IIM Indore (2013-15) LAB - Prof. S.N.


Consumer Protection Act, 1986


IIM Indore (2013-15) LAB - Prof. S.N. Sinha

Why Consumer Protection Act, 1986.



A person may be consumer of goods, or services.

When I purchase a fan, a gas stove or a refrigerator, I could be the consumer of goods.
When I open a bank account, take an insurance policy, get my car repaired, I could be the consumer of services. The consumer protection Act, 1986 tries to help a consumer when for example, the goods purchased are defective or the services rendered to him are subject to deficiency.

IIM Indore (2013-15) LAB - Prof. S.N. Sinha 3


Prior to the consumer Protection Act, 1986 for any consumer complaint one had to go to an ordinary Civil Court.
IIM Indore (2013-15) LAB - Prof. S.N. Sinha 4

He had to engage a lawyer, pay the necessary fee, and be harassed for years or decades before any outcome, positive or negative, was there in that litigation. Under the Consumer Protection Act, no Court fee has to be paid and the decision on the complaint is much quicker, as the Court can evolve a summary procedure in disposing off the complaint.

N.” 5 .Prof. S.OBJECTIVE OF THE ACT Preamble of the Act IIM Indore (2013-15) LAB . Sinha “An Act to provide for better protection of the interests of consumers and for that purpose to make provision for the establishment of consumer councils and other authorities for the settlement of consumers' disputes and for matters connected therewith.

1986 Section 1 – Short Title.Prof.N. S. Extent and Commencement IIM Indore (2013-15) LAB .BRIEF STRUCTURE OF THE CONSUMER PROTECTION ACT. Sinha Section 2 – Definitions Section 3 to 31 – Other Provisions 6 .

N. 1986 Section 1 Short Title: Consumer Protection Act.BRIEF STRUCTURE OF THE CONSUMER PROTECTION ACT. S.Prof. Sinha . 1986 Extent: CP Act applies to whole of India except Jammu and Kashmir 7 IIM Indore (2013-15) LAB .

N.Prof.BRIEF STRUCTURE OF THE CONSUMER PROTECTION ACT. Sinha 8 . 1986 Section 2 : Definitions IIM Indore (2013-15) LAB . S.

or (iii) the Central Government or any State Government. his legal heir. IIM Indore (2013-15) LAB . S.N. Sinha 9 . (v) in case of death of a consumer. (iv) one or more consumers.Prof.WHO IS A COMPLAINANT "complainant" means (i) a consumer. or (ii) any voluntary consumer association. where there are numerous consumers having the same interest.

Sinha 10 1. An unfair trade practice or a restrictive trade practice has been adopted by any trader or service provider. Here B can make a complaint against A for following an unfair trade practice. Eg. A sold a six months old car to B representing it to be a new one.N. S.WHAT IS A COMPLAINT? “Complaint” means any allegation in writing made by a complainant that : IIM Indore (2013-15) LAB .Prof. .

It was not working properly since day one. The goods bought by him suffer from one or more defects . . Sinha 11 2.N.WHAT IS A COMPLAINT? “Complaint” means any allegation in writing made by a complainant that : IIM Indore (2013-15) LAB . Eg. S. : A bought a computer from B. A can make a complaint against B for supplying him a defective computer.Prof.

Eg. A hired services of an advocate to defend himself against his landlord.WHAT IS A COMPLAINT? “Complaint” means any allegation in writing made by a complainant that : IIM Indore (2013-15) LAB .N. The advocate did not appear every time the case was scheduled. S. A can make a complaint against the advocate.Prof. . The services hired or availed of by him suffer from deficiency in any respect. Sinha 12 3.

100 over and above the reserve price of the cement declared by the Government. Sinha 13 Example : A bought a sack of cement from B who charged him Rs. . IIM Indore (2013-15) LAB .WHAT IS A COMPLAINT? “Complaint” means any allegation in writing made by a complainant that : 4. S.Prof. Here A can make a complaint against B. A trader has charged for the goods mentioned in the complaint a price in excess of the price fixed under any law or displayed on the goods or any package containing such goods.N.

are being offered for sale to the public in contravention of the provisions of any law requiring traders to display information in regard to the contents. manner and effect of use of such goods. Example : A bought a tin of disinfectant powder. Trader did not inform A about this. While opening the lid. Goods which will be hazardous to life and safety when used.WHAT IS A COMPLAINT? “Complaint” means any allegation in writing made by a complainant that : 5.N. Here A can make a complaint against the trader. Sinha 14 .Prof. S. It had lid which was to be opened in a specific manner. some powder flew in the eyes of A which affected his vision. IIM Indore (2013-15) LAB .

