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Organization in the Protecting of Consumer’s Rights
Submitted to: by:
O.P. Maurya Sir
Shashi Shekhar Singh Chauhan Shaswat Kumar Shrawan Kumar Sonker J.P. Maurya Vishwa Vijay Rohit Jha
TABLE OF CONTENTS
Page NO. 1. 2. 3. Introduction Features , Objectives of Consumer Protection Act 1986 Scope of Consumer Protection Act 1986
GOODS AND SERVICES COVERED UNDER CPA 1986 WHO IS A CONSUMER?
4. 5-6 7-8 9-11 12-13 14-15 16-17 18
CONCEPT OF CONSUMER PROTECTION RIGHTS OF CONSUMERS CONSUMERS NEED PROTECTION AGAINST WAYS AND MEANS OF CONSUMER PROTECTION FILING OF COMPLAINTS MACHINERY FOR SETTLEMENT OF GRIEVANCES CONCLUSION BIBLIOGRAPHY
Features .CONTENTS OF GROUP MEMBERS NAME TOPIC Introduction. Scope of Consumer Protection Act 1986 GOODS AND SERVICES COVERED UNDER CPA 1986 WHO IS A CONSUMER? CONCEPT OF CONSUMER PROTECTION RIGHTS OF CONSUMERS CONSUMERS NEED PROTECTION AGAINST WAYS AND MEANS OF CONSUMER PROTECTION FILING OF COMPLAINTS Shashi Shekhar Singh Chauhan Shrawan Kumar Sonker Vishwa Vijay Shaswat Kumar J. Maurya Rohit Jha MACHINERY FOR SETTLEMENT OF GRIEVANCES .P. Objectives.
In other words. The act makes provisions to include both tangible goods and intangible services (henceforth referred to as product) purchased from a trader or service provider (henceforth referred to as company).THE CONSUMER PROTECTION ACT. 1986 INTRODUCTION The Consumer Protection Act was passed in 1986 and it came into force from 1 July1987. The act can apply to any consumer who uses the product for non-commercial activities. speedy and inexpensive machinery for redressal of consumers’ grievances. deficient services and unfair trade practices. and to the formation of consumer organization. The laws are designed to prevent businesses that engage in fraud or specified unfair practices from gaining an advantage over competitors and may provide additional protection for the weak and those unable to take care of themselves. For ex. It also makes provisions for simple. Consumer protection consists of laws and organizations designed to ensure the rights of consumers as well as fair trade competition and the free flow of truthful information in the marketplace. which help consumers make better choices in the market place and get help with consumer complaint. The main objectives of the Act are to provide better and all-round protection to consumers and effective safeguards against different types of exploitation such as defective goods. Consumer protection laws are a form of government regulation which aims to protect the right of consumers. such as food. Consumer protection is linked to the idea of "consumer rights" (that consumers have various rights as consumers). the only exception being use of it to earn his livelihood. . but includes individual domestic customers. The act is applicable in all states in India except in Jammu and Kashmir. the act excludes commercial customers fully. groups of domestic customers. a government may require businesses to disclose detailed information about products—particularly in areas where safety or public health is an issue. societies and not-forprofit organizations.
. 1986 is to protect the interest and safeguard the rights of the consumers. Protection against the abuse of monopoly position and/or restrictive trade practices 4. 3. 2. Objectives of Consumer Protection Act 1986 The main objective of consumer protection Act. Protection against deceptive and unfair trade practices. Physical protection of consumer 2. It provides a statutory recognition to the six rights of consumers. It applies to all goods. It covers all sectors whether private.Salient Features of Consumer Protection Act 1986 The salient features of Consumer Protection Act (CPA) 1986 are as follows: 1. 3. Protection of enjoying the right. We need consumer protection Act for the following1. state and district levels to promote and protect the rights of consumers and a three tier quasi-judicial machinery to deal with consumer grievances and disputes. It provides for establishment of consumer protection councils at the central. services and unfair trade practices unless specifically exempted by the Central Government. public or co-operative. 4.
