CONSUMER PROTECTION ACT, 1986 Ms. KUMKUM SEN RAJINDER NARAIN & CO. NEW DELHI

BRIEF HISTORICAL BACKGROUND Scenario in early 70s & 80s Existing laws providing consumer protection Shortcomings of such Laws

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 redressformal and informal procedures; Freedom to form groups & present views in decision- making affecting consumers;

THE CONSUMER PROTECTION ACT, 1986 (ACT) zApplicability zAmendments yAmendments in the year 1993 yAmendments in the year 2002

WHO IS A CONSUMER? zTwo kinds of consumer under the Act yConsumer of goods xbuys or agrees to buy goods xany user of such goods yConsumer of services xhires or avails any services xany beneficiary of such service

CONSUMERS NEED PROTECTION AGAINST zUnfair trade practice zRestrictive trade practice zDefects zDeficiencies

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). Misleading public about price (e.g. bargain price when it is not so). Charging above MRP printed. Charging above MRP printed. Misleading public about anothers goods or services. Misleading public about anothers goods or services. Falsely claiming a sponsorship, approval or affiliation. Falsely claiming a sponsorship, approval or affiliation. Offering misleading warranty or guarantee. Offering misleading warranty or guarantee. 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.

CONSUMERS NEED PROTECTION AGAINST zDEFECTS yAny 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. zDEFICIENCY yAny 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 Right to safety against hazardous goods and services Right to safety against hazardous goods and services Right to be informed about quality, quantity, purity, standard, price Right to be informed about quality, quantity, purity, standard, price Right to choose from a variety at competitive prices Right to choose from a variety at competitive prices Right to be heard Right to be heard Right to seek redressal Right to seek redressal Right to consumer education Right to consumer education

FORUM & JURISDICTION zConsumer Disputes Redressal Forums (District Forum) y Claims less than or equal Rs.20 lacs. zConsumer Disputes Redressal Commissions ( State Commission) yClaim more than Rs.20 lacs & less than Rs.1 crore & appeals. zNational Consumer Disputes Redressal Commission (National Commission) yClaim equal to Rs.1 crore & appeals

REQUISTIES OF A COMPLAINT zWho can file a complaint zWhere to file a complaint zHow to file a complaint zWhat constitutes a complaint? zProcedure for filing the appeal

ESSENTIAL INFORMATION IN THE APPLICATION yName and full address of complainant yName and full address of opposite party yDescription of goods and services yQuality and quantity yPrice yDate & proof of purchase yNature of deception yType of redressal prayed for

BENEFITS & RELIEFS zBenefit yDisposal within 90 days yNo adjournment shall ordinarily be granted - yNo adjournment shall ordinarily be granted - Speedy trial zRelief yRemoval of defects in goods or deficiency in services. yReplacement of defective goods. yRefund against defective goods or deficient services. yCompensation. yProhibition on sale of hazardous goods.

THANK YOU