Consumer Protection Act 1986

UN GUIDELINES FOR THE CONSUMER PROTECTION Protect from hazard to health & safety; Promote & protect economic interests; Provide adequate information for informed choice; Consumer education; Provide effective redress—formal and informal procedures; Freedom to form groups & present views in decision-making affecting consumers;

15 March 1962: US President Kennedy introduced the revolutionary notion of rights for consumers to the US Congress: "Consumers, by definition, includes us all. They are the largest economic group in the economy, affecting and affected by almost every public and private economic decision. But they are the only important group whose views are often not heard.”

Kennedy’s Bill of Consumer Rights Kennedy's Bill of Rights included the right to: Safety. Information. Choice among a variety of products and services at competitive prices. A fair hearing by governments in the formulation of consumer policy.

Laws to protect consumers Laws like… Indian Penal Code, Indian Contract Act, Sale of Goods Act, Drugs and Cosmetics Act, Agricultural Produce (Grading and Marking) Act, have existed since pre-independence, but none enshrine Rights of Consumers, nor provide swift remedy.

Consumer Protection Act 1986 is unique in the world Exclusive courts 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.

THE CONSUMER PROTECTION ACT, 1986 (ACT) Amendments Amendments in the year 1993 Amendments in the year 2002

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

CONSUMERS NEED PROTECTION AGAINST Unfair trade practice Restrictive trade practice Defects Deficiencies

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.

CONSUMERS NEED PROTECTION AGAINST RESTRICTIVE TRADE PRACTICE Price fixing or output restraint, 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.

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.

Consumer's Rights S.6 C.P. Act 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

Where to Lodge a Complaint… 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

Redressal a Consumer May Seek 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.

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

BENEFITS & RELIEFS Benefit Relief 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.

Fees payable District Forum Value and compensation claimed - Fee Upto Rs 1 Lakh Rs 100 Rs 1 lakh & above but < Rs 5 lakh Rs 200 Rs 5 lakh & above but < Rs 10 lakh Rs 400 Rs 10 lakh & above but < Rs 20 lakh Rs 500

For your money’s worth during any purchase: Insist on a cash memo if the price is >/= Rs.200. Insist on HALLMARK for your money’s worth in purity of gold ornaments. Check for mandatory declarations on packing (weight/quantity/best before). Don’t pay more than the MRP.

Consumer Education to cover: Health, nutrition, food-borne diseases, food adulteration. Product hazards. Product labeling. Protective laws. Information on weights, measures, packaging, prices, quality, availability of basic needs. Environment, pollution, sustainable consumption.

Remind Ourselves: THE CUSTOMER IS ALWAYS RIGHT ~ 24 December~ National Consumer Day ~15 March~ World Consumer Rights Day