Beruflich Dokumente
Kultur Dokumente
Mukesh Cheeta 7
Balasaheb Deshmukh 9
Sekhar Ghagas 13
Dharmesh Gohel 15
Mahaveer P. Gupta 17
Yogesh Jain 19
Index
Chapter
Particular Page No.
No
1 Introduction 2
2 Important definitions 7
3 Right of Consumer 9
7 Conclusion 38
Annexure
i Bibliography & Source of Information 42
1
CHAPTER - 1
1. Introduction
Earlier though there were several legislations to protect the consumer, but
the same never proved adequate to protect consumer and compensate them for
their compliances.
CPA become statutory umbrella which made the consumer feel like a king.
CPA not only enhances the awareness and educate the consumer but also
provide compensation to them by summary and inexpensive proceedings.
This keeps manufacturer and the trader alert, creative and innovative.
In the era of free competition, market has become very dynamic and margins
have squeezes out. These gave rise to adopt other means/unfair means or
practices in execution of transactions, which resulted into increased
grievances at consumer front. Hence, the need for the CPA has become more
relevant than the past, where monopoly was the key factor.
Today Consumer rights are an integral part of our lives like the consumerist way
of life. We have all made use of them at some point in our daily lives.
Market resources and influences are growing by the day and so is the
awareness of ones consumer rights. These rights are well defined and there
are agencies like the
2
Government, consumer courts and voluntary organizations that work
towards safeguarding. If these rights are well defined then the basic question is
why at all the consumer needs protection?, it
has to be followed by the
manufacturers/suppliers.
So let us look at few reasons because of which consumer needs protection
3
7. Legitimacy for Existence: Business exists to satisfy the needs and desires
of
consumers. Goods are produced with the purpose of selling them. Goods will, in
the long run, sell only when they meet the needs of consumers.
8. Trusteeship: Businessmen are trustees of the society's wealth. Therefore,
they should use this wealth for the benefit of people.
While we like to know about our rights and make full use of them,
consumer responsibility is an area which is still not demarcated and it is
hard to spell out that all the responsibilities that a consumer is supposed to
shoulder.
In the early years when welfare legislatures like the consumer protection Act did
not exist, the maxim Caveat emptor (let the buyer beware) governed the
market deals.
4
British regime:
During the British regime (1765-1947), also known as the ‘Colonial
Era’, Government’s economic polices in India were concerned more with
protecting and promoting the British interests than with advancing the
welfare of the native population. The administration’s primary per-
occupation was with maintaining law and order, tax collection and defense.
Accordingly much of the legalization enacted during the British regime was
primarily aimed at serving the colonial rulers intend of the natives. There
were, however, some pieces of legislation which protected the overall public
interest through not necessarily the consumer interest. Prominent among these
were: the Indian Penal code, 1860, the sale of Goods act,
1930, the dangerous drugs act, 1930 and the drugs and cosmetics act, 1940.
In a sense, the sale of good act, and the principles of the law of torts were more
for the protection of the trader than the consumer.
5
In spite of various provisions providing protection to the consumer and providing
for stringent action against adulterated and substandard articles in the
different enactments like Criminal Procedure Code, 1908, Indian Contract Act,
1972, Sales of Goods Act, 1930, Indian Penal Code 1860, Standard of Weights
and Measures Act,
1976 and Motor Vehicle Act, 1988, very little could be achieved in the area
of
consumer protection.
In order to provide for better protection of the interest of the consumers the
Consumer Protection Bill, 1986 was introduced in the Lok Sabha on December 5th
1986. The CPA 1986 was enacted to provide for better protection of the interest
of consumer and for the purpose to make provisions for establishment of
Consumers Councils and other authorities for settlement of consumer’s
dispute and for matters connected therewith.
The CPA is only one of the several Laws framed to protect consumers from unfair
and undesirable practices of business community such law became necessary due
to growing frustration of consumers with substandard quality of goods,
unsatisfactory services and unfair business trade practices.
6
CHAPTER - 2
2. Definitions
7
2.3. “Consumer” means any person who-
(i) Buys any goods for self use or with the approval of self person, but
does not include a person who obtains such goods for resale or for any
commercial purpose or
(ii) Hires for avails of any services for self use or when such services are
availed with the approval the first mentioned person.
2.5. "Trader"
"Trader" in relation to any goods means a person who sells or distributes
any goods for sale and includes the manufacturer thereof, and where such
goods are sold or distributed in package form, includes the packer thereof;
8
CHAPTER- 3
3. Rights of Consumer
There are two hundred and sixty consumer organizations in over one
hundred countries around the world strives to promote a fairer society through
defending the rights of all consumers, including the poor and the
marginalised, by supporting and strengthening member organisations and the
consumer movement
in general; campaigning for consumer rights' to be placed at the heart of
policy-
making to encourage sustainable development. There are eight key
international consumer rights as defined by the United Nations Guideline
for Consumer Protection 1985.
