or decision about

factors like quality, quantity, potency, purity standards and

price of product or service. The right to information now

goes beyond avoiding deception and protection against

misleading advertising, improper labelling and other practices.

For e.g. when you buy a product or utilise

a service, you should be informed about a) how to

consume a product b) the adverse health effects of its

consumption c) Whether the ingredients used are

environment- friendly or not etc .

Due to the ever increasing influence of the market and the

ever changing scene with price wars and hard-sell

techniques, the consumer's right to information becomes

even more important. The right to information means much

more than simple disclosure of the product's weight or

price. A consumer has the right to know how the product has

been prepared, whether it has been tested or animals or not, if

environmentally-sound techniques and resources have been

used in its production processes, what kinds of chemicals are

used into its manufacturing and what could be their impact

on consumer health. Clearly, a consumer has to consider a

lot of factors before s/he buys a product.

Ideally, a consumer should have knowledge of the entire ‘cradle to grave' journey

of the product to determine whether its safe and beneficial for use or no. The

‘cradle to grave journey' refers to the processes a product goes

through- from the time of it being made out of raw material,

the processes of its moulding into its final shape,

transportation, labour, ingredients used, to the form in which it

ends

14

up on market shelves. It is only when a consumer is aware

of the history of the product that he can make informed choices.

An example of this is the GM food controversy. GM food is

promoted as the answer to world's hunger and malnutrition

but its safety for consumers and the environment is yet to

be proved. Despite strong lobbying by pro-GM groups and the

market, consumers in Europe have campaigned effectively

against the entry of GM food into their food chain and

markets. There are information and publicity campaigns that

have made consumers rally behind a common consumer

stand against GM food. As a result, the governments and

the European Union have placed strict restrictions on the

trial uses of GM technology in the market or in agriculture.

Recently, it has come to light that most cosmetics like lipsticks,

kajal and mascara are tested on animals in laboratories to see

whether they have any adverse effects

on them or no. There was also a controversy about how Nike

shoe company was using sweat labour in South Asian

countries, paying its workers abysmally low wages for

manufacturing shoes. Similarly, there was a ‘McLibel' case

against McDonald's alleging that Mc Donald's generated a lot

lot of unwanted waste due

to its excessive packaging and harmed the environment.

The advertising techniques of many products, directly

targeting and featuring children have also been questioned.

Many parents don't even know that their children are being

targeted by market surveyors to determine their consumption

habits by collecting data through surveys, interviews and by

offering free samples

of products.

It is not just the consumers who use information gathering

or disseminating techniques and tools to protect their consumer

rights. Information dissemination is also used very extensively

by advertisers and the market to get their message across

to the consumer. Tools and agencies of information like

newspapers, print

15

media, television and the Internet are utilised by marketing of

consumer products and services. This has made advertising a

multi-million dollar industry in India and also world-wide.

5. Right to Redress

Competition is the by-product of the market economy.

Everyday, manufacturers are discovering newer ways of

cheating and duping consumers. Unscrupulous market

practices are finding their way into consumer homes, violating

consumer rights and jeopardising their safety. It is to

protect consumer interests that consumers have been given

the right to obtain redress. In India, we have a redress

machinery called Consumer Courts constituted under the

Consumer Protection Act (1986), functioning at national state

and district levels. But it has not been made complete use

of under due to lack of awareness of basic consumer rights

among consumers themselves.

While in the developed world, right to redress is perhaps the most commonly

exercised consumer right, in developing countries,

consumers are still wary of getting involved in legal redress

system. There are consumer courts in India where any consumer

can lodge a case if s/he thinks he or she has been

cheated. The details of how to lodge a complaint have been

explained elsewhere in the manual.

6. Right to Consumer Education

Consumer education empowers consumers to exercise their

consumer rights. It is perhaps the single most powerful tool

that can take consumers from their present disadvantageous

position to one of strength in the marketplace.

Consumer education is dynamic, participatory and is mostly

acquired by hands-on and

16

practical experience. For instance, a woman who makes

purchase decisions for the household and does the actual buying

in the marketplace would be more educated about market

conditions and ‘best buys' than a person who educates himself

about the market with the help of newspapers or television.

Also, today, it is not just the market or products that a

consumer needs to educate him about but s/he also needs

to know about company profile, government policies and

introduction of new technology.

