NEED FOR CONSUMER PROTECTION ACT

IN AN ERA OF FREE COMPETITION

WHERE CONSUMER IS THE KING
THEREFORE, KING NEED PROTECTION

These PPT is for learning purpose and not for official

use

CONSUMER IS THE KING

Markets - guided by customers desire.

Customer eccentricity is extremely
essential.
Products seen through consumers eyes.
Sellers market to Buyers market.

INTRODUCTION
Consumerism - the promotion of the consumers interests.
Let the buyer beware, has changed to Let the seller beware.
Product and services to fulfill needs & wants of customers.
To increase sales - engage in unfair practices.
Consumer protection : For protection of buyers from,
Low quality products,
Dangerous products &
Deceiving advertisements.
Educating consumers about their rights and responsibilities.
Helping them to seek redressal of their grievances.

PROBLEMS FACED BY CONSUMERS

Illiteracy and Ignorance,
Unorganised Consumers,
Spurious Goods,
Deceptive Advertising,
Adulteration,
Irregular Supply,
Other Problems.

Play in slide show

EVOLUTION OF CONSUMER
PROTECTION RIGHTS IN INDIA
Prior to independence,
Indian Penal Code, Agricultural Production,
Grading and Marketing Act, 1937,
Drugs and Cosmetics Act, 1940.
In 1915 - Passengers and Traffic Relief Association (PATRA).
In 1978 - Consumer Education and Research Centre in Ahmadabad.
In 1986 - The Consumer Protection Act was enacted.
Other acts includes,
Contract Act, Sale of Goods Act,
The Essential Commodities Act, The Agricultural Produce Act,
The Prevention of Food Adulteration Act,
The Standards of Weights and Measures Act.

CONSUMER PROTECTION ACT - 1986

To provide better protection of the interests of the
consumers in India.
To make provision for the establishment of consumer councils.
For the settlement of consumer disputes.
This act is applicable to all goods and services.
Amended in 1991, 1993 & 2002.

AMENDMENT - 1991
It was mainly to incorporate provision for the quorum
of District Forum.
Appointing persons to preside over State Commission /
District Forum in case of absence of president.

AMENDMENT - 1993
To find out loopholes in the main act and to overcome them.
Expand the scope of area covered.
To give more power to the redressal agencies under the act.

AMENDMENT - 2002
To facilitate quicker disposal of complaints.
Enhancing the capabilities of redressal agencies.
Strengthening them with more power.
Streamlining the procedure.
Widening the scope of the act to make it more
functional and effective

CONSUMER
Buyer of any commodity or service or
a user of such commodity or service .
Must satisfy two condition : The service must be rendered to him.
He must have paid or promised to pay for the same.
If any person buy capital goods to provide services to other
individual, then he is also recognised as consumer.
If any person buys a commodity with an intention to resale
or trade, then he will not be recognised as consumer.

INTERNATIONAL SCENARIO
Due to increasing globalization.
To unlock consumer power on a global scale.
Consumer International took initiative.
Guidelines for consumer protection.
Specially for - developing countries &
newly independent countries.

RIGHTS OF A CONSUMER
Right to Safety.
Right to Choose.
Right to be Informed.
Right to be Heard.
Right to Seek Redressal.
Hall
mark

Right to Consumer Education.

BE AWARE WHILE

PURCHASING DRUGS

DURING SALE OFFERS

PURCHASING COSMETICS

BUYING CLOTHS

QUALITY MARKS

AGMARK

ISI

AGMARK

FPO
FPO

BIS

COMPLAINT

Any allegation in writing made by a complainant.

Complaint is filed for:

Defect in goods,

Deficiency in service,

Charging of excess price,

Hazardous goods or

Unfair trade practices.

PROCEDURE OF FILING A COMPLAINT

Filing a
Complaint
in Consumer
Court
Obtain the
documents

Send the
Personal
or Legal Notice
to Company
Prepare a
complaint

Get the complaint

reference number and
date for admission
hearing

Get the
complaint
affidavit
notarized
through a
notary
Prepare a bank
draft from a
Nationalized
Bank to pay
court fee.

