CONSUMER PROTECTION ACT,

1986

PRESENTED BY:-
•NIMIKA
•PRACHI
•PRERNA
•SANTOSH
•SHILPA
•YOGENDRA
THE PRE-1986 POSITION

 SPORADIC ACTS AND LAW OF TORTS

PROTECTING CONSUMER RIGHT
 REMEDY THROUGH CIVIL COURT
 ELABORATE RULE OF EVIDENCE AND
PROCEDURE
 TIME CONSUMING AND COSTLY
WHY THE CONSUMER
PROTECTION ACT 1986?
 UN GUIDELINES FOR THE CONSUMER PROTECTION

 Protect from hazard to health & safety;

 Promote & protect economic interests;

 Provide adequate information for informed choice;

 Consumer education;

 Provide effective redress—formal and informal procedures;

 Freedom to form groups & present views in decision-

making affecting consumers;
CONTD….

 PROVIDE EASY AND USER-FRIENDLY

SOLUTION TO THE CONSUMER
 Less paperwork
 Nominal Charges only
 Less time consuming
 SEPARATE QUASI-JUDICIAL
ADJUDICATION STRUCTURE
WHO IS CONSUMER? 

 All of us are consumers of goods and

services. For the purpose of the Consumer
Protection Act, the word "Consumer" has
been defined separately
 Goods
 Services
Goods
A consumer means a person belonging to the
following categories:
 One who buys or agrees to buy any goods for a consideration which has
been paid or promised or partly paid and partly promised or under any
system of deferred payment;

 It includes any user of such goods other than the person who actualy
buys goods and such use is made with the approval of the purchaser.

Note : A person is not a consumer if he purchases goods for commercial or

resale purposes
EXAMPLE

The several words employed in the explanation, viz., "uses them by

himself", "exclusively for the purpose of earning his livelihood" and
"by means of self-employment" make the intention of Parliament
abundantly clear, that the goods bought must be used by the buyer
himself, by employing himself for earning his livelihood. A few more
illustrations would serve to emphasis what we say. A person who
purchases an auto-rickshaw to ply it himself on hire for earning his
livelihood would be a consumer. Similarly, a purchaser of a truck
who purchases it for plying it as a public carrier by himself would be
a consumer. A person who purchases a lathe machine or other
machine to operate it himself for earning his livelihood would be a
consumer. (In the above illustrations, if such buyer takes the
assistance of one or two persons to assist/help him in operating the
vehicle or machinery, he does not cease to be a consumer.)
Services

A "consumer" means a person belonging to

the following categories:
 One who hires or avails of any service or services for a
consideration which has been paid or promised or partly paid and
partly promised or under any system of deferred payment.

 It includes any beneficiary of such service other than the one who
actually hires or avails of the service for consideration and such services
are availed with the approval of such person.  
 
INDIAN MEDICAL ASSOCIATION V.
V.P.SHANTHA, (1995), CPJ 1
 Services rendered by a medical practitioner for a fee
is ‘service’ within the Act
 Even if the employer, Insurance Company pays for
it, still it would be service
 Where in a Govt. or non-govt. hospital/NH some pay
and others do not, all would be treated as
‘consumer’ (including those who do not pay)
 A token payment for registration is not enough to
bring the hospital/NH in to the definition of ‘service’
In general, the rights of consumers in India can be listed as
under:-ACT1986

* The right to be protected from all types of hazardous goods

and services
* The right to be fully informed about the performance and
quality of all goods and services
* The right to free choice of goods and services
* The right to be heard in all decision-making processes
related to consumer interests
* The right to seek redressal, whenever consumer rights have
been infringed
* The right to complete consumer education
Consumer Responsibilities
 To provide adequate information about his needs and
expectations to the seller.
 The consumer must try to get full information on
quality, quantity, price etc.
 To insist on cash memo or receipt.
 To file complaint against genuine grievances
 While purchasing, the consumers must look for
standard quality certifications marks such as ISI,
Agmark etc.
 To exercise his legal rights.
 To be cautions against false and misleading
advertisement.
Extent & Application

The Act extends to the whole of India

except the state of Jammu & kashmir.
[sec1(2)]
Act not in derogation of any other
law.[sec3]

Act not in derogation of any other law.