processing. A suit pending in civil court cannot be heard in consumer court.) (b) For the purpose of services.According to the Sale of Goods Act. . growing crops. "goods" means every kind of movable property other than actionable claims and money. (ii)"service" means service of any description which is made available to potential users and includes the provision of facilities in connection with banking. and includes stock and shares. but does not include the rendering of any service free of charge or under a contract of personal service. 1930. WHO IS A CONSUMER? Under the Consumer Protection Act 1986. (The expression ‘consumer’ does not include a person who obtains such goods for resale or for any commercial purpose. 1930 (3 of 1930). the word Consumer has been defined separately for the purpose of goods and services. insurance. a consumer means (i) one who buys any goods for consideration. entertainment. GOODS AND SERVICES COVERED UNDER CPA 1986 (i)"goods" means goods as defined in the State of Goods Act. a consumer means (i) one who hires any service or services for consideration. and (ii) any beneficiary of such service(s) provided the service is availed with the approval of such person. and (ii) any user of such goods other than the person who actually buys it.Scope of Consumer Protection Act 1986 • • • • • Applies to whole of the state Except the state of Jammu and Kashmir Applies to all type of goods and services. provided such use is made with the approval of the buyer. amusement or the purveying of news or other information. public utilities & public sector undertakings All types of complains relating to goods .unfair trade practice Remedies under this act are same as those in other laws. housing construction. grass. financing. supply of electrical or other energy. (a) For the purpose of goods. transport. board or lodging or both. and this attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale.
(c) Sale of sub-standard goods i. (h) Supply of defective goods.Note :.e. adding something inferior to the product being sold. quality of service lower than the quality agreed upon. (a) Sale of adulterated goods i.. (b) Sale of spurious goods i. by means of self employment. j) Supply of inferior services i.e.. . (i) Misleading advertisements i. grade or standard. (g) Charging more than the Maximum Retail Price (MRP) fixed for the product. (e) Use of false weights and measures leading to underweight. advertisements falsely claiming a product or service to be of superior quality.e.e.A person is not a consumer if he purchases goods for commercial or resale purposes However.. In other words. it refers to the measures adopted for the protection of consumers from unscrupulous and unethical malpractices by the business and to provide them speedy redressal of their grievances. selling something of little value instead of the real product..e. sale of goods which do not confirm to prescribed quality standards. The most common business malpractices leading to consumer exploitation are given below. the word "commercial" does not include use by consumer of goods bought and used by him exclusively for the purpose of earning his livelihood.. CONCEPT OF CONSUMER PROTECTION Consumer protection means safeguarding the interest and rights of consumers. (d) Sale of duplicate goods. (f) Hoarding and black-marketing leading to scarcity and rise in price.
Kennedy.RIGHTS OF CONSUMERS John F. access to a variety of goods and services at competitive prices. (a) Right to Safety It is the right of the consumers to be protected against goods and services which are hazardous to health or life. quantity. etc. In India. Let us have a brief idea about these rights of consumers. Now-a-days the manufacturers provide detailed information about the contents of the product. postal service . 1986 has also provided for the same rights to consumers. (c) Right to Choose The right to choose provides that the consumer must be assured. However. These rights had paved the way for organised consumer movement in the USA and later it spread all over the world. precautions to be taken. Only recently. (iv) right to be heard. defective vehicles could lead to serious accidents. its quantity. the buyers have an opportunity of wide selection. on the label and package of the product. Such information helps the consumers in their buying decision and use of the product. right to safety is an important right available to the consumer which ensures that the manufacturers shall not produce and sell sub-standard and dangerous products. purity. (v) right to redress and (vi) right to represent. (iii) right to choose. in case of monopolies like railways. the former USA President. (b) Right to be Informed The right to be informed is an important component of consumer protection. These rights are (i) right to safety. whenever possible. For example. in his message to consumer had given six rights to consumers. maximum retail price. date of manufacturing. there were mass protests and boycott of soft drinks due to presence of hazardous pesticides beyond permissible limits. standard and the price of the goods and services. date of expiry. (ii) right to be informed. Thus. The same is true of electrical appliances with sub-standard material. the Consumer Protection Act. The consumer must be provided with adequate and accurate information about quality. If the market has enough varieties of products at highly competitive prices.
