CONSUMER PROTECTION ACT, 1986.

OBJECT

OF THE ACT: The right 1) to be

protected against marketing of goods and services
which are hazardous to life and property, 2) to be
informed about quality, quantity, purity, price, 3)
to be heard at appropriate forums, 4) to seek
redressal against unfair trade practices or
restrictive trade practices and
5) for
consumer education.
FEATURES OF THE ACT: Act applies to all
goods and services, all the sectors. The
provisions of this Act are compensatory in nature.
Provisions to issue orders & for damages, for
creation of State & National benches.
COMPLAINANT: Means: a consumer, any
registered voluntary consumer association,
Central or State Govt., or one or more consumers.

CONSUMER PROTECTION ACT

CONSUMER: A person buys goods for consideration, but

does NOT include a person who buys for resale or for any
commercial purpose. However if such goods are used
for the purpose of earning livelihood by means of self
employment, then it will NOT deemed to be commercial.
In State Government of Maharashtra Vs. Hindustan
Computers Ltd, the Govt. purchased photo copying
machine for photo copying the registered documents for
public, was held a purchase NOT for commercial
purpose.
SERVICES: It means service of any description which is
made available to potential users as defined in the Act.
GOODS: Goods as defined in the Sale of Goods Act,
1930 means any movable property.

UNFAIR TRADE PRACTICE

It means a trade practice which a trader for the

purpose of promoting the sale of goods / services
adopts unfair method or unfair deceptive practice.
Namely:
Making any statement orally or writing or visible
representation which FALSELY REPRESENT:
1) goods or services of a particular standard, quality,
quantity, style, model etc.
2) second hand, renovated or old, as new goods
3) approval, performance, which goods does not
have
4) need for or usefulness of any goods or services
5) any guarantee or warranty.
REFER TEXT BOOK FOR MORE.

REDRESSAL MACHINERY

JURISDICTION: District Forum: Complaints -- value

of goods / services / compensation -- up to Rs.20
lakhs.
State Commission: -- From
Rs 20 lakhs to Rs. 1 Cr.
National
Commission: -- Above Rs.1 Cr.
REJECTION BY FORUM : Lack of jurisdiction, nonpay. of fees, vexatious, lapse of time, complainant is
not a consumer, dispute is NOT a consumer dispute.
REMEDIES UNDER THE ACT: To remove the
defects in the goods, to replace the goods with new
goods free from defects, to return the price, to pay
such amount as compensation to the consumer, to
discontinue unfair trade practice etc..

CONSUMER PROTECTION ACT

LIMITATION PERIOD FOR FILING COMPLIANT : WITHIN 2

YEARS from the date the cause of action has arisen.

WHO CAN FILE A COMPLIANT: Consumer who has

purchased the goods, any recognized consumer association,
one or more consumer for the benefit of all consumers,
Central or State Govt.
ADMISSION OF COMPLIANT: Admissibility of the compliant
decided within 21 days of receipt.
If admitted a copy is issued to opposite party within the next
21 days and giving him 30 days time to reply.

TIME LIMIT FOR DISPOSAL OF CASE BY THE FORUM :

Within 3 months from the date of receipt of notice of the
Dist., State or National Forum by the opposite party and
within 5 months if lab testing is required .

CONSUMER PROTECTION ACT

POWERS OF REDRESSAL AGENCIES : Punitive, General

damages, ex-parte orders, enforcement of interim orders,
summary power for disobeying the orders.
General damages: Forum can order for compensation for
opposite parties negligence, damages, mental agony and
anxiety caused. The minimum damages shall not be less
than 5% of the value of the defective goods or services .
APPEAL: Against the order of the Dist. Forum APPEAL to
State Commission. To deposit 50% or Rs.25000 which ever
is LOWER, of the order of the Dist. Forum.
From State Com. to National Commission, to
deposit 50% or Rs.35000 LOWER of the order of State
Commission.
Against Nat. Com. to Supreme Court,
deposit 50% or Rs.50,000 which ever is less of the order
of Nat. Comm.
Time limit to file appeal : Within 30 days from
the date of the order.
State and National Commission to
decide within 90 days from the date of its admission.

COMPETITION ACT 2002.

OBJECTIVES: Safety & stability of domestic market,

OBJECTIVES: Safety & stability of domestic market, transparency,

prevention of abusive practices, to benefit consumers. To regulate
the unethical competition in the international trade.
Act covers: prohibition of anti-competitive agreements & abuse
of dominant position, regulation of combinations & mergers.
Penalties for contravention of orders & constitution of competition
fund.
Competition Commission of India: A regulatory body for
administration and enforcement of law.
TRADE PRACTICES: Means any practice relating to carrying on
of any trade and includes anything done by the trader in relation
to any trade.
UNFAIR TRADE PRATICE: A trade practice, which a person adopts
for the purpose of sale, use of supply of goods or provision of any
services by any unfair method / practice. For example, misleading
advertisements, Gifts offered as free of charges but the prices are
covered, Hoarding or refusing to sell the goods. (Ref Text Book)

RESTRICTIVE TRADE PRACTICS

RESTRICTIVE TRADE PRACTICES: A practice which tends

to obstruct or prevent the flow of capital or resources or
bring about manipulation of prices or to affect flow of
supplies of goods or services, so as to impose unjustified
cost or restriction on consumers. (Ref: Text book for details)
INDICATORS OF RESTRICTIVE TRADE PRACTICES :
1) Any agreement which restricts or likely to restrict, by
any method, the person to whom goods are sold or bought.
2) any agreement requiring the purchaser of goods, as a
condition of such purchase, to purchase some other goods.
3) any agreement to sell the goods at such prices, as would
have the effect of eliminating competitions or a competitor.
4) any agreement, not to employ or restrict the employment
of any methods, machinery in the manufacture of goods.

CONSUMER PROTECTION.

PRODUCT LIABILITY: Sometimes the manufacturers sell

their goods by misrepresented advt.. If the products are
used by the consumers without proper instructions or
found defective, consumers are entitled to damages for
the injury. The manufacturers must be aware of the
law of the country in which they intend to sell.
PRODUCT includes natural and industrial product
whether raw or manufactured, movable or immovable.
Basis for claims: Defects in : Design, manufacturing,
marketing, negligence, insufficient instructions.
Plaintiff to establish the defects and breach of warranty.
PUBLIC INTEREST LITIGATION : Enforcement of public
interest in which the public or class of the community
have interest and their legal rights or liabilities are
affected. In its far-reaching decision in the case of
Peoples Union for Democratic Rights Vs. Union of India,
recognized that a third party could directly petition by a
letter or other means.