Consumer Rights & Protection act

Consumer Rights andProtection Act 1986

Ashish Kumar,Roll No -12, Semester 2,School of Management Studies12A customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business. He is part of it. We are not doing him a favor by serving him. He is doing us a favor by giving us an opportunity to do so.Mahatma GandhiTopics to be coveredConsumer definition and rightsConsumer protection act 1986Redressal commissionDistrict forum, State and national commissionLodging a complaintRemedies and consumer awarenessWho can file and how to file a complaint33Who is a consumer?Any person who buys any commodity or service or is a user of such commodity or service is known as consumer.Any person must satisfy two conditions to claim himself as a consumer :- 1) The service must have been rendered to him 2)He must have paid or promised to pay for the same.If any person buy capital goods to provide services to other individuals, then he is also recognised as consumer.

44Who is not a consumer?If any person buys a commodity with an intention to resaleA person who obtains services without consideration A person who obtains services for commercial purposeApplications for jobsPersons who filed suits in courts

55Consumers RightsRight to safety against hazardous goods and servicesRight to be informed about quality, quantity, purity, standard, priceRight to choose from a variety at competitive pricesRight to be heardRight to seek redressalRight to consumer education

Factors Leading To Consumer ExploitationDeceptive and misleading techniquesFalse warranties or guaranteesNon Availability of goodsAdulteration HoardingBlack marketing

77Consumer Protection Act,1986 The Consumer Protection Act, 1986 is a benevolent social legislation. The first and the only Act of its kind in India, it has enabled ordinary consumers to secure less expensive and often speedy redressal of their grievances. Act applies to whole of India except Jammu and Kashmir.

88Consumer Protection Act,1986By spelling out the rights and remedies of the consumers in a market so far dominated by organized manufacturers and traders of goods and providers of various types of services, the Act makes buyer beware a thing of the past.The act was amended in 2002 and the amendments came into force w.e.f. 15th March 2003.

99Salient features of the actThe act applies to all goods and services unless specially exempted by union government.It covers all sectors public, private or cooperative.It provides consumer rights- to choose, to be heard, to be informed, to safety, education, and redressal

1010Provisions of the act are compensatory in nature.It empowers consumers seeking discontinuance of traders malpractices, defective goods, services deficiencies or withdrawal of hazardous goods from the market.

Salient features of the act1111Objectives of the actProvides for promotion and protection of the rights of the consumers Provide remedies for deceived consumersBetter protection against exploitationMake provisions for the establishment of consumer councils and other authorities for the settlement of consumer disputes and for the matters connected with it.1212

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1414Responsibilities of consumer1515Quality marksAGMARK

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1616Ways and means of consumer protectionRedressal forums and consumer protection councilsEnvironmentally friendly productsNational youth award on consumer protectionConsumer welfare fundPublicity measuresLok Adalats1717Redressal mechanismThe Central Council is headed by Minister, In-charge of the Department of Consumer Affairs in the Central Government and the State Councils by the Minister In-charge of the Consumer Affairs in the State GovernmentsAt present, there are 629 District Forums and 35 State Commissions with the National Consumer Disputes Redressal Commission (NCDRC)at the apex

1818The act envisages a three tier quasi judicial machinery at the national state and district level.

District Consumer Disputes Redressal Forums District Forum(< Rs. 20 Lacks)

State Consumer Disputes Redressal commission State commission (>= Rs. 20 Lacks < Rs. 1 crore )

National Consumer Disputes Redressal commission National commission (exceeding 1 crore )

1919District forumIt shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed does not exceed Rs. 20 Lakhs (section 11)It shall consist of a person who is or has been or is qualified to be a district judge as its president, 2 other members one of whom shall be a women possessing a bachelors degree from a recognized university 2020District forumBe a person of ability, integrity and standing and have adequate knowledge and experience.Every member of the district forum shall hold office for a term of 5 years or upto the age of 65 years whichever is earlier.

2121Power of civil court to district forumThe district forum shall have the powers of civil court while trying a suit in respect of the following mattersThe summoning and enforcing attendance of any defendant or witness and examining the witness on oathThe reception of evidence on affidavit22Any other matter which may be prescribedThe requisition of the report of concerned analysis or test from the appropriate laboratory of from any other relevant resourceThe discovery and production of any document or other material object producible as evidence

Power of civil court to district forum23State commissionIt shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed exceed Rs. 20 Lakhs but less than 1 crore (section 17 )It shall consist of a person who is or has been or is qualified to be a high court judge as its president242 other members one of whom shall be a women possessing a bachelors degree from a recognized universityBe a person of ability, integrity and standing and have adequate knowledge and experience.Every member of the state forum shall hold office for a term of 5 years or upto the age of 67 years whichever is earlier

State commission25National commissionThe National Commission was constituted in the year 1988.It is headed by a sitting or retiredJudge of the Supreme Court of India. It is presently headed by honble Mr. Justice Ashok Bhan, former Judge of the Supreme Court of India as President and has ten Members26The National Commission has been conferred with the powers of administrative control over all the State Commissions by calling for periodical returns regarding the institution, disposal and pendency of cases.It shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed exceed Rs. 1 crore (section 21 )It shall consist of a person who is or has been or is qualified to be a supreme court appointed by central government.