Case Admitted

Submit the complaint

and court fee

The court will send

a notice with your
complaint copy to
the service/goods
provider asking for
reply
within 30 days
Ask from the
consumer court

The Fee
Download
the
sample
format

Hearing
Complaint filed
at District ,
State
Or National

Court Order

REDRESSAL AGENCIES UNDER THE ACT

Consumers can file the complaint at :1.

District Forum

2.

State Commission or

3.

National Commission.

. Prescribed fee payable for filling a complaint.

. Dont have to go to through a lawyer.

FORUMS
FORUMS

District
Forum

ESTABLISH
ED BY

State
Government

COMPOSITION
- Chairman & 2
members
- One shall be woman

JURISDICTI
ON

APPEAL

Less than
Rs.20 lakhs

To state
commission
within 30 days
of order

Head: District Judge

State
Commission

State
Government

- President &
- Minimum 2 members
- One shall be woman
Head: High Court
Judge

National
Central
Commission Government
In 1988

- President &
- Minimum 4 members
- One shall be woman
Head: Sitting or
Retired Judge of the
Supreme Court

In range of
Rs. 20 lakhs
to Rs. 1 crore

More than
Rs. 1crore

To national
commission
within 30 days
of order

To supreme
court within 30
days of order.

JAGO GRAHAK JAGO SCHEME

Priorities

Consumer
Education

Consumer
Awareness
Consumer
Protection

MULTIMEDIA CAMPAIGNS
VIDEOS
PRINTED
LITERATU
RE

JOURNAL
S

ONLINE
MEDIUM

NATIONA
L
CONSUM
ER HELP
LINE

MULTIMEDI
A
CAMPAIGN

NUKKAD
NATAKS

ADVERTI
SEMENTS

MEGHDOO
T
POSTCARD
S

MEGHDOOT POSTCARDS

CONSUMER GUIDANCE
SOCIETY OF INDIA (CGSI)
Consumerism - the promotion of the consumers interests.
Involved in consumer education.

For the urban and rural low income consumers.

School and college students.

107 training programmes - 5,700 potential activists.

Monthly magazine - Keemat and Consumer Guides.
Training programme using creative methods such as,

Games & street plays,

Through talks,

Demonstrations and exhibitions.

MONTHLY MAGAZINE BY (CGSI) KEEMAT

STATISTICAL DATA

NO. OF CASES FILED - STATE WISE

CASES DISPOSED AND CASES PENDING IN STATE COMMISSION

NO. OF COMPLAINTS FILED/ DISPOSED SINCE INCEPTION

Updated on 10.03.2015
Cases
Dispose
d of
Since
Inceptio
n

Cases
Pending

% Of
Total
Disposal

Sr.
No.

Name of
Agency

Cases
filed
Since
Inceptio
n

National
Commissions

93,860

83,294

10,566

88.74%

State
Commissions

6,72,486

5,83,305

89,181

86.74%

District
Forums

35,32,74
9

32,62,91
6

2,69,833

92.36%

TOTAL

42,99,0
95

39,29,5
15

3,69,58
0

91.40%

COMPARISON OF CONSUMER PROTECTION ACT

IN INDIA AND BRAZIL

INDIA

BRAZIL

Consumer Protection Act is an

Indian federation law enacted in
1986.

The Government issued the

Consumer Defense Code in 1990.

The Act aims to provide better and

all-round protection to consumers.

The Code came to discipline the

relations and responsibilities
between providers and consumers.

Health Services provided by

In Brazil, Article 12 of the CPC deals
Government hospitals, Civic
with defective products, requiring
amenities provided by municipal
suppliers to provide reparations for
authorities.
any harm caused by defects in a
All suppliers of goods and services,
product.
both in the private and in the public
sector and the cooperative sector,
are covered by the Act.
District Forums at the base, the
State Commission at the middle
level and the National Commission
at the apex level.

The National Consumer Defense

Policy is coordinated by the
Consumer and Protection Defense
Department (DPDC) subordinated to
the Secretariat of Economic Law of

CASES
UNDER CONSUMER
PROTECTION ACT 1986

CASE 1
DHARAMDAS PRITIANI VS. HDFC ERGO
GENERAL INSURANCE COMPANY LTD
Complainant - Dharamdas Pritiani - Advised by the doctors to undergo
treatment for suffering from a heart ailment in 2008-09.
He then underwent a rare treatment called
Enhanced External Counter Pulsation (EECP).
The treatment was completed in 45 sittings, costing Rs. 1,18,000.
HDFC Ergo rejected the complainants claim saying the treatment was
experimental and not recognized by the insurer.
The insurance company also claimed that a policy holder must be
hospitalized for at least 24 hours for reimbursement.

