Consumer protection ppt

NEED FOR CONSUMER
PROTECTION ACT
IN AN ERA OF FREE
COMPETITION
WHERE CONSUMER IS A
KING
THEREFORE , KING NEEDS
PROTECTION
Consumer Protection Act-1986

INTRODUCTION
• Caveat Emptor Caveat Venditor.
• Consumerism – the promotion of consumer’s interest.
• Consumer – demanding quality goods and better serivce
for the value of their money.
• To increase sales – engage in unfair trade practices.

CONSUMER PROTECTION ACT-1986
• This law was enacted in 1986 to protect interests of consumers in
India
• To make provision for the establishment of consumer councils
• For settlement of consumer disputes
• This Act applies to all goods and services
• It guides how to file the case in consumer courtProvide justice to
consumers.
• It was passed by both the Houses of Parliament

CONSUMER
• Person who buys any commodity or service or
uses such commodity or service
• Must satisfy two conditions to claim himself as a consumer
 The service must have been rendered to him
 He must have paid or promised to pay for the same
• If any person buy capital goods to provide services to other
individuals then he is also recognized as consumer
• If any person who buys commodity with an intention to
resale or trade then he is not recognized as consumer

CONSUMER OF GOODS AND SERVICES
 Consumer of goods
– Goods are bought for consideration
– Person who obtains goods for resale or
commercial purpose is not consumer
 Consumer of services
– Services are hired or availed of
– Consideration must be paid or payable
– Beneficiary of services is also consumer

COMPLAINT
• An allegation in writing to council by an applicant
• It is a formal legal document that sets out the facts and legal reasons
• Complaint is filed for
 Defects in goods
 Deficiency in service
 Charging excessive price
 Hazardous goods
 Unfair trade practices

ELIGIBILTY FOR FILING THE COMPLAINT
• Beneficiary of the goods/services
• Legal representative of the deceased consumer
• Legal heirs of the deceased consumer
• Husband of the consumer
• A relative of consumer
• Insurance company

TIME FRAME WITHIN WHICH A COMPLAINT
CAN BE FILED
• Consumer dispute can be filled within two years from the date on which the
action to place.
• To file a complaint the point of time when the action arises is an important
factor for determining the time period available.
• There are no set of such rules which decide time rather it depends on the
facts and circumstances of each case.

CIRCUMSTANCES WHEN A COMPLAINT
CANNOT BE FILED
• A complaint on behalf of the public which consist of unidentifiable
consumer which cannot be filed under the Act.
• A complaint by an individual on behalf of general public is not permitted.
• An unregistered association cannot file a complaint under the Act.
• A complaint after expiry of limitation period is not permitted.
DISMISSAL OF FRIVOLOUS AND VEXATIOUS
COMPLAINTS
• If the complaint found to be frivolous and vexation then the district forum
has the authority to dismiss the compliant.
• They can also say that the complaint shall pay the opposite party an amount
of Rs.10000

NEED FOR CONSUMER PROTECTION
• Adulteration.
• Spurious goods.
• Misleading advertising.
• Artificial scarcity.
• Other problems.

INTERNATIONAL SCENARIO
• Due to increasing globalization.
• To unlock consumer power on a global scale.
• Consumer International took initiative.
• Guidelines for consumer protection.
• Specially for developing countries andnewly independent countries.

COMPARISON OF CONSUMER PROTECTION ACT IN INDIAAND
UNITED KINGDOM
INDIA United Kingdom
 Consumer Protection Act is an Indian 1986.  The Consumer Protection Act 1987
 The Act aims to provide better and
all-round protection to consumers.
 the act implemented for product liability,
Consumer safety, Misleading price
indications
 Health Services provided by Government
hospitals, Civic amenities provided by
municipal authorities.
 All suppliers of goods and services, both in the
private and in the public sector and the
cooperative sector, are covered by the Act.
 the fact that older products were less safe
than newer ones does not, of itself, render
the older products defective.
 no claim can be brought more than 10
years after the date the product was put
into circulation.
 District Forums at the base, the State
Commission at the middle level and the
National Commission at the apex level.
 no claim can be brought more than 10
years after the date the product was put
into circulation.
 the state of scientific and technical
knowledge when producer put the
product into circulation was not such as to
enable the existence of the defect to be
discovered.

RIGHTS OF A CONSUMER
 Right to safety
 Right to choose
 Right to information
 Right to be heard
 Right to seek redressal
 Right to consumer education

CONSUMER GUIDANCE SOCIETY
OF INDIA (CGSI)
Golden Jubilee (1966-2016)-50 years in the
service of consumers
• They believe in the consumer cause which includes “Value for
Price, Value for People and Value for Environment”.
• CGSI has reached out to lakhs of consumers
⋆ Involved in consumer education.
• For the urban and rural low income consumers.
• School and college students.
The Activities of Consumer Guidance Society of India
1. Complaint redressal
2. Product testing
3. Consumer education for schools/colleges-
4. Publications
5. National award

MONTHLY MAGAZINE BY (CGSI) – KEEMAT
March-April 2016 January-February 2016

UNFAIR TRADE PRACTICE
 Any unfair method or deceptive practice used for
supplying the goods or for the promotion of sales.
TYPES OF UNFAIR TRADE PRACTICES
• False representation.
• False offer of bargain price.
• Free gifts offer and prize scheme.
• Non-compliance of prescribed standards.