27Not less than 4 number of members and atleast 1 of them shall be a women, who shall have qualifications, namely : 1)Not less than 35 years of age 2)Possessing a bachelors degree from a recognized university 3)Be a person of ability, integrity and standing and have adequate knowledge and experience. 4)Every member of the district forum shall hold office for a term of 5 years or upto the age of 70 years whichever is earlier.

28Power of national commissionAdoption of uniform procedure in the hearing of the mattersPrior service of copies of documents produced by one party to the opposite partiesSpeedy grant of copies of documents, andGenerally over-seeing the functioning of the State Commissions and the District Forums

2930Procedures to be followed by the Parties to ComplainA complaint may be made w.r.t. to goods or services.Categorization is done (goods or services).Whether laboratory-test is required or not.Whether laboratory test is not required or complaint relates to services.31When a lab-test is required

Copies of complaint including supporting documents and compensation demanded must be submitted.

After such complaint receipt, District Forum refers to opposite party to put in front their point.

Time limit of 30 days (can be extended to 45 days) is given to put their perspective.

Procedures to be followed by the Parties to ComplainLodging a complaint in national commission32Complaint containing particulars can be submitted in-person, or by his agent, or by registered post addressed to National Commission.On the date of hearing, it is obligatory on the parties or their agents to appear before National Commission.Complaint shall be decided within 3-5months from the date of notice received by opposite party.After the proceedings, the National Forum shall issue the orders accordingly.Who can file a complaint?

A consumer or Any voluntary consumer association registered under the companies act 1956 or under any other law for the time being in force orThe central government or any state government or One or more consumers, where there are numerous consumers having the same interest or,In case of death of a consumer, his legal heir or representative.33How to file a complaint? On plain paper, contents of a complaint:-The name, description and the address of the complainant and of the opposite party/partiesThe facts relating to complaint and when and where it aroseDocuments in support of the allegations contained in the complaintThe relief, which the complainant claimsThe complaint should be signed by the complainants or his authorized agent

34ESSENTIAL INFORMATION IN THE APPLICATIONName and full address of complainantName and full address of opposite partyDescription of goods and servicesQuality and quantityPriceDate & proof of purchaseNature of deceptionType of redressal prayed for

35A complaint can be filed in person, through agent/lawyer, or by registered post.Nominal court feesSerial No.Value of goods or services and the compensation claimedAmount of fee payable1Upto Rs. 1 Lakh

Rs. 1002Greater than or equal to Rs. 1 Lakh,But less than Rs. 5 LakhsRs. 2003Greater than or equal to Rs. 5 Lakhs,But less than Rs. 10 LakhsRs. 4004Greater than or equal to Rs. 10 Lakhs,But less than Rs. 20 LakhsRs. 50036Limitation period for complaints/appealsThe consumer case has to be filed within 2 years of the date of cause of actionDelay in filing appeal may be condoned if there is sufficient causeIf an appeal is made after the specific period, then the forum shall record in writing reasons for the delayRevision petition - 90 days

37Remedies Under Consumer Protection Act To replace the goodsLoss of injury of consumerTo remove the defects in the productTo return to the complainant the price paid by the complainantTo remove the defects or deficiencies in the services in question38Remedies Under Consumer Protection Act To discontinue the unfair trade practices or restrictive trade practicesNot to offer the hazardous goods for saleTo cease from manufacturing to hazardous goodsIssue of corrective advertisement

39Applicability of ConsumerProtection Act to Banking SectorCustomer of a bank who has a bank account with the bank or a person who purchases a bank draft, hires locker facility or obtains bank guarantee from a bank are all consumers and can prefer complaints under the Act for deficiency in service on the part of the bank or for restrictive trade practice or unfair trade practice

In Vimal Chandra Grover vs. Bank of India (SC 2000)40Jago Grahak jago campaignThe government has been implementing this innovative and intensive multimedia campaign to create consumer awareness in the countryRealising the need for empowering consumers, the government has approved a scheme of Rs 409 crore during the 11th five-year Plan on the awareness campaignIt aimed at helping the emergence of consumers who irrespective of age, socio-economic class or gender41

42Consumer awarenessThe government celebrates December 24 - "National Consumer Rights Day Online- website and social networking sitesUniversity- e.g. delhi universityTV and FM radioPoster and banners at public placesNewspaer and magazines

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44Suggestions or OpinionsPurchase products only after their complete scrutinyCheck on weighing and measuring instrumentsAvoid buying fruits and vegetables from unhygienic placeCheck print of MRP and quantity on the productCheck the expiry date of the product, particularly that of the eatables and medicinesAlways collect bill at the time of purchase45Referencencdrc.nic.inwww.indiakanoon.orgwww.legalserviceindia.comwww.nationalconsumerhelpline.in46

47Any Questions?48