Sinha 15 . IIM Indore (2013-15) LAB .Prof. S.N.WHO IS A CONSUMER? Any person who buys goods or avails services for consideration Any body who uses the goods or services with the consent of the consumer.

Prof.WHO IS A CONSUMER? Legal heir of consumer in case death of consumer Does not include any person who buys goods for resale or commercial purpose and services for commercial purpose However any person who buys goods for commercial use but exclusively for his livelihood by means of self employment is a consumer. S. Sinha 16 . Case Study 1: Who are Consumers IIM Indore (2013-15) LAB .N.

IIM Indore (2013-15) LAB .WHAT IS GOODS? Every kind of moveable property.N. S. Sinha 17 .Prof.

Sinha .N.WHAT IS A DEFECT ? Any  Fault  Imperfection  Shortcoming In the  Quality  Quantity  Potency  Purity Or  Standards Which is required to be maintained by or under any law or under contract (implied or expressed).Prof. 18 IIM Indore (2013-15) LAB . S.

S.N. but not limited to the provisions of the facilities in connection with – IIM Indore (2013-15) LAB .WHAT IS A SERVICE? “Service” means service of any description. Sinha 19 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) banking financing insurance transport processing supply of electrical or other energy boarding or lodging or both house construction entertainment amusement or the purveying of news or other information.Prof. . which is made available to potential users and includes.

WHAT IS A SERVICE? Eg. S. Sinha 20 .Prof. The person who buys life insurance policy is availing service from Insurance company.N. The subscriber of telephone is availing the services from the telephone company. IIM Indore (2013-15) LAB .

Prof. Case Study 2: Consumer of Services IIM Indore (2013-15) LAB . Sinha 21 .N.WHAT IS A SERVICE? But does not include the rendering of any service free of charge or under a contract of personal service (master of servant relation). S.

S. Sinha .Prof.N.WHAT IS A DEFICIENCY ? Any  Fault  Imperfection  Shortcoming Or  Inadequacy In the  Quality  Standard and  Manner of performance Which is required to be maintained by or under any law or has been undertaken to be performed by a person in pursuance of a contract. Case Study 3: Deficiency in Services? 22 IIM Indore (2013-15) LAB .

Case Study 4: Restrictive Trade Practice IIM Indore (2013-15) LAB . services as condition precedent to buying. hire or avail of any goods or.Prof. (b) any trade practice which requires a consumer to buy.N. S. hiring or availing of other goods or services (tying arrangement).WHAT IS RESTRICTIVE TRADE PRACTICE? “RTP” means a trade practice which tends to bring about manipulation of price or 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 and shall include — (a) delay beyond the period agreed to by a trader in supply of such goods or in providing the services which has led or is likely to lead to rise in the price. Sinha 23 .

namely.WHAT IS UNFAIR TRADE PRACTICE? "unfair trade practice" means a trade practice which.— IIM Indore (2013-15) LAB . Sinha 24 (1) the practice of making any statement.Prof. (ii) falsely represents that the services are of a particular standard. style or model. . for the purpose of promoting the sale. whether orally or in writing or by visible representation which. composition. grade.— (i) falsely represents that the goods are of a particular standard. quality or grade. quantity. adopts any unfair method or unfair or deceptive practice including any of the following practices. S.N. use or supply of any goods or for the provision of any service. quality.

any goods or services. (vi)makes a false or misleading representation concerning the need for. accessories.N. characteristics. approval. (iv)represents that the goods or services have sponsorship. S. (vii) gives to the public any warranty or guarantee of the performance. second-hand. Sinha 25 . efficacy or length of life of a product that is not based on an adequate or proper test. or the usefulness of. performance. (v) represents that the seller or the supplier has a sponsorship or approval or affiliation which such seller or supplier does not have. reconditioned or old goods as new goods. IIM Indore (2013-15) LAB .WHAT IS UNFAIR TRADE PRACTICE? (iii)falsely represents any re-built. uses or benefits which such goods or services do not have.Prof. renovated.

Prof.WHAT IS UNFAIR TRADE PRACTICE? (vii) gives false or misleading facts disparaging the goods. IIM Indore (2013-15) LAB . (2) permits the publication of any advertisement whether in any newspaper or otherwise.N. Sinha 26 . services or trade of another person. of goods or services that are not intended to be offered for sale or supply at the bargain price. S. for the sale or supply at a bargain price.

