CONSUMER PROTECTION ACT

1
CONTENTS:
1. Introduction of Law
2. Who is a Consumer?
3. Rights of a Consumer
4. Consumer Law
5. Concept of Consumer Protection
6. History of Consumer Protection Act
7. 3 tier consumer grievances machinery
8. Importance of Consumer Protection Act
9. Objectives of Consumer Protection Act
10. Features of Consumer Protection Act
11. Needs of Consumer Protection Act
12. Scope of Consumer Protection Act
13. Medical Negligence and Malpractice
14. Review of the cases under Consumer Protection Act
15. Consumer responsibility
16. Filing of a complaint
17. Role of Consumer Organization
18. Public Health Importance
19. Summary
20. Conclusion
21. References
2
Manu Smriti

Kautilya’s Arthasastrya

ENGLISH LEGAL SYSTEM ALLAUDDIN KHILJI

Historical Evolution of Consumer Protection and

3
law in India, Rajendraprasad A. Journal of Texas
Supreme Court Consumer Law p 132-136
NEED FOR Consumer Protection Act

• Drawbacks Indian Penal Code, Law of Contracts, Law

of Torts and other specific Legislation:

(i) Delay to decisions ;

(ii) High cost of bringing an actions;
(iii) limited access to the courts ;
(iv) Difficult to prove both negligence and causation.

No provisions in the Indian Medical Council Act, 1956 ;

(i) to entertain any complaint from the patient ;

(ii) to award any compensation, etc. in case the negligence is proved

Historical Evolution of Consumer Protection and law in India, Rajendraprasad A. Journal of Texas Consumer Law p 4
132-136
 INTRODUCTION OF LAW
• Rule made by the authority for the proper regulation of a
community or society or for correct conduct in life.

• An Act of Parliament, a statute enacted as primary legislation

by a national or sub-national parliament.

• Sets out the main objectives which the legislation intended

to achieve.

5
Consumer Protection Act, 1986, 6/9/10, [68 of 1986]
 WHO IS A CONSUMER?

• "consumer" means any person who,—

(i) buys any goods for a consideration which

has been paid or promised or partly paid
and partly promised, or under 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

Consumer Protection Act, 1986, 6/9/10, [68 of 1986] 6

Who is a Consumer in medical profession?

• A patient who pays to get services of doctor /hospital,

• Any person who pays for the patient, legal heirs /

representatives of such patients,

• In case of death of patient who is a consumer, legal heirs

(representatives) of the deceased

• If the payment has been made by any person who is not a legal
heir of the deceased

Consumer Protection Act, 1986, 6/9/10, [68 of 7

1986],
 WHAT IS A COMPLAINT?
"complaint" means any allegation in
writing made by a complainant that—

(i) an unfair trade practice or a

restrictive trade practice has been
adopted by any trader;

(ii) the goods bought by him or agreed

to be bought by him suffer from one or
more defects;

(iii) the services hired or availed of or

agreed to be hired or availed of by him
suffer from deficiency in any respects;
Consumer Protection Act, 1986, 6/9/10, [68 of 1986]
8
 WHO IS A COMPLAINANT?
• A consumer

• Any voluntary consumer

association registered under the
Companies Act or any other law

• Central or State Government, if it

makes a complaint

• One or more consumers having

same interest

• In case of death of a consumer, his

legal heir or representative.

9
Consumer Protection Act, 1986, 6/9/10, [68 of 1986],
CONSUMER DISPUTE

• A dispute where the person against whom a complaint has

been made, denies the allegations contained in the complaint;

• (f) "defect" means 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 1[under any contract, express or implied, or]
as is claimed by the trader in any manner whatsoever in
relation to any goods;

10

Consumer Protection Act, 1986, 6/9/10, [68 of 1986]

• "deficiency" means 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;

• "District Forum" means a Consumer Dispute Redressal

Forum-established under clause (a) of section 9;

Consumer Protection Act, 1986, 6/9/10, [68 of 11

1986],
RIGHTS OF A CONSUMER
John F. Kennedy’s Message to Congress on March 15, 1962

• Right to Safety
• Right to Information
• Right to Choice
• Right to be Heard
• Right to Seek Redressal
• Right to Consumer Education
• Right to Basic Needs
• Right to Healthy Environment

Consumer Protection Act, 1986, 6/9/10, [68 of 1986] 12

1982 Consumer International’s Charter of Consumer Rights

– Right to basic needs

• Food, clothing, shelter, health care, education, water
and sanitation
– Right to safety
– Right to information
– Right to choice
– Right to be heard
– Right to redress
– Right to education
– Right to healthy environment

Consumer Protection Act, 1986, 6/9/10, [68 of 13

1986],
• Right to Safety: To be protected against the marketing of
goods or the provision of services that are hazardous to
health and life.