RESTRICTIVE TRADE PRACTICE
Trade practice which tends about manipulation of price or
delivery condition or affect flow of supply in a manner to
impose consumer unjustified cost or restrictions.

DISPUTE SETTLEMENT 3-TIERMECHANISM
“The aims and objectives of the Act are achieved by the constitution and
creation of 3-tier judicial machinery depending upon the amount of
loss involved.”
• District Forum
• State Commission
• National Commission

Established by Composition Jurisdiction Appeal
District
Forum
State
Government
-Chairman & 2 members
-One shall be woman
-Terms for 5 yrs or upto 65 yrs
whichever is earlier
Head-District Judge
Less than 20
lakhs
To state
commission
within 30 days
of order
State
Commission
State
Government
-President & minimum 2
members
-One shall be woman
-Terms-for 5 yrs or upto 67 yrs
whichevr is earlier
Head-High Court Judge
In range of Rs 20
lakhs to Rs 1
crore
To national
commission
within 30 days
of order
National
Commission
Central
Government
-President & minimum 4
members
-One shall be woman
-Terms-for 5 yrs or upto 70 yrs
whichevr is earlier
Head-Sitting or retired judge of
Supreme Court
More than Rs 1
crore
To supreme
court within 30
days of order

“JAGO GRAHAK JAGO”
SCHEME OF GOVT. OF INDIA
 Empowering Consumers
• Consumer Rights
• Consumer Complaints Redressal
• Alternative Dispute Redressal
• Consumer Awareness
• Upgradation of Standards

Sl. no Name of Agency Cases files
since
inception
Cases
disposed of
since
inception
Cases
pending
% of total
disposal
1. National
commission
98063 88031 10032 89.77%
2. State commission 694546 598477 96069 86.17%
3. District Forums 3650986 3365999 284987 92.19%
Total 4443595 4052507 391088 91.20%
Statistical Data:
Total Number of Consumer Complaints Filed / Disposed since inception
Under Consumer Protection Law.

Sex(M/F) Family Members Average family Size
Male 200 2.5
Female 220 2.75
Total 420 5.25
Sex-wise Family Members of the Households
Occupation No. of Households Percentage (%)
Services 68 85
Big Business 02 2.5
Small Business 10 12.5
Total 80 100
Occupational Status of the Head of Households

0
20
40
60
80
Knowledge about Certified ProductsCheck MRP, Expiry and Manufacturing dateKnowledge about Fair Price ShopCheck ingredients usedKnowledge about Consumer CourtsEver gone to Consumer CourtInsist cash Memo for Consumable goods purchased
65 68
60
35
77
10
57
15
8
20
45
3
70
23
Consumer Awareness
Yes No
Statistical Data
0
50
100
150
200
250
300
350
400
No. Of Case
Series 1

CASES
UNDER CONSUMER
PROTECTION ACT 1986

CASE 1
A tale of two consumer rights
• consumer complaints disappear into some galactic space and very rarely
elicit a response
• Vandana Vasudevan is invitee for a seminar “Consumer Protection Act” at
sylvan campus of the National Law School, Bangalore where he meet a
bunch of young legal eagles. Student used a set of popular cosmetics and
found that every claim made in the advertisements for these products was
untrue.
 Case base on 2 consumer rights:
1. The right to safety
2. The right to information

They didn’t get any response from manufacture company,
Company refused to accept their fault and gave several
unsatisfactory results. We need to remember that this is a
violation of two rights that we have as consumers—the right
to be heard and the right to redressal.
Solution :
•To not offer the hazardous goods and remove them from
sale.
•To award adequate cost.
•Replacement of the goods with new goods of good quality.
•Return the price paid by the complainant for the goods or
services.
•To remove the defects or deficiency in the goods or services
CASE 1 Products as follow :

CASE 2:
A tiff between Reliance Media Works & Manoj Kumar
• Complainant – Manoj Kumar went to Big Cinemas in Jaipur run by Mumbai-based
Reliance Media Works.
• He brought Aquafina water charged Rs-30 but MRP was rs-16, so he was upset of
being overcharged and filed a complaint in District forum.
• Reliance opposed saying that in cinema halls bottles are meant for higher sale and
lower in ordinary shop but no proof was furnished.
• Forum upheld Manoj complaint and direct cinema hall to refund rs-14 , compensation
for mental agony- rs-5000 and litigation cost- rs-1500
• Reliance filed a revision petition saying Manoj has purchased it from local shop.
• The commission observed that Pepsico was making contrary submission by stating that
its Aquafina bottles were priced at Rs-16, but it was permissible to have two different
MRPs .
JUDGEMENT
• Overcharging consumers is not permissible the commission saddled Reliance
with further deterrent cost of Rs-5 lakhs for illegal enrichment by charging and
extorting money from their customers.
• This amount would have to be deposited in the commission’s Legal Aid Account
within 90 days, or with 9% interest if delayed.

VIDEO ON
“CONSUMER RIGHTS “

CONCLUSION
 Consumer Rights – Improper Implementation in Real Life
 Education of Consumer Rights works as a Shield to Consumers
 Technology helps Consumers to keep Up to Date
 Consumer Protection Programme – A Light Description
 Lets Make Consumer Protection Act Success & “Consumer as King”

WEBLIOGRAPHY

Consumer protection ppt

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Consumer protection ppt