Market influences have grown so much that, not just

wholesale and retail sellers but even medical practitioners

are falling prey to their pressures. The pharmaceutical

industry is one such example. India, with its 1 billion

population and largely uneducated consumers, is a very

lucrative market for this industry. The pharmaceutical

industry, to boost its sales,offersfree samples

of medicines, freebies, and even free luxury holidays to

physicians to influence them

to use their brands and give them preference over other brand names. There have

been many instances when drugs banned in countries

like US, have been prescribed to Indian consumers and

are readily available as over-the-counter drugs. It is a sad

example of gross violation of consumer trust by medical

practitioners. This situation is rampant not just in rural

areas but also among educated urban consumers. The

reason why the market, in connivance with physicians, is

able to exploit consumers is that Indian consumers are not

aware of the prevailing situation and do not keep

themselves abreast with latest developments taking place

around them. Consumer education can play a crucial role in

protecting consumers against such dangers.

In the Indian context, sustainability and traditional knowledge can play a

vital role in empowering consumers but consumers are unable

to connect to their knowledge base. Consumer education

can rejoin the broken link and make traditional knowledge

accessible to consumers again. Some sources of consumer

education are past experiences of consumers,

information dissemination by

17

government agencies and NGOs, classroom teaching by

teachers and informal lessons by parents.

18

19

CHAPTER-4

4. D i s pu t e S e tt l e m e n t T h r ee t i e r M e c h a n i s m

The Consumer Production Act provides for a three tier system of redressalagencies:

(1) District level known as District Forum,

(2) State level known as 'State Commission', and

(3) National level known as 'National Commission'.

A complaint is to be made to the district forum of the concerned district where the value of goods and services and compensation, if any, is up to Rs 20 lakhs.

A complaint is to be made to the 'State Commission' between Rs 20 lakhs and Rs100 lakhs.

A complaint is to be made to the National Commission for more

than Rs 100 lakhs. Interestingly, there is provision for appeals

against the orders of a particularredessal forum by the aggrieved party before the next higher echelon and evenfrom the findings of the National Commission before the Supreme Court.

C O N S U M E R D I S P U T E S R E D R E SS AL A G EN C I E S

1) Distr i c t F or um

Composition of the District Forum. —

1. Each District Forum shall consist of,—

(a) P r e s i d e n t : a person who is, or has been, or is qualified to be

a District Judge, who shall be its President;

(b) M e m b e r : two other members, one of whom shall be a woman,

who shall have the following qualifications, namely:—

21

(i) be not less than thirty-five years of age,

(ii) Possess a bachelor's degree from a recognized university,

(iii) be persons of ability, integrity and standing, and have

adequate knowledge and experience of at least ten years

in dealing with problems relating to economics, law,

commerce, accountancy, industry,

public affairs or administration:

Every appointment under sub-section (I) shall be made by the State Government

on the recommendation of a selection committee consisting

of the following, namely:—

(i) The President of the State Commission — Chairman.

(ii) Secretary, Law Department of the State — Member.

(iii) Secretary in charge of the Department dealing withConsumer affairs in the State — Member.

2. Every member of the District Forum shall hold office for a term of five years or up to the age of sixty-five years, whichever is earlier:

J u r i s d i c t i o n o f t he D i s t r i c t F o r u m.—

1. M o ne tary: District Forum shall have jurisdiction to entertain complaints where

the value of the goods or services and the compensation, if any, claimed ''does not exceed rupees t w en t y l a k h s .

2. T e rr i t o r i a l : A complaint shall be instituted in a District Forum within the local limits of whose jurisdiction,—

a ) The opposite party or each of the opposite parties ,actually and voluntarily resides

b) Any of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides,in such cases, either the permission of the District Forum is given or the consent of the opposite party is necessary.

c) If the dispute is pending the civil court,the consumer forum has no jurisdiction

to entertain the same.

22

3) M a nne r in whi ch co m p laint sh a ll be mad e . —

(1) A complaint in relation to any goods sold or delivered or agreed to be sold or delivered or any service provided or agreed to be provided may be filed with a District Forum by –

(a) the consumer,

(b) any recognized consumer association whether the consumer is a member of such association or not;

(c) one or more consumers, where there are numerous consumers having the same interest, with the permission of the District Forum

(d) The Central Government or the State Government as a representative of interests of the consumers in general.