and (iv) the procedure to be followed by consumers while making complaints. quality etc. labeling. (d) Right to be Heard The rights to safety. information and choice will be frivolous without the right to be heard. Broadly speaking. most of the top manufacturers and firms have set up consumer service cells to attend to consumers’ complaints and take appropriate steps for their redressal. the product must be repaired / replaced by the seller/ manufacturer. consumers have a right to be heard by manufactures. educational institutions and the policy makers can play an important part. Now-a-days. (f) Right to Consumer Education It means the right to receive knowledge and skill to become informed consumer. grade. (e) Right to Seek Redressal The consumers have been given the right of redressal of their grievances relating to the performance. It has also set up a proper mechanism for their redressal at district. If required. of the goods and services. Thirdly. state and national levels. (iii) insistence on a bill or receipt at the time of purchase. marketing decisions and any grievances of the consumers. and protect themselves against fraudulent. . The Consumer Protection Act has duly provides for a fair settlement of genuine grievances of the consumers.and electricity supply etc. In this direction the consumer associations. dealers and advertisers about their opinion on production. Effective consumer education leads to an increased level of consumer awareness and help them to enforce their rights more effectively. This right has three interpretations. Also. (ii) the ways and means which dishonest traders and producers may adopt to deceive the consumers. They are expected to impart information and knowledge about (i) the relevant laws which are aimed at preventing unfair trade practices. etc. it implies a right to be assured of satisfactory quality of service at a fair price. consumers have the right to be heard in legal proceedings in law courts dealing with consumer complaints. this right means that consumers have a right to be consulted by Government and public bodies when decisions and policies are made affecting consumer interests. deceitful and grossly misleading advertisement.
. reconditioned or old good as new goods. 2). which falsely represents that the goods are of a particular standard. Any such practice shall also be deemed to be an unfair trade practice if it permits the hoarding or destruction of goods. (b) Advertisement of bargain or bait. use or supply of any goods or for the provision of any service. namely :(a) False or misleading representation. for the purpose of promoting the sale. quantity. (c) Offering gifts or prizes with intention of not providing them. quality. 4). whether orally or in writing or by visible representation will fall under the category of unfair trade practice: 1). 1993. quality or grade. 1986 as amended by the Consumer Protection (Amendment) Act. whether in any newspaper or otherwise. composition. second-hand. The publication of any advertisement. It means a trade practice which. for the sale or supply at a bargain price of goods and services that are not intended to be offered for sale or supply at the bargain price. uses or benefits which such good or services do not have. which represents that the goods or services have sponsorship. (d) Hoarding or destruction of goods. 3). which falsely represents that the services are of a particular standard. style or model. adopts any unfair method or unfair or deceptive practice including any of the following practices. grade. approval. which falsely represents any rebuilt. performance. characteristics. Any of the following statements. or refuses to sell the goods.CONSUMERS NEED PROTECTION AGAINST UNFAIR TRADE PRACTICE The detailed definition is given in the Consumer Protection Act.
quantity. market fixing territorially among competing suppliers. Requiring a consumer to buy/hire any goods or services as a precondition for buying/hiring other goods or services. or its conditions of delivery or to affect flow of supplies in the market relating to goods or services in such a manner as to impose on the consumers unjustified costs or restrictions” The term restrictive trade practice is used for any strategy used by producers to restrict competition within a given market. DIFICIENCY "deficiency" means any fault. fair competition.e delivery/flow of supplies to impose unjustified costs/restrictions on consumers. shortcoming or inadequacy in the quality. . Price fixing or output restraint i. 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. 3. depriving consumers of free choice. Collusive tendering. DEFECTS "defect" means any fault. Supplying only to particular distributors or on condition of sale only within a territory. 5. 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.RESTRICTIVE TRADE PRACTICE “A trade practice which tends to bring about manipulation of price. imperfection. 2. imperfection or shortcoming in the quality. Delaying in supplying goods/services leading to rise in price. potency. Collusion resulting in the formation of a cartel is one such practice. Other practices that fall short of the formation of a cartel but are nonetheless against the public interest and illegal include 1. 4.
