Social & Legal Issues

Consumer Protection Act 1986

The Consumer Protection (Amendment) Act
2002
Th Consumer
The
C
Protection
P t ti (Amendment)
(A
d
t) Act
A t
2005

Social & Legal Issues

Objectives of the Act

1.
2.
3
3.
4.
5
5.
6.
7.

Protection
i off Interest off Consumers
C
Protection of Rights of Consumer:
Right
g to be protected
p
against
g
marketingg of goods
g
and services which are
hazardous to life and property
Right to be assured of Goods and services at competitive price
Right to be informed about the quality quantity,
quantity potency,
potency purity standard and
Price
Right to be Heard
Right to seek redressal
Right to consumer Education:
Consumer protection councils
Quasi-judicial machinery

Social & Legal Issues

Wh iis a Consumer
Who
C
Consumer means any person who:
a) Buys any goods for consideration which has paid, or
promised
i d or partly
tl paid
id or partly
tl promised,
i d or under
d any
system of deferred payment and includes any user of
such goods other than the person who buys such goods
for consideration paid or promised or partly paid or
partly promised or under any system of deferred payment
when such use is made with the approval of such
persons, but does not include a person who obtain such
goods
d for
f resale
l or any other
th commercial
i l purpose

Social & Legal Issues

Who is a Consumer
contd
b) Hires or avails of any services for a consideration which has been
paid or promised or partly paid or partly promised, or under
system of deferred payment and includes any beneficiary of such
services other than the person who hires or avails of the services
for consideration paid or promised or partly paid or partly
promised, or under system of deferred payment when such
services are availed of with the approval of the first mentioned
person but
b t does
d
nott include
i l d a person who
h avails
il off suchh services
i
for any commercial purpose.

Social & Legal Issues

G d
Goods
According to the sale of Goods Act- Goods means
everyy kind of movable pproperty
p y other than the
actionable claims and money; and includes stocks and
shares, growing crops, grass and things attached to or
f
forming
i part off land
l d which
hi h are agreedd to be
b severedd
before sale or under the contract of sale.
Flats
Fl t andd housing
h i was included
i l d d under
d goods
d in
i 1993

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Services

Services of any description which is available to potential users

and includes, but not limited to, the provision of facilities in
connection with banking, financing, insurance, transport,
processing supply of electrical or other energy,
processing,
energy board or lodging or
both, housing construction, entertainment, amusement or the
purveying of news or other information
Housing construction is a service

Social & Legal Issues

Complainant

a)
b)

c))
d)
e)

Acc to the Act, Complainant meansA consumer; or

Any voluntary consumer association registered under the
companies act,1956 or under any other law for the time being
in force, or
The
h centrall government or any state government;
One or more consumers, where there are numerous consumers
having
g the same interest
In case of a death of a consumer, his legal heir or
representative; who or which makes complaint

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C
Complaint
l i t
Complaint means any allegation in writing
made by a complainant with a view to obtain
any relief under the Act

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Restrictive Trade Practice

a)
b)

According to Act: Restrictive

Restricti e trade practice means a trade
practice which tends to bring about manipulation of price or
its conditions of delivery or to affect the flow of supplies in
g to goods
g
or services in such a manner as
the market relating
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
h goods
d or iin providing
idi the
h services
i
which
hi h has
h led
l d or is
i
likely to lead to rise in the prices
Any trade practice which requires a consumer to buy, hire or
avail of any goods or
or, as the case may be,
be services as
condition precedent to buying, hiring or availing of other
goods or services.

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U f i T
Unfair
Trade
d P
Practices
i
Unfair means and deceptive practices
Misleading advertisements
Making of false statements
Publication of any advertisement for the sale at a
b
bargain
i price
i that
th t are nott intended
i t d d to
t be
b offered
ff d for
f
sales
Not providing gifts/prizes after declaration of results

Social & Legal Issues

CASE

A
Amit
i bought
b
h a television
l i i set from
f
an electronic
l
i
store for using it at home. The television was
defective Is Amit a consumer?
defective.
S
Sumit,
i on a holiday
h lid with
i h his
hi family,
f il hired
hi d a
taxi service. The taxi was in poor condition, the
driver did not have adequate rest and drove
rashly. The taxi broke down on two occasions
and eventually all of them in the middle of the
hills. They could not reach in time to catch
their flight.
g Is Sumit a consumer?