Right to Safety
Right to Information
Right to Choice
Right to be Heard
The Right to Redress
The right to consumer education
The Right to Basic Needs and
The right to a healthy and sustained environment.
Access to food, water and shelter are the basis of any consumer's life.
Without these fundamental amenities, life cannot exist. In September 2001,
India's stock of food grains were around 60 million tonnes, yet one third of the
Indian population lives below the poverty line and consumers often go
hungry or remain severely malnourished, leading to poor health. The recent
starvation deaths in Orissa are a case in point. A very crucial objective of the
conceptualization and existence of consumer rights is to ensure that consumers
have an assured food supply, safe and permanent dwellings, and basic amenities
of life like sanitation and potable water, and power supply.
10
Urbanizations is seen as a mark of development but for rural migrant population,
living conditions in cities is very poor. The population of cities is growing rapidly
in India and after 1988, the percentage of urban poor has been more than that
of the rural poor. Around 20 to 25 per cent of the urban households live in
slums, make-shift colonies or refugee settlements due to non-availability of
affordable and decent habitat in urban areas. . According to some estimates, in
urban areas alone, there is a housing shortage of 17 million units. This has led to
a habitat crisis
in Indian cities. In rural India, the situation is equally bad, with a large part of
the population still living in make-shift dwellings and hutment. With non-
permanent housing comes lack of sanitation facilities and other amenities like
running water and electricity supply. Due to burgeoning population, most
people do not have access to dry toilets in rural and urban areas.
12
3. Right to Safety
Consumer right to safety is as vast in its purview as the market reach itself.
It applies to all possible consumption patterns and to all goods and services. In
the context of the new market economy and rapid technological advances affecting
the market, the right to safety has become a pre-requisite quality in all products
and services. For e.g. some Indian products carry the ISI mark, which is a
symbol of satisfactory quality of a product? Similarly, the FPO and AGMARK
symbolise standard quality of food products. The market has for long made
consumers believe that by consuming packaged food or mineral water,
consumers can safeguard their health. This notion has been proved wrong time
and again due to rampant food adulteration in market products. Right to food
safety is an important consumer right since it directly affects the health and quality
of life of consumers. Earlier, the interpretation of the right to safety was limited to
electronic products and other such products. Now, its definition has expanded a
lot to include safety aspects of new technologies like GM food, food labeling,
chemical ingredients in food products etc. In today's scenario of globalisation,
consumers have no control over where the products or commodities they use,
come from. For instance, the chocolates or syrups we consume, may be
manufactured in countries as far as the U.S. or Australia. Consumers in India
would have no control over or knowledge of the manufacturing practices of those
countries and will have to rely completely on import regulations of the Indian
government and food labelling. This makes the consumer right to safety a very
important and critical issue for consumers.
Safety of natural food products is also a problem of growing concern since due
to increased chemical inputs in farms, our food supply is being
contaminated with pesticides and chemicals. This poses a grave danger to
consumer health. For non- vegetarians, the problem is even more serious
since food animals are being fed
13
anti-biotics to fight diseases among animals and boost their growth. This can have
serious repercussions on consumer health.
4. Right to Information
Right to information means the right to be given the facts needed to make
an informed choice or decision about factors like quality, quantity, potency,
purity standards and price of product or service. The right to information
now goes beyond avoiding deception and protection against misleading
advertising, improper labelling and other practices. For e.g. when you buy a
product or utilise
a service, you should be informed about a) how to consume a product b)
the adverse health effects of its consumption c) Whether the ingredients
used are environment- friendly or not etc .
Due to the ever increasing influence of the market and the ever changing
scene with price wars and hard-sell techniques, the consumer's right to
information becomes even more important. The right to information means
much more than simple disclosure of the product's weight or price. A
consumer has the right to know how the product has been prepared, whether it
has been tested or animals or not, if environmentally-sound techniques and
resources have been used in its production processes, what kinds of chemicals
are used into its manufacturing and what could be their impact on consumer
health. Clearly, a consumer has to consider a lot of factors before s/he buys a
product.
Ideally, a consumer should have knowledge of the entire ‘cradle to grave' journey
of the product to determine whether its safe and beneficial for use or no.
The
‘cradle to grave journey' refers to the processes a product goes through- from
the time of it being made out of raw material, the processes of its
moulding into its final shape, transportation, labour, ingredients used, to the
form in which it ends
14
up on market shelves. It is only when a consumer is aware of the history of
the product that he can make informed choices.
