ppt

1. CONSUMER PROTECTION
ACT, 1986
Rajesh Kumar
MBA(Finance), ACS, AIII

2. OBJECTIVES OF THE ACT
Protection from hazard to health & safety;
Promote & protect economic interests;
Protection of rights of the consumers
Consumer education;
Provide effective and speedier (90 days)
redress;
Freedom to form groups & present views in
decision-making affecting consumers;

3. THE CONSUMER PROTECTION ACT, 1986
(ACT)
Applicability
Amendments
Amendments in the year 1993
Amendments in the year 2002

4. 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
 * Consideration paid fully, partly or agreed to be paid

5. CONSUMERS PROTECTION AGAINST
Unfair trade practice
Restrictive trade practice
Defects
Deficiencies
Excessive Price
Hazardous goods

6. UNFAIR TRADE PRACTICE
Adopting unfair methods or deception to promote
sale, use or supply of goods or services (incl. need
and usefulness)
Misleading public about price
Charging above MRP printed.
Misleading public about another’s goods or services.
Falsely claiming a sponsorship, approval or
affiliation.
Offering misleading warranty or guarantee.
CONSUMERS’ PROTECTION AGAINST

7. 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.

8. 8
WHAT IS A DEFECT ?
 Fault
 Imperfection
 Shortcoming
In the
 Quality
 Quantity
 Potency
 Purity Or
 Standards
Which is required to be maintained by or under any law
for the time being in force

9. 9
WHAT IS A DEFICIENCY ?
 Fault
 Imperfection
 Shortcoming Or
 Inadequacy
In the
 Quality
 Standard and
 Manner of performance
Which is required to be maintained by or under any law
for the time being in force

10. CONSUMER'S RIGHTS
Right to safety against hazardous goods and
services
Right to be informed about quality, quantity, purity,
standard, price
Right to choose from a variety at competitive prices
Right to be heard
Right to seek redressal
Right to consumer education

11. 11
WHAT IS A COMPLAINT?
“Complaint” means any allegation in
writing made my a compliant that :
I. An unfair trade practice or a restrictive
trade practice has been adopted by any
trader or service provider;
II. The goods bought by him or agreed to
be bought by him suffer from one or
more defects ;
III. The services hired or availed of or
agreed to be hired or availed off by him
suffer from deficiency in any respect;

12. 12
WHAT IS A COMPLAINT?
IV. A trader or 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 force;
b) displayed on the goods or any package
containing such goods;
c) displayed on the price list exhibited by
him by or under any law for the time
being in force;
d) agreed between the parties .
V. Hazardous Goods

13. 13
WHO IS A CONSUMER ?
 Any person who buys goods or avails
services for consideration
 Consideration may be fully paid,
partially paid or fully promised to be
paid or partially promised to be paid
 Any body who uses the goods or
services with the consent of the
consumer

14. 14
WHO IS A CONSUMER ?
 Legal heir of consumer in case death of
consumer
 Does not include any person who buys goods
for resale or commercial purpose and services
for commercial purpose
 However any person who buys goods for
commercial use but exclusively for his
livelihood by means of self employment is a
consumer.

15. 15
FILING OF COMPLAINTS
A complaint may be filed by
a) The consumer to whom the goods are
sold or services are provided
b) Any recognised consumer association
c) One or more consumers with same
interest
d) The central government or state
government

16. FORUM & JURISDICTION
 Consumer Disputes Redressal Forums (District
Forum)
 Claims less than or equal 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

17. REQUISTIES OF A COMPLAINT
 Who can file a complaint
 Where to file a complaint
 How to file a complaint
 What constitutes a complaint?
 Procedure for filing the appeal
 Time Limit: 2 years

18. ESSENTIAL INFORMATION IN THE
APPLICATION
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
Nature of deception
Type of redressal prayed for

19. BENEFITS & RELIEFS
Benefit
Disposal within 90 days
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.

20. THANK YOU