Social & Legal Issues
Consumer Protection Act 1986
Social & Legal Issues
Objectives of the Act
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Protection of Interest of Consumers
Protection of Rights of Consumer:
Right to be protected against marketing of goods and services which are
hazardous to life and property
Right to be assured of Goods and services at competitive price
Right to be informed about the quality quantity, potency, purity standard and
Price
Right to be Heard
Right to seek redressal
Right to consumer Education
Consumer protection councils
Quasi-judicial machinery
Social & Legal Issues
Who is a Consumer
• Consumer means any person who:
a) Buys any goods for consideration which has paid, or
promised or partly paid or 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
when such use is made with the approval of such
persons, but does not include a person who obtain such
goods for resale or any other commercial purpose
Social & Legal Issues
Who is a Consumer
contd…
b) Hires or avails of any services for a consideration which has been
paid or promised or partly paid or partly promised, or under
system of deferred payment and includes any beneficiary of such
services other than the person who hires or avails of the services
for consideration paid or promised or partly paid or partly
promised, or under system of deferred payment when such
services are availed of with the approval of the first mentioned
person but does not include a person who avails of such services
for any commercial purpose.
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Goods
• According to the sale of Goods Act- “Goods means
every kind of movable property other than the
actionable claims and money; and includes stocks and
shares, growing crops, grass and things attached to or
forming part of land which are agreed to be severed
before sale or under the contract of sale”.
• Flats and housing was included under goods in 1993
Social & Legal Issues
Services
• Services of any description which is available to 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
• Housing construction is a service
Social & Legal Issues
Complainant
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a)
b)
c)
d)
e)
Acc to the Act, “Complainant meansA consumer; or
Any voluntary consumer association registered under the
companies act,1956 or under any other law for the time being
in force, or
The central government or any state government;
One or more consumers, where there are numerous consumers
having the same interest
In case of a death of a consumer, his legal heir or
representative; who or which makes complaint
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Complaint
• “Complaint” means any allegation in writing
made by a complainant with a view to obtain
any relief under the Act
Social & Legal Issues
Restrictive Trade Practice
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a)
b)
According to Act: Restrictive trade practice means a trade
practice which tends to bring about manipulation of price or
its conditions of delivery or to affect the 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:
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 prices
Any trade practice which requires a consumer to buy, hire or
avail of any goods or, as the case may be, services as
condition precedent to buying, hiring or availing of other
goods or services.”
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Unfair Trade Practices
• Unfair means and deceptive practices
• Misleading advertisements
• Making of false statements
• Publication of any advertisement for the sale at a
bargain price that are not intended to be offered for
sales
• Not providing gifts/prizes after declaration of results
Social & Legal Issues
CASE
• Amit bought a television set from an electronic
store for using it at home. The television was
defective. Is Amit a consumer?
• Sumit, on a holiday with his family, hired a taxi
service. The taxi was in poor condition, the
driver did not have adequate rest and drove
rashly. The taxi broke down on two occasions
and eventually all of them in the middle of the
hills. They could not reach in time to catch
their flight. Is Sumit a consumer?
Social & Legal Issues
Case
• Amit bought a pressure cooker for use by his
family. In the first use itself, while his wife
Simi was using it, the pressure cooker burst,
hurting her. Is Amit a consumer? Is Simi a
consumer?
• Amit bought a pressure cooker for use by his
family. He paid only 30% of the price while
remaining was to be paid a week later. The
cooker was defective. It burst in the second use.
Is Amit a consumer?
Social & Legal Issues
Case
• Sujit bought a pressure cooker for domestic use. The
money for it was to be paid next week. It burst in the
second use? Is Sujit a consumer?
• Suman bought a cell phone for personal use .The
payment of the phone was to start the following month.
The payment was to be one in six monthly installments.
The phone was defective. Is Suman a consumer?
Social & Legal Issues
Cases
• A manufacturer of pens was distributing his
pens free to the visitors to an exhibition. The
pens were defective and leaking. The pens spoilt
the clothes of several persons. Sunita is one of
the persons who has spoilt her clothes. Is she a
consumer?
Social & Legal Issues
Consumer Dispute Redressal Agencies
Point of
Distinction
District Forum State
Commission
National
Commission
Territorial
Jurisdiction
1 or more
districts
One or more
state
All India
Serving, or
Retired Judge
of high court
Serving, or
Retired Judge
of supreme
court
Qualification of Serving,
President
Retired or
qualified
district judge
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Contd….
Composition
President and
two members-1
woman
President and
President and
min. 2 members- min. 4 members1 woman
1 woman
Qualification
Age 35,graduate, 10
yrs ex. in
eco,law,a/c,ecommerce
Same as District
Forum
Same as District
Forum
Re-appointment
Yes
Yes
Yes
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Contd…
Monetary
Jurisdiction
Upto 20 lakhs
Administra-tive State
Control
commission
20 lakhs-1
crore
More than one
crore
National
commission
Penalties
Imprisonment for not less than 1 mth but can
extend to 3 yrs. Fine not less than 2000.
Frivolous
complaint
Dismiss the complaints and costs upto Rs 10000/-
Social & Legal Issues
Procedure for making a Complaint
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A complainant can make a complaint before the appropriate consumer
dispute redressal agency.
The complaint relating to any goods and services is given to the opposite
party within 21 days .
The opposite party is allowed to put forth his version within 30 days.
In case of defect in goods, a sample of the goods is sent to the lab for a
report within 45 days.
The report is given to the opposite party.
A complaint shall be decided within 3 months if no lab test is required and
within 5 months if the lab test is required.
Social & Legal Issues
Findings
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The following orders can be made by the consumer dispute
redressal agency:
To remove the defect
To replace the goods
To return to the complainant the price
To pay compensation
To remove the defects in goods or deficiencies in services.
To discontinue the unfair trade practice
Not to offer hazardous goods
To cease manufacture of hazardous goods.
To issue corrective advertisement
To provide for adequate cost
Social & Legal Issues
Decisions of National commission and Supreme court
• Doctors are within the purview of this act
• Government hospitals/health centres who render service for
free the provisions of the act do not apply.
• Damages are payable if there is negligence of the opposite
party .
• Provident fund subscribers are also consumers.
• Deficiency of railway services.
• Confirmed ticket not providing a seat is a deficiency of
service.
• Nursing home not able to manage emergency is a negligence
of service.
Social & Legal Issues
Decisions of National commission and Supreme court
• Deceased husbands premium was not deduced from salary
wife can claim the benefits
• Unauthorized escalation of price due to delay of delivery.
• Full payment done for flat, but due to some reasons flat not
allotted and advised to opt for another scheme is not valid This
is deficiency of service
Social & Legal Issues
Cases
Consumer and Commercial Use
• Synco Textiles private limited vs Greaves Cotton
Interpretation of Livelihood
• Western India State Motors v.Sobhag Mal Meena
Privity of Contract
• R.Balraj v Grindlays Bank and State Bank of
India