Consumer Protection Act by Dr. Vimarsha Bhatkalkar.pptx

25/11/2024 Consumer Protection Act 1986 1
CONSUMER
PROTECTION ACT 1986
Name: Dr. Vimarsha Bhatkalkar
Designation: 2nd
year PG Scholar
Department of Rasashastra and Bhaishajya Kalpana
Institute: KLE Ayurveda Mahavidyalaya and Research Centre, Belagavi, Karnataka
SUBJECT SEMINAR

• Introduction
• Who is a consumer?
• Why protect the consumer?
• Consumer Protection Act
• History of Consumer Protection Act
• Objectives
• Features of Consumer Protection Act
• Consumer Rights
• Importance of Consumer Protection
Act
• Scope of Consumer Protection Act
CONTENTS
• Need of Consumer Protection Act
• Responsibility of Consumer
• Filing of Complaint
• Remedies
• Three tier consumer grievances
machinery under the consumer
protection act, 1986 and their
jurisdiction
• Few cases
• Conclusion

INTRODUCTION
• Consumer protection is the practice of safeguarding buyers of goods and services against
unfair practices in the market. It refers to the steps adopted for the protection of
consumers from corrupt and unscrupulous malpractices by the sellers, manufacturers,
service providers, etc. and to provide remedies in case their rights as a consumer have
been violated.
• In India, the protection of the rights of the consumers is administered by the Consumer
Protection Act, 2019.
• The Consumer Protection Act, 2019 was introduced to replace the Consumer Protection
Act, 1986.
• The new Act contains various provisions which incorporate the challenges faced by
modern and technology-dependent consumers. The Act also contains various provisions
for the protection and promoting the rights of the consumers.

WHO IS A CONSUMER?
• A consumer is someone who buys goods or services for personal use, not for
resale or business purposes.
A “consumer” under this Act will include person
1. Who buys any goods for personal use or avails services for consideration.
2. Who uses such goods or services with the permission of the buyer
3. Who obtains goods or avail services on deferred payment basis
4. Who obtains goods for self-employment.

WHY PROTECT THE CONSUMER
• Protect consumers from unfair trade practices like overpricing, adulteration, and misleading
advertisements.
• Safeguard against hazardous goods and defective services that may harm health, safety, or
property.
• Encourage ethical business practices by holding sellers accountable for quality, pricing, and
warranties.
• Enable consumers to make informed choices and have access to remedies in case of
grievances.
• Build confidence in the market by ensuring transparency and addressing disputes effectively.
• To strengthen the economy i.e a well-protected consumer fosters healthy competition,
improving product quality and innovation.

Hence, There was
An Act to protect consumer interests by setting up Consumer Councils and authorities to resolve
disputes and handle related matters.
(1) This Act may be called the Consumer Protection Act, 1986.
(2) It extends to the whole of India except the State of Jammu and Kashmir.
(3) Expressly provided by the Central Government by notification, this Act shall apply to all
goods and services.

“CONSUMER IS THE KING OF THE MARKET’”
“Sellers market” is now “Buyers market”
With industrial development leading to the influx of various goods and services in the market,
Consumers have to protected!

CONSUMER PROTECTION ACT
An Act to provide for better protection of the interests of
consumers and for that purpose to make provision for the
establishment of consumer councils and other authorities for
the settlement of consumers' disputes and for matters
connected therewith.
(24th
DECEMBER 1986)

CONTD….
• The Act came into effect on December 24, 1986, after being passed by the Indian
Parliament and signed by the President of India. It was later modified, with the changes
taking effect in March.
• Covers both tangible goods and intangible services, collectively referred to as “products.”
• Applies to purchases made from traders or service providers (referred to as “companies”).
• The act can apply to any consumer who uses the product for non-commercial activities, the
only exception being use of it to earn his livelihood.
• In other words, the act excludes commercial customers fully, but includes individual
domestic customers, groups customers, societies organizations.

HISTORY OF CONSUMER
PROTECTION ACT
• The act was passed in Lok Sabha on 9th December, 1986 and it came into force
from 1 July 1987. Rajya Sabha passed on 10th December, 1986 and assented by the
President of India on 24th December, 1986 and was published in the Gazette of
India on 26th December, 1986.

OBJECTIVES
• To protect the consumers from immoral activities and unfair trade practices
of the traders.
• To protect and promote the rights of the consumers.
• To set up "Consumer Protection Councils" to educate the consumers and to
make them aware of their rights.
• To redress disputes of the consumers, and matters connected with them,
speedily.
• To make provision for Quasi Judicial machinery to control marketing.

