OBJECTIVES
To assist countries in achieving or maintaining adequate protection for their population as consumers
To facilitate production and distribution patterns responsive to the needs and desires of consumers
To encourage high levels of ethical conduct for those t hose engaged in the production and distribution of goods and services to consumers
To further international cooperation in the field of consumer protection
To encourage the development of market conditions which provide consumers with greater choice at lower prices
FEATURES
The Act aims to provide better and all-round protection to consumers.
In terms of geographical application, it applies to the whole of India except the State of Jammu and Kashmir.
It applies to all goods and services unless otherwise expressly notified by the Central Government.
The Act and its Amendment in 1993 have brought fresh hopes to the beleaguered Indian consumer.
It provides effective safeguards to the consumers against different types of exploitation such as defective goods, unsatisfactory (or deficient) services and unfair trade practices.
BASIC RIGHTS OF CONSUMERS Right to
Right of protection of life and Property
Right to
choose
be informed
Right to Right to be heard
Right to redress
education
NEED FOR CONSUMER PROTECTION ACT IN INDIA.
Illiteracy and Ignorance
Unorganized consumers
Spurious goods
Deceptive advertising
Malpractices of businessman
Freedom of enterprise
Legitimacy for existence
Trusteeship
Complainant Defined in Section 2(1)(b) of the Consumer Protection Act, 1986 "complainant" means-
– a consumer; or – any voluntary consumer association registered under the Companies Act,1956 (1 of 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 death of a consumer, his legal heir or representative who or which makes a complaint;
Complaint Defined in Section 2(1)(c) of Consumer Protection Act 1986;"complaint“ means any allegation in writing made by a complainant that1.
an unfair trade practice or a restrictive trade practice has been adopted by (any trader or service provider).
2.
the goods bought by him or agreed to be bought by him suffer from one or more defects;
3.
the services hired or availed of or agreed to be hired or availed of by him suffer from deficiency in any respect;
4.
a trader or the service provider, as the case may be, has charged for the goods or for the services mentioned in the complaint, a price in excess of the price-
Consumer Who is a consumer? The provision reveals that a person claiming himself as a consumer of goods should satisfy that; •
THE GOODS ARE BOUGHT FOR CONSIDERATION.
•
ANY PERSON WHO USE THE GOODS WITH THE APPROVAL OF THE BUYER IS A CONSUMER.
•
PERSON BUYING GOODS FOR SELF EMPLOYMENT IS A CONSUMER
Who is NOT a consumer? •
ANY PERSON WHO OBTAINS THE GOODS FOR „RESALE‟ OR „COMMERCIAL PURPOSES‟ IS NOT A CONSUMER.
Cosumer dispute Defined in Section 2(1) (e) of the Consumer Protection act 1986, as: •
“Consumer dispute” means a dispute where the person against whom a complaint has been made, denies or disputes the allegations contained in the complaint.
•
Caselet
In case of Sawani road transport v. Nirup Syncrome ltd. (1993) The opposite party omits or fails to take any action to represent his case; the forum has to proceed in the manner as if to settle a consumerdispute.
Defects Defined in Section 2(1) (f) of the Consumer Protection act 1986, as: •
"Defect" means any fault, imperfection or short coming 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 under any contract, express or implied or as is claimed by the trader in any manner whatsoever in relation to any goods;”
•
Caselet
The national commission in Abhoya Kumar Kumar Panda v. Bajaj auto ltd.(1982) held that it‟s not relevant under the act whether the defect in the goods supplied or deficiency in service is intentional or not.
CONSUMER DISPUTE REDRESSAL AGENCIES 1. A consumer dispute Redressal forum at the district level. 2. A consumer dispute Redressal forum at the state level. 3. A consumer dispute Redressal forum at the national level.