A complaint has been admitted by the District Forum, it shall not be transferred to any other court or tribunal or any authority set up by or under any other law for the time being in force.

4) P r o c e d u r e o n adm i ss i o n o f c o m p l a i n t . —

(1) The District Forum shall, on admission of a complaint, if it relates to any goods,—

(a) Refer a copy of the admitted complaint, within 21 days from the date of its admission to the opposite & such extended period not exceeding fifteen days as may be granted by the District Forum;

(b) Where the opposite party on receipt of a complaint referred to him under clause (a) denies or disputes the allegations contained in the complaint to take any action to represent his case within the time given by the District Forum

5) P o w e r s o f D i s t r i c t F o r u m

(a) Summoning & enforcing attendance of defendant or witness & examining the witness on oath.

(b) The discovery & production of any document or other material ,object producible as an evidence

(c) Receipt of evidence on affidavits

6) F i n d i n g o f t he D i s t r i c t F o r u m. —

23

(1) Remove the defect pointed out by the appropriate laboratory from the goods;

or

(2) To replace the goods with new goods of similar description which shall be free from any defect; or

(3) (3) To return to the complainant the price, or, as the case may be, the charges paid by the complainant; or

(4) To remove the defects i n g oo d s or deficiencies in the services in

(5) question; or

(6) To discontinue the unfair trade practice or the restrictive trade practice or not to repeat it;

2. S t a t e Co mm i ss i o n

Co m po sitio n o f the St a te Co mm issio n . —

(1) Each State Commission shall consist of—

(a) P r e s i d en t : A person who is or has been a Judge of a High

Court, appointed by the State Government.

(b) M e m b e r : Two other members who shall be persons of

ability, integrity and standing, and have adequate

knowledge and experience of at least ten years in dealing

with problems relating to economics, law, commerce,

accountancy, industry, public affairs or administration:

Every appointment under sub-section (1) shall be

made by the State Government on the recommendation of

a Selection Committee consisting of the following members,

namely:—

President of the State Commission -- Chairman;

Secretary of the Law Department of the State

--Member

Secretary incharge of the Department dealing with Consumer Affairs in the

State -- Member:

(2) Every member of the State Commission shall hold office

for a term of five years or up to the age of sixty-seven years,

whichever is earlier:

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J u r i s d i c t i o n o f t he S t a t e C o mm i ss i o n . —

(1) Subject to the other provisions of this Act, the State

Commission shall have jurisdiction—

(a) Monitory- Original: to entertain complaints where the value

of the goods or services and compensation, if any, claimed

exceeds rupees t w e n t y l a k h s but does not exceed rupees o n e

c r o r e ; and

(b) Appellate: To entertain appeals against the orders of any

District Forum within the State; and

(c) Supervisory or Revisional: to call for the records and pass

appropriate orders in any consumer dispute which is pending

before or has been decided

by any District Forum within the State.

3. N a t i o n a l Co mm i ss i o n

Co m po sitio n o f the Na tio n a l Co mm iss io n .—

(1) The National Commission shall consist of—

(a) P r e s i d en t : A person who is or has been a Judge of the

Supreme Court, to be appointed by the Central Government.

(b) M e m b e r : Two other members who shall be persons of

ability, integrity and standing and have adequate

knowledge and experience of at least ten years in dealing

with problems relating to economics, law, commerce,

accountancy, industry, public affairs or administration:

Every appointment under this clause shall be made by the

Central Government on the recommendation of a selection

committee consisting of the following, namely:—

(a) A person who is a Judge of the Supreme Court,

— Chairman; To be nominated by the Chief

Justice of India

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(b) The Secretary in the Department of Legal Affairs

—Member; In the Government of India

(c) Secretary of the Department dealing with consumer—Member

Affairs in the Government of India

J u r i s d i c t i o n o f t he Na t i o n a l Co mm i ss i o n . —

Subject to the other provisions of this Act, the National

Commission shall have jurisdiction—

(a) M o ne t a r y : To entertain complaints where, the value of the

goods or services and compensation, if any, claimed exceeds

rupees o n e c r o r e ;

(b) A pp e ll a t e : To entertain appeals against the orders of any State Commission;

(c) S up e r v i s o r y o r R e v i s i o n a l : To call for the records and pass appropriate orders

in any consumer dispute which is pending before or has been decided by any

State Commission where it appears to the National Commission

A pp e a l . — Any person aggrieved by an order made by the

Redressal agency may prefer an appeal against such order to

the next higher level of agency within a specified period from

the date of the order.

