Consumer protection act 1986

Karthik B (0911308) Deepu Jose (0911311) Ebin B Oommen (0911312) Surya S (0911340) Binu Kuriakose (0911374)
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Consumer protection act,1986

This act was enacted by Indian December 1986. parliament in

This was implemented on 15th april,1987. Further in 1993 and 2002 many provisions were amended by act.

The law relating to consumer protection is contained

in the consumer protection Act ,1986. The Act applies to all goods and services . The central government may however by notification published in the official Gazette exempt any goods or services(sec.1

objectives
Better protection of interests of consumers Protection of rights of consumers -Right to be protected against marketing of goods or services which are hazardous to life and property - To be informed about the quality, quantity, potency, purity, standard and price of goods or services so as to protect the consumers against unfair trade practices

-The right to be assured, where ever possible, access

to goods and services at competitive prices

- The right to be heard and to be assured that consumers interest will receive due consideration at appropriate forums - The right to seek redresses against unfair trade practices or restrictive trade practices or unscrupulous exploitation of consumers

Scope of the Act

Applies to whole of the state Except the state of Jammu and Kashmir Applies to all type of goods and services, public utilities & public sector undertakings All types of complains relating to goods ,unfair trade practice Remedies under this act is same as those in other laws. A suit pending in civil court cannot be heard in consumer court

COMPLAINTS & WHO CAN FILE A COMPLAINT?

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Complaint
A complaint is any allegation in writing made by a complainant that, an unfair trade practice or a restrictive trade practice has been adopted by any trader. Under sec2(1)c of consumer protection act, A complaint must be made with a view to obtaining any relief provided.

A consumer means a person belonging to the following categories:

i) 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. ii) Any voluntary consumer association registered under the Companies Act or any other law for the time being in force.

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Cont
iii) Class action complaints - one or more consumers, where there are numerous consumers having the same interest.

iv) The Central Government

v) The State Government or Union Territory Administrations.

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The consumer to whom the goods are sold or delivered, or agreed to be sold or delivered , or the service has been provided, or agreed to be provided Any recognized consumer association, regardless of whether the consumer is a member of such association or not.

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One or more consumer , where there are numerous consumer having the same interest with permission of the district forum on behalf of or for the benefit of all consumer so interested. The state or central govt. either its individual capacity or as a representative of the interest of the consumer in general.

Unfair trade practices

Unfair trade practices [sec. 2(1) (r)]

It means trade practices which a trader, for the purpose of promoting the sale, use or supply of any goods or for the provision of any service, adopts any unfair method or unfair or deceptive practice.

The practices included are:

Any statement, whether orally or in writing or by visible representation which Falsely represents that the goods are of particular standard, quality, quantity, grade, composition, style or model;

Second hand goods: Falsely represents any rebuilt, second hand, renovated, or old goods as new goods;

Sponsorship: False Representation that the seller or the supplier has sponsorship or approval or affiliation which such seller or supplier does not have;

Warranty or guarantee Gives to the public any warranty or guarantee of the performance or length of life of a product or of any goods that is not based on an adequate or proper test thereof.

Make a false or misleading representation concerning the needs for , or the usefulness of, any goods or services;

Unfair trade practices - contd

2. False offer of bargain price [section 2(1)(r)(2): Advertisement
 A price that is stated in any advertisement to be a bargain price by reference to ordinary price or otherwise  A price that a person who reads, hears or sees the advertisement would reasonably understand to be a bargain price having regard to the prices at which like products are sold.

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Non compliance of prescribed standards [sec 2(1)(r)(4):

Risk of Injury
The prescribed standard may relate to performance, composition, contents, design, packaging etc as are necessary to prevent or reduce the risk of injury to the person using the goods.

6.

Hoarding, destruction or refusal [sec 2(1)(r)(5):

Hoarding, destruction or refusal to sell the goods which raises or tends to raise the cost of those or other similar goods or services shall amount to an unfair trade practice.

7. Manufacturing or sale of spurious goods

[section 2(1)(r)(6):

Genuine Goods Spurious goods and services means such goods and services which are claimed to be genuine but are not so.

RESTRICTIVE TRADE PRACTICE

DEFINITION Sec. 2 (1) (nn)

A trade practice which tends to bring about manipulation of price, or its conditions of delivery or to affect 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

CONSUMERS NEED PROTECTION AGAINST

Collusive tendering; 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 precondition for buying/hiring other goods or services.

DEFECT Sec 2 (1) (f)

Any fault, imperfection or shortcoming in the quality, quantity, potency, 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

DEFICIENCY IN SERVICE

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Meaning
Section 2(1) (g) of the Act provides that, deficiency means any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance which is required to be maintained by or under any law for the time being in force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service.

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Meaning Of Service [u/s 2(1)(o)]

Service of any description which is made available to its potential users and includes but not limited to the provisions of facilities in connection with banking, financing, insurance etc but does not include the rendering of any service free of charge.

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Examples
Bank of Maharashtra v/s Mrs Jyothi Satya
When the locker facility is provided by the bank, the relationship b/w the bank and hirer of a locker is not that of a landlord and tenant. In event of loss of contents of lockers as a result of robbery, the bank will be liable for deficiency of service.

