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Friday, October 31, 2014



CONSUMER PROTECTION ACT 1986 IN INDIA Presentation Transcript:

The Consumer Protection Act 1986 was enacted for better protection of the interest of consumers. The provision of the act came into force from 15-04-1987. Consumer Protection Act imposes strict liability on a manufacturer, in case of supply of defective goods by him and a service provider in case of deficiency in rendering of his services.

2. Today, health is an industry, because of private hospitals in country. The patients are now considered as clients of hospitals. Private hospitals are profit seeking industries. They provide five star treatment to their clients. Due to the negligancy and malpractice of these hospitals, Supreme court has brought these hospitals under the rules of this act. The litigants are preferring claims through district, state and national forums.

 3.Important Terms:
  •  Complaint:- A consumer or one or more consumers having the same interests who or which makes a complaint or any consumer association registered under the Consumer Protection Act 1986.
  •  Consumer:- “ Any person “ who hires\avails of any services for a consideration which has been paid.
  •  Consideration:- Fee\payment , may have been fully paid in cash or cheque or undertaking that it will be paid. 
  • Deficiency:- Any fault, imperfection or inadequacy in the quality and manner in the performance which is required to be maintained under any law, by a person in pursuance of a contract or otherwise in relation to any service. 
  • Charge:- Payment with element of profit making motive involved. Govt. hospitals do not charge fees, hence such services rendered are exempted from this act. Hence the persons availing of these services are not consumers and the services rendered do not fall under this act, as there is no consideration paid for hiring of such services. 
4. Enaction of ACT 

The act was passed in Lok sabha on 09-12-1986 and in Rajya sabha on 10-12-1986, assented by President of India on 24-12-1986. CPA was published in the Gazette of India on 26-12-1986. CPA was enacted in 30-01-1987 that was 37th year of the Republic Day of India and it was amended from time to time i.e 1991, 1993, 2002 and so on.

 5. Salient Features of the ACT 
  • It covers all the sectors whether private, public and co-operative or any person
  • The provisions of act are compensatory as well as preventive  and punitive in nature.
  • ACT applies to all goods and services unless specifically exempted by the central govt.
  • It protects the following rights of consumers:-
  •  Right to be protected against the marketing of goods and services which are hazardous to life and property.
  • Right to be informed about the quality, quantity, potency, purity and price of goods and services so as to protect  the consumers against unfair trade practices.
  • Right to be heard and to be assured that consumers interests will receive due consideration.
  • Right to seek redressal against unfair trade practices\exploitation of consumers.
  • Right to consumer education.
     NOTE:- Our consumers are our clients(persons receiving health services during illness or wellness)

6. Philosophy of ACT
      According to legal analysis oh philosophy behind consumers from being unfairly exploited by businesses and individuals . Areas of regulation in the CPA that focus in hazards to health and property are at the top of law’s priority list. The law also specifies the consumer’s right to be heard in an appropriate settings. The structure of the hearing system included redressal forums at national, state and district levels. If the issue reaches the national level the settlement includes higher cost that have not been settled at the level close to home.
        The CPA lists consumer education is very important so as to prevent future disputes.

7. Grant of Relief under CPA
     After  finding of defects in goods\services, acc. To section 14 the consumer forum may direct one or more of the following:-
  • To remove the defect
  • To replace the goods with new goods of similar description
  • To return the price
  • To pay such amount as compensation to the consumer for the loss
  • To discontinue the unfair trade practice
  • To cease manufacturing of hazardous goods
  • To pay such sums as order if injury\loss
  • Not to offer the hazardous goods for sale
8. Procedure to file a Complaint
  •    A  Complaint is only admitted by any of the competent forums under CPA if it is filed with in two years.
  • The  Complaint must be made in writing , defects in goods or unsatisfactory services can be the subject of written complaints.
  • Consumers are not charged a fee for filing such  Complaints.
  • Decisions may involve complete removal of any defect in a product and replacement of the product.
  • Refunds are specifically provided for in the law
9. Consumer Protection Redressel Agencies\levels
    Under a three tire redressel machinery and under section 9, the settings of judicial redressal mechanism which is as follows:-
  1. District forum
  2. State forum
  3. National forum
1. District forum:-  District forum is established by the state govt. in each district. It has three members:-
  • Qualified district judge (President)
  • A person of eminence in the field of education, commerce
  • A lady (social workers)District forum deals with the compensation\claims upto 5 lakhs
2. State Commission:-   It is at state has four members:-
  • A person who is judge of High court(President)
  • Two person of eminence in education, administration, adequate knowledge of laws and public affairs
  • A female member (social worker) State commission deals with the compensation/claim from 5 lakh to 20 lakhs.
3.National level:-   It is situated at New Delhi. It consists of five members:-
  • Judge of Supreme court
  • Four other members belong to trade, industry, law, administration
  • One woman is also compulsory
NOTE:- A person ordered by state commission may appeal to National commission in 30 days.
     National Commission deals with the compensation above 20 lakhs.

10. Penalty under section of CPA
  • The objective of CPA is to protect and promote the interests and rights of consumers. To meet the demand of consumers, the consumer courts are established  at district level, state level and national level.
  • According to CPA, where a trader or complaint fails to comply with an order made by felevant consumer forum, such person os liable to a punishment with imprisonment for a term which is not less than one month but it may extend to three years OR
  • Fine of not less than 2000 rupees, but which may extend to Rs. 10,000
  • Punishment may be single or it may be both, imprisonment with fine

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