Consumer Protection Act

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(1)

CONSUMER PROTECTION

CONSUMER PROTECTION

ACT (1986)

(2)

 “Consumer” means an individual

 “Consumer” means an individual

acting for personal, family or

acting for personal, family or

household purposes and does not

household purposes and does not

include a person who is acting for

include a person who is acting for

business purposes.

business purposes.

CONSUMER

(3)

For the purpose of "goods", a

For the purpose of "goods", a consumer

consumer

means a person belonging to the

means a person belonging to the

following categories:

following categories:

(i) One who buys or agrees to buy any goods

(i) One who buys or agrees to buy any goods

for a consideration which has been paid or

for a consideration which has been paid or

promised or partly paid and

promised or partly paid and partly promised or

partly promised or

under any system of deferred payment

under any system of deferred payment

(ii) It includes any user of

(ii) It includes any user of such goods other

such goods other

than the person who actually buys goods and

than the person who actually buys goods and

such use is made with the approval of

such use is made with the approval of the

the

purchaser.

(4)

 For the purpose of "services", a "consumer"For the purpose of "services", a "consumer"

means a person belonging to the following means a person belonging to the following categories:

categories:

(i) One who hires or avails of any service or

(i) One who hires or avails of any service or

services for a consideration which has been paid or

services for a consideration which has been paid or

promised or partly paid and partly promised or

promised or partly paid and partly promised or

under any system of deferred payment

under any system of deferred payment

(ii) It includes any beneficiary of such service other

(ii) It includes any beneficiary of such service other

than the one who actually hires or avails of the

than the one who actually hires or avails of the

service for consideration and such services are

service for consideration and such services are

availed with the approval of such person.

(5)

The term “manufacturer” means a person who— The term “manufacturer” means a person who— 

 makes or manufactures any goods or partmakes or manufactures any goods or part

thereof; or thereof; or 

does not make or manufacture any goods butdoes not make or manufacture any goods but

assembles parts thereof made or manufactured assembles parts thereof made or manufactured by others; or

by others; or 

puts or causes to be put his own mark on anyputs or causes to be put his own mark on any

goods made or manufactured by any other goods made or manufactured by any other manufacturer.

manufacturer. 

Explanation. —Explanation. — Where a manufacturer dispatches anyWhere a manufacturer dispatches any

goods or part thereof to any branch office maintained goods or part thereof to any branch office maintained by him, such branch office shall not be deemed to be by him, such branch office shall not be deemed to be the manufacturer even though the parts so dispatched the manufacturer even though the parts so dispatched to it are assembled at such branch office and are sold to it are assembled at such branch office and are sold or distributed from such branch office;

or distributed from such branch office;

MANUFACTURER

(6)

Rights of the consumers:

Rights of the consumers:

Protection against hazardous goods.

Protection against hazardous goods.

Right to consumer information.

Right to consumer information.

Right of access to variety and

Right of access to variety and

competitive prices.

competitive prices.

Right to due attention at

Right to due attention at

appropriate forums.

appropriate forums.

Right to seek redress.

Right to seek redress.

(7)

1.Protection against hazardous goods.

1.Protection against hazardous goods.

The Act says in the first place that the

The Act says in the first place that the

consumer has a right to be

consumer has a right to be protected

protected

against the marketing of goods which are

against the marketing of goods which are

hazardous to life and property.

hazardous to life and property.

The consumer is assured that if he has

The consumer is assured that if he has

been victimized into purchasing goods

been victimized into purchasing goods

which have injured his person or

which have injured his person or

property, he will have speedy and effecive

property, he will have speedy and effecive

remedy under the redressal hierarchy.

(8)

It also imposes a duty on the

It also imposes a duty on the

supplier, not to supply any

supplier, not to supply any

consumer goods which fail to

consumer goods which fail to

comply with the general safety

comply with the general safety

requirement.

requirement.

In this regard, the approved

In this regard, the approved

standards are published from time

standards are published from time

to time by the relevant authorities.

to time by the relevant authorities.

(9)

2.RIGHT TO CONSUMER

2.RIGHT TO CONSUMER

INFORMATION

INFORMATION



The consumer has been given the right to

The consumer has been given the right to

be informed by the producer about the

be informed by the producer about the

quality, quantity, potency, purity,

quality, quantity, potency, purity,

standard and prices of goods he buys.

standard and prices of goods he buys.



This is intended to save the

This is intended to save the consumer

consumer

from unfair trade practices like false and

from unfair trade practices like false and

misleading descriptions about the nature

misleading descriptions about the nature

and quality of the goods.

