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“One commodity mixed with another: must not be sold as pure, nor a bad one as good; not less as many, nor anything that is at hand or that is concealed.”

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Presentation on theme: "“One commodity mixed with another: must not be sold as pure, nor a bad one as good; not less as many, nor anything that is at hand or that is concealed.”"— Presentation transcript:

1 “One commodity mixed with another: must not be sold as pure, nor a bad one as good; not less as many, nor anything that is at hand or that is concealed.” MANU SMRITI

2 CONSUMER PROTECTION ACT, 1986

3 The Preceding Acts Sales Of Goods Act (1930), established during British rule was the exclusive source of consumer protection. It deals with : use of false weights and measures, the sale of adulterated food or drinks, the sale of noxious food or drink, and the sale of adulterated drugs. The Essential Commodities Act of 1955, the Prevention of Food Adulteration Act of 1954 and the Standard of Weights and Measures Act of 1976, the law of Torts & The Contract Act also protect consumers

4 Why a CPA then ? It is estimated that for about half a century from 1914 to 1965, only 613 tort cases came before the appellate courts. The traditional doctrine of negligence imposes heavy responsibility on the plaintiff to prove each of its required elements. The orthodox legal requirements under the law of torts and contracts forced the policy makers to craft specific legislation to protect consumers.

5 Objectives It is intended to provide justice which is “less formal, [and involves] less paper work, less delay and less [expense]”. It is known as the Poor Man’s Litigation Commands the consumer’s support User friendly Cost Effective Tool

6 User Friendly & Cost Effective Suit can be filed both for defective products and deficient services Only a nominal fee has to be paid by the consumer No need to send a legal notice to the opposing party A simple letter to the Consumer Forum would initiate legal action No requirement of a lawyer, if the consumer can represent himself.

7 Extent & Coverage Of The Act The Act applies to all goods and services unless specifically exempted by the Central Government. It covers all the sectors whether private, public or cooperative. The provisions of the Act are compensatory in nature. The provisions of this Act are in addition to and not in derogation of the provisions of any other law for the time being in force. The Act envisages establishment of Consumer Protection Councils at the Central and State levels, whose main objects will be to promote and protect the rights of the consumers.

8 WHERE TO FILE A COMPLAINT? Cost of goods or services and compensation asked Forum / Commission Does not exceed Rs. 20 lakhsDistrict Forum (of the district where the cause of action has arisen or where the opposite party resides) Rs. 20 lakhs and above but not exceeding One Crore State Commission Above One CroreNational Commission at New Delhi

9 Case :Spring Meadows Hospital and others vs. Harjol Ahluwalia Harjot, a minor was brought to the Spring Meadows hospital. Dr. Bhutani examined him and made the diagnosis that the patient is suffering from typhoid and prescribed medicines. Ms.Matthew, a nurse, wrote down the medicine name as “Inj. Lariago” and gave it to Mr.Ahluwalia. Mr.Ahluwalia brought the medicine from a nearby medical store and Ms.Bina Matthew injected Harjot with it, who collapsed immediately upon receiving the dose.

10 The Case :Continued Dr.Dhananjay who was the Resident Doctor was called and he diagnosed that the patient is suffering from cardiac arrest. Harjot was later brought to AIIMS where it was found that irreparable damage had been done to his brain and he would survive only in a vegetative state. Harjot’s parents approached the Delhi State Consumer Commission for mental and asked for Rs.28 lakhs as compensation.

11 The Ruling The cardiac arrest was caused by high dose of medicine. The injection was to be given by Dr.Dhananjay, but he allowed the nurse to give it. Thus, the court found him negligent. The nurse was found guilty of dereliction of duty and the hospital for employing unqualified people and entrusting the minor in their care. The Delhi State Commission awarded Rs.12.5 lakhs to the minor patient and Rs.5 lakhs to the parents.

12 The Contentious Issues Can the parents of the child be considered as consumers ? Is the Commission under the CPA entitled to award the compensation for the mental agony and suffering of the parents ? Whether compensation can be awarded to both the parents and the child or only to the person who has been the beneficiary of services (child) ?

13 Supreme Court Observed The parents and the child are both “consumers” as the definition of a consumer includes “beneficiary of services” which is different from the person who “hires the services” The Commission is fully justified in awarding compensation to both the parents and the child for the injury each one of them has sustained.

14 Procedure by District Forum Where no laboratory test is required Forum refers copy to opp. party Opp. party acts ? Opp. party denie s ? Settle dispute as per evidence by both parties Settle dispute as per evidence by complainant Yes No Decide the matter as per merits of case Yes No Issue appropriate order

15 Procedure by District Forum Where laboratory test is required Forum refers copy to opp. party Opp. party acts ? Opp. party denies ? No Complainant deposit lab. fees Forum sends sample to Lab. Lab. reports findings to Forum Sends to opp. party with remarks Objecting party objects in writing Yes Opportunity of hearing No Issue appropriate order Yes

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17  Benefit ◦ Disposal within 90 days ◦ No adjournment shall ordinarily be granted - ◦ No adjournment shall ordinarily be granted - Speedy trial  Relief ◦ Removal of defects in goods or deficiency in services. ◦ Replacement of defective goods. ◦ Refund against defective goods or deficient services. ◦ Compensation. ◦ Prohibition on sale of hazardous goods. BENEFITS & RELIEFS

18 Consumer Protection (Amendment) Bill, 2002 Alterations in the definitions Complainant will now also include the legal heir or representative of the consumer, in case of his death Complaint may be filed against a trader as well as service provider for adopting deceptive practices in provision of services Consumers do not include persons who obtained goods for commercial purposes are under the Act

19 Goods that were considered hazards to health and safety when used were specified under law and some were even exempt if the legal requirements of display of warning were met with (the classic example being cigarettes) Regulation has been defined to mean the regulations made by the National Commission under the Act Unfair trade practice' will now also include withholding from the participants of any scheme offering gifts, prizes or other items free of charge

20 Some major loopholes of the Act still left unplugged by the 2002 Amendments One of the biggest achievements of the Consumer Protection (Amendment) Act, 2002, was the conferment of First Class Magistrate’s powers to the Consumer Forums or Commissions  The main problem regarding the above empowerment and the relevant provision is the fact that the Gazette notification for the conferment of First Class Magistrate’s powers to the Consumer Forums or Commissions is still not issued. Thus it is practically impossible for the Forums or Commissions to exercise this power conferred by the Act

21 Another lacuna present in the amended Act is the relatively softer approach adopted by the Act towards the judgment debtor in its certain provisions

22 Problems resolved by Amendment The amendments to section 13 require the District Forum to refer a copy of the admitted complaint within twenty-one days from the date of its admission to the opposite party to give his version within the prescribed time. It also provides the much needed provision for ex parte order as well as dismissal of complaint on non-appearance of complainant New section 19A provides that endeavor shall be made to dispose of appeals filed before the State Commission or the National Commission within ninety days from the date of admission

23 References http://www.legalserviceindia.com/articles/coon.htmhttp://www.legalserviceindia.com/articles/coon.htm http://ncdrc.nic.in/1_1.html#_Hlk149662503 http://www.legalserviceindia.com/articles/cons umer_avantika.htmhttp://www.legalserviceindia.com/articles/cons umer_avantika.htm


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