though not a party to the grievances. environmentalists and others. Infact. (b) Public Interest Litigation Public Interest Litigation (PIL) is a scheme under which any person can move to the court of law in the interest of the society.WAYS AND MEANS OF CONSUMER PROTECTION We have enumerated several instances of exploitations and malpractices on the part of manufacturers. It involves efforts to provide legal remedy to un-represented groups and interests. Such groups may consist of consumers. traders. The aggrieved party can directly approach the adalats with his grievance. road accidents etc. Infact. State Consumer Disputes Redressal Commission (State Commission) and National Consumer Disputes Redressal Commission (National . and it cannot be assured by voluntary business conduct or self-regulation. can approach the court for remedial action in case of any social atrocities. state level and national level. consumer protection essentially needs consumer awareness. telephone billings. (c) Redressal Forums and Consumer Protection Councils Under the Consumer Protection Act 1986. and his issues are discussed on the spot and decisions are taken immediately. These are known as District Forum. a judicial system has been set up to deal with the consumer grievances and disputes at district level. education and guidance. Any person or organisation. Mahanagar Telephone Nigam Limited and Delhi Vidyut Board hold Lok Adalat regularly to settle user’s grievances on the spot. minorities. Actually it is very difficult to stop such exploitation by any consumer single handedly. Indian Railways. The consumers may take the advantage of this system to solve their problems. dealers and services providers. The consumers have to collectively act against such malpractices and take the help of consumer organisations and the government agencies. Now the question arises as to how can these be eliminated. (a) Lok Adalat Lok Adalats are the effective and economical system for quick redressal of the public grievances. Cases of electricity billing. The following are the various ways and means of consumer protection followed in India. can be taken up in Lok Adalat for spot settlement. poor persons.
(d) Awareness Programme To increase the level of awareness among the consumers the Government of India has initiated various publicity measures. speedy and inexpensive redressal of consumers’ grievances. State or National level forum. It is felt that neither it is possible to discipline all members of the business community through moral sanctions nor a code of fair business practices nor can administrate orders and legislative provisions to ensure consumer protection without the active involvement of consumer associations. audio programmes are also broadcasted through All India Radio and FM channels. The councils are required to give wide publicity to the rights of consumers. booklets and various posters depicting the rights and responsibilities of consumers. It regularly brings out journals. A number of such organisations have also been set up in recent years in different parts of India. the procedures for filling complaints by them and provide inputs to consumer movement in the country. state and national level for promotion and protection of the rights of the consumers as laid down in Section 6 of the Act. It observes World Consumer Rights Day on 15 March and National Consumer Day on 24 December. (e) Consumer Organisations Consumer organisations have been active all over the world to promote and protect consumer interests. depending on the value goods and claim for compensation. brochures. To encourage the participation of public in the field of consumer protection the Government has also instituted National Awards to the persons who have done outstanding work in this field. Now with an increasing number of consumer organisations involved in consumer protection.Commission). Similarly. redressal machineries etc. . Any individual consumer or association of consumers can lodge a complaint with the District. Several video programmes on consumer awareness are broadcasted through different television channels. The poster and slogan competition on consumer protection are also organised at various level. The main objective of these forums is to provide for a simple. The Act as amended in 2002 also provides for setting up of Consumer Protection Council at district. the consumer movement is getting a foothold in India and helping individuals to seek quick and adequate redressal of their grievances.