S. the sale. (b) the conduct of any contest. use or supply of any product or any business interest. for the purpose of promoting. game of chance or skill.Prof. lottery. IIM Indore (2013-15) LAB . Sinha 27 .WHAT IS UNFAIR TRADE PRACTICE? (3) permits— (a) the offering of gifts. directly or indirectly. prizes or other items with the intention of not providing them as offered or creating impression that something is being given or offered free of charge when it is fully or partly covered by the amount charged in the transaction as a whole.N.

the cost of those or other similar goods or services IIM Indore (2013-15) LAB . if such hoarding or destruction or refusal raises or tends to raise or is intended to raise. or refuses to sell the goods or to make them available for sale or to provide any service.Prof. S.N. Sinha 28 .WHAT IS UNFAIR TRADE PRACTICE? (4) permits the hoarding or destruction of goods.

IIM Indore (2013-15) LAB . It amounts to Unfair Trade Practice. The college was neither recognised by MCI nor affiliated by any University.N. S.Prof.WHAT IS UNFAIR TRADE PRACTICE? Cure Medical College allege and give wrong impression in the publicity material that the college is authorised and equipped to impart medical education leading to MBBS degree. Sinha 29 Case Study 5: Unfair Trade Practice .

Sinha To promote and protect the rights of consumers.N. S.Prof.CONSUMER PROTECTION COUNCIL Object of Consumer protection Council: IIM Indore (2013-15) LAB . 30 .

N.Consumer Protection Council IIM Indore (2013-15) LAB . Sinha Central Consumer Protection Council State Consumer Protection Council District Consumer Protection Council 31 .Prof. S.

Prof.N. Sinha To redress the complaints of the consumers. 32 .CONSUMER DISPUTES REDRESSAL AGENCIES Object : IIM Indore (2013-15) LAB . S.

In each State by the State Govt. 33 .N.Prof. Sinha District Forum State Commission Central Commission In each district by the State Govt. To be established by Central Govt. S.Consumer Disputes Redressal Agencies IIM Indore (2013-15) LAB .

20 lakhs Rs. IIM Indore (2013-15) LAB . if any claimed. State and National Commission have appellate jurisdiction also. Sinha 34 .JURISDICTION OF FORUM / COMMISSION Forum / Commission Where the value of the goods or services and the compensation. 20 lakhs & above but not exceeding Rs.N. 1 Crore Besides. S.Prof. District Forum State Commission Does not exceed Rs. 1 Crore National Commission Above Rs.

S.N.Prof.HOW TO FILE A COMPLAIN ? Procedure for filing complain is simple. 3-5 copies of the complaint on a plain paper. . Complainant or his authorized agent can represent. Sinha 35 There is nominal fees for filing a complain. IIM Indore (2013-15) LAB .

S. Sinha 36 a) b) to remove defect pointed out from the goods. c) d) to pay such amount as may be awarded by it as compensation to the consumer for any loss or injury suffered by the consumer due to negligence of the opposite party. .N. to replace the goods with new goods which shall be free from any defect.Prof.RELIEF TO THE COMPLAINANT ? If the complaint is proved the forum shall order: IIM Indore (2013-15) LAB . to return to the complainant the price paid by the complainant.

N. S.RELIEF TO THE COMPLAINANT ? f) to discontinue the unfair trade practice or restrictive trade practice or not to repeat them. IIM Indore (2013-15) LAB .Prof. Sinha 37 g) to issue corrective advertisements to neutralize the effect of misleading advertisement. .

S.N. IIM Indore (2013-15) LAB .Prof.APPEAL Shall be filed within 30 days of the receipt of the order. Sinha 38 .

District Forum 30 days State Commission IIM Indore (2013-15) LAB . Sinha 39 30 days Central Commission 30 days Supreme Court . S.Prof.N.

Sinha 40 . IIM Indore (2013-15) LAB .Prof. S.LIMITATION PERIOD File the complain Within 2 years from the date on which the cause of action has arisen.N.

10. dismiss the complaint and make an order that the complainant shall pay to the opposite party such Cost. State Commission or National Commission. not exceeding Rs. Sinha 41 .N. it shall.DISMISSAL OF FRIVOLOUS OR VEXATIOUS COMPLAINTS Where a complaint instituted before the District Forum.Prof. is found to be frivolous or vexatious. IIM Indore (2013-15) LAB .000/-. S.

Sinha .Prof. S.THANK YOU 42 IIM Indore (2013-15) LAB .N.