Value of goods and services and compensation Claimed
Amount of fee payable
Value of goods and services and compensation
DistrictForum Amount of fee payable Up to one lakh rupees
Rs 100
One lakh and above but less than Rs 5 lakhs
Rs 200
Five lakh rupees and above but less than Rs 10 lakhs
Rs 400
Ten lakh rupees and above but not exceeding Rs 20 lacs
Rs 500
State Commission Above Rs 20 lacs and Up to 50 lacs
Rs 2000
Above Rs 50 lacs to Rs 1 crore
Rs 4000 National Commission
Above Rs 1 crore
Rs 5000
Filing of a complaint
Occurrence of Problem/Complaint
A consumer person/consumer writes a letter defining the problem The competent person or an appointed agent determines the fee to be sent
The letter is received by the concerned consumer forum
Receipt send to opposite party
CGSI
•
The Consumer Guidance Society of India (CGSI) is a consumer rights organization based in Mumbai, India. It was the earliest consumer organization in India, founded by nine women in 1966, and became the first to conduct formal product testing in 1977. NEED AND IMPORTANCE OF CGSI :-
I.
Legal Frame Work:
•
II. Product Testing: III. Consumer Education for Schools / Colleges: IV. Publications:
DEVELOPMENT IN CPA:•
CONSUMER EDUCATION FOR RURAL CONSUMERS.
•
Pedestrian Wing: The objectives of Pedestrian Wing are as follows: 1. To create public awareness about the rights and responsibilities of Pedestrians and fight for their due rights.
2. To spread awareness about the importance of walking as a mode of transport and facilitate its use for short distance transportation. 3. To facilitate and promote availability of user-friendly Public Transport and encourage it's use by the public. 4. To do all that is necessary to secure the availability of use at least 90% of the time proper smooth, level and properly constructed pavements, free of encroachments, wherever needed.
Best Marketing Practice by HUL : Customer Ombudsman A Good Proactive move by the Company for its Customers.
•
HUL has introduced a unique practice in India by launching a Customer Ombudsman. In July the company
appointed a retired Justice Mr M S Rane as the customer ombudsman.
•
Ombudsman are usually officials who are charged with the responsibility of representing the public by investigating and addressing grievances and complaints of the public.
•
According to a report :
i.
HUL has around 200 cases in various courts against it. Court cases can take away lot of time energy and money from the company. HUL hopes that such an alternative will help both the customers and the company to handle complaints and grievances quickly.
ii.
It‟s a good proactive move by the company to make things easier for the consumer to address his grievances. It‟s a best practice because it‟s usually a nightmarish experience for a customer to get his problem addressed. Ombudsman helps genuine customers to get a speedy unbiased redressal.
CASELET:-
CASE STUDY 1:Case study as one incident of violation of consumer rights and the decision by the consumer court. Eg: Bajaj CT 100 motorcycle
CASE STUDY 2:-
• Pvt doctor fined 3 lakh for turning away dying man. - Every doctor is bound by Hippocratic oath: Panel Source: Times Of India
Questionnaire:. “The consumer protection act, 1986 has provided sufficient privileges to the consumers for
1
protection against overcharging producers" Do you agree?
80% 70% 60% 50% 40% 30% 20% 10% 0% yes
no
2. What do you majorly look out for in a product before its selection in terms of being protected? (pricing, quality, name brand, correct labeling , warranty etc.)
7
pricing
6 5 4 3 2
1 0
quality name brand correct labelling information warranty/guarante
3) Who would you first approach, in the case of a consumer dispute? a)Police b)Lawyer c) Consumer Forum
CONSU MER FORUM 30% LAWYE R 30%
4)Would you call yourself a consumer if you bought goods in bulk and re-sold it? a) Yes b) No c) Don’t know
POLICE 40% 6 5 4 3 2 1 0 YES
NO
DONT
5) What is the minimum number of women mandatory to be present in the functioning of the state commission? a) One b) Two c) More than 5 6) What is the limitation period within which the complaint needs to be filed? a) 6 months b) 1 year c) 2 years d) 5 years
more than 5 30%
one 40%
4 3 2
two 30%
1 0 6
1 year
2 year
5 year
CONCLUSION
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Business Law - Bulchandani
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http://www.forecasts.org/consumer-protection/india-cpa.html
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http://www.wikipedia.com/scripts/PublicationsView.aspx?id=13 795
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http://www.lawindia.in/terms/cpa/consumerprotection.asp
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http://www.federaljurisdiction.gov/releases/h10/current/
•
www.dogpile.com
•
www.4share.com
•
www.google.com
