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Consumer Protection Act 1986 Case Study Ppt

Presentation on theme: "Consumer Protection Act and consumer forum process"— Presentation transcript:

1 Consumer Protection Act and consumer forum process

2 IntroductionThe Consumer Protection Act was enacted in 1986.Amendments were made in 2002.The Act applies to the whole of India except the State of Jammu and Kashmir.This act ensures the interest of consumers

3 ObjectivesRight of protection to life and propertyRight to be informedRight to chooseRight to be heardRight to redressRight to education

4 Definitions Consumer: He is a person who
i) “buys any goods for a consideration which has been paid or promised, or partly paid and partly promised, or under a system of deferred payment.ii) hires any services for a consideration which has been paid or promised, or partly paid and partly promised, or under a system of deferred payment.

5 Definitions Consumer Disputes : sec 2(1)e
“a dispute where the person against whom a complaint has been made denies or disputes the allegations contained in the complaint”.Defect“any fault, imperfections or shortcoming 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 has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service”.

6 Definitions Deficiency : 2(1) g Service : Sec 2 (0)
“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”.Service : Sec 2 (0)service of any description which is made available to potential users and includes the provisions of facilities in connection with banking, financing, insurance, transport, processing, supply of electrical or other energy, boarding or lodging of good, house construction, entertainment, amusement or other information.

7 Compliant‘Complaint’ means any allegation in writing made by a complainant that-i) an unfair trade practice or a restrictive trade practice adopted by any trade or service providerii) the goods bought by him or agreed to be bought by him suffers from one more defectiii) the services hired or availed of or agreed to be hired or availed of suffer from deficiency in any respectiv) 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-a) fixed by or under any law for the time being in forceb) displayed on the goods or any package containing such goodsc) agreed between the parties

8 Who are NOT Consumers? A person who purchased goods for resale
A person who purchased goods for commercial purposeA person who obtains services without considerationA person who obtains services under a contract of personal serviceTax-payers to municipalityContractorsApplicants for jobsPersons who filed suits in courts

9 How to file a complaint ?A Complaint, hand written or typed, can be filed by a consumer, a registered consumer organisation, central or state Government and one or more consumers, where there are numerous consumers having the same interest.The nature of complaint must be clearly mentioned as well as the relief sought by the consumer.It must be quadruplicate in district forum or state commission. Else, additional copies are required to be filed.

10 Relief that can be sought from the forum
Repair of defective goodsReplacement of defective goodsRefund of the price paid for the defective goods or serviceRemoval of deficiency in serviceRefund of extra money chargedWithdrawal of goods hazardous to life and safetyCompensation for the loss or injury suffered by the consumer due to negligence of the opposite partyAdequate cost of filing and pursuing the complaint

11 ConditionsNormally, complaints should be decided within 90 days from the date of notice issued to the opposite party.Where a sample of any goods is required to be tested, a complaint is required to be disposed of within 150 days. It may take more time due to practical problems.

12 Consumer Redressal Forum
The aims and objectives of the Act are achieved by the constitution and creation ofDistrict ForumState CommissionNational Consumer Disputes Redressal Commission.

13 Powers of District Forum
to remove the defect pointed out by the appropriate laboratory from the goods in questionto replace the goods with new goods of similar description which shall be free from any defectto return to the complainant the price, or as the case may be, the charges paid by the complainantto pay such amount as may be awarded by it as compensation to the consumer for any loss or injury suffered by the consumer due to the negligence of the opposite party

14 District ForumSubject to the other provisions of the Act a District forum shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed does not exceed Rs.20 Lakhs.

15 State CommissionEach State Commission shall have jurisdiction to entertain complaints where the value of the goods or services and compensation, if any, claimed exceeds Rs. 20 Lakhs but does not exceed Rs.1 Crore and appeals against the orders of any District Forum within the State.

16 National CommissionThe National Commission shall have jurisdiction to entertain complaints where the value of the goods or services and compensation, if any, the claim exceeds Rs. 1 Crore and appeals against the orders of any State Commission.

17 Consumer Dispute Redressal
The District Forum, State Commission or the National Commission shall not admit a complaint unless it is filed within 2 years from the date on which the cause of action has arisen.Where a trader or a person against whom a complaint is made fails or omits to comply with any order made by the District Forum, the State Commission, the National Commission, as the case may be, such trader or person shall be punished with imprisonment for a term which shall not be less than 1 month but which may extend to 3 years, or with fine which shall be not less than 2,000/- Rs. but which may extend to 10,000/-Rs., or with both.

18 A complaint may be filed by
Filing of complaintA complaint may be filed byThe consumer to whom such goods are soldAny recognized consumer association, where the consumer to whom goods are sold or delivered is a memberOne or more consumers, where there are numerous consumers having same interestThe Central and State Government

19 Procedure for Complaint
Complaint relating to goodsReference of sample to laboratoryDeposit of feesRemission of fees to lab and forwarding of report to opposite partyObjectionsReasonable opportunity to parties

20 Procedure for complaint
Complaint relating to servicesReference of claim to opposite partyDenial of allegations by the opposite partySettlement of disputeProceedings of district forum finalDeath of complainantperiod

21 Findings and VerdictsTo remove the defectTo replace the goods with new goods of similar description.To return the complainant the priceTo pay compensation to the consumer for any loss or injury sufferedTo remove the defects in the goodsTo discontinue the unfair trade practicesNot to offer hazardous goods for saleTo provide adequate costs to parties

22 Appeal to the State commission
AppealsAppeal to the State commissionAny person aggrieved by an order made by the district forum may prefer an appeal against such order to the State commission within a period of 30 daysAppeal to the National commissionAny person aggrieved by an order made by the State commission in exercise of its powers may prefer an appeal against such order to the National commission within a period of 30 days

23 MiscellaneousProtection of action taken in good faithPower to remove difficultiesPower to make rulesLaying of rules

24 Stages in Consumer case
Filing of complaintNotice to opposite partyFiling of versionProduction of evidence and hearingFiling of affidavit if requiredOrder

25 Defending consumer cases
Collect all relevant facts and materialsConsult government pleader if necessaryPrepare replyTo be signed by a gazetted officerFile reply in required number of copiesKeep track of the case

26 Defending consumer cases….
HearingPresent evidenceFinal orderConsider need of appealTake legal opinionFile appeal within the time

27 Case Study of a complaint against PO

28 Thank you

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