Presented by:

•Puneet Julka
•Rohitash Kalra
•Sachin Singh
•Samrendra Mohan
•Shreyata Gupta
THE CONSUMER
PROTECTION ACT,
1986
INTRODUCTION

What is consumerism
“Gone are the days when the consumers
were treated as slaves.”
Shift from “Sellers market” to “buyers
market”.
Industrial development has led to the influx
of various goods and services in the
market.
“Consumer is the king of the market”
CONSUMER PROTECTION ACT 1986

The act was passed in LokSabha on 9th

December,1986 and RajyaSabha on 10th
December, 1986 and assented by the
President of India on 24th December, 1986
and was published in the Gazette of India
on 26th December, 1986.
 RIGHTS OF CONSUMERS
 1.Regulation of Marketing Practices
 2.Right to information
 3.Right to safety
 4.Right to redress
 5.Right to choose
 6.Right to healthful Environment
 7.Right to choose
RIGHT TO BE INFORMED
 The consumers right to be protected against
fraudulent, deceitful, or misleading
information advertising or other practices, &
to be given the facts the customer needs to
make a informed choice,
 Ex:-The FDA rules that any advertisement for
a prescription drug must include a brief
summary” Medicalese” .
RIGHT TO SAFETY

 Several Indian agencies monitor aspects of

product quality and safety, both through safety
legislation and consumer education campaigns.
 Ex:-Blowing Smoke :-recently FDA declared that
it has the authority to regulate nicotine in
cigarettes same way that regulate in drugs-
influenced by the demand for the complete ban on
cigrates.
RIGHT TO CHOOSE

 The consumer right to assured

access whenever possible to a
variety of products at competitive
prices.
Ex:-Homeopathic Medicine cure-
all or consumer risk.
RIGHT TO REDRESS

 The right to redress is nothing but

the right to be heard or right to
complain and express grievances
about product failure.
 Ex:-In any case of dissatisfaction
consumer can register his
grievance in consumer court.
 RIGHT TO HEALTHFUL
ENVIRONMENT

 The consumer right to have legislation

that protects public health in the areas of
hazardous waste control toxic substance
control, and safe drinking water programs.
 Ex:-A total of 222 industries were found
polluting the Ganga by the Central
Pollution Control Board.
VAT VALUE ADDED TAX

 Value added tax (VAT), or goods and

services tax (GST) is a consumption tax (CT)
levied on any value that is added to a product.
 Value added taxation avoids the cascade effect
of sales tax by only taxing the value added at
each stage of production.
 In principle, value added taxes apply to all
commercial activities involving the production
and distribution of goods and the provision of
services.
 IMPACT OF VAT ON CONSUMER
BEHAVIOR
 The "value added tax" has been criticized as
the burden of it relies on personal end-
consumers of products and is therefore a
regressive tax (the poor pay more, as a
percentage of their income, than the rich)
 In India, sales tax/VAT are a key revenue source
as high unemployment and low per capita
income render other income sources
inadequate.
 However, there is strong opposition to this by
many sub-national governments as it leads to
an overall reduction in the revenue they collect
as well as a loss of some autonomy.
 EXCISE DUTY

 Excise duty and consumer tax

 You need to pay duties or
consumer tax on some of the
goods you use.
 Excisable goods
 Products containing alcohol:
 beer
 wine
•Tobacco for smoking, cigarettes
and cigars
mineral oils (for example petrol,
diesel oil and LPG)
•Consumer tax goods
Alcohol free drinks (fruit juice and
vegetable juice, mineral water and
lemonade)
Chewing tobacco and snuff
•Tariffs for excise and
consumer tax
The excisable goods and the
BANNED DRUGS BUT
AVAILABLE IN INDIA

 A surprising lack of knowledge - Doctors

continues to prescribe banned medicines.
 The laxity on the government's part and the
selfish interests of the manufacturers in not
banning drugs is a concern.
 Drug and cosmetics act india Still allows some
drugs to market in India.
 Lack of clinical trials in India generally most
of trails are conducted in U.S
  Some banned drugs are:

Generic name Use Reason for ban Brand name

1.Analgin Pain killer Bone marrow Novalgin

depression

2.Furazolidone  Anti-diarrhoeal  Cancer  Furoxone,

Lomofen* 

3.Nimesulide  Pain-killer, fever  Liver failure  Nise, Nimulid 

4. Nitrofurazone antibactirial Cancer Furacin

5.Phenylpropanolam Anti inflammatory Liver D cold

ine damage,Stroke
INFORMATION DISCLOSURE
 PRODUCT LABELLING

 Awareness of consumers among product labeling and

understanding of it depends on promotion and is positively
related to income and education.
 The better designed nutrition notices are, the more likely
they are to be used.
 Consumers agree that nutrition information increases
confidence in the food industry, it indicates a greater concern
on the part of the marketer.
NUTRITION FACTS
 REVA SALES UP

 The Indian Electronics car manufacturer Reva from REEC – Bangalore has
recently seen a boost in their sales because of the upgradations in the
engine, better mileage and lower pricing though the company is currently
having a yearly sale of around 3000 cars, the officials have announced that
unless starts selling 7000 cars every year it cannot cross their break even
point which is very important for any business and with the recent Venture
capital funding by xxxxxxxxxxx the company has upgraded their whole
production and manufacturing teams with plans to raise their car
manufacturing and promote the car outside India which is currently
accounting at 70% of the current sales.
 The Reva car a 2 seator electronic battery powered car which has not seen
a lot of sales in India because of the limited number of power backup
facilities unlike the western countries where the government has helped
the electronic car consumers with a power option on the roads in order to
help these companies increase the sales and decrease the pollution.
BANKING OMBUDSMAN
RBI restrains banks from issuing unsolicited credit cards

Mumbai, July 24 (IANS) The Reserve Bank of India (RBI) has instructed all
commercial banks to refrain from issuing unsolicited credit cards and
activating them without seeking the customer’s consent. In a notification
issued here Thursday, the RBI has made it very clear to banks that those who
issue unsolicited credit cards, activate them and subsequently bill them will
not only “have to reverse the charges forthwith, but will also pay a penalty
without demur to the recipient amounting to twice the value of the charges
reversed.”

The notification also empowers the person in whose name the card is issued to
approach the banking ombudsman “who would determine the amount of
compensation payable by the bank to the recipient of the unsolicited credit
card as per the provisions of the Banking Ombudsman Scheme, 2006, i.e for
loss of complainant’s time, expenses incurred, harassment and mental
anguish suffered by him.”
BAN ON CIGARETTE
SMOKING

WHY CIGARETTEE SALES HAVE FALLEN

83% increase in excise duty on micro
cigarettes since 1997 Smuggling of
over 150 crore cigarettes every year
Ban on smoking/cigarette advertising in
seven states
Luxury tax of 15% to 20% on cigarette
sales in some states
Growing prevalence of smoke-free offices
 WORLD'S FASTEST CAR
ULTIMATE AERO TO STORM
INDIAN ROADS
21 Sep 2009, 0623 hrs IST, Chanchal Pal Chauhan, ET Bureau

NEW DELHI: The Ultimate Aero - the world’s fastest car capable of reaching half the
speed of a jetliner cruising at 30,000 ft - is set to debutin India with a price tag of
over Rs 6 crore that will make it the costliest car sold in the country.
Its maker, the US-based Shelby Super Car (SSC), has decided to launch the car in
Mumbai in the next few months and follow it up with a Delhi launch, said a person
working on the launch who asked not to be named. An email query sent to the US
firm on its India plans did not get a response.

India will be the third market where the car, with a recorded speed of 413
kilometres per hour (257 mph), is sold after the US and Russia.