CASE 1
DHARAMDAS PRITIANI VS. HDFC ERGO
GENERAL INSURANCE COMPANY LTD
The complainant claimed - Treatment recognized by the United
States and 40 hospitals in India use EECP method to treat heart
patients.
The forum said the documents furnished by Pritiani support his claim.
The treatment did not require hospitalization, thus he should be
reimbursed Rs. 1,18,000
JUDGEMENT
Consumer redressal forum of Indias - Directed HDFC Ergo General
Insurance Company Ltd to pay Rs.1,18,000 towards compensation for
refusing a policy holders claim.
Additional compensation of Rs. 5,000 to be paid for mental agony.

CASE 2
CHETAN PRAKASH VS. MET INSTITUTE
OF COMPUTER SCIENCE
Chetan Prakash, final year BSc. Student sought admission in MET
Institute of Comp. SC. for MCS.
The Institute had stipulated that in order to pursue the MCS course
student has to clear III year exams.
He deposited the fees before declaration of result.
Seeing that he had failed in exams, he tried to withdraw the
admission and requested for a refund, to which the institute did not
responded.
Finally, he sent a legal notice to the institute, and then lodged a
complaint in the consumer forum.

CASE 2
CHETAN PRAKASH VS. MET INSTITUTE
OF COMPUTER SCIENCE
JUDGEMENT
The Institute had to pay the complainant, Chetan Prakash,
Rs. 62,200 as refund of course fee and
Rs. 32,000 as compensation for harassment.

CASE 3
KRISHAN KUMAR BAJAJ VS. PEPSICO
Krishan Bajaj, a resident of Ahmadabad
Purchased Lays (Shipra Tangy Twist Potato Chips)
Packet on 28 June 2010 and sensed its being underweight.
He wrote twice to the manufacturer.
First letter got no response,
In second reply, a gifts hamper was offered to him which he refused.
Bajaj approached CERS, who wrote to PepsiCo.
Company refused to accept their fault and gave several
unsatisfactory clarifications.

CASE 3
KRISHAN KUMAR BAJAJ VS. PEPSICO
CERS took the issue to the Consumers Dispute Redressal Forum,
which also gave a favorable ruling.
The company asked for the bill of purchase which Bajaj could not
produce.
JUDGEMENT
The Court overruled the argument of Bajaj for not having a bill.
CERS requested the court to direct PepsiCo.
To stop such unfair practices & to deposit Rs. 2,00,000 in the
Consumer Welfare Fund, Rs. 2,75,250 as Punitive Damages and
also to give Rs. 75,000 as Costs of Litigation.

RECOMMENDATIONS
Educating more about - rights and responsibilities as consumer.
All consumers need to know their rights & practice them.
Consumers should always conduct market surveys.
Buy from authorised company showrooms & reliable shops.
Obtain bills, receipts and guarantee cards - keep them safe.
Instead of loose items, prefer properly packed and labelled products.
Read labels carefully for brand names, ingredients, net weight,
MRP, expiry date and standardization mark.
Consumers should report any unfair trade practices to redressal
agencies.
Procedure for filing a complaint should be known to all.
System to be more transparent.

CONCLUSION
Consumer is in a dominant position.
Consumers as a class can be called as king.
Individual consumer barely enjoys such a status.
The king, in this case, is vulnerable and requires
protection form unfair trade practices.

VIDEO ON
JAGO GRAHAK JAGO

WEBLIOGRAPHY
http://www.cag.org.in/guidelines-filing-complaint

http://consumerresources.in/2012/09/20/how-to-prepare
-and-submit-a-complaint-to-a-consumer-forum/

http://www.consumerredressal.com/content/contentID/14/
consumerprotection_act

http://consumerresources.in/2012/10/05/pepsico-penalized-forshortchanging-consumer/

http://ncdrc.nic.in/statistics.html

Legal aspects of Business By Akhileshwar Pathak