5. Right to Redress
16
practical experience. For instance, a woman who makes purchase decisions for
the household and does the actual buying in the marketplace would be more
educated about market conditions and ‘best buys' than a person who educates
himself about the market with the help of newspapers or television. Also, today,
it is not just the market or products that a consumer needs to educate him
about but s/he also needs to know about company profile, government
policies and introduction of new technology.
Market influences have grown so much that, not just wholesale and
retail sellers but even medical practitioners are falling prey to their
pressures. The pharmaceutical industry is one such example. India, with its 1
billion population and largely uneducated consumers, is a very lucrative
market for this industry. The pharmaceutical industry, to
boost its sales, offers free samples of
medicines, freebies, and even free luxury holidays to physicians to influence
them
to use their brands and give them preference over other brand names. There have
been many instances when drugs banned in countries like US, have
been prescribed to Indian consumers and are readily available as over-the-
counter drugs. It is a sad example of gross violation of consumer trust
by medical practitioners. This situation is rampant not just in rural areas
but also among educated urban consumers. The reason why the market, in
connivance with physicians, is able to exploit consumers is that Indian
consumers are not aware of the prevailing situation and do not keep
themselves abreast with latest developments taking place around them.
Consumer education can play a crucial role in protecting consumers against
such dangers.
In the Indian context, sustainability and traditional knowledge can play
a
vital role in empowering consumers but consumers are unable to connect to
their knowledge base. Consumer education can rejoin the broken link
and make traditional knowledge accessible to consumers again. Some
sources of consumer education are past experiences of consumers,
information dissemination by
17
government agencies and NGOs, classroom teaching by teachers and informal
lessons by parents.
18
19
CHAPTER-4
The Consumer Production Act provides for a three tier system of redressal
agencies:
A complaint is to be made to the district forum of the concerned district where the
value of goods and services and compensation, if any, is up to Rs 20 lakhs.
A complaint is to be made to the National Commission for more than Rs 100 lakhs.
1) District Forum
(a) President: a person who is, or has been, or is qualified to be a District Judge,
who shall be its President;
(b) Member: two other members, one of whom shall be a woman, who shall have
the following qualifications, namely:—
21
(i) be not less than thirty-five years of age,
Every appointment under sub-section (I) shall be made by the State Government
on the recommendation of a selection committee consisting of the following,
namely:—
2. Every member of the District Forum shall hold office for a term of five years or
up to the age of sixty-five years, whichever is earlier:
a ) The opposite party or each of the opposite parties ,actually and voluntarily
resides
b) Any of the opposite parties, where there are more than one, at the time of
the institution of the complaint, actually and voluntarily resides,in such
cases, either the permission of the District Forum is given or the
consent of the opposite party is necessary.
c) If the dispute is pending the civil court,the consumer forum has no jurisdiction
to entertain the same.
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3) Manner in which complaint shall be made.—
(1) A complaint in relation to any goods sold or delivered or agreed to be sold
or delivered or any service provided or agreed to be provided may
be filed with a District Forum by –
(a) the consumer,
(b) any recognized consumer association whether the consumer is a member
of such association or not;
(c) one or more consumers, where there are numerous consumers having the same
interest, with the permission of the District Forum
(d) The Central Government or the State Government as a representative
of interests of the consumers in general.
A complaint has been admitted by the District Forum, it shall not be transferred
to any other court or tribunal or any authority set up by or under any other law
for the time being in force.
23
(1) Remove the defect pointed out by the appropriate laboratory from the goods;
or
(2) To replace the goods with new goods of similar description which shall
be free from any defect; or
(3) (3) To return to the complainant the price, or, as the case may be, the charges
paid by the complainant; or
(4) To remove the defects in goods or deficiencies in the services in
(5) question; or
(6) To discontinue the unfair trade practice or the restrictive trade
practice or not to repeat it;
2. State Commission
(a) President: A person who is or has been a Judge of a High Court, appointed by
the State Government.
(b) Member: Two other members who shall be persons of ability, integrity
and standing, and have adequate knowledge and experience of at least ten
years in dealing with problems relating to economics, law, commerce,
accountancy, industry, public affairs or administration:
(2) Every member of the State Commission shall hold office for a term of
five years or up to the age of sixty-seven years, whichever is earlier:
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Jurisdiction of the State Commission. —
(1) Subject to the other provisions of this Act, the State Commission shall
have jurisdiction—
(a) Monitory- Original: to entertain complaints where the value of the goods or
services and compensation, if any, claimed exceeds rupees twenty lakhs but
does not exceed rupees one crore; and
(b) Appellate: To entertain appeals against the orders of any District Forum
within the State; and
(c) Supervisory or Revisional: to call for the records and pass appropriate
orders in any consumer dispute which is pending before or has been decided
by any District Forum within the State.