(10)

Right to Consumer Information

Right to Consumer Information



For example: a misrepresentation as to price

For example: a misrepresentation as to price

may occur in a concealed way in throwing

may occur in a concealed way in throwing

grand-clearance or reduction sales when, in

grand-clearance or reduction sales when, in

fact, the prices are less than the original

fact, the prices are less than the original

ones.

ones.



In all cases of unfair trade practices, the

In all cases of unfair trade practices, the

consumer would have the option of either

consumer would have the option of either

applying to the Monopolies Commission under

applying to the Monopolies Commission under

MRTP Act,1969 or to the forums under the

MRTP Act,1969 or to the forums under the

Consumer Act,1986.

(11)

3.

3.

RIGHT OF ACCESS TO VARIETY ANDRIGHT OF ACCESS TO VARIETY AND COMPETITIVE PRICES

COMPETITIVE PRICES

 The Central Council as constituted under the Act hasThe Central Council as constituted under the Act has

been charged with the responsibility of bringing about been charged with the responsibility of bringing about the organisation of markets and market practices in the organisation of markets and market practices in such a way that all dealers are supplied with a variety such a way that all dealers are supplied with a variety of goods for the benefit of the consumer and that the of goods for the benefit of the consumer and that the goods with a variety are being offered at competitive goods with a variety are being offered at competitive prices.

prices.

 This is based upon the belief that the best way toThis is based upon the belief that the best way to

improve quality and value for money is to give the improve quality and value for money is to give the citizen wider choice through the mechanism of free citizen wider choice through the mechanism of free

competition. It is only then that the consumer will have competition. It is only then that the consumer will have access to variety and will be able to enjoy the benefit access to variety and will be able to enjoy the benefit of competitive prices. This would require a certain of competitive prices. This would require a certain degree of liberty of shopkeepers in selecting and degree of liberty of shopkeepers in selecting and stocking goods of choice.

(12)

 Shopkeepers’ freedom in this respect is often curtailedShopkeepers’ freedom in this respect is often curtailed

by the abuse of monopoly power in the shape of  by the abuse of monopoly power in the shape of  monopolistic or restrictive trade practices.if a

monopolistic or restrictive trade practices.if a

shopkeeper is making his customers helpless and is shopkeeper is making his customers helpless and is thereby leaving them with no choice but to buy goods thereby leaving them with no choice but to buy goods of one kind only, the matter may be brought to the of one kind only, the matter may be brought to the

notice of the Monopolies Commission and the latter can notice of the Monopolies Commission and the latter can examine whether the shopkeeper is himself tied up by examine whether the shopkeeper is himself tied up by the producer and, if so, the Commission may liberate the producer and, if so, the Commission may liberate him from the burden of his ties and restore him his him from the burden of his ties and restore him his choice as to stock-in-trade. Now by virtue of Section choice as to stock-in-trade. Now by virtue of Section 6(c) this power will be exercisable by the Central

6(c) this power will be exercisable by the Central Council also. This is a part of the belief that the best Council also. This is a part of the belief that the best way to improve quality and value of money is to give way to improve quality and value of money is to give the citizen wider choice through the mechanism of free the citizen wider choice through the mechanism of free competition.

(13)

4. RIGHT TO DUE ATTENTION AT 4. RIGHT TO DUE ATTENTION AT APPROPRIATE FORUMS

APPROPRIATE FORUMS

The Central Council is, in the fourth place,

The Central Council is, in the fourth place,

charged with the responsibility of assuring

charged with the responsibility of assuring

consumers that they would be heard as of 

consumers that they would be heard as of 

right by the appropriate forums and the

right by the appropriate forums and the

consumer will receive due attention and

consumer will receive due attention and

consideration from such forums. Thus, it

consideration from such forums. Thus, it

is the duty of the council so to organise

is the duty of the council so to organise

and compose the different forums under

and compose the different forums under

the Act that an aggrieved consumer is

the Act that an aggrieved consumer is

heard as of right and receives due

heard as of right and receives due

consideration at the hands of an

consideration at the hands of an

appropriate redressal forums.

(14)

5.Right To Seek Redressal

5.Right To Seek Redressal

 This right gives the consumers the right to seek redressalThis right gives the consumers the right to seek redressal

against unfair trade practices or restrictive trade practices against unfair trade practices or restrictive trade practices or unscrupulous exploitation of consumers.

or unscrupulous exploitation of consumers.

