Consumer Protection Act 2.81

Introduction The Consumer Protection Act was enacted in Amendments were made in The Act applies to the whole of India except the State of Jammu and Kashmir. An Act to provide for the better protection of the interest of the consumers. Establishment of Consumer Councils and other authorities for the settlement of consumers’ disputes. 2.82

Objectives ► Right of protection to life and property ► Right to be informed ► Right to choose ► Right to be heard ► Right to redress ► Right to education 2.83

Definitions Consumer: He is a person who i) “buys any goods for a consideration which has been paid or promised, or partly paid and partly promised, or under a system of deferred payment. ii) hires any services for a consideration which has been paid or promised, or partly paid and partly promised, or under a system of deferred payment. 2.84

Definitions Consumer Disputes : sec 2(1)e “a dispute where the person against whom a complaint has been made denies or disputes the allegations contained in the complaint”. Defect “any fault, imperfections 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 has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service”. 2.85

Definitions Deficiency : 2(1) g “means 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”. Service : Sec 2 (0) service of any description which is made available to potential users and includes the provisions of facilities in connection with banking, financing, insurance, transport, processing, supply of electrical or other energy, boarding or lodging of good, house construction, entertainment, amusement or other information. 2.86

Compliant ‘Complaint’ means any allegation in writing made by a complainant that- i) an unfair trade practice or a restrictive trade practice adopted by any trade or service provider ii) the goods bought by him or agreed to be bought by him suffers from one more defect iii) the services hired or availed of or agreed to be hired or availed of suffer from deficiency in any respect iv) a trader or the 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) agreed between the parties 2.87

Who are NOT Consumers? 1.A person who purchased goods for resale 2.A person who purchased goods for commercial purpose 3.A person who obtains services without consideration 4.A person who obtains services under a contract of personal service 5.Tax-payers to municipality 6.Contractors 7.Applicants for jobs 8.Persons who filed suits in courts 2.88

How to file a complaint  A Complaint, hand written or typed, can be filed by a consumer, a registered consumer organisation, central or state Government and one or more consumers, where there are numerous consumers having the same interest.  The nature of complaint must be clearly mentioned as well as the relief sought by the consumer.  It must be quadruplicate in district forum or state commission. Else, additional copies are required to be filed. 2.89

Relief that can be sought from the forum  Repair of defective goods  Replacement of defective goods  Refund of the price paid for the defective goods or service  Removal of deficiency in service  Refund of extra money charged  Withdrawal of goods hazardous to life and safety  Compensation for the loss or injury suffered by the consumer due to negligence of the opposite party  Adequate cost of filing and pursuing the complaint 2.810

SETTLEMENT OF COMPLAINT  Normally, complaints should be decided within 90 days from the date of notice issued to the opposite party.  Where a sample of any goods is required to be tested, a complaint is required to be disposed of within 150 days. It may take more time due to practical problems

Consumer Redressal Forum The aims and objectives of the Act are achieved by the constitution and creation of  District Forum  State Commission  National Consumer Disputes Redressal Commission

Powers of District Forum 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 2.813

District Forum  Each District Forum shall consist of a person who is or has been or is qualified to be a District Judge who shall be its President two other members, one of whom shall be a woman possessing a bachelor’s degree from a recognized university, be a person of ability, integrity and standing and have adequate knowledge and experience  Every member of the District Forum shall hold office for a term of 5 years or up to the age of 65 years which ever is earlier.  Subject to the other provisions of the Act a District forum shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed does not exceed Rs.20 Lakhs

State Commission Each State Commission shall have jurisdiction to entertain complaints where the value of the goods or services and compensation, if any, claimed exceeds Rs. 20 Lakhs but does not exceed Rs.1 Crore and appeals against the orders of any District Forum within the State

National Commission The ‘ National Commission’ shall consist of a person who is or has been a Judge of the Supreme Court, shall be its President. Not less than 4 and not more than such number of members as may be prescribed and one of whom shall be a woman with similar qualifications as required in the case of appointment as a member to a District Forum or a State Commission. Every member of the National commission shall hold office for a term of 5 years or up to the age of 70 years which ever is earlier. The National Commission shall have jurisdiction to entertain complaints where the value of the goods or services and compensation, if any, the claim exceeds Rs. 1 Crore and appeals against the orders of any State Commission

Consumer Dispute Redressal Forum The District Forum, State Commission or the National Commission shall not admit a complaint unless it is filed within 2 years from the date on which the cause of action has arisen. Where a trader or a person against whom a complaint is made fails or omits to comply with any order made by the District Forum, the State Commission, the National Commission, as the case may be, such trader or person shall be punished with imprisonment for a term which shall not be less than 1 month but which may extend to 3 years, or with fine which shall be not less than 2,000/- Rs. but which may extend to 10,000/-Rs., or with both

Filing of complaint A complaint may be filed by 1.The consumer to whom such goods are sold 2.Any recognized consumer association, where the consumer to whom goods are sold or delivered is a member 3.One or more consumers, where there are numerous consumers having same interest 4.The Central and State Government 2.818

Procedure for Complaint Complaint relating to goods 1. Reference of sample to laboratory 2.Deposit of fees 3.Remission of fees to lab and forwarding of report to opposite party 4.Objections 5.Reasonable opportunity to parties 2.819

Procedure for complaint Complaint relating to services 1.Reference of claim to opposite party 2.Denial of allegations by the opposite party 3.Settlement of dispute 4.Proceedings of district forum final 5.Death of complainant 6.period 2.820

Findings and Verdicts a)To remove the defect b)To replace the goods with new goods of similar description. c)To return the complainant the price d)To pay compensation to the consumer for any loss or injury suffered e)To remove the defects in the goods f)To discontinue the unfair trade practices g)Not to offer hazardous goods for sale h)To provide adequate costs to parties 2.821

Appeals Appeal to the State commission any person aggrieved by an order made by the district forum may prefer an appeal against such order to the State commission within a period of 30 days Appeal to the National commission any person aggrieved by an order made by the State commission in exercise of its powers may prefer an appeal against such order to the National commission within a period of 30 days 2.822

Hearing of Appeal ( Section 19 (a)) No adjournment shall be ordinarily granted by the state commission or the National commission as the case may by unless sufficient cause is shown and the reasons for grant of adjournment have been recorded. The State commission and the National commission as the case may be shall make such orders as to the costs occasioned by the adjournment

Miscellaneous Protection of action taken in good faith Power to remove difficulties Power to make rules Laying of rules 2.824

Stages in Consumer case Filing of complaint Notice to opposite party Filing of version Production of evidence and hearing Filing of affidavit if required Order 2.825

Defending consumer cases Collect all relevant facts and materials Consult government pleader if necessary Prepare reply – To be signed by a gazetted officer File reply in required number of copies Keep track of the case 2.826

Defending consumer cases…. Hearing – Present evidence Final order – Consider need of appeal – Take legal opinion File appeal within the time 2.827

Case Study 2.828