The provisions of this Act shall be in
addition to and not in derogation of the
provisions of any other law for the time
being in force.
CONSUMERS NEED PROTECTION AGAINST

 Unfair trade practice

 Restrictive trade practice

 Defects

 Deficiencies
Unfair Trade Practices
 Adulteration  Deficiency of services
 Spurious goods  Non-fulfillment of
 Use of guarantee/warrantee
deceptive/incorrect  Misleading
rates advertisement
 Supply related  Hidden prices
problems components
 Variation in the  Price discrimination
contents of the packet  Poor after sales
 Defective goods services
Buddhist Mission Dental College & Hospital V. Bhupesh
Khurana & Others (Date of Judgment 13.2.2009 by
Supreme Court)

`Deficiency in service - Dental College, on mis-representation

about its affiliation and recognition, admitting students to
four years BDS course -Allegation of charging capitation fee
HELD: Institute was neither affiliated to the University nor
recognized by Dental Council of India as was claimed in the
advertisement - National Commission rightly held that there
was total misrepresentation tantamounting to unfair trade
practice and there was deficiency in service - Complainants
would be entitled to compensation as awarded by National
Commission as also Rs.1 lakh each additionally - They would
further be paid Rs. 1 lakh each by Institute as litigation costs.
WHAT IS A DEFECT ?

 Fault In the
 Imperfection  Quality
 Shortcoming  Quantity
 Potency
 Purity Or
 Standards

Which is required to be maintained by or

under any law for the time being in force
WHAT IS A DEFICIENCY ?

 Fault
In the
 Imperfection
 Quality
 Shortcoming Or  Standard and
 Inadequacy
 Manner of
performance

Which is required to be maintained by or

under any law for the time being in force
RESTRICTIVE TRADE PRACTICE

 Price fixing or output restraint re: 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.
 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.
CASE:

Isaac Mathew vs. maruthi udyog LTD;

 In the case , a maruthi car was repaired,
renovated and sold as a new one. The district
forum declared it as an unfair trade and
ordered to be replaced
JURISDICTION
Forum / Commission Where the value of the goods or
services and the compensation, if any
claimed,
District Forum Does not exceed Rs. 20 lakhs
State Commission Rs. 20 lakhs and above but not
exceeding One Crore
National Commission Above One Crore

Besides, State and National Commission have appellate

jurisdiction also.
FILING OF COMPLAINTS

A complaint may be filed by

a) The consumer to whom the goods are sold or
services are provided
b) Any recognised consumer association
c) One or more consumers with same interest
d) The central government or state government
FILING OF COMPLAINTS
The Fee for filing the Complaint for the district forum is as under
Sr. Value of Goods / Service and Compensation Amount
No. of Fees
1) Upto Rs. 1 lakh rupees Rs. 100
2) Rs. 1 Lakh and above but less than Rs.5 lakhs Rs. 200
3) Rs. 5 Lakhs and above but less than Rs. 10 lakhs Rs. 400

4) Rs. 10 lakhs and above but less than Rs. 20 lakhs

The fees shall be paid by Cross demand Draft drawn on a nationalized

bank or through crossed Indian postal order drawn in favour of the
Registrar of the Sate Commission and payable at the place of the State
Commission (w.e.f. 5.3.2004.)
DISMISSAL OF FRIVOLOUS OR
VEXATIOUS COMPLAINTS

 Where a complaint instituted before the District

Forum, the State Commission or the National
Commission, is found to be frivolous or vexatious,
it shall, for reasons to be recorded in writing,
dismiss the complaint and make an order that the
complainant shall pay to the opposite party such
Cost, not exceeding ten thousand rupees, as may
specified in the order.
PENALTIES

Where a trader or a person against whom a complaint is

made (or the complainant) fails or omits to comply with
any order made by the District Forum, the State
Commission or the National Commission, such trader or
person (or complainant) shall be punishable with
imprisonment for a term which shall not be less than
one month but which may extend to three years or with
fine which shall not be less than two thousand rupees
but which may extend to ten thousand rupees, or with
both.
APPEAL

 shall be filed within thirty days.