FEATURES OF CONSUMER
PROTECTION ACT
• Applies to all goods, services and unfair trade practices unless specifically
exempted by the Central Government.
• It covers all sectors whether private, public or co-operative.
• It provides for establishment of consumer protection councils at the central,
state and district levels to promote and protect the rights of consumers and a
three tier quasi judicial machinery to deal with consumer grievances and
disputes.

CONSUMER RIGHTS
• The right to be protected against marketing of goods which are hazardous to life and
property.
• The right to be informed about the quality, quantity, potency, purity, standard and price
of goods to protect the consumer against unfair trade practices.
• The right to be assured, wherever possible, access to an authority of goods at
competitive prices;
• The right to be heard and to be assured that consumers interests will receive due
consideration at appropriate forums.
• The right to seek redressal against unfair trade practices or exploitation of consumers
and
• Right to consumer education.

IMPORTANCE OF CONSUMER
PROTECTION ACT
In developing countries like India, consumers are largely unorganized, and there are only a
limited number of consumer organizations actively working to safeguard consumer
interests. The Consumer Protection Act empowers these organizations by granting them the
right to represent consumers and file cases on their behalf, ensuring better protection and
support for consumer rights.
It spreads awareness so that consumer can know about the various redressal agencies where
they can approach to protect their interests.
Consumers often face exploitation as businesses use unfair practices to cheat and take
advantage of them. Consumer protection helps shield people from such exploitation.

NEED OF CONSUMER
PROTECTION ACT
The need to protect consumers arises because they are often in a
vulnerable position.
• Social Responsibility- It is the moral responsibility of the business to
serve the interest of consumers. Keeping in line with this principle, it is
the duty of producers and traders to provide right quality and quantity
of goods at fair prices to the consumers.
• Increasing Awareness-The consumers are becoming more mature and
conscious of their rights against the malpractices by the business. There
are many consumer organizations and associations who are making
efforts to build consumer awareness.

CONTD….
• Consumer Satisfaction - Consumer satisfaction is essential for business
success. Therefore, business owners should prioritize the interests of
consumers by offering quality goods and services at fair prices.
• Survival and Growth of Business -For a business to survive and grow, it
must prioritize the interests of consumers. Due to globalization and
heightened competition, any business that engages in malpractices or fails
to improve its services for consumers will struggle to remain competitive
and sustain.
• Principle of Trusteeship - Resources are provided by society, and
businesses act as trustees of these resources. Therefore, they should utilize
these resources effectively for the benefit of society, including consumers.

RESPONSIBILTY OF A CONSUMER
• The consumer must select the product according to his preferences, he must
file a complaint if he is not satisfied with the quality of product.
• The consumer should not blindly believe on the words of seller. He must
insist on getting full information on quality, quantity, utility, price etc.
• Consumers should prioritize quality and avoid compromising on it. When
purchasing goods or services, they should check for recognized quality
certifications such as the ISI mark, Agmark, ISO, Woolmark, and similar
standards.

CONTD….
• To file a complaint, the consumer require proof of purchase: a bill or receipt,
serves as evidence that the consumer has paid for the goods or services.

PROCEDURE OF COMPLAINT
• The complaint must be filed within 2 years of the cause of action (the date when
the issue occurred or came to notice).
• It can be filed at the Consumer Dispute Redressal Forum (commonly referred to as
the District Forum) based on:
• The location where the seller resides or conducts business.
• The location where the transaction or incident occurred.
ELIGIBILITY FOR FILING A COMPLAINT

• No legal or complex documentation is needed. The complaint can be written in simple language on plain paper.
An affidavit or stamp papers are not required.
• Three copies of the complaint along with supporting documents should be submitted.
Details to be Included in the Complaint:
• Name and Complete Address of the Complainant.
• Name and Complete Address of the Opposite Party/Parties (the seller or service provider)
• Date of Purchase/Service Obtained
• Amount paid
• Details of Goods or Service: (the type of goods and quantity to be specified properly)
STEPS TO FILE A COMPLAINT

• Nature of the Complaint (Specify):
 Unfair trade practice.
 Defective goods.
 Deficient services.
 Overcharging or excess price.
•Attach copies of all relevant documents such as bills, receipts, or vouchers, emails, letters, etc. (if any).
•The complaint can be sent by post or submitted in person.
•It can be submitted directly by the complainant or through an authorized agent (a representative).
•There is no lawyer required for filing a complaint.
•No fees required to pay while filing a complaint.

