INSTITUTE OF MANAGEMENT STUDIES

Presentation On
Consumer Protection Act,1986

Submitted
By:
Submitted To:
Prakhar Singh
Mrs.Nisha Bano Siddique
Pratiksha Jadhav

Prince Mohan Das

Pritha Upmanyu
1
Priya Nainani
CONSUMER PROTECTION
ACT, 1986

2
Content
Consumer Protection Act,1986
Definitions Related To CPA
Consumer Rights
Nature and Scope of Remedies Available to
Consumers
Case Studies
Conclusion
References

3
 Consumer Protection Act

Consumer protection laws are designed to ensure

fair competition and the free flow of truthful
information in the marketplace.

The laws are designed to prevent businesses that

engage in fraud or specified unfair practices from
gaining an advantage over competitors and may
provide additional protection for all types of
consumers.

Consumer Protection laws are a form of government

regulation which protects the interests of consumers.
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 BRIEF HISTORICAL
BACKGROUND
On 24 December 1986 Govt. of India enacted the
Consumer Protection Act 1986 to:
Act is claimed to have been designed after an in
depth study of consumer protection laws and
arrangements in UK,USA, Australia and New Zealand.
Act applies to whole of India except Jammu and
Kashmir
Chapter I, II and IV came into force on 15 april1987.
Chapter III came into force on 1 July 1987
The act was amended in 2002 and the amendments
came into force on 15th March 2003.
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OBJECTIVES
To provide better protection of interests of
consumers.
To provide establishment of consumer councils
and other authorities.
To empower the consumer councils and other
authorities to settle consumers disputes and
matters
Ensure Rights of Consumers and
provide Remedies for deceived
Consumers
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SAILENT FEATURES OF
CPA
The Act applies to all goods and services
unless specially exempted by Union Government
It covers all sectors public, private or cooperative
Provisions of the Act are compensatory in nature .
It envisages establishment of consumer protection
councils at the central and state levels.
Provisions of this act are in addition to and not in
derogation of the provisions of any other act.

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 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.
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DEFINITIONS
RELATED TO
CONSUMER
PROTECTION ACT

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WHAT IS A COMPLAINT?

Complaint means any allegation in

writing made by a compliant that :
I. An unfair trade practice or a restrictive
trade practice has been adopted by any
trader or service provider;
II. The goods bought by him or agreed to be
bought by him suffer from one or more
defects ;
III. The services hired or availed of or agreed
to be hired or availed off by him suffer from
deficiency in any respect;

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WHAT IS A COMPLAINT?

IV. A trader or 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) displayed on the price list exhibited by him
by or under any law for the time being in
force;
d) agreed between the parties .

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WHAT IS A COMPLAINT?

V. Goods which will be hazardous to life

and safety when used are being offered
for sale to the public
a) In contravention of any standards
relating to safety of such goods as
required to be compiled with, by or under
any law for the time being in force;
b) If the trader could have known with due
diligence that the goods so offered are
unsafe to the public;

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WHAT IS A COMPLAINT?

VI. Service which are hazardous or likely t

be hazardous to the life and safety of
the public when used, are being
offered by the service provider which
such person could have known with
due diligence to be injurious to life and
safety.

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 WHO IS COMPLAINANT ?
A Complainant means any of the following and
having made a complaint:
A consumer ;
Any voluntary consumer association registered under
the companies act , 1956 or under any other law .
The Central Government or any State Government
One or more consumers, where there are numerous
having the same
In case of consumer , his legal heir or representative.

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WHO IS A
CONSUMER ?

Any person who buys goods or avails

services for consideration
Consideration may be fully paid, partially
paid or fully promised to be paid or
partially promised to be paid
Any body who uses the goods or services
with the consent of the consumer

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WHO IS A CONSUMER ?

Legal heir of consumer in case death of

consumer
Does not include any person who buys
goods for resale or commercial purpose
and services for commercial purpose
However any person who buys goods for
commercial use but exclusively for his
livelihood by means of self employment
is a consumer.

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WHAT IS A SERVICE?
Service means service of any description, which is
made available to potential users and includes, but not
limited to the provisions of the facilities in connection
with

1) banking 2) financing 3) insurance 4) transport

5) processing 6) supply of electrical or other energy
7) boarding or lodging or both 8) house construction
9) entertainment 10) amusement or
11) the purveying or new or other information

But does not include the rendering of any service free of

charge or under a contract of personal service
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CONSUMERS NEED
PROTECTION AGAINST
Unfair trade practice

Restrictive trade practice

Defects

Deficiencies
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CONSUMERS NEED
PROTECTION AGAINST
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).
Charging above MRP printed.

Misleading public about anothers goods or services.

Falsely claiming a sponsorship, approval or affiliation.

Offering misleading warranty or guarantee.

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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.
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.