• Right to Information: To be protected against dishonest or

misleading advertising or labeling and the right to be given
the facts and information needed to make an informed
choice.

• Right to Choice: To choose products at competitive prices

with an assurance of satisfactory quality.

• Right to representation: To express consumer interests in

the making and execution of government policies.

Consumer Protection Act, 1986, 6/9/10, [68 of 14

1986],
• Right to Seek Redress: To be compensated for
misrepresentation, shoddy goods or unsatisfactory services.

• Right to Consumer Education: To acquire the knowledge

and skills necessary to be an informed customer .

• Right to Basic Needs: Guarantee survival, adequate food,

clothing, shelter, health care, education and sanitation

• Right to health environment: To live and work in an

environment which is neither threatening nor dangerous and
which permits a life of dignity and well-being.

Consumer Protection Act, 1986, 6/9/10, [68 of 15

1986],
 CONSUMER LAW

• “Consumer law" regulates private law relationships between

individual consumers and the businesses that sell those goods
and services.

• Ex : IT deal with credit repair, debt repair, product safety,

service and sales contracts, bill collector regulation, pricing,
utility turnoffs, consolidation, personal loans that may lead to
bankruptcy and much more.

Consumer Protection Act, 1986, 6/9/10, [68 of 1986] 16

 CONSUMER LAW: CONSTITUTIONS

• Early constitutions focused on civil and political rights

(“first generation rights”)
– Freedom and security of an individual
– Protection from state and public power

• More recent constitutions confer wider range of human

rights
– Economic, social and cultural rights
– “second generation rights”

Consumer Protection Act, 1986, 6/9/10, [68 of 17

1986],
• Trend is to include the right to development
– “third generation” or “solidarity” rights

• In constitutions adopted since 1980’s, consumer

rights recognized as human rights

• Recognize disparity of knowledge, resources and

bargaining power and provide for consumer rights

Consumer Protection Act, 1986, 6/9/10, [68 of 18

1986],
 CONSUMER LAW: FRAMEWORK

• Cover a broad range of practices, goods and services

• Create consultative bodies
• Vest agencies with rule-making powers
• Create special tribunals with simplified procedures
and rules of evidence
• Confer on consumer groups the right to represent
individuals
• Provide for a range of remedies

Consumer Protection Act, 1986, 6/9/10, [68 of 19

1986],
CONCEPT OF CONSUMER PROTECTION

• Safeguarding the interest and rights of consumers.

• -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

Consumer Protection Act, 1986, 6/9/10, [68 of 20

1986],
WHO IS RESPONSIBLE FOR CONSUMER PROTECTION?

• Government agencies
– Ministry of Commerce, Investment and Consumer Affairs
• Professional/Industry associations
• Consumer organizations

Consumer Protection Act, 1986, 6/9/10, [68 of 21

1986],
HISTORY OF CONSUMER PROTECTION ACT

• Passed in Lok Sabha on 9th December,1986 and it came into

force from 1 July 1987.

• Rajya Sabha passed on 10th December, 1986 and assented by the

President of India on 24th December, 1986 and was published in
the Gazette of India on 26th December, 1986.

Consumer Protection Act, 1986, 6/9/10, [68 of 22

1986],
 Machinery under the Act

• Central Consumer Protection Council

– to be established by Central Government

• State Consumer Protection Council

– to be established by State Government

• District Consumer Protection Council

– to be established by State Government for every district

Consumer Protection Act, 1986, 6/9/10, [68 of 23

1986],
CONSUMER DISPUTE REDRESSAL MACHINERY

National Commission
– At the National level

State Commission – At
the State level

District Forum – At the

District level

Consumer Protection Act, 1986, 6/9/10, [68 of 24

1986],
PECUNIARY JURISDICTION

• Forum where complaints can be entertained

– Depends on value of goods and service and compensation
claimed

• Limits are :
– District Forum
• not exceeding Rs.20 lakhs

– State Commission
• exceeds Rs.20 lakhs but does not exceed Rs.1 Crore

– National Commission
• exceeds Rs.1 Crore.
Consumer Protection Act, 1986, 6/9/10, [68 of 25
1986],
 TERRITORIAL JURISDICTION

• Territorial Jurisdiction lies in the court of the place:

– Where the opposite party resides or carries on business or

personally works for gain

– Where the cause of action wholly or partly arose.