New Delhi § Consumer Education Centre. 1969 (viii) Prevention of Black-marketing and Maintenance of Essential Supplies Act. 1954 (v) Essential Commodities Act. Bangalore § Kerela State Consumers Coordination Committee. product testing labs. Hyderabad § Karnataka Consumer Service Society. organising consumer awareness programmes. This fund is mainly used for setting up facilities for training and research in consumer education. (f) Consumer Welfare Fund The government has created a consumer welfare fund for providing financial assistance to strengthen the voluntary consumer movement in the country particularly in rural areas. Mumbai § CAG (Consumer Action Group). counseling and guidance mechanisms. (g) Legislative Measures A number of laws have been enacted in India to safeguard the interest of consumers and protect them from unscrupulous and unethical practices of the businessmen. suits and writ petitions on behalf of the consumers. investigating into the problems of consumers. Chennai § CUTS (Consumer Unity and Trust Society). 1950 (ii) Agricultural Products (Grading and Marketing) Act. 1955 (vi) The Standards of Weights and Measures Act. Ahmadabad § VOICE (Voluntary Organisation in the Interest of Consumer Education). filing complaints.Some of the important Consumer Organisations that have been playing an active role in taking up consumer cause are: § CERC (Consumer Education and Research Centre). publishing and distributing brochures and journals. complaint handling. Cochin These organisations are collecting data on different products and testing them. and so on. 1956 (vii) Monopolies and Restrictive Trade Practices Act. 1937 (iii) Industries (Development and Regulation) Act. Some of these Acts are as follows: (i) Drug Control Act. 1980 . 1951 (iv) Prevention of Food Adulteration Act. New Delhi § CGSI (Consumer Guidance Society of India). etc. Jaipur § Common Cause.
(b) goods bought by him or agreed to be bought by him suffer from one or more defect. . One crore. One crore. What complaints can be filed? A consumer can file a complaint relating to any one or more of the following: (a) an unfair trade practice or a restrictive trade practice adopted by any trader or service provider. and (d) one or more consumers where these are numerous consumers having same interest. and (e) goods or services which are hazardous or likely to be hazardous to life and safety when used. if it exceeds Rs. (b) any recognised voluntary consumer association whether the consumer is a member of that association or not. (ii) displayed on the goods or the package. the complaint can be filed before the State Commission. (iii) displayed in the price list. Where to file a complaint? If the value of goods and services and the compensation claimed does not exceed Rs. and if it exceeds Rs. Who can file a complaint? The following persons can file a complaint under Consumer Protection Act 1986: (a) a consumer. or (iv) agreed between the parties. (c) the Central or any State Government.FILING OF COMPLAINTS For redressal of consumer grievances a complaint must be filed with the appropriate forum. the complaint can be filed before the National Commission. the complaint can be filed in the District Forum. 20 lakh. suffer from deficiency in any respect. or agreed to be hired or availed of. (d) price charged in excess of the price (i) fixed by or under the law for the time being in force. (e) Legal heir or representative in case of death of a consumer. (c) services hired or availed of. 20 lakh but does not exceed Rs.
(f) Withdrawal of hazardous or dangerous goods from being offered for sale. it may be admitted even after the lapse of two years if sufficient cause is shown for the delay. the Redressal Forum/Commission may order one or more of the following reliefs: (a) Removal of defects from the goods or deficiencies in services in question. (g) Provision of adequate costs to aggrieved parties. description and address of the complainant as well as the opposite party. and the facts of the case. . Where the complaint requires laboratory testing of goods this period is extended to five months. The complaint should clearly specify the relief sought. (d) Award of compensation for loss or injury suffered. It should also contain the nature. (b) Replacement of the defective goods. (e) Discontinuance of unfair trade practices or restrictive trade practice or not to repeat them. Time limit for deciding the case Every complaint must be disposed off as speedily as possible within a period of three months from the date of notice received by the opposite party. The complaint can be written on a plain paper duly supported by documentary evidence in support of the allegation contained in the complaint. (c) Refund of the price paid. What are the reliefs available to consumers? Depending on the nature of complaint the and relief sought by the consumer.How to file a complaint? A complaint can be made in person or by any authorised agent or by post. However. and so also the facts relating to the complaint and when and where it arose. Time limit for filing the case The consumer can file the complaint within two years from the date on which the cause of action had arisen.