A pp e a l t o t he S t a t e C o mm i ss i o n : Any person aggrieved by an

order made by the District Forum, may prefer an appeal

against such order to the State Commission within a

period of 30 days from the date of the order.

A pp e a l t o t he Na t i o n a l Co mm i ss i o n : Any person aggrieved by

an order made by the State Commission, may prefer an appeal

against such order to the National Commission within a period

of 30 days from the date of the order.

A pp e a l t o t he S up r e m e Cou r t : Any person aggrieved by an

order made by the National Commission, may prefer an

appeal against such order to the Supreme Court within a

period of 30 days from the date of the order.

Procedure for hearing the Appeal by National Commission

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1. Memorandum of Appeal: An appeal memorandum shall

be presented by the appellant or his/her agent to the

national commission in person or be sent by registered post

addressed to the commission.

2. Appeal After Limited Period: In this, the memorandum shall be accompanied

by an application supported by an affidavit to satisfy the

national commission that he/she had a sufficient cause

for not to appeal within a period of limitation.

3. Appearance of Parties to the Appeals: On the date of

hearing, if the party or their agent fails to appear on

such date, the national commission either dismisses the

appeal or decide ex parte on merits.

4. Grounds not urged: The appellant shall not urge or be heard

in support of any ground of objection not set forth in the

memorandum, except by leave of the national commission.

5. Penalty of Orders: Every order of a District forum

commission or national commission, if no appeal has been

preferred against such order, shall be final.

6. Enforcement of Orders: Every order of a District forum

commission or national commission may be enforced as if it

were decree or order made by the court.

7. Penalties: 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 redressal agencies , as

the case may be, such trader or person or complainant

shall be punishable as per the prescribed norms of the

agencies .

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CHAPTER- 5

5. G o v e r n m e n t i n i t i a t i v es f o r p r o t e c t i o n o f c o ns u m e r r i g h t s

Steps Undertaken By the Government for Creating Consumer Awareness:

Public campaign like Grahak Jago Grahak, Grahak Dost etc.

Conduct Street shows, dramas, street plays depicting mock characters.

Hold drawing competitions in the schools by giving relevant themes.

Make people aware about their rights through hoardings. T.V.

advertisements etc.

Publicity though print media using newspaper advertisements

Publicity through electronic medium by telecast of video spots

Telecast of video spots in north eastern states:

Meghdoot postcards

Printed literature

Exhibition in Indian science congress at shillong

Nukkad natak contest on consumer issues

National consumer helpline

Core centre

Participation in India international trade-fair-2008

Participation in MTNL health mela

Use of sports events

Outdoor publicity

Joint publicity campaign

Use of internet to generate consumer awareness

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6. Ca se Studies

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7. Co n c l u s i o n

Consumer protection movement has got a bright future in India. A part from

Governmental seriousness in the matter, consumer activism,

organizations, civil society and other voluntary associations needs

to play their part in the furtherance

of consumer movement. In the current scenario media can

play a vital role in infusing the consumer behavior and can

easily generate opinions or enhance awareness about the

possible unfair practices in the market. Above all, the

consumers have to be aware of their rights and should assert

them selves in the market place.

7.1 I ss u es t o b e a dd r e ss e d

Some of the commonly raised problems are:

Adulteration of food substances by traders through addition of substances which are injurious to health or removal of substances which are nutritiousor by lowering their quality standardsMisleading advertisements of goods and services in television, newspapers and magazines to influence the consumers demand for the sameVariations in the contents filled in the package of goodsImproper delivery of after sales servicesSupply of defective goodsHidden price componentUse of deceptive or incorrect rates on productsUse of false or non-standard weights and measures in supply of goodsProduction of low quality goods in bulk quantities Illegal fixation of Maximum Retail Price (MRP) Selling above the MRPUnauthorized sale of essential products like medicines, etc. beyond theirexpiry date to ignorant consumersPoor customer servicesNon-compliance with the terms and conditions of sales and servicesSupply of false or incomplete information regarding the product

Non-fulfillment of guarantee or warrantee etc.

