CONSUMER PROTECTION ACT, 1986

BRIEF HISTORICAL BACKGROUND

y Scenario in early 70s & 80s y Existing laws providing consumer protection y Shortcomings of such Laws

UN GUIDELINES FOR THE CONSUMER PROTECTION
y Protect from hazard to health & safety; y Promote & protect economic interests; y Provide adequate information for informed choice; y Consumer education; y Provide effective redress formal and informal

procedures; y Freedom to form groups & present views in decisionmaking affecting consumers;

THE CONSUMER PROTECTION ACT, 1986 (ACT)

Applicability Amendments
Amendments in the year 1993 Amendments in the year 2002

WHO IS A CONSUMER?
Two kinds of consumer under the Act
Consumer of goods
buys or agrees to buy goods any user of such goods

Consumer of services
hires or avails any services any beneficiary of such service

CONSUMERS NEED PROTECTION AGAINST

Unfair trade practice Restrictive trade practice Defects Deficiencies

CONSUMERS NEED PROTECTION AGAINST
UNFAIR TRADE PRACTICE 
Adopting unfair methods or deception to promote sale, use or supply of goods or services e.g.  Misleading public about price (e.g. bargain price when it is not so).  Charging above MRP printed.  Misleading public about another s goods or services.  Falsely claiming a sponsorship, approval or affiliation.  Offering misleading warranty or guarantee.

CONSUMERS NEED PROTECTION AGAINST
RESTRICTIVE TRADE PRACTICE
y Price fixing or output restraint re: delivery/flow of supplies to impose unjustified costs/restrictions on consumers. y Collusive tendering; market fixing territorially among competing suppliers, depriving consumers of free choice, fair competition. y Supplying only to particular distributors or on condition of sale only within a territory. y Delaying in supplying goods/services leading to rise in price. y Requiring a consumer to buy/hire any goods or services as a pre-condition for buying/hiring other goods or services.

CONSUMERS NEED PROTECTION AGAINST
DEFECTS
Any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard which is required to be maintained by or under any law for the time being in force or under any contract express or implied or as is claimed by the trader in any manner whatsoever in relation to any goods.

DEFICIENCY
Any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance which is required to be maintained by or under any law for the time being in force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service.

CONSUMER'S RIGHTS
y Right to safety against hazardous goods and services y Right to be informed about quality, quantity, purity, standard, price y Right to choose from a variety at competitive prices y Right to be heard y Right to seek redressal y Right to consumer education

FORUM & JURISDICTION
Consumer Disputes Redressal Forums (District Forum)
Claims less than or equal Rs.20 lacs.

Consumer Disputes Redressal Commissions (State Commission)
Claim more than Rs.20 lacs & less than Rs.1 crore & appeals.

National Consumer Disputes Redressal Commission (National Commission)
Claim equal to Rs.1 crore & appeals

REQUISTIES OF A COMPLAINT

Who can file a complaint Where to file a complaint How to file a complaint What constitutes a complaint? Procedure for filing the appeal

ESSENTIAL INFORMATION IN THE APPLICATION
Name and full address of complainant Name and full address of opposite party Description of goods and services Quality and quantity Price Date & proof of purchase Nature of deception Type of redressal prayed for

BENEFITS & RELIEFS
Benefit
Disposal within 90 days No adjournment shall ordinarily be granted - Speedy trial

Relief
Removal of defects in goods or deficiency in services. Replacement of defective goods. Refund against defective goods or deficient services. Compensation. Prohibition on sale of hazardous goods.

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