DBA 5107 LEGAL ASPECTS OF BUSINESS

UNIT – 5

CONSUMER PROTECTION ACT AND INTRODUCTION OF CYBER

LAWS:
CONSUMER PROTECTION ACT, 1986
INTRODUCTION:

The Consumer Protection Act, 1986 attempts to provide an

inexpensive, simple and quicker access to redressal (solving) of
consumer grievances (problems/disputes).

The Act has provided machinery whereby consumers can file

their complaint against defective goods with consumer forums.

OBJECTIVES OF CONSUMER PROTECTION ACT:

 To provide better protection to consumer.

 To award compensation to customers whenever required.

 To enhance the powers of redressal machinery.

 To safeguard the interest of customer.

VARIOUS RIGHTS OF CONSUMERS

 Right to Safety: The consumer is having a right to protect the

sale of goods which are hazardous to their health.

 Right to Information: Consumers must be informed about

quality, quantity and price.
  Right to Choose: They have right to choose from the variety of
goods. Seller should not force them.

 Right to Seek Redressal Against Exploitation: They have right to

seek legal solution against unfair trade practices.

 Right to Consumer Education: Consumer have right to gain

knowledge about the product.

CONSUMER PROTECTION COUNCIL

The consumer protection council work towards the protection of

the rights of consumers. They also protect the consumers from
exploitation.

These councils advice the Government in matters of policy

formulation.

Types of Consumer Protection Council:

 Central Consumer Protection Council

 State Consumer Protection Council

 District Consumer Protection council

1. CENTRAL CONSUMER PROTECTION COUNCIL:

 The Council is established by the Central Government.

 It shall consist a Minister of Consumer Affairs, Who shall be its

Chairman.

 The council shall also consist other members as prescribed under

rule 3 of the Act.
  The term (Duration) of the council shall be 3 years.

 The object of the council is to promote and protect the various

rights of consumers.

2. STATE CONSUMER PROTECTION COUNCIL:

 The council is established by the State Government.

 The object of the council is to protect the rights of consumers

within the State.

 The Minister of Consumer Affairs of State Government shall be

the Chairman.

 The State council shall meet at such time and place as the
Chairman thinks fit to follow the procedure prescribed by the
State Government.

3. DISTRICT CONSUMER PROTECTION COUNCIL:

o The State Government shall appoint a separate council for each

and every District.

o The Collector of the District shall be the Chairman.

o The object of the District council is to protect the rights of the

consumers within the District.

o The District council shall meet at such time and place as the
Chairman thinks fit to follow the procedure prescribed by the
State Government.
PROCEDURE FOR CONSUMER GRIEVANCE REDRESSAL:

The following procedure is to be followed with regard to consumer

grievance redressal:

 A complaint containing the following documents shall be

presented by the Complainant (one who complains) in person or
by his agent:

1. Name, Description and address of the complainant.

2. Name, Description and address of the Opposite Party.

3. Facts relating to complaint and when and where it occurred.

4. Supporting Documents, If any.

5. Relief (Compensation) which the complain claims.

 Every complaint filed, shall be accompanied by the relevant fee

according to the rule.

 The Council should follow the procedure mentioned in the Act. It

cannot act on its own.

 On the date of hearing, it is mandatory for the parties or their

agents to appear before the council. If the complainant fail to
appear, the council may dismiss the complaint.

 The complaint shall be decided within 3 months from the date of

notice received by the parties. If there is any delay, the council
has to record in writing, the reasons for the delay.
CYBER CRIMES

DEFINITION OF CYBER CRIME:

“Any criminal activity that uses a computer, either as an

instrument or a target or a means of perpetuating (Carrying Out)
further crimes is known as cyber crime.

REASONS FOR CYBER CRIME:

 Capacity to Store Data in Comparatively Small Space

 Easy to Access

 Complex

 Negligence

 Loss of Evidence

MODE AND MANNER OF COMMITING CYBER CRIME /TYPES OF CYBER

CRIMES:

The following are the different types of Cyber Crimes:

 Unauthorised Access to Computer System: It is a type of cyber

crime where the hackers will access the computer system in an
unauthorised manner.

 Theft of Information Contained in Electronic Form: It includes

theft of information stored in hard disk or any other removable
device.
 Email Bombing: Sending large number of emails to a particular
individual or a computer which results in crashing.

 Data Diddling: This kind of attacks involves altering the raw data
before it is processed.