Social & Legal Issues

Case
Amit bought a pressure cooker for use by his
f il In
family.
I th
the first
fi t use it
itself,
lf while
hil his
hi wife
if
Simi was using it, the pressure cooker burst,
hurting her. Is Amit a consumer? Is Simi a
consumer?
Amit bought a pressure cooker for use by his
family. He paid only 30% of the price while
remaining was to be paid a week later. The
cooker was defective.
defective It burst in the second use.
use
Is Amit a consumer?

Social & Legal Issues

Case
Sujit bought a pressure cooker for domestic use. The
moneyy for it was to be ppaid next week. It burst in the
second use? Is Sujit a consumer?
Suman bought a cell phone for personal use .The
payment of the phone was to start the following month.
The payment was to be one in six monthly installments.
Th phone
The
h
was defective.
d f ti Is
I Suman
S
a consumer??

Social & Legal Issues

Cases
A manufacturer of pens was distributing his
pens free to the visitors to an exhibition. The
pens were defective and leaking. The pens spoilt
the clothes of several persons. Sunita is one of
the persons who has spoilt her clothes. Is she a
consumer?

Social & Legal Issues

Consumer Dispute Redressal Agencies

Point of
Distinction

District Forum State

Commission

National
Commission

Territorial
Jurisdiction

1 or more
di t i t
districts

One or more
state
t t

All India

Serving, or
Retired Judge
of high court

Serving, or
Retired Judge
of supreme
court

Qualification of Serving,
President
Retired or
qualified
district jjudge
g

Social & Legal Issues

Contd.
Composition

President and
two members-1
woman

President and
President and
min. 2 members- min. 4 members1 woman
1 woman

Qualification

Age 35,graduate, 10
yrs ex. in
eco,law,a/c,el
/
commerce

Same as District
Forum

Same as District
Forum

Re-appointment
pp

Yes

Yes

Yes

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Contd
Monetary
Jurisdiction

Upto 20 lakhs

Administra-tive State
Control
commission

20 lakhs-1
lakhs 1
crore

More than one

crore

National
commission

Penalties

Imprisonment for not less than 1 mth but can

extend to 3 yrs. Fine not less than 2000.

Frivolous
complaint

Dismiss the complaints and costs upto Rs 10000/-

Social & Legal Issues

Procedure for making a Complaint

A complainant
l i
can make
k a complaint
l i before
b f
the
h appropriate
i consumer
dispute redressal agency.
The complaint relating to any goods and services is given to the opposite
party within 21 days .
The opposite party is allowed to put forth his version within 30 days.
In case of defect in goods, a sample of the goods is sent to the lab for a
report within 45 days.
days
The report is given to the opposite party.
A complaint shall be decided within 3 months if no lab test is required and
within 5 months if the lab test is required.
required

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Fi di
Findings

1.
2
2.
3.
4.
5.
6.
7
7.
8.
9
9.
10.

The following orders can be made by the consumer dispute

redressal agency:
To remove the defect
To replace the goods
To return to the complainant the price
To pay compensation
To remove the defects in goods or deficiencies in services.
To discontinue the unfair trade practice
N to offer
Not
ff hhazardous
d
goods
d
To cease manufacture of hazardous goods.
To issue corrective advertisement
To provide for adequate cost

Social & Legal Issues

D ii
Decisions
off National
N i l commission
i i andd Supreme
S
court
D
Doctors are within
i hi the
h purview
i off this
hi act
Government hospitals/health centres who render service for
free the provisions of the act do not apply.
apply
Damages are payable if there is negligence of the opposite
pparty
y.
Provident fund subscribers are also consumers.
Deficiency of railway services.
Confirmed ticket not providing a seat is a deficiency of
service.
Nursing
N i hhome nott able
bl to
t manage emergency is
i a negligence
li
of service.

Social & Legal Issues

Decisions of National commission and Supreme court

Deceased husbands premium was not deduced from salary
wife can claim the benefits
Unauthorized
U th i d escalation
l ti off price
i due
d to
t delay
d l off delivery.
d li
Full payment done for flat, but due to some reasons flat not
allotted and advised to opt for another scheme is not valid This
is deficiency of service

Social & Legal Issues

Cases

Consumer and Commercial Use

Synco Textiles private limited vs Greaves Cotton
Interpretation of Livelihood
Western India State Motors v.Sobhag Mal Meena
Privity of Contract
R.Balraj v Grindlays Bank and State Bank of
India