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Presentation on theme: "CONSUMER AWARENESS PROGRAMME Presents © RallyMark Legal."— Presentation transcript:


2 INTRODUCTION A consumer is the most important visitor on our premises. He is not dependent on us, we are on him. He is not an interruption to our work, he is the purpose of it. We are not doing a favor to a consumer by giving him an opportunity. He is doing us a favor by giving us opportunity to serve him. Mahatma Gandhi © RallyMark Legal

3 EVOLUTION OF CONSUMER PROTECTION IN INDIA In ancient India, all sections of society followed Dharma-shastras (Dharma), which laid out social rules and norms, and served as the guiding principle governing human relations. The principles of Dharma were derived from Vedas. The smriti (tradition) and shruti (revelation) prescribed codes to guide the kings and rulers about the methods of ruling the State and its subjects. Consumer protection was also a major concern in their writings. Yajnavalkya Smriti Narada Smriti Bruhaspati Smriti © RallyMark Legal

4 Manu Smriti describes the social, political and economic conditions of ancient society. It prescribes a code of conduct to traders and specified punishments to those who committed certain crimes against the buyers. Kautilyas Arthashasthra, though its primary concern is with matters of practical administration but consumer protection occupies a prominent place in Arthashasthra. It describes the role of the State in regulating trade and its duty to prevent crimes against consumers. © RallyMark Legal

5 During the Mughal period, the prices of commodities were determined as per local conditions. During the rule of Alauddin Khalji, strict controls were established in the market places. The grains used to be sold at prices fixed by the Sultan. There was a mechanism for price-enforcement in the markets. Similarly, shop-keepers were punished for under weighing their goods and selling false goods etc. © RallyMark Legal

6 During British regime, various laws were enacted such as Sale of Goods Act,1930 (SGA); Indian Contract Act,1872 ; Drugs and Cosmetic Act,1940 and Agriculture Procedure (Grading & Marketing Act),1937 for the benefits of consumers. Until enactment of Consumer Protection Act, 1986, the SGA was the exclusive source of consumer protection in India. The SGA provided exceptions to the principle of Caveat emptor (let the buyer beware), thus granted main protection to the consumers. © RallyMark Legal

7 The orthodox legal framework, proved inadequate and cumbersome, hence a need for specific law for protection of consumer interest was felt. As a result Consumer Protection Act, 1986 (CPA) was enacted to provide simple, swift and cost effective redressal mechanism to the consumers. The Indian legal system experienced a revolution with the enactment of the Consumer Protection Act, 1986. CPA has instilled confidence among the common individuals. The way in which the consumer forums are flooded with cases creates an impression of judicial populism in India in the arena of consumer justice. © RallyMark Legal

8 CONSUMER RIGHTS IN INDIA 1. Right to SAFETY against hazardous goods and services. 2. Right to be INFORMED about quality, quantity, purity, standard and price of goods and services. 3. Right to CHOOSE from varieties of goods and services at competitive price. 4. Right to BE HEARD. 5. Right to seek REDRESSAL. 6. Right to CONSUMER EDUCATION. © RallyMark Legal

9 INFRINGMENT OF CONSUMER RIGHTS 1. Adulteration E.g.: Adding of water to milk 2. Defective goods E.g.: Sale of substandard/defective goods. 3. Deceptive products E.g.: Selling of products similar to branded products. © RallyMark Legal

10 4. Unauthorized use of well known marks E.g. : ISI mark without number. 5. Use of non standard weights: E.g. using weight which are not in accordance with the Standard Weights & Measurements Act,1976 © RallyMark Legal


12 CONSUMER [Section 2(1)(d)] A person who buys any goods, hires or avails any services for a consideration which has been paid or promised or partly paid and partly promised or under any system of deferred payment. WHO IS NOT A CONSUMER Any person who: 1.Uses such goods or service for commercial purpose. 2.Gets the goods/service free of cost. © RallyMark Legal

13 COMPLAINT [S. 2(1)(c)] 1. Any unfair or restrictive trade practice has been adopted by the trader; 2. The goods bought by him or agreed to be bought by him suffer from one or more defects; 3. The services hired or availed or agreed to be hired or availed of by him suffer from some deficiency; 4. The trader has charged for the goods or services a price higher than the price fixed or displayed on the goods or any package containing such goods. 5. Goods which will be hazardous to life and safety when used, are being offered for sale. Complaint means any allegation in writing made by a complainant that: © RallyMark Legal


15 POWERS OF FORUM/COMMISSIONS District Forum State CommissionNational Commission A complaint can be made when the value of goods and services along with compensation claimed does not exceeds Rs. 20 lakh. A complaint can be made when the value of goods and services along with compensation claimed exceeds Rs. 20 lakh but does not exceed Rs. 1 crore. A complaint can be made when the value of goods and services along with compensation claimed exceeds Rs. 1 crore. © RallyMark Legal

16 RELIEFS AVAILABLE AGAINST COMPLAINT The Forum/ Commission may pass order: 1. To remove the defect pointed out by the appropriate laboratory from the goods in question; 2. To replace the goods with new goods of similar description which shall be free from any defect; 3. To return to the complainant the price, or, as the case may be, the charges paid by the complainant; 4. To 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; © RallyMark Legal

17 6.To remove the defects or deficiencies in the services in question; 7.To discontinue the unfair trade practice or the re­ strictive trade practice or not to repeat it; and 8.Not to offer the hazardous goods for sale and to withdraw the hazardous goods from being offered for sale. © RallyMark Legal

18 PENALTY FOR NON COMPLIANCE OF ORDER OF FORUM AND COMMISSIONS 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 thousands rupees but which may extend to ten thousand rupees, or with both. © RallyMark Legal

19 VEXATIOUS COMPLAINTS Where the District Forum, State Commission or the National Commission, finds a complaints frivolous/ vexatious, it shall dismiss the complaint and pass that the complainant shall pay to opposite party such cost not exceeding Rs. 10,000( Rupees Ten Thousand ). © RallyMark Legal

20 GUIDELINES FOR SUCCEEDING IN A CONSUMER DISPUTE FIVE MANTRAS: 1. Responsibility of being self conscious in carrying out transaction; 2. Proof of transaction; 3. Proper use of products and availing of services in right way; 4. Proper and justified claim; and 5. Proper representation at redressal Machineries. © RallyMark Legal

21 WHERE CAN WE GO FOR HELP 1. RallyMark Legal, A law firm committed for protection of consumers right. Contact no.- 0522-3075100 2.A National Consumer Helpline (NCH). Contact no.-1800-11-4000 3. A CORE (Consumer Online Research and Empowerment). Contact no.-1800-180-4566 © RallyMark Legal


23 RallyMark Legal Advocates and Legal Consultants Premier Building, 9 Shahnajaf Road, Lucknow-226001 Website: Phone: 0522-3075100 Mob: 80520 45000, 9838597775 E-Mail:, © RallyMark Legal

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