 Salami Attacks: This kind of crime is done in financial institutions

for the purpose of doing financial crimes, the alteration done in
data will be unnoticed.

 Denial of Service Attack: The victims computer will be flooded

with more request (yes/no) which results in crashing.

 Virus/Worm Attack: Viruses are programs that attach

themselves to a computer and then circulate themselves to
other files. Viruses usually alter or delete the data. Worms: It
will eat the available space in the computer’s memory

 Trojan Attack: Trojan attack means gaining control over another

system by representing itself as an authorized program.

 Internet Time Theft: The criminals they first hack the login id and
password of a person and then they use internet free of cost –
Victim will be charged for the usage.

 Web-Jacking: In these kind of crimes, the hackers gain access

and control over the website of another.

 Forgery: It involves preparing duplicate currency notes, revenue

stamps, mark sheets with the help of computer, printer and
scanner.
  IPR Violations: It includes software piracy, trademark violations,
theft of computer source code, etc.

 Cyber Terrorism: Criminals target their attacks on power plants,

air traffic control, banks, train traffic control.

 Banking, Credit Card Related Crimes: Using of stolen credit card

and preparing duplicate cards, using the card number and
making purchase.

 Sale of Illegal Articles: It is a kind of cyber crime where criminals

sell drugs, weapons by posting information in websites,
auctions, etc.

 Online Gambling: There are millions of websites, whose servers

are hosted on abroad, offering online gambling.

 Cyber Stacking: This kind of cyber crime involves following a

person’s movement across the internet.

 Theft of Computer System: This type of crime involves theft of

some parts of computer system or peripherals like hard disk,
keyboard, mouse, etc.

These are the various types of Cyber Crimes.

PREVENTION OF CYBER CRIME

 Avoid disclosing any information.

 Always avoid sending any photographs in online to chat with

strangers.

 Use latest and updated anti-virus software.

  Always have back up of data, so that one may not suffer data
loss in case of virus attack.

 Never send your credit card number to any site that is not
secured.

 It is better to use a security code(password) that gives control

over cookies.

 Use of firewall may be beneficial.

CYBER LAW

DEFINITION OF CYBER LAW:

Cyber Law is a term which refers to all the legal provisions of Internet
and World Wide Web. Anything concerned with legal provisions or
issues concerning any legal activity in cyber space are known as cyber
law.

INFORMATION TECHNOLOGY ACT,2000

WHAT IS INFORMATION TECHNOLOGY ACT, 2000?

The Law relating to Information Technology is contained in the

IT Act, 2000. The Act came into force on 17th October, 2000. It governs
the processing of information electronically.

OBJECTIVES OF INFROMATION TECHNOLOGY ACT, 2000:

 To facilitate electronic filing of documents with Government

Departments.

 To facilitate electronic storage of data.

 To give legal recognition for electronic fund transfer

WHAT IS ELECTRONIC COMMERCE (e-commerce)?

The term e-commerce refers to trading of goods and services

over the internet. It also includes online sale and purchase of goods
and services.

WHAT IS BY ELECTRONIC GOVERNANCE (e-governance)?

The term e-governance refers to application of information

technology in the government functioning. It involves electronic filing
of documents with government agencies.

INTELLECTUAL PROPERTY RIGHTS (IPR)

WHAT IS INTELLECTUAL PROPERTY RIGHTS(IPR)?

Intellectual Property Rights are legal rights which allows the

creator/owner of an intellectual property to get benefit from his or
her own work.

The creator/owner is having a right to prevent others from using

his creation/property.

COPYRIGHTS, TRADE MARK & PATENT:

 COPYRIGHTS:

MEANING OF COPYRIGHTS:

Copyright is the legal ownership of a ‘Work’ which can be a

written text, graphic images, music, sound recording, picture, etc.
Copyrights prevent duplicating and using the original matter.
 Example: Many authors write text books on various topics. It is
the duty of every author to have a copyright for the book written by
him/her.

 TRADE MARKS

MEANING OF TRADE MARK:

A trade mark is a visual symbol in the form of a word with a view

to indicate the purchaser (customer) that it is a good manufacturing
product.

FUNCTIONS OF TRADE MARKS:

o It identifies the product.

o It guarantees the unchanged quality in the product.

o It advertises the product.

o It increases image for the product.

 PATENT

WHAT IS PATENT?

Patent is an exclusive right provided to the owner to make use

or sell an invention and also to protect his or her invention. Patent is
the part of Intellectual Property Right.

THE END