 The consumers have been given the right to seek redressThe consumers have been given the right to seek redress

against restrictive/unfair trade practices or unscrupulous against restrictive/unfair trade practices or unscrupulous exploitation. The right can be explained

exploitation. The right can be explained clearly byclearly by following example - where money was

following example - where money was deposited indeposited in

advance for the supply of a car within two months and the advance for the supply of a car within two months and the car was actually supplied some time after two months, car was actually supplied some time after two months, inin such situation retention of money beyond the

such situation retention of money beyond the period of period of  two months is an unfair trade practice and the consumers two months is an unfair trade practice and the consumers can claim proper interest on the deposit for the period

(15)

CONSUMERS NEED PROTECTION

CONSUMERS NEED PROTECTION

AGAINST

AGAINST

UNFAIR TRADE PRACTICE UNFAIR TRADE PRACTICE

 Adopting unfair methods or deception to promote sale, useAdopting unfair methods or deception to promote sale, use

or supply of goods or services e.g. or supply of goods or services e.g. 

 Misleading public about price (e.g. bargain price Misleading public about price (e.g. bargain price when it isMisleading public about price (e.g. bargain price Misleading public about price (e.g. bargain price when it iswhen it iswhen it is

not so). not so). not so). not so). 

 Charging above MRP printed.Charging above MRP printed.Charging above MRP printed.Charging above MRP printed.

 Misleading public about another’s goods or sMisleading public about another’s goods or services.Misleading public about another’s goods or services.Misleading public about another’s goods or services.ervices.

 Falsely claiming a sponsorship, approval or Falsely claiming a sponsorship, approval or affiliation.Falsely claiming a sponsorship, approval or affiliation.Falsely claiming a sponsorship, approval or affiliation.affiliation.

(16)

RESTRICTIVE TRADE PRACTICE

RESTRICTIVE TRADE PRACTICE

 Price fixing or output restraint re: deliPrice fixing or output restraint re: delivery/flow of very/flow of 

supplies to impose unjustified costs/restrictions on supplies to impose unjustified costs/restrictions on consumers.

consumers.

 Collusive tendering; market fixing territorially amongCollusive tendering; market fixing territorially among

competing suppliers, depriving consumers of free competing suppliers, depriving consumers of free choice, fair competition.

choice, fair competition.

 Supplying only to particular distributors or onSupplying only to particular distributors or on

condition of sale only within a territory. condition of sale only within a territory.

 Delaying in supplying goods/services leading to riseDelaying in supplying goods/services leading to rise

in price. in price.

 Requiring a consumer to buy/hire any goods orRequiring a consumer to buy/hire any goods or

services as a pre-condition for buying/hiring other services as a pre-condition for buying/hiring other goods or services. This is also termed

goods or services. This is also termed as TIE UPas TIE UP SALES. Eg: selling stabilizers alongwith air

SALES. Eg: selling stabilizers alongwith air conditioners

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6.Right to Consumer Education

6.Right to Consumer Education

Need for consumer education

Need for consumer education



By increased information as to rights and

By increased information as to rights and

remedies,the consumer will be better empowered to

remedies,the consumer will be better empowered to

pursue his remedies.

pursue his remedies.



A consumer complaint which gives the impression

A consumer complaint which gives the impression

that the consumer is fully conscious of and alive to

that the consumer is fully conscious of and alive to

his rights would bring about more positive response

his rights would bring about more positive response

from his supplier.

from his supplier.



Once the people are rendered conscious of their

Once the people are rendered conscious of their

power they may perhaps feel

power they may perhaps feel energised to struggle

energised to struggle

against exploitation by manufacturers and traders

against exploitation by manufacturers and traders



People’s awareness is likely to prove

People’s awareness is likely to prove a better tool

a better tool

for putting the trade on sum level of discipline than

for putting the trade on sum level of discipline than

tons of government controls.

(18)

This right spells out the duty of fair conduct

This right spells out the duty of fair conduct

of trade towards the consumer.The

of trade towards the consumer.The

enforcement of this duty is primarily the task

enforcement of this duty is primarily the task

of the administrative authorities constituted

of the administrative authorities constituted

under the Act and other trading standards

under the Act and other trading standards

organisations.Independently of the

organisations.Independently of the

departmental proceedings`individual

departmental proceedings`individual

consumers would have a right of action for

consumers would have a right of action for

damages,specific performance,a

damages,specific performance,a

declaration,injunction and possibly an order

declaration,injunction and possibly an order

that the goods be repaired or replaced.

(19)

Thank you

Thank you

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