3. National Commission
(a) President : A person who is or has been a Judge of the Supreme Court, to be
appointed by the Central Government.
(b) Member: Two other members who shall be persons of ability, integrity
and standing and have adequate knowledge and experience of at least ten
years in dealing with problems relating to economics, law, commerce,
accountancy, industry, public affairs or administration:
Every appointment under this clause shall be made by the Central Government
on the recommendation of a selection committee consisting of the
following, namely:—
25
(b) The Secretary in the Department of Legal Affairs —Member;
In the Government of India
Subject to the other provisions of this Act, the National Commission shall
have jurisdiction—
(a) Monetary: To entertain complaints where, the value of the goods or services
and compensation, if any, claimed exceeds rupees one crore;
(b) Appellate: To entertain appeals against the orders of any State Commission;
(c) Supervisory or Revisional: To call for the records and pass appropriate orders
in any consumer dispute which is pending before or has been decided by any
State Commission where it appears to the National Commission
26
1. Memorandum of Appeal: An appeal memorandum shall be presented by
the appellant or his/her agent to the national commission in person or be
sent by registered post addressed to the commission.
4. Grounds not urged: The appellant shall not urge or be heard in support of
any ground of objection not set forth in the memorandum, except by leave
of the national commission.
27
CHAPTER- 5
28
29
30
31
32
6. Case Studies
33
34
35
36
37
7. Conclusion
Consumer protection movement has got a bright future in India. A part from
Governmental seriousness in the matter, consumer activism, organizations,
civil society and other voluntary associations needs to play their part in the
furtherance
of consumer movement. In the current scenario media can play a vital role
in infusing the consumer behavior and can easily generate opinions or
enhance awareness about the possible unfair practices in the market.
Above all, the consumers have to be aware of their rights and should assert
them selves in the market place.
The second problem concerns the applicability of the Consumer protection Act, 1986
to various services. As is evident, ever since the implementation of the 1986
Act, whereas there has hardly been any significant case in which the ‘goods’
has been vehemently contested, there is a voluminous amount of case law
which involved determination of the meaning, definition, and ambit of the term
‘service’. Section2
(1)(o)of the 1986 Act categorizes certain specific types of services which, inter alia,
39
include banking, financing, insurance, transport, amusement and
entertainment. The definition of the term ‘service’ had already been kept very
wide and now with the inclusion of the two terms ‘housing and
construction’ by the Consumer Protection (Amendment) Act, 1993, it has been
further widened. Only two types of services have been kept out of the
ambit of the 1986 Act. They are services rendered free of charge and services
rendered under a contract of personal service. The non-mentioning of
services like education, health, housing, posts and telegraphs and
telecommunications had presumably given these services an impression of
their exclusion from the ambit of this legislation. At the initial stages, therefore,
these services contested the jurisdiction of the 1986 Act, thereby claiming
complete immunity from their governance by it. The Consumer Forums,
however, have appreciably stood the test of time and have brought all these
services within the ambit of the 1986 Act.
Purchase products only after their complete scrutiny and not at the cost of
attractive advertisements.
Keep check on the weighing and measuring instruments used by traders.
Avoid buying fruits and vegetables from unhygienic place.
Check print of MRP on the packet.
Check the quantity as per the figure printed on the packet.
Check the expiry date of the product, particularly that of eatables and
medicines.
Always collect bill at the time of purchase.
Moreover, the packaging and appearance of the product should not be the
guiding factor for consumer purchases. Along with cost consideration,
consumer must be cautious of the quality of the product. Most
importantly, it is the prime responsibility of a consumer to bring to the
notice of the concerned authorities, any violation in their rights.
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Bibliography
Books:
Web sites:
http://www.answers.com/topic/consumer-bill-of-rights
http:// www.consumerrightsexpert.co.uk/
http://www.consumerdirect.gov.uk/
http://www.citizensinformation.ie/ categories/consumer-affairs/consumer-
protection/consumer-rights
http:// www.consumerdirect.gov.uk/after_you_buy/know-your-rights/
http://www.moneysavingexpert.com/shopping/consumer-rights-refunds-
exchan
http://www.skillsportal.co.za/training/sales/509560.htm
http:// www.answers.com/topic/consumerism
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http:// www.legalserviceindia.com/
http:// www.legalhelpindia.com/
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Articles:
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