Consumer Protection Acttraining.bsnl.co.in/digital_library_source/upgradation/E2...unfair trade practices •To have access to variety of the goods and services at competitive prices

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Finance

Consumer Protection Act 1986


Background

• Under sale of goods Act the principle is ‘Buyer be aware’

i.e., buyer is supposed to take care before buying goods.

• Buyer could be easily misled and duped.

• Common consumer is neither knowledgeable nor well

informed.

• He needs support and protection from unscrupulous

sellers.


Objects of the Act

• To provide for better protection of interest of consumers.

By providing

– Advisory bodies

– Adjudicatory bodies


Rights of the consumers

• Act is intended to protect the following rights of the

consumers:

• Protection from marketing of the goods and

services which are hazardous to life and

property

• To be informed about the quality, quantity,

purity, standard and price of the goods or

services so the consumers are protected from

unfair trade practices

• To have access to variety of the goods and

services at competitive prices


Rights of the consumers (contd.)

• To be heard and to be assured that consumers’ will

receive due consideration.

• To stop unfair trade practices, restrictive trade practices

and exploitation of consumers.

• Right to consumer education.

• Right to speedy and simple redressal to consumer

disputes.


Complaint

• Complaint means any allegation made by a complainant

in writing that ;

– An unfair trade practice or restrictive trade practice

has been adopted

– The goods bought or agreed to be bought or services

hired or availed or agreed to be hired or availed

suffer from deficiency

– He has been charged a price in excess of the price

– Goods which are hazardous to life and safety being

offered for sale without information


Definitions

• Consumer : Any person who (1) buys any goods for

a consideration (2) hires or avails of any services for

a consideration.

• Deficiency : Means any fault, imperfection or

shortcoming in quality, quantity, potency, purity or

standard that is required to be maintained.


Definitions

• Restrictive trade practice : Any trade which tends to

bring about manipulation of price or its conditions of

delivery or to affect flow of supplies in the market in

such a manner as to impose unjustified costs or

restrictions.

• Unfair trade practice : a trade practice which for the

purpose of promoting the sale adopts any unfair

method or unfair or deceptive practice.


Definitions

• Service : Means service of any description made

available to potential users and includes but not

limited to services in connection with banking,

financing, insurance, transport, supply of electrical

engineering, boarding or lodging, housing

construction, entertainment , amusement etc.,


Telephone services

• Facilities provided by Telecom departmental

undertakings and also private firms providing cellular

services, WLL mobile and other services are covered in

the definition of service

• Common forms of deficiencies : Excess billing, wrongful

disconnection without any valid reason or notice,

refusing telephone services on flimsy grounds, delay in

shifting, faulty services / instruments etc.,


Who can file a complaint

• Any consumer to whom such service is provided

• Any recognized consumer association

• One or more consumers where there are numerous

consumers having the same interest

• Central or state government either in its individual

capacity or as a representative of interest of consumers

in general


Court Fee to be paid

Commission Value / Claim Fee (Rs.)

District Forum <Rs. 1 Lakh 100

“ Rs. 1 Lakh < 5 lakh 200

“ Rs.5 Lakh < 10 Lakh 400

“ Rs.10 Lakh < 20 Lakh 500

State Forum Rs.20 Lakh < 50 Lakh 2000

“ Rs. 50 Lakh < 1 Crore 4000

National Commn > Rs. 1 Crore 5000


Redressal agencies

• Act envisages a three tier (quasi judicial) grievance

redressal system

– District Forum

– State Commission

– National Commission


District forum

• Established in each district consisting of a President and

two members

• Jurisdiction : (1) where cause of action arose (2) Where

one of the opposite party actually resides or carries on

business or has a branch office (3) where value of goods

or services and compensation claimed is up to Rs. 20

lakhs.


Procedure

• Complaint can be sent by post or personally filed. No

specific format prescribed for filing complaint

• Complaint to be filed within two years from the date on

which the cause of action arose

• On receipt of the complaint, forum will decide on

admissibility of the complaint within 21 days, if admitted,

copy of the complaint will be sent to opposite party within

21 days to furnish his version within 30 days.


Procedure

• The district forum shall settle consumer disputes within 3

months if no testing / analysis is required or else 5

months.

• District forum shall be deemed to be civil court. And

hence shall have the same powers in summoning and

enforcing attendance of witness, defendants, securing

production of any record, material object as evidence


Procedure

• Interim orders during the pendency of any proceedings

can be passed

• Cost of adjournment shall be recovered

• Ex-parte orders can be passed

• Punitive damages and general damages can be granted

• If the complaint is found to be playful , may order the

complainant to pay costs not exceeding Rs. 10,000/-


State Commission

• State commission consists of a president and two other

members, one of whom should be a woman.

• Appointed by the state Govt. concerned

• President should be either a sitting or former judge of a

High court.


State Commission

• Jurisdiction :

– Original : where the value of goods/services and

compensation exceed 20 lakhs but not more than

100 lakhs

– Appellate : entertain appeal against the orders of

the district forum within the state

– Revisional : call for records and pass appropriate

orders in any dispute pending before the district

forum


National commission

• National commission consists of a president and four

other members, one of whom should be a woman.

• President is appointed by the Central Govt. in

consultation of the Chief Justice of India.

• President should be either a sitting or former judge of a

Supreme court.

• Other members are appointed on recommendation of a

selection committee.


National commission

• Entertains complaints where the value of goods and

compensation claimed exceeds 100 lakhs

• Entertains appeals against the original orders of the

state commission

• Can call for records and pass appropriate orders in any

dispute which is pending in any state commission

• Can transfer any complaint pending before one state

commission to another state commission, in the interest

of justice


Appeals

• Appeal against the order of national commission in case

of original jurisdiction lies with supreme court

• No provision for appeal against the orders of commission

in its Revisional or appellate jurisdiction. In such cases

only remedy is writ in High Court or SLP in Supreme

court

• Consumer dispute redressal agencies are subject to

judicial review (writ jurisdiction)


Enforcement and penalties

• Can order attachment of property

• Recovery of amount as arrears of land revenue

• Penalty of imprisonment up to three years and fine

up to Rs. 10,000 for disobeying orders.


Documents

Consumer Protection Acttraining.bsnl.co.in/digital_library_source/upgradation/E2...unfair trade practices •To have access to variety of the goods and services at competitive prices