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Failure of the housing board to give possession of the flat after receiving the price and registering it in favour of the allottee. Non-delivery of consignment by the courier.

Objectives of district, state and central council

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Objectives of the central council.

a) The right to be protected against the marketing of goods and services which are hazardous to life and property.

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b) The right to be assured ,where ever possible ,access to a variety of goods and services at competitive price

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c) The right to consumer education.

d) The right to be heard and to be assured that consumer interests will receive due consideration at appropriate forums.

e) The right to be informed about the quality , quantity, purity, standard and price of goods or services so as to protect the consumer against unfair trade practices.

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Objectives of the District Council

Objective:To protect and preserve the right of the consumer within the district laid down under the Sec(6).

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Objectives of the State Council

Objective:To promote and protect within the states The rights of the consumer as laid down in Sec(6)

Nature and scope of remedies & State commission

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Nature and scope of remedies Under the Act (sec. 14)

In case the goods complained against suffer from any of the allegations contained in the complaint about the services are proved, the district forum/the state commission may pass one or more of the following orders;

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To remove the defects pointed out by the appropriate laboratory from all the goods in question. To replace the goods of similar description which shall be free from defect. To discontinue the unfair trade practice or restrictive trade practice or not to remove them. To withdraw the hazardous goods from being offered for sale. In the case of misleading advertisements the other party has to pay the cost of the corrective advertisements.

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State commission ( secs 17,17A and 17B)

The state commission should consist the following; A. President; He shall be a person who is or was a judge of the high court. His appointment can be made only after consultation with the chief justice of high court B. Members; there shall not be less than two or not more than the number specified, one of them should be a woman.

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The members should have the following qualifications; 1.Not less than the age of 35. 2.the person should possess a bachelor degree from any recognized university.

STATE COMMISSION & NATIONAL COMMISSION

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Disqualification for appointment as member of the state commission

It is same those for a district forum. Appointment of state commission is done by the state government on recommendation of the president of the state commission depending on the work load.

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National commission
Section 9 empowers the central government to establish national consumer disputes Redressal Commission.

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Composition
1) President He has to be a person who is or has been the Judge of the Supreme Court. His appointment shall be made by the Central Government in consultation by the Chief Justice of India. 2) Members There shall be not less than 4 and not more than such a number of members as may be prescribed, processing the qualifications as are prescribed for a member of the State Commission.

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Appointment
Appointment is done by the Central Govt. on recommendation of selection committee consisting of a judge of the Supreme Court nominated by the Chief Justice of high court who shall act as chairman The President and every member shall give an undertaking that he does have and will not have any such financial or other interest as is likely to affect prejudicially his functions as such member.

Tenure and Removal of President or Members (Rule 13)

Tenure
Every member of the national commission shall hold the office for 5 years or up to the age of seventy years, whichever is earlier. A member shall be eligible for reappointment for another term of 5 years or up to the age of seventy years, whichever is earlier. The reappointment is to be made on the basis of recommendation of the selection committee.

Removal of president or members(rule 13)

Has been adjudged an insolvent. If any conviction of an offence, Physically or mentally incapable of acting as a president or member, or Has acquired such financial or other interest as is likely to affect prejudicially his function as the president or member, or

 Has so abused his position as to render his continuance in office prejudicial to public interest, or

Remains absent in three consecutive sittings except for reasons beyond his control.

TIME FRAME WITHIN WHICH A COMPLAINT CAN BE FILED

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Time frame within which a complaint can be filed

Section 24A of the Act provides that a consumer dispute can be filed within two years from the date on which the cause of action arises. The point of time when cause of action arises is an important factor in determining the time period available to file a complaint. There are no set rules to decide such time. It depends on the facts and circumstances of each case.

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The complaint should be filed within 2 years from the date of cause of action.

Appeals are require to be filed within 30 days from the date of receipt of the court's order.

Consumer protection: amount of fee

S.NO. TOTAL VALUE OF GOODS OR SERVICES AND THE COMPENSATION CLAIMED DISTRICT FORUM -Upto one lakh rupees-for complaints who are under below poverty line. -Upto one lakh rupees -Above one lakh and upto five lakh rupees -Above five lakh and up to ten lakh rupees -Above ten lakh and up to twenty lakh rupees AMOUNT OF FEE NIL 100 200 400 500

1. 2. 3. 4. 5.

STATE COMMISSION 6. 7. - Above twenty lakh and upto fifty lakh rupees - Above fifty lakh and up to one crore rupees NATIONALCOMMISION 8. - Above one core rupees 5000 2000 4000

Remedial actions
To remove the defected part To replace the goods with new goods of similar description Not to offer the hazardous goods for sales To provide good quality products 52 To remove the defects or deficiencies in the services in question.

Suggestions leading to better consumer protection

There should be more and more awareness on the part of consumers. More and more NGOs ,civil society organisations should come forward The consumer should lodge a specific complaint with supporting information The consumer should try to understand the view-point of the seller before making a complaint.

Conclusion

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Consumer Protection Law are designed to ensure fair competition and the free flow of truthful information in the market place. The law are designed to prevent business that engages in fraud or specified unfair trade practices (UTP) from gaining an advantage over competitors and way providing additional protection for the weak and those unable to take care of themselves.