CONSUMER PROTECTION ACT 1986

Objectives of the Act Minimum expenses Speedy Redressal of the grievance Simple Procedures Protection of interest of the consumers

Consumer Under Section 2 (d) (i) the term Consumer is defined. Consumer means: - a person who buys goods or avails any service for consideration which has been paid or partly paid and partly promised or under any system of deferred payment. Those who obtains goods for resale or for any commercial purpose is not consumer.

Three Tier Redressal Forum Consumer Disputes Redressal Forum – CDRF Consumer Disputes Redressal Commission – State Commission National Consumer Disputes Redressal Commission – National Commission

Pecuniary Limits CDRF : Upto 20 lakhs State Commission : Above 20 lakhs upto 1 Crore National Commission: Above 1 Crore

Who can file Complaint ? Consumer Any Voluntary Consumer Organization registered under Societies Registration Act, 1860 or Companies Act, 1956 or any other land in force. In case of Death of consumer, his legal heir or representative.

What constitutes a Complaint? An unfair Trade Practice or Restrictive Trade Practice adopted by any Dealer or service provider. –Unfair Trade Practice Dealer falsely represents that goods are of a particular brand, standard, quality, quantity, grade but in reality it is not like that. Second hand or renovated goods are sold are new goods. Falsely represents about the price of the goods.

What Constitutes a Complaint? Restrictive Trade Practice –Requires a consumer to buy, hire or avail of any goods or services of a conditions precedent to buying, hiring or availing of other goods or services. –Delay beyond the period agreed to by a trader in supply of such goods or in providing the services which has lead or is likely to lead to rise in the price.

What constitutes a Complaint ? A Complaint means any allegation in writing made by the Complainant that: - –An unfair trade practice or restrictive trade practices has been adopted by any trader or service provider. –The goods bought by him or agreed to be bought by him suffer from one or more defect. –The services hired or availed of or agreed to be hired or availed of by him suffer from deficiency in any respect. –Trader has charged excess price. –Goods are hazardous to life and safety and not informed to public about the same for use of the goods.

Reliefs available to Consumers Removal of Defects from the goods. Replacement of the goods Refund of the price paid Award of compensation for loss or injury suffered

How to defend a Complaint? File our objection with 30 days time Consumer Forum may not provide extension of time more than 2 weeks. Appeal has to be filed before State Commission within 30 days time. Amount to be deposited for filing Appeal –50% of the amount passed by the District Forum or Rs.25,000/- whichever is less before State Commission. –50% of the amount passed by the State Commission or Rs.35,000/- whichever is less before National Commission. –50% of the amount passed by the National Commission or Rs.50,000/- whichever is less before Supreme Court.

Redressal Machinery District Forum consists of: - A person who has been qualified as a District Judge. Two other members – one shall be a women – shall not less than 35 years of age – possess bachelor’s degree – 10 years experience in dealing with Economics, Law, Commerce, Accountancy etc. State Commission consists of: - A person who has been qualified as a High Court Judge. Two other members – one shall be a women – shall not less than 35 years of age – possess bachelor’s degree – 10 years experience in dealing with Economics, Law, Commerce, Accountancy etc.

Redressal Machinery National Commission consists of: - A person who has been qualified as a Supreme Court Judge. Four other members – one shall be a women – shall not less than 35 years of age – possess bachelor’s degree – 10 years experience in dealing with Economics, Law, Commerce, Accountancy etc. Not more than 50% of the members shall be from judicial background.

Limitation Period Complaint has to be filed Within 2 years period from date of cause of action

Frivolous & Vexatious Complaints Abovesaid Complaints shall be dismissed by the Consumer Forum and shall also pass order for payment of compensation of Rupees not exceeding Rs.10,000/- to the Opponent by the Complainant.

Penalties Section 27 – fails to comply with the order of the Forum – punishable with the imprisonment – not less than 1 month to 3 years or fine not less than Rs.2,000/- to Rs.10,000/- or both.

LPG Accident Cases RO has to maintain separate files for each LPG accident. Abovesaid files should contain –Irregularity/Accident Report –Panchanama/FIR prepared by Police –Third Party Insurance Policy of the Dealer –Copy of the Subscription Voucher in respect of the Consumer –Fire Brigade Report RO has to provide parawise comments to the Advocate for preparing Reply in the Complaint.

Defence in LPG Accident Cases Dealer is functioning as Principal to Principal basis. We are unnecessary party in the Complaint. Privity of Contract – if complainant is not a consumer Period of use/storing of the cylinder at the residence of the Complainant. Safety aspects not followed by the Complainant Third Party Insurance by the Dealer/ Compensation, if any passed by the Consumer Forum should be paid by Insurance Company. RO has to ensure Insurance Company is a party in the Complaint. File copies of Panchanama, FIR togetherwith our Reply, in case, they are in our favour. Ensure Dealer is not making contradictory statements.