2.  TWO-THIRDS of spending in the world economy ($ 30 trillion) is by consumers. YET THEY HAVE NO VOICE!  New Economic Policy floods market with products— YE DIL MAANGE MORE but too little information for informed choice.

3. On 24 December 1986 Govt. of India enacted the Consumer Protection Act 1986 to:  Ensure Rights of Consumers  Provide Remedies for deceived Consumers  Check Unfair Business Practices & Restrictive Trade Practices. This is a unique law in the world.

4. C.P. ACT IS UNIQUE  Exclusive Fora for consumer disputes in all districts, state and national capitals.  6 consumer rights specified.  Consumer Protection Councils from national to state and district levels.  Covers private, public, cooperative sectors.

5. CONSUMER PROTECTION ACT, 1986

6. Consumer's Rights under Section 6 1.Right to SAFETY against hazardous goods and services. 2.Right to be INFORMED about quality, quantity, purity, standard, price. 3.Right to CHOOSE from a variety at competitive prices. 4.Right to BE HEARD. 5.Right to seek REDRESSAL. 6.Right to CONSUMER EDUCATION.

7. Contd -  Applicability – Extends to whole of India except the state of Jammu and Kashmir  Applies to all goods and service except those notified by the Central Government

8. WHO IS A CONSUMER? Two kinds of consumer under the Act ◦ Consumer of goods  buys or agrees to buy goods  any user of such goods ◦ Consumer of services  hires or avails any services  any beneficiary of such service

9. Contd -  Service – Service of any description but does not include rendering of any service free of charge or under a contract of personal service.

10. Complaint  Complaint means a formal allegation against a party  Complaint is an written allegation made in writing to the National commission, the State Commission, or the District forum by a person competent to file it with a view to obtaining relief provided under the Act.

11. Who can file a complaint  A consumer  Any recognized consumer association  One or more consumers having the same interest  The central or the state government as the case maybe  In case of death of a consumer, his legal heir or representative

12. Contd -  The following are also considered as a consumer and hence they may file a complaint.  User of goods and beneficiary of services  Husband of the consumer  Insurance company

13. CONSUMERS NEED PROTECTION AGAINST (grounds of complaint) Unfair trade practice Restrictive trade practice Defects Deficiencies

14. CONSUMERS NEED PROTECTION AGAINST UNFAIR TRADE PRACTICE  Adopting unfair methods or deception to promote sale, use or supply of goods or services e.g.  Misleading public about price (e.g. bargain price when it is not so).  Charging above MRP printed.  Misleading public about another’s goods or services.  Falsely claiming a sponsorship, approval or affiliation.  Offering misleading warranty or guarantee.

15. CONSUMERS NEED PROTECTION AGAINST RESTRICTIVE TRADE PRACTICE  Price fixing or output restraint re: delivery/flow of supplies to impose unjustified costs/restrictions on consumers.  Collusive tendering; market fixing territorially among competing suppliers, 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 pre-condition for buying/hiring other goods or services.

16. CONSUMERS NEED PROTECTION AGAINST  DEFECTS  Any fault, imperfection 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 under any contract express or implied or as is claimed by the trader in any manner whatsoever in relation to any goods.  DEFICIENCY  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

17. Consumer dispute  Sec 2(1) (e) – A dispute where the person against whom a complaint has been made, denies or disputes the allegation contained in the complaint.

18. Consumer dispute redressal agencies A QUASI-JUDICIAL AUTHORITY UNDER THE STATUTE TO REDRESS CONSUMER DISPUTES. Consumer Disputes Redressal Forums (District Forum) Claims less than or equal to Rs.20 lacs. Consumer Disputes Redressal Commissions (State Commission) Claim more than Rs.20 lacs & less than Rs.1 crore & appeals. National Consumer Disputes Redressal Commission (National Commission) Claim equal to Rs.1 crore & appeals

19. District forum  Sec 9 of the act provides for the establishment of a district forum by the state government in each district of the state by notification.  The state government may establish more than one district forum if it deems fit to do so. 18

20. Composition The collector of the district will be its president along with the two members including atleast one woman who are persons of ability, integrity and standing. The are appointed by the state government on the recommendation of the selective committee. 19