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WHAT IS A DEFECT ?
Fault In the

Imperfection Quality
Quantity

Shortcoming Potency
Purity Or
Standards

Which is required to be maintained by or

under any law for the time being in force
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WHAT IS A DEFICIENCY ?
Fault
In the
Imperfection Quality
Standard and
Shortcoming Or Manner of performance

Inadequacy

Which is required to be maintained by or

under any law for the time being in force

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THE 8 CONSUMER
RIGHTS

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RIGHT TO THE
SATISFACTION OF BASIC
NEEDS

To have access to basic, essential goods and

services: adequate food, clothing, shelter,
health care, education and sanitation.

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Right to Basic Needs
(Food, Water, Health, Sanitation , Education , Transport, Communication
and Energy)
31% respondents believe that the water from these sources is not potable,
hence not safe for drinking

Only 24% respondents are aware about government Sanitation

Program/schemes

77% consumers feel the need of a regulator for private schools.

Only 4% consumers have access to internet.

About 74% of the respondents who tried to access govt. housing finance or bank
finance scheme believe that finance is not easily accessible and affordable

According to 59% respondents doctors do not generally prescribe generic or

competitively priced drugs/medicines.

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 Right to Basic Needs
Only 44% respondents consider cost of obtaining healthcare
services affordable

About 56% of those who use LPG or kerosene as their primary

source of energy for cooking have reported incidence of obtaining
LPG/kerosene from black market. About 20% of them always
obtain LPG or Kerosene from black market.

Only 22% respondents are satisfied with Governments effort to

ensure adequacy, accessibility and affordability of basic needs.

53% respondents strongly believe that right to basic needs should

be enacted as a legal right.
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RIGHT TO SAFETY

The right to be protected against

marketing of goods and services
which are hazardous to life and
property.

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 Right to Safety
Though about 83% respondents believe that
certification and warnings are an important means to
ensure right to safety.

But 40% of respondents do not refer to any safety or

quality certifications such as ISI, ISO, Agmark, Codex
etc. before making a purchase.

ISI is the most known certification

Consumers suggested to make mandatory certification of

Acid, Paints, Mosquito Coils, Beverages and Electronic
Items. 28
RIGHT TO BE INFORMED

The right to be informed

about quality, quantity, potency,
purity, standard and price of goods
and services.

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 RIGHT TO BE INFORMED
Awareness Regarding Consumer Protection Related Laws (%)

30
Awareness Level of Different Legislations
28
Aware Urban Aware Rural

19
18
16
15
14
13
12
11
9
8 8
6
5
4 4

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RIGHT TO CHOOSE

It means whenever possible ,access

to variety of goods and services at
competitive prices.

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 Right to Choice
Products/Services which Should
Offer Portability
Only few consumers are aware about
competition issues and their importance to
protect interests of consumers.
Insurance 15
only 1.6% respondents were able to correctly
name at least one product/service which has
only one or two producers/providers. LPG Connection 17

Apart from availability, cost of alternatives, Electricity 15

transaction fee, documentation are the main
barriers before consumers in choosing School/College Admission 12
alternative service/products.
Bank Account Number 60
Consumers believe that there is need to
promote more free & fair competition in 0 20 40 60 80
Aviation, Education, Oil & Gas, Railway and
Real Estate.
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RIGHT TO BE HEARD

The consumers interest will receive

due consideration at appropriate
forums.

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 Right to be Heard
/Consumer Representation
Hurdles in ensuring effective consumer
representation/ participation
Only 23% are aware
about the process of
public consultation or Participation do not result in framing of consumer friendly regulations5
consumer
representation.
In rural area only 18% Date/time and Objective of public consultation are not properly communicated6
respondents are aware
About 28% of those
who are aware about Lack of interest among people to participate25
public consultation or
consumer
representation have Lack of awareness among people64
also participated
0 10 20 30 40 50 35
60 70
35
RIGHT TO SEEK
REDRESSAL

It means right to seek redressal

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

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 Right to Redressal
61% normally voice their complaints to seller, at first point
When it come to actual situation - 93% respondents have never made a
formal complaint
Only 0.3% respondents have approached consumer for a for grievance
redressal,
78% have rated the grievance redressal process as difficult.
75% cases were not completely redressed while only 18% of such
unresolved cases were taken to a higher authority for redressal.
67% cases were not redressed within stipulated time frame

Only 18% consumers are fully satisfied with the existing redressal
mechanism
Only 28% of those who know about external redressal mechanism
believe that it is easily accessible by a common man
About 89% aggrieved consumers are represented through advocates in
SCDRC and DCDRC. 37
RIGHT TO CONSUMER
EDUCATION

It means the right to acquire the

knowledge and
to be an informed consumer.

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 Right to Consumer
Education
Only 42% respondents have heard about consumer rights

78% of such respondents heard about consumer rights

from television (TV) Almost 50% of respondents are
aware of Jago Grahak Jago Campaign.