 Delay in filing appeal may be condoned if

there is sufficient cause.
LIMITATION PERIOD

Within 2 years from the date on

which the cause of action has
arisen.
Relief that may be granted under
the ACT
 to remove the defect pointed out by the appropriate
laboratory from the goods in question.
 to replace the goods with new goods of similar
description which shall be free from any defect.
 to return to the complainant the price, or, as the
case may be, the charges paid by the complainant.
 to pay compensation to the consumer for any loss or
injury suffered by the consumer due to the
negligence of the opposite party.
 to remove the defects or deficiencies in the services
in question.
CONTD…

 to discontinue the unfair trade practice or the

restrictive trade practice or not to repeat
them.
 not to offer the hazardous goods for sale.
 to withdraw the hazardous goods from being
offered for sale.
 to provide for adequate costs to parties.
CASE:

Kailash Kumari vs. Narendra Electronics;

 In this case, Kailash Kumari purchased a T.V
set from Narendra Electronics which was
defective she asked for a replacement but the
shop manager refused to. So Kailash Kumari
went to the district forum. It was ordered
that the T.V set must be replaced and the
compensation must be paid for the stress the
party has gone through
CASE LAWS ON THE ACT.
PRESIDENT SITTING SINGLY
 It has been held by the National Commission that the
orders passed by the President of the State Commission
sitting singly without the junction of any other member
is contrary to Section 14(2) of the Consumer Protection
Act, 1986. Such an order is invalid (Raj kumar Mangla
Vs. R.S. Singh (1995)
CASE LAWS ON THE ACT.
PREGNANCY NO GROUND FOR
CONDONATION OF DELAY
 In Registrar, University of Pune Vs. Mrs. Puja Pravin
Wagh (1999) the complainant filed a complaint 3 1/2 months
after the expiry of the limitation period of 2 years against the
University of Pune for the wrong declaration of result. The
reason for delay in filing the complaint given by the
complainant was her pregnancy. The District Forum
condoned the delay and awarded compensation of Rs.
2,5000/- to the complainant. On appeal it was held that the
fact of pregnancy was no justification for the delay. The
complaint being time barred the order of the District Forum
was set aside.
CASE LAWS ON THE ACT.
NO ACTION WHERE NO TERRITORIAL
JURISDICTION

In J. K. Synthethetics Vs. Smt. Anita Bhargava (1993) the registered

office of the Opposite Party was situated at Kanpur. Payment was made
through Bank in Delhi.
The complaint filed in Calcutta was held to be outside the territorial
jurisdiction of the District Forum. The Order passed by the Calcutta
District Forum was set aside in Appeal
How does International consumer protection
differ from Indian consumer protection?

 Indian CPA cases  Foreign CPA cases

 Case#1  Case#1
 Redressal filed against:  Redressal filed against:
Indian Airlines SlimAmerica, Inc
 Issue: not allowing  Issue: false advertising
passenger to board the claims about a health
flight despite the fact product (dieting,
that the passenger had slimming)
flight tickets booked  Compensation: $8.3
 Compensation: Rs. million (Rs.32.3 crores)
10,000
CONTD…
 Case#2  Case#2
 Redressal filed  Redressal filed
against: United against:Christiana
Breweries Ltd Hospital
 Issue: presence of  Issue: wrong
protein impurity in medication leading
beer to death of patient
 Compensation: Rs.  Compensation:$1.6
5,000 million (Rs.6.2
crores)
CONTD…
 Case#3  Case#3
 Redressal filed against:  Redressal filed against:
Shoe crafts Trans Union
 Issue: Sale of faulty  Issue:
camera from the grey misrepresentation of
market with mismatch identity and
in serial number on inappropriate credit
guarantee card record upload
 Compensation: Rs.3033  Compensation:$
800,000 (Rs.3.1 crores)
Drawbacks of the existing system

 Inadequate awareness
 Burden on law and order machinery - additional
load
 Delays in the judicial system
 Deficiency in existing laws
Punishment not enough
Loopholes - bonafide belief by re-seller
 No Nodal agency to exclusively deal with the Issue.
 No Single window for investigation/enforcement
Recommendations
 Make the forums more consumer friendly
 Regular product testing
 Free legal counseling
 Conduct workshops in schools, colleges, village
panchayats and in offices
 Encourage consumer clubs
 Research on issues on consumer concern
 Publish regular articles on current scenarios to keep
the consumer updated with malicious practices
 Levy heavy charges on those found guilty under the
consumer protection act.
CONTD…
 Strict norms for advertisements and their promises
 Regular check on authenticity of the claims made in the
advertisements
 The brand ambassadors should be equally held liable if the
brand they promote fails to keep up with its claims.
 Rolling back of distributed banned goods
 Compensation for product side effects
 Routine inspection of plant, storage, manufacturing, logistics
and distribution and upload of data for public usage
 MIS information upload for public usage
 Real sales info, bad product report, quality check results
about product uploaded for public usage
THANK YOU