2. 1986 consists of consumer courts (forums) at the district. one of whom shall be a women. District Forum This is established by the state governments in each of its districts. These are known as District forum. (c) Appeal: In case the aggrieved party is not satisfied with the order of the State Commission he can appeal to the National Commission within 30 days of passing of the order. he can challenge the same before the State Commission. 20 lakh but does not exceed Rs. (c) Appeal: If a consumer is not satisfied by the decision of the District forum. (a) Composition: The State Commission consists of a President and not less then two and not more than such number of members as may be prescribed. One crore. (a) Composition: The district forums consist of a Chairman and two other members one of whom shall be a woman. within 30 days of the order. The Commission is headed by a person of the level of High Court judge. Let us have a brief idea about their composition and roles. . 1. (b) Jurisdiction: A written complaint can be filed before the State Commission where the value of goods or services and the compensation claimed exceeds Rs.MACHINERY FOR SETTLEMENT OF GRIEVANCES The judicial machinery set up under the Consumer Protection Act. State Commission This is established by the state governments in their respective states. state and national levels. State Consumer Disputes Redressal Commission (State Commission) and National Consumer Disputes Redressal Commission (National Commission) separately. 20 lakh. (b) Jurisdiction: A written complaint can be filed before the District Consumer forum where the value of goods or services and the compensation claimed does not exceed Rs. The district forums are headed by the person of the rank of a District Judge.
one crore can be filed directly before the National Commission. one of whom shall be a woman. It is the apex body in the three tier judicial machinery set up by the government for redressal of consumer grievances. the National Commission has also been conferred with the powers of administrative control over all the State Commissions by calling for periodical returns regarding the institution. (b) Jurisdiction: All complaints pertaining to those goods or services and compensation whose value is more than Rs. disposal and pending of cases and issuing instructions for adoption of uniform procedures. It may be noted that in order to attain the objects of the Consumers Protection Act. The National Commission is headed by a sitting or retired judge of the Supreme Court. New Delhi. 5th Floor. . National Commission The National commission was constituted in 1988 by the central government. Its office is situated at Janpath Bhawan (Old Indian Oil Bhawan).3. (c) Appeal: An appeal can be filed against the order of the National Commission to the Supreme Court within 30 days from the date of order passed. etc. (a) Composition: It consists of a President and not less than four and not more than such members as may be prescribed. Janpath. A Wing.
Right to Safety .Principle of Social Justice .Consumer Welfare Fund .Legislative Measures .Redressal Forums and Consumer Protection Councils .Consumer Satisfaction .Principle of Trusteeship .Public Interest Litigation .Right to Choose .Right to Consumer Education • Ways and Means of Consumer Protections . Some reasons for consumer protection are: .Increasing Awareness .Right to be Informed .Awareness Programme .Consumer Organisations .Right to be Heard .Survival and Growth of Business • Rights of a Consumer as given in the Consumer Protection Act 1986 .Lok Adalat . They do not exercise their rights due to lack of awareness. • The need for consumer protection arises due to the helplessness of consumers.Social Responsibility .CONCLUSION • Consumer is a person who buys goods or hires services to be used or consumed by himself/herself or by some one on behalf of the buyer. • Consumer Protection refers to the measures adopted for the protection of consumers from unscrupulous and unethical malpractices by the business and to provide them speedy redressal of their grievances.Right to Seek Redressal .
state and national levels. state and district levels to promote and protect the rights of consumers and a three tier quasijudicial machinery to deal with consumer grievances and disputes.• Consumer Protection Act 1986 The main objective of the Consumer Protection Act 1986 is to provide better and all-round protection to consumers and effective safeguards against different types of exploitation such as defective goods. 1986 consists of consumer courts (forums) at the district. It provides for establishment of consumer protection councils at the central. These are known as District forum. • Machinery for Settlement of Grievances The judicial machinery set up under the Consumer Protection Act. State Consumer Disputes Redressal Commission (State Commission) and National Consumer Disputes Redressal Commission (National Commission) separately. deficient services and unfair trade practices. .
consumerdaddy.BIBLIOGRAPHY WEBSITES:http://agmarknet.MS Pandit Business Law – Shobha Pandit NEWS PAPERS:• • The Hindu Business Times .com http://www.co.nic.in http://www.in/ BOOKS PREFFERED:• • Business Law.google.
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