80% of such respondents learnt about the campaign from

Television.

Close to 50% of those who know about Jago Grahak Jago

campaign have reported to benefit directly or indirectly from
the campaign.
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RIGHT TO A HEALTHY
ENVIRONMENT

To live and work in an environment

which is non-threatening to the well-
being of present and future
generations.

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 RIGHT TO A HEALTHY
ENVIRONMENT
Awareness regarding
environmental friendly
Only 9% respondents are aware certifications

about certifications and initiatives.

Awareness about such certifications
is largely among residents of
southern (18%) and northern (12%) Yes; 9%

region, while eastern region has

lowest level of awareness (2.5%).
About 28% respondents those who
know about such products always
No; 91%
tend to buy such products
About 63% are willing to pay some
extra money to buy such products
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Nature and Scope of Remedies
Available to Consumers

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 3-Tier Redressal Agency
The aims and objectives of the Act are achieved by the
constitution and creation of 3-tier judicial machinery
depending upon the amount of loss involved
District Forum NATIONAL COMMISSION

State Commission and

STATE COMMISSION

National Consumer Disputes

DISTRICT FORUM
redressal Commission.
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 JURISDICTION
Power or right of a legal or political agency to exercise its authority over
a person ,subject matter, or territory.

Forum / Commission Where the value of the goods or

services and the compensation, if
any claimed,
District Forum Does not exceed Rs. 20 lakhs

State Commission Rs. 20 lakhs and above but not

exceeding One Crore
National Commission Above One Crore

Besides, State and National Commission have appellate

jurisdiction also.
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 Consumer Protection
Followed In India

Lok Adalats:
The Consumer can approach the Adalat with his
grievance. The issue is discussed and decision is taken
on the spot. This saves time and money
Lok Adalat has become a speedy, effective and
economical redressal system.

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FILING OF COMPLAINTS
A complaint may be filed by

The consumer to whom the goods are sold or

services are provided
Any recognised consumer association
One or more consumers with same interest
The central government or state government

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 FILING OF COMPLAINTS
The Fee for filing the Complaint for the district forum is as under
Sr. Value of Goods / Service and Compensation Amount
No. of Fees
1) Upto Rs. 1 lakh rupees Rs. 100
2) Rs. 1 Lakh and above but less than Rs.5 lakhs Rs. 200
3) Rs. 5 Lakhs and above but less than Rs. 10 lakhs Rs. 400

4) Rs. 10 lakhs and above but less than Rs. 20 lakhs

The fees shall be paid by Cross demand Draft drawn on a nationalized

bank or through crossed Indian postal order drawn in favour of the
Registrar of the Sate Commission and payable at the place of the State
Commission (w.e.f. 5.3.2004.)
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Information Required for a
Complaint
Name and full address of complainant
Name and full address of opposite party
Description of goods and services
Quality and quantity
Price
Date & proof of purchase
Nature of deception
Type of redressal requested

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 F OR MS
T
COM PLAIN

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 APPEAL

shall be filed within thirty days.

Delay in filing appeal may be condoned if

there is sufficient cause.

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 LIMITATION PERIOD

Within two years from the date on

which the cause of action has arisen.

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Penalty Under
Section 27 CPA
According to CPA ,where a trader or
the complainant fails to comply with
an order made by the relevant
consumer forum , such person is
liable to a punishment with
imprisonment for a term which is not
less than 1 month but which may
extend to 3 years or with fine of not
less than 2000 INR but which may
extend to 10000 INR with both
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LIMITATION

The District Forum, the State

Commission or the National
Commission shall not admit a
complaint unless it is filed
within two years from the date
on which cause of action has arisen.

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 National Consumer
Helpline

You may call on the following toll free number

1800-11-4000
(from MTNL or BSNL)

for guidance and information on consumer

issues

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 Remind Ourselves

24 December
National Consumer Day

15 March
World Consumer Rights Day

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 ALERT

BEFORE BUYING ANY GOODS OR SERVICE, BE SATISFIED

ABOUT THE QUALITY OR QUANTITY.

MAKE IT CLEAR THAT ISSUE OF RECEIPT IS MANDATORY

FOR ANY PURCHASE OF Rs.200 AND ABOVE.

IN ANY PACKAGED MATERIAL, THE MONTH & YEAR OF

MANUFACTURE, NET QUANTITY or WEIGHT & M.R.P is
MUST.

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 CASE LAWS ON THE ACT.
Doctor ordered to pay Rs 2 lakh as damages to patient

KANPUR: District consumer protection forum on Monday directed a child specialist, Dr

RC Gupta, to pay Rs 2 lakh to complainant Prince, son of Santosh Kumar, within 30 days.

The complainant had sought a sum of Rs 19 lakh as damages caused by the wrong
treatment given Dr Gupta.

