CONSUMER

PROTECTION ACT
Group 5
WHO IS A CONSUMER?
 Buys any goods for a consideration which has
been paid or promised or partly paid and
partly promised.

 Buys capital goods to provide services to

other individuals

 Uses the goods with the approval of the

buyer

 Buys goods for the self-employment

WHO IS NOT A CONSUMER?
 Any person who buys a commodity with an
intention to resale

 A person who obtain services without consideration

 A person who obtains services for commercial

purposes

 Applications for jobs

 Persons who filed suits in courts

FACTORS LEADING TO
CONSUMER EXPLOITATION
 Deceptive and misleading techniques

 False warranties or guarantees

 Non availability of goods

 Adulteration

 Hoarding

 Black marketing
CONSUMER PROTECTION
ACT,1986
 To provide the better protection of the
interests of the consumer, the Consumer
Protection Bill, 1986 was introduced in Lok
Sabha on 5th December, 1986

 Is a social welfare legislation which was

enacted as a result of widespread consumer
protection movement

 Extends to the whole of India except the

State of Jammu and Kashmir
OBJECTIVE
 Better protection of interests of consumers

 Provide better speedy and simple redressal to

consumer disputes

 Protection of the rights of the consumers:

o The right to be protected against marketing of
goods which are hazardous to life and property;
o The right to be informed about the quality,
quantity, potency, purity, standard and price of
goods to protect the consumer against unfair
trade practices;
CONT.
o The right to be heard and to be assured
that consumers interests will receive due
consideration at appropriate forums;
o Right to consumer education
GOODS
 Every kind of movable property other than
actionable claims and money; and includes
stock and shares, growing crops, grass, and
things attached to or forming part of the
land which are agreed to be severed before
ale or under the contract of sale.
SERVICES
 Services of any description which is available
of potential users and includes, but not
limited to, the provision of facilities in
connection with banking, financing,
insurance, transport, processing, supply of
electrical or other energy, board or lodging
or both, housing construction,
entertainment, amusement or the purveying
of news or other information.
DEFECT
 Any fault, imperfection or shortcoming in the
quality, quantity, potency, 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.
COMPLAINT
 Any allegation in writing made by a
complainant to National Commission, the
State Commission or the District Forum with
a view to obtain relief provided under this
act.
WRITTEN ALLEGATIONS
INCLUDE
o An unfair trade practice or a restrictive trade
practice has been adopted by any trader or
service provider;

o The goods bought or agreed to be bought

suffer from one or more defects;

o The services hired or availed of or agreed to

be hired or availed suffer from deficiency in
any respect.
CONT.
 A trader or the service provider has changed for
the goods or for the services mentioned in the
complaint, a price in excess of the price
o Fixed by or under any law for the time being in
force.
o Displayed on the goods or any package containing
such goods.
o Displayed on the price list exhibited under any
law
o for the time being in force.
o Agreed between the parties.
CONT.
 Goods which will be hazardous to life and
safety when used are being offered for sale
to the public
o In contravention of any standards relating to
safety of such goods as required to be
complied any law for the time being in force.
o If the trader could have known with due
diligence that the goods so offered are
unsafe to the public.
COMPLAINANT
 A consumer

 Any voluntary consumer association registered under the

companies act,1956, or under any other law for the time being
in force 3)

 The central government or any state government, who or which

makes a complaint

 One or more consumers, where there are numerous consumers

having the same interest.

 In case of death of a consumer, his legal heir or representative.

(this clause has been introduced by the CPA amendment act,
2002)
HOW TO FILE A COMPLAINT
 The name , description and address of the
complainants and the opposite party.

 The facts relating to complaint and when and where it

arose.

 Documents in support of allegations in the complaint.

 The relief which the complainant is seeking.

 The complaint should be signed by the complainant or

his authorized agent.
COMPLAINT CANNOT BE FILED
 A complaint on behalf of the public which consists of
unidentifiable consumers.

 A complaint by an individual on behalf of general

public.

 An unregistered association

 A complaint after expiry of limitation period i.e after

lapse of two years from the date on which the cause
of action arise unless the Forum is satisfied about the
genuineness of the reason for not filing within the
time
Unfair trade practices [sec. 2(1) (r)]
DEFINITION

 Trade practices which a trader, for the

purpose of promoting the sale, use or supply
of any goods or for the provision of any
service, adopts any unfair method or unfair
or deceptive practice.
 The practices included are:

o Making any statement, whether orally or in

writing or by visible representation which –
 Falsely represents that the goods are of
particular standard, quality, quantity, grade,
composition, style or model;
 Falsely represents that the services are of
particular standard, quality or grade;
 Falsely represents any rebuilt, second hand,
renovated, or old goods as new goods;
 Represents that the goods or services have
sponsorship, approval, performance,
characteristic, accessories, uses or benefits
which such goods or services do not have;

 Represents that the seller or the supplier has

sponsorship or approval or affiliation which
such seller or supplier does not have;

 Make a false or misleading representation

concerning the needs for , or the usefulness
of, any goods or services;
 Gives to the public any warranty or guarantee of
the performance or length of life of a product or
of any goods that is not based on an adequate or
proper test thereof.

 Materially misleading the public concerning the

price at which a product or like products or goods
or services, have been or are ordinarily sold or
provided.

o False offer of bargain price:

 A price that is stated in any advertisement to be a
bargain price by reference to ordinary price or
otherwise
 A price that a person who reads, hears or sees the
advertisement would reasonably understand to be a
bargain price having regard to the prices at which like
products

o Schemes offering gifts or prizes

 Offering gifts or prizes or other items with the intention
of not providing them and conducting promotional
contests.
 Creating an impression that something is being given
free of charge when it is fully or partly covered by the
amount charged in the transaction.
 Conducting of any contest, lottery or game of chances
etc for the purpose of promoting-directly or indirectly-
the sale, use or supply of any product or any business
interest.
RESTRICTIVE TRADE PRACTICES
DEFINITION
o A trade practice which tends to bring about
manipulation of price, 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.
CONSUMERS NEED PROTECTION
AGAINST
 Price fixing or output restraint i.e
delivery/flow of supplies to impose
unjustified costs/restrictions on consumers.

 Collusive tendering; market fixing

territorially among competing suppliers,
depriving consumers of free choice, fair
competition.

 Supplying only to particular distributors or on

condition of sale only within a territory.
CONT.
 Delaying in supplying goods/services leading
to rise in price.

 Requiring a consumer to buy/hire any goods

or services as a pre-condition for
buying/hiring other goods or services.
JAGO GRAHAK JAGO
 It is the consumer awareness program campaign from
the ministry of consumer program affairs, government
of India.

 The government has created channels to create

consumer awareness like print media advertisement,
audio campaigns, video campaigns.

 It is still in its primitive stage but will emerge to be a

successful campaign.

 This campaign helps in spreading awareness and

saving consumers from the exploitation of the sellers