REMEDIES
The forums/Commissions can order the following relief:
• Removal of defects from the goods.
• Replacement of the goods.
• Refund of the price paid.
• Award of compensation for the loss or injury suffered.
• Removal of defects or deficiencies in the services.
• Discontinuance of unfair trade practices/restrictive trade practices and directing not repeating
them.
• Withdrawal of the hazardous foods from being offered for sale.
• Award for adequate costs to practice

THREE TIER CONSUMER GRIEVANCES
MACHINERY UNDER THE CONSUMER
PROTECTION ACT, 1986 AND THEIR
JURISDICTION
DISTRICT FORUM
STATE FORUM
NATIONAL FORUM

DISTRICT FORUM
• Members are appointed by the State Government.
• Two Members are required. One must be a woman.
• The State Forum could entertain complaints where the value of goods/services did not exceed 5
₹
Lakhs
• The forum examines the complaint, and if necessary, sends the goods for testing in a laboratory.
• Provides judgment on compensation or other reliefs.
• Appeal must be filed within 30 days, with a deposit of 25,000 or 50% of the penalty amount,
₹
whichever is lower.
• If dissatisfied with the judgment, the aggrieved party can appeal to the State Commission.

STATE FORUM
• Members are appointed by the State Government.
• Two Members are required. One must be a woman.
• The District Forum could entertain complaints where the value of goods/services did not exceed ₹
5 Lakhs
• The forum examines the complaint, and if necessary, sends the goods for testing in a laboratory.
• Addresses appeals from the District Forum.
• Appeal must be filed within 30 days, with a deposit of 35,000 or 50% of the penalty amount,
₹
whichever is lower.
• If dissatisfied, the party can appeal to the National Commission.

NATIONAL FORUM
• Members are appointed by the Central government.
• Four Members are required. One must be a woman.
• The National Commission entertains cases where the value of goods/services exceeds
20 Lakhs.
₹
• The forum examines the complaint, and if necessary, sends the goods for testing in a
laboratory.
• Addresses appeals from the State Commission.
• Appeal must be filed within 30 days.
• If dissatisfied, the party can appeal to the Supreme Court.

HIERARCHY OF APPEALS
DISTRICT
FORUM
STATE FORUM SUPREME
COURT
NATIONAL
FORUM

FEW CASES
CASE 1: V.N. Shrikhande Vs. Anita Sena Fernandes
Case: Anita Sena, a nurse by profession, underwent a stone removal surgery from her gall bladder.
Despite the surgery, she continued to experience pain. Nine years later, it was discovered that a
gauge was left in her abdomen by the surgeon, necessitating a second surgery. She filed charges for
negligence and demanded compensation of Rs. 50 lakhs from the doctor, ultimately taking the case
to the Supreme Court.
Judgment: The Supreme Court rejected the case because the nurse took too long to raise her
complaint and did not provide enough evidence. The court said that since she worked in the same
hospital where the surgery was done, she had plenty of chances over nine years to discuss her
problems with the doctor. Instead, she kept taking painkillers and didn’t act sooner. Because of this
delay and her inaction, the court decided she was not eligible for any compensation.

CONTD….
CASE 2: Nizam Institute of Medical Sciences v Prasanth S. Dhananka &
Ors
Case: Prasanth S. Dhananka, a 20-year-old engineering student, was admitted to Nizam Institute of
Medical Sciences (NIMS) with acute chest pain. Tests revealed a tumor, but its malignancy could
not be confirmed. He underwent surgery to remove the tumor, after which he developed paralysis,
losing control over his lower limbs and suffering complications such as urinary tract infections and
bedsores. The family accused NIMS and the State of Andhra Pradesh of gross negligence,
highlighting that no pre-operative tests were conducted, no neurosurgeon was present during the
surgery and the consent was only for tumor excision, yet ribs and blood vessels were removed,
leading to paralysis.
Judgment: The Supreme Court found significant negligence on the part of the doctors and the
hospital. The court awarded damages worth Rs. 1 crore to compensate for present and future
medical expenses and the suffering endured by the patient.

CONCLUSION
• The Consumer Protection Act of 1986 has been a cornerstone in safeguarding the
rights of consumers in India.
• By addressing grievances related to unfair trade practices, medical negligence,
and insurance disputes, it has empowered consumers and upheld the principles of
justice and accountability.
• Landmark judgments under this Act have not only delivered justice but also
established significant precedents, fostering trust and promoting ethical practices
across industries.
• The Act remains a vital tool in protecting consumer interests and ensuring a fair
marketplace.

THANK YOU!

Consumer Protection Act by Dr. Vimarsha Bhatkalkar.pptx

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