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All such issues and problems must be handled more efficiently both at the Centre and the State level, with a view to protect the interests of the consumers and promote their welfare.

7.2. Future Prospects of Consumer Movement in India

As a matter of fact, three major problems are

confronting the consumer protagonists in India. The first

problem concerns active functioning of the Consumer

Forums throughout the country. Not with standing the fact that

these Forums have now been established, by and large,

throughout the country, consumer activists and

organizations havebeen repeatedly

voicing their grievances against the smooth

functioning of these Forums. They argue that these Forums

have also started behaving like Civil Courts and are likely

to have mounting arrears soon. In addition, these Forums

still lack basic infrastructural facilities. The members sit

onlypart-time and 90 days decision-making

requirement is not strictly adhered to. There are also ego

and status problems between judicial members and the

members with non-judicial background. Another significant

problem is that the stay orders from the High Courts have

begun to hold up a large number of cases filed before the

Consumer Forums, thereby denying the benefits of speedy

and inexpensive redressal machinery promised under the

Consumer protection Act, 1986.

The second problem concerns the applicability of the Consumer protection Act, 1986

to various services. As is evident, ever since the

implementation of the 1986 Act, whereas there has hardly been

any significant case in which the ‘goods’ has been vehemently

contested, there is a voluminous amount of case law which

involved determination of the meaning, definition, and ambit of

the term ‘service’. Section2

(1)(o)of the 1986 Act categorizes certain specific types of services which, inter alia,

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include banking, financing, insurance, transport, amusement

and entertainment. The definition of the term ‘service’ had

already been kept very wide and now with the inclusion of the

two terms ‘housing and construction’ by the Consumer

Protection (Amendment) Act, 1993, it has been further widened.

Only two types of services have been kept out of the ambit

of the 1986 Act. They are services rendered free of charge

and services rendered under a contract of personal service. The

non-mentioning of services like education, health,

housing, posts and telegraphs and telecommunications

had presumably given these services an impression of

their exclusion from the ambit of this legislation. At the initial

stages, therefore, these services contested the jurisdiction of

the 1986 Act, thereby claiming complete immunity from their

governance by it. The Consumer Forums, however, have

appreciably stood the test of time and have brought all these

services within the ambit of the 1986 Act.

Making consumers aware of their rights and taking

consumer movement to the rural India is the third and

perhaps the most important problem and a challenge before

the consumer organizations. As is well known, most

consumers are still ignorant of their rights, much less of

being assertive about them. Though the Government appears

to be serious of this issue, much however depends upon the

consumer organizations. They have still to cover a very

long distance so far as taking the movement to rural areas is

concerned.

7.3. S u gg es t i o ns o r O p i n i o ns

We feel in today's rampant changing market scenario, there is an increasing

necessity to empowering the consumers through

education and motivation regarding their rights and

responsibilities. He/she should be equipped to be fully vigilant

so as to be able to protect himself/herself from any wrongful

act on the part of the seller/trader. Several steps have been

taken by the Government, both at the Central and State level

towards generating awareness among the consumers.

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Given all such initiatives, it is the responsibility of the consumer

as well to keep in mind the following suggestions:

Purchase products only after their complete scrutiny and

not at the cost of attractive advertisements.

Keep check on the weighing and measuring instruments

used by traders. Avoid buying fruits and vegetables from

unhygienic place.

Check print of MRP on the packet.

Check the quantity as per the figure printed on the packet.

Check the expiry date of the product, particularly that

of eatables and medicines.

Always collect bill at the time of purchase.

Moreover, the packaging and appearance of the product should

not be the guiding factor for consumer purchases. Along with

cost consideration, consumer must be cautious of the

quality of the product. Most importantly, it is the

prime responsibility of a consumer to bring to the notice of the

concerned authorities, any violation in their rights.

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Bibliography

Books:

Bulchandani K, 1999, Business law, Himalaya Publications

Web sites:

Alexander, Richard. "The Development of Consumer Rights in the United States Slowed by the Power of Corporate Political Contributions and Lobbying." 1999. Archived at: h ttp : // consume rla wpa ge. c om /a rti cle . 1999.

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http:// www.legal ser viceindia.com/

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Articles:

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