Consumer Protection Act, 1986, 6/9/10, [68 of 26

1986],
3 - TIER CONSUMER GRIEVANCES
MACHINERY

Consumer Protection Act, 1986, 6/9/10, [68 of 27

1986],
 DISTRICT FORUM
1. President
2. Two other members.

The president can be a retired or working judge of District

Court , appointed by state govt.

1986 - <Rs.5lakh ; now - to Rs.20lakh.

• Aggrieved party - unsatisfied - an appeal in State

Commission within 30 days by depositing 25000 or 50%
of penalty amount whichever is less.

Consumer Protection Act, 1986, 6/9/10, [68 of 28

1986],
STATE FORUM

1. President
2. Two other members.

The president can be a retired or working judge of High

Court , appointed by state govt.

• 1986, <Rs.5lakh ; now - <Rs.1crore.

• Unsatisfied - within 30 days by depositing Rs.3500 or

50% of penalty amount whichever is less.
Consumer Protection Act, 1986, 6/9/10, [68 of 29
1986],
 NATIONAL FORUM

1. president
2. 4 members one of whom shall be women.

They are appointed by Central Govt.

1986 <Rs.20lakh ; now - exceeds Rs.1crore.

• Unsatisfied - Supreme Court within 30 days.

Consumer Protection Act, 1986, 6/9/10, [68 of 30

1986],
DISPOSAL OF DISPUTES

• District Forum may

– ask the opposite party to remove the defect,
– replace the goods with new goods and free from defect
– to return to the complainant the price of goods or
– to pay any amount as compensation

• Appeals to be preferred within thirty days

– from the order of the District Forum to the State Commission and
– from the order of the State Commission to the National Commission
• Can entertain appeals beyond thirty days
– on sufficient cause shown for the delay

It has to be disposed within ninety days from its admission.

Consumer Protection Act, 1986, 6/9/10, [68 of 1986], 31
IMPORTANCE OF CONSUMER PROTECTION ACT

• Importance from Consumer’s Point of view:

Unorganised Consumers-

Very few consumer organizations are working

Consumer protection provides power and rights to

these organization as these organizations can file a
case behalf of customer.

Consumer Protection Act, 1986, 6/9/10, [68 of 32

1986],
• Consumer Ignorance-

Spreads awareness - consumer can know about the

various redressal agencies where they can approach
to protect their interests.

• Wide Spread Exploitation of Consumer’s-

Consumer protection provides safe guard to

consumers from such exploitation.

Consumer Protection Act, 1986, 6/9/10, [68 of 33

1986],
Importance from Businessmen’s Point of View:

• BUSINESSMAN USES SOCIETY’S RESOURCES-

Must use resources for consumer’s benefits.

• SOCIAL RESPONSBILITIES-

1. Provide quality goods at reasonable price.

2. Consumer protection guides businessman to
provide social responsibilities.

Consumer Protection Act, 1986, 6/9/10, [68 of 34

1986],
• GOVERNMENT INTERVENTION-

They should not involve in unfair trade practices.

Businessman should voluntarily involve in the
activities which protect the interest of consumer.

• CONSUMER IS THE PURPOSE OF BUSINESS-

The basic purpose of the business is to create more

and more customers and retain them and
businessmen can create more customers only by
satisfying the customers and protecting the interest
of consumers.
Consumer Protection Act, 1986, 6/9/10, [68 of 35
1986],
OBJECTIVES OF CONSUMER PROTECTION ACT

• To protect the consumer from abuse.

• To provide a venue for grievance /redress.
• To ensure a better quality of living by improving the
quality of consumer products & services.

Consumer Protection Act, 1986, 6/9/10, [68 of 36

1986],
FEATURES OF CONSUMER PROTECTION ACT

• It applies to all goods, services and unfair trade practices

unless specifically exempted by the Central
Government.

• It covers all sectors whether private, public or co-

operative.