21. Term of office Every member of the district forum shall hold office for a term of 5 years or up to the age of 65 years, whenever is earlier and shall be eligible for re-appointment. Jurisdiction The district forum can entertain complaints up to the dispute of Rs. 50 lakh only. Who can make complaint: The consumer to whom product is sold or delivered Any recognized consumer association. One or more consumer The central or the state government 20

22. Procedure on filling of complaint  The district forum shall refer a copy of the complaint to the opposite party within 21 days from the date of admission of the complaint.  If other party fails to represent his case with in given time following shall apply: If the defect in the goods cannot be determined without proper analysis or test of the goods, the district forum shall obtain a sample, seal it and authenticate it and refer the sample to the appropriate laboratory for finding out the defect and report. 21

23. Findings of the district forum  If the district forum is satisfied that the allegations about services are true or loss is suffered by complainant due the goods supplied to him, the forum shall issue one or more of the following orders to the opposite party: To remove the defect in goods To replace the goods with new goods To return the price to the complainant To remove the defects in the services 22

24. Appeal against order of district forum  The aggrived party may appeal against the order of district forum to the state commission within 30 days of the order.  The state commission has the power to entertain an appeal after the expiry of 30 days if it is satisfied that there was sufficient cause for the delay. 23

25. State Commission  The Act provides for the establishment of the state consumer dispute redressal commission by the state government in the state by notification 24

26. Composition  Members should not be less than 35 years of age.  A person has the qualification of high court judge is appointed by the state government in consultation with the chief justice of high court of the state as its president along with 2 or more members including atleast one woman member 25

27. Terms of office  Every member of the state commission shall hold office for a term of 5 years or up to the age of 67 years whichever is earlier.  He may reappointed for 5 years if he fulfils other conditions Procedure on filling a complaint Finding of the state commission Jurisdiction of the state commission The state commission can entertain complaints ranging from 50 lakhs to Rs. 1 crore. 26

28. National commission Section 9 provides for the establishment of national consumer disputes redressal commission by the central government by notification Composition The national commission consist of: A supreme court judge Four competent persons of different /important areas. The compensation will be as presibed by the central govt. 27

29. Jurisdiction The national commission will have jurisdiction to entertain complaints for the value exceeding Rs. 1 crore. Power To issue cease and desist order To grant interim injunction To give directions for defective or unsafe products and replacement of these products or for removal of the deficiency in services. 28

30. Appeal  An aggrieved person may appeal against such order to the supreme court within 30 days from the date of the order 29

31. HOW TO FILE COMPLAINT WITH THE FORUM OR COMMISSION ?  File WITHIN 2 YEARS of cause of action in the District Forum where the seller has his business or lives or where the cause of action arose.  Submit 3 COPIES OF COMPLAINT ON PLAIN PAPER WITH SUPPORTING DOCUMENTS (receipt, bill etc.)  NO LAWYER.  MINIMAL FEE IS PAYABLE.

32. Fees payable District Forum Value and compensation claimedFee  Up to Rs 1 Lakh Rs 100  Rs 1 lakh & above but less than Rs 5 lakh Rs 200  Rs 5 lakh & above but less than Rs 10 lakh Rs 400  Rs 10 lakh & above but less than Rs 20 lakh Rs 500

33. Is There Any Prescribed PROFORMA For Filing Complaint ? NO. But the following information must be furnished with the complaint :-  Name and full address of complainant.  Name and full address of opposite party.  Description of goods and services.  Quality and quantity.  Price.  Date & proof of purchase or hiring.  Nature of deception.  Type of redressal prayed for.

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

35. Appeals against order of the forums  Appellate powers of the State Commission – appeal can be made to the SC against an order of the district forum within a period of 30 days  Appellate powers of the National Commission – appeal can be made to the NC against an order of the SC within 30 days from the date of the order

36. Contd -  REFUND OF MONEY.  REPLACEMENT OF THE GOODS.  COMPENSATION FOR LOSS OR HARASSMENT OR MENTAL AGONY.

37. Contd -  Appeal shall be heard within 90 days from the date of its admission  Appeal to the Supreme Court – Appeal can be filed against the order of the NC within 30 days from the date of the order

38. Penalties  Failure to comply with an order of DF,SC,NC shall be punishable with an imprisonment for a term which shall not be less than one month but which may extend to three years, or with fines ranging between 2000 and Rs 10,000 or both.