The Aero, produced only in the US, costs around $654,400 (more than Rs
3 crore). Indian customers will have to pay much more for the Aero
because of the country’s high import duties of up to 100%. The Mercedes-
Benz Maybach, currently the costliest car sold in India, is priced around
Rs 5 crore.
GUJARAT HOOCH DEATHS

Gujarat had banned alcohol consumption since 1961 as a homage to

Mohandas Karamchand Gandhi. However bootlegged alcohol, known as
Hooch, is widely available, allegedly under the patronage of the local
police.Gujarat has witnessed several occasions of alcohol poisoning, claiming
the lives of more than 400 people after the ban was enforced.To counter the
liquor mafia, the state government in 1996 formed the State Prohibition
Department, which was dismantled in 2006 because of a shortage of police
personnel. During the tenure of the department there were no incidents of
alcohol poisoning in Gujarat. The revenue loss to Gujarat government because
of the ban is estimated to be around Rs 30 Billion.
Alcohol poisoning
On 7 July 2009, ten people died in Behrampura after drinking spurious liquor.The
liquor was brewed in the house of Arvind Solanki, who also died after
consuming the liquor. The death toll rose to 43 next day and crossed 120 by
July 12.276 people were admitted in various hospitals with nearly 100 of them
in intensive care units.More than 1000 litres of hooch containing methanol was
brought to Ahmedabad from Mohammadabad.[10]
 Cyber
crime
Cyber crime encompasses any criminal act
dealing with computers and networks(called
hacking). Additionally, cyber crime also includes
traditional crimes conducted through the
Internet. For example; hate crimes,
telemarketing and Internet fraud, identity theft,
and credit card account thefts are considered to
be cyber crimes when the illegal activities are
committed through the use of a computer and
the Internet.
The first recorded cyber crime took place in the
year 1820. In 1820, Joseph-Marie Jacquard, a
textile manufacturer in France, produced the
loom. This device allowed the repetition of a
series of steps in the weaving of special fabrics.
This resulted in a fear amongst Jacquard's
employees that their traditional employment and
livelihood were being threatened. They
committed acts of sabotage to discourage
Jacquard from further use of the new technology.
This is the first recorded cyber crime!
If people are bothering you via the Internet,
you can report it at any police station. Pune
has its own cyber crime cell and has a record
of taking quick action against the culprits.
The crime will be recorded if it is a cognisable
offence, and then directed to the cyber crime
cell. You can call the Pune cyber crime
cell on 26123346 or send a mail at
punepolice@vsnl.com
 Here are the things
you can do:
•Block the offender from your Messenger/address list

•Inform everyone on your address book to block your

current address as your account has been hacked

•Inform the mail service providers about the misuse of

your account

•Make it known to the offender in clear language that

you will not tolerate any nonsense

•Communicate your intention of taking legal action if

he/she does not stop even after warnings
Don'ts:

•Don't talk to strangers online. You never know what

might go wrong

•Be prudent in disclosing your email ID anywhere on

the Internet

•Frequently change your password and your answer to

the ‘secret’ question

•Do not use a password that also happens to be the

answer to your secret question
Do's
•Do not click photographs by your mobile phones without
permission. You  may be infringing the privacy of
another.

•Do not reply to sms /mms received from strangers.

•Do not send obscene/pornographic text, images. SMS or

MMS (multimedia messaging service) Do not transmit
obscene/ pornographic material. It is an offence under
Information Technology act, 2000, punishable with
 Do's conti….
•Do not give your mobile numbers while chatting on
INTERNET to avoid “STALKING”.

•Do not keep your Blue tooth  open to all,  you may
receive obscene/phornographic text, images and viruses.

•DO not handover your mobile phone to unauthorised

service center, to avoid CLONING.
 Don'ts

•Don’t allow anyone to use your mobile in your

absence

•Note down your IMEI number

•Use security pin code to avoid misuse of your

mobile phones

•Anti-virus software should be loaded in the mobile

phone

•Mobile phone keypad should be locked after every

use
 Business impact

Cyber-crime can have a huge impact on a

business’s bottom line. Indian businesses
believe that loss of revenue (75 percent
versus 72 percent of global) ranks the
highest. Loss of market capitalization
ranks second.