A resident of Bidhuna town in Auraiya district, the complainant stated that he was
suffering from fever in December 2001 and on advice of local doctors he had visited the
clinic of child specialist RC Gupta situated at Chunniganj on January 14, 2002.

The doctor examined him and prescribed medicines and advised him to visit clinic again
for check-up after seven days. The complainant claimed that prescribed medicine did not
provide any relief. When he went again to the doctor on stipulated time and explained his
condition. The doctor enhanced the dose of medicine prescribed in old prescription..

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 CASE LAWS ON THE ACT.

The complainant consulted the child specialist of Etawah and he stated that wrong
treatment was being given to him. He was suffering from meningitis. On January 29, he
again consulted Dr Gupta and he referred him to a home.

During examination doctors, observed there that he was suffering from meningitis and
brain TB and so far he received wrong treatment. Due to wrong treatment, the
complainant got handicapped and lost his eyesight.

The doctor appeared before the forum and admitted that he had treated him on the
basis of external symptoms. He did not return for follow-up check in time and spent his
time in consulting other doctors. On January 29, his condition was critical and the doctor
had advised the patient to get admitted at the nursing home where meningitis and brain
TB was detected.

Forum president LB Singh and member Sumanlata Sharma observed that doctor was
negligent towards his duties and his act comes under the preview of dereliction of duty,
therefore he was liable to pay a sum of Rs 2 lakh as damages to the complainant.

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CASE LAWS ON THE ACT.
Google to face action over privacy rules

PARIS: European data protection agencies intend to take action against the
US internet giant Google after it failed to follow their orders to comply with
EU privacy laws, a French agency said.

In October the data protection agencies warned Google that its new
confidentiality policy did not comply with EU laws and gave it four months
to make changes or face legal action.

"At the end of a four-month delay accorded to Google to comply with the
European data protection directive and to implement effectively (our)
recommendations, no answer has been given," said France's CNIL data
protection agency.

It said that European data protection agencies planned to set up a

working group to "coordinate their coercive actions which should be
implemented before the summer."
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 European data agencies are to meet next week to approve the action plan, said
CNIL, which said it is leading the effort.

Google rolled out the new privacy policy in March 2012, allowing it to track users
across various services to develop targeted advertising, despite sharp criticism from
US and European consumer advocacy groups.

It contends the move simplifies and unifies its policies across its various services
such asGmail,YouTube,Androidmobile systems, social networks and Internet search.

But critics argue that the policy, which offers no ability to opt out aside from
refraining from signing into Google services, gives the operator of the world's largest
search engine unprecedented ability to monitor its users.

Google reiterated on Monday that its confidentiality policy is in line with European
law. "Our privacy policy respects European law and allows us to create simpler, more
effective services," Google said in a statement following CNIL's announcement.

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 The California-based firm said previously that the changes are designed to improve
the user experience across the various Google products, and give the firm a more
integrated view of its users, an advantage enjoyed by Apple and Facebook.

But critics argue that the policy, which offers no ability to opt out aside from
refraining from signing into Google services, gives the operator of the world's largest
search engine unprecedented ability to monitor its users.
Google reiterated on Monday that its confidentiality policy is in line with European
law.

Our privacy policy respects European law and allows us to create simpler, more
effective services," Google said in a statement following CNIL's announcement.

The California-based firm said previously that the changes are designed to improve
the user experience across the various Google products, and give the firm a more
integrated view of its users, an advantage enjoyed by Apple and Facebook.

"We have engaged fully with the CNIL throughout this process, and we'll continue to
do so going forward," it added.

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 European data protection agencies had recommended to Google that
it improve information provided to users, particularly on the
categories of data being processed, and for what purposes and
services.

CNIL said they had also asked Google to specify precise periods it
would hold onto personal data.

CNIL said that by Monday that Google had not provided "any precise
and effective answers to their recommendations.

Given Google's failure to act, "EU data protection authorities are

committed to act and continue their investigations," said CNIL, adding
they would meet on February 26 to approve a working plan on their
actions against Google.

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 CONCLUSION
A person may be consumer of goods, or services. When I purchase
a fan, a gas stove or a refrigerator, I could be the consumer of
goods.
When I open a bank account, take an insurance policy, get my car
repaired, I could be the consumer of services.
The consumer protection Act, 1986 tries to help a consumer when
for example, the goods purchased are defective or the services
rendered to him are subject to so deficiency.
Prior to the consumer Protection Act, 1986 for any consumer
complaint one had to go to an ordinary Civil Court. He had to
engage a lawyer, pay the necessary fee, and be harassed for years
or decades before any outcome, positive or negative, was there in
that litigation.
Under the Consumer Protection Act, no Court fee has to be paid
and the decision on the complaint is much quicker, as the Court
can evolve a summary procedure in disposing off the complaint.
63
Thank You

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