• It provides for establishment of consumer protection

councils at the central, 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.
Consumer Protection Act, 1986, 6/9/10, [68 of 1986] 37
 NEEDS OF CONSUMER PROTECTION ACT

• SOCIAL RESPONSIBILITY-

Serve the interest of consumers.

Duty of producers and traders to provide right quality and
quantity of goods at fair prices to the consumers.

• INCREASING AWARENESS-

The consumers are becoming more mature and conscious of

their rights against the malpractices by the business. There are
many consumer organisations and associations who are
making efforts to build consumer awareness.
Consumer Protection Act, 1986, 6/9/10, [68 of 38
1986],
• Consumer Satisfaction-

Father of the Nation Mahatma Gandhi had once given

a call to manufactures and traders to “treat your
consumers as god”.

Consumers’ satisfaction is the key to success of business.

Consumer Protection Act, 1986, 6/9/10, [68 of 39

1986],
SCOPE OF CONSUMER PROTECTION ACT

• Requirements to performance, composition, contents, design,

construction, finish, packaging of a consumer product
• Requirements as to kind, class, grade, dimensions, weights,
material
• Requirements as to the methods of sampling, tests and codes used
to check the quality of the products
• Requirements as to precautions in storage, transporting and
packaging
• Requirements that a consumer product be marked with or
accompanied by clear and adequate safety warnings or
instructions, or requirements respecting the form of warning
or instructions
Consumer Protection Act, 1986, 6/9/10, [68 of 40
1986],
 HOW DOCTORS ARE INCLUDED IN CPA??

• The National Consumer Disputes Redressal

Commision’s order decreed that the doctor - patient
relationship is a contract for personal service and it is
not master - servant relationship.

• The doctor-patient relationship is a contract for personal

service and could not contract of personal service.

• Hence patients who had sustained injuries in the course

of treatment can sue doctors in consumer protection
courts for compensation.
Consumer Protection Act, 1986, 6/9/10, [68 of 41
1986],
MEDICAL NEGLIGENCE AND MALPRACTICES

• MEDICAL NEGLIGENCE –

1. Doing something that a reasonably prudent person

would not have done – an act of commission
2. Doing something that a reasonably prudent person
would have done – an act of ommission
3. Doing something that a reasonably prudent person
would have done, but in doing it, failing to meet a
reasonable standard of care – a breach of the standard

Risk and Law management in Dental Practice, 42

Chapter 4, Page 54
MALPRACTICE

• A special form of negligence.

• Professional Negligence
DENTAL MALPRACTICE – Negligence of a Dentist

Consumer Protection Act, 1986, 6/9/10, [68 of 43

1986],
 MOST FREQUENT ALLEGATIONS AGAINST
DENTAL PROFESSION

• Broken needles
• Root left in socket without knowledge
of the patient
• Extraction of wrong tooth or lack of
consent
• Fragments entering respiratory passages

Consumer Protection Act, 1986, 6/9/10, [68 of 1986],

45
•Injury in fitting or ill fitting plates and
dentures
•Infection from use of unsterile
instruments
•Fracture and dislocations of jaw occurring
during dental procedures
•Death from anesthetic
46
Consumer Protection Act, 1986, 6/9/10, [68 of 1986],
Who is liable to Consumer Protection Act

I. Doctors with independent practice rendering only free

services.
II. Private hospital charging all.
III. All hospital having free as well as paying patients ,
they are liable to both.
IV. Doctors or hospitals paid by an insurance firm for
treatment of a client or an employer for the treatment
of an employee.

Consumer Protection Act, 1986, 6/9/10, [68 of 47

1986],
Who is not liable to Consumer Protection Act

Doctors in hospitals , which do not charge their patients.

Hospitals offering free services to all patients.

Consumer Protection Act, 1986, 6/9/10, [68 of 48

1986],
• REVIEW OF THE CASES UNDER CONSUMER
PROTECTION

Consumer Protection Act, 1986, 6/9/10, [68 of 49

1986],
 MEDICAL NEGLIGENCE EXAMPLES

Anuradha Saha Case

50
The times of India, 2013
Samanta Mukherjee - road traffic accident refusal
to give full treatment in emergency cost penalty of
10 lakhs to hospital

51
The Times Of India,
Consumer Protection Act, 1986, 6/9/10, [68 of 52
1986],
DENTAL NEGLIGENCE EXAMPLES

53
22 January, 2015

54
VICTIM OF BOTCHED DENTISTRY FIGHTS TOOTH AND
NAIL, WINS

55
Consumer Protection Act, 1986, 6/9/10, [68 of 1986] 56
SUPREME COURT DECISIONS ON COPRA

• Services provided are free for all is exempted

• Services at hospitals, nursing homes where charges are required to

be paid by the persons availing such services fall within the
purview of the service

Consumer Protection Act, 1986, 6/9/10, [68 of

1986],
57
 CONSUMER RESPONSIBILITY

• Consumer must exercise his right-

The consumer must select the product according to his preferences, he must
file a complaint if he is not satisfied with the quality of product.
• Cautious Consumer-
The consumer should not blindly believe on the words of seller. He must insist
on getting full information on quality, quantity,utility,price etc
• Consumer must be quality-conscious-
According to this, consumer himself stops compromising the quality of
product. While purchasing the goods or services consumer must look
for quality marks such as ISI mark, Agmark, ISO, Wool Mark etc.

Consumer Protection Act, 1986, 6/9/10, [68 of 58

1986],
• Insist on cash memo-

Consumer needs the evidence of purchase, and cash

memo is the evidence or proof that consumer has
paid for the good or service.

• Filling complaints for the redressal of genuine

grievances-

The consumer must file a complaint even for a small

loss.
Consumer Protection Act, 1986, 6/9/10, [68 of 59
1986],
FILING A COMPLAINT

• When or under what circumstance the complaints

can be filed?
– False by traders and manufacturers

Within what period the complaint can be filed?

The complaint must be filed within 3 months of
purchase and if some testing of goods is required
then within 5 months.
Consumer Protection Act, 1986, 6/9/10, [68 of 60
1986],
Consumer Protection Act, 1986, 6/9/10, [68 of 61
1986],
Consumer Protection Act, 1986, 6/9/10, [68 of 62
1986],
PROVISION FOR APPEAL

• Appeal against district forum

before state commision

• Appeal against state commision

before national commision.

• Against national commision

before supreme court.
Consumer Protection Act, 1986, 6/9/10, [68 of 63
1986],
SOME RELIEFS OR REMEDIES TO CONSUMER

• Removal of defects from the goods.

• Replacement of the goods.
• Refund of price paid.
• Compensation of loss or injury suffered.
• Removal of deficiency in service.
• Stopping the sale of hazardous goods.

Consumer Protection Act, 1986, 6/9/10, [68 of 64

1986],
 ROLE OF CONSUMER ORGANIZATION

• In India there are about 500 consumer organizations

working in the field of consumer protection.

The most popular are:

• Consumer Guidance Society of India(Mumbai).

• Citizen Action Group(Mumbai).
• Consumer Education and Research Centre (CERC)
Ahmedabad.
• Common Causes(New Delhi),Consumer Unity and Trust
Society(CUTS).
Consumer Protection Act, 1986, 6/9/10, [68 of 1986] 65
These associations are performing following functions:

• Bringing out brochures, journals etc.

• Spreading consumer awareness.

• Collecting data of different products and testing them.

• Filing suits or complaints on behalf of consumers.

• Educating the consumers to help themselves.

• Educating women regarding consumerism.

• Motivating people to ask for quality marks such as ISI mark, Agmark etc.

Consumer Protection Act, 1986, 6/9/10, [68 of 1986] 66

PUBLIC HEALTH IMPORTANCE

Consumer Protection Act, 1986, 6/9/10, [68 of 67

1986],
Summary

68
CONCLUSION

With CPA medical profession may seem vulnerable,

but it forces the medical personnel’s to be more
responsible, accountable and remain up to date to
serve the society in a more effective and an efficient
way, though a legal assurance, ensuring protection
from unnecessary and arbitrary complaints, is the
need of the hour.

Consumer Protection Act, 1986, 6/9/10, [68 of 69

1986],
REFERENCES

• Consumer Protection Act, 1986, 6/9/10, [68 of 1986]

• Risk and Law Management in Dental Practice.
• Historical Evolution of Consumer Protection and law in India,
Rajendraprasad A. Journal of Texas Consumer Law p 132-136
• https://www.ucc.ie/academic/law/odg/attachments/NEYERS_(Theory_of
_VL)
• http://shodhganga.inflibnet.ac.in/bitstream/10603/95152/8/08_chapter%
202
• https://blog.ipleaders.in/consumer-disputes-cases/
• The Hindu Times
• The Times of India

70