Unit-12 BS-XII RK Singla

UNIT - 12
CONSUMER PROTECTION
XII
TOPICS COVERED
 CONSUMER PROTECTION
 Concept and Importance
 Scope of Consumer Protection Act, 2019
 Consumer Protection Act, 2019
 Meaning of Consumer
 Who can file a complaint and against whom
 Remedies available to the consumer
 Consumer Rights
 Consumer Responsibilities
 Legal Redressal Machinery
 Consumer Awareness
 Role of consumer organisations and NGOs in protecting
consumers’ interest
CONSUMER PROTECTION : MEANING
 It refers to the steps taken to protect Consumer against the Unfair

Trade Practices of the Producers and the Sellers.
 Generally Consumers are exploited by :
 Adulteration of Consumer Goods

 Poor Quality of Goods and Services
 Misleading Advertisements
 Short Measure and Under Weight Goods
 Creation of Artificial Scarcity by Hoarding of Goods
“The Consumer Protection Act, 2019
was enacted
for better protection of the interests of consumers.”
CONSUMER PROTECTION : IMPORTANCE
 [A] From the Point of View of Consumers
 Consumers’ Ignorance
 Unorganized Consumers
 Widespread Exploitation of Consumers
CONSUMER PROTECTION : IMPORTANCE
 [B] From the Point of View of Business

 Long - term interest of Business
 Business uses Society’s Resources
 Social Responsibility
 Moral Justification
 Government Intervention
LEGAL PROTECTION TO CONSUMERS
 1. The Consumer Protection Act, 2019 (CPA)

 2. The Contract Act, 1872
 3. Sales of Goods Act, 1930
 4. The Essential Commodities Act, 1955
 5. The Agriculture Produce
(Grading and Marketing) Act, 1937
 6. The Prevention of Food Adulteration Act, 1954
 7. The Standard of Weights and Measures Act, 1976
 8. The Trade Mark Act, 1999
 9. The Competition Act, 2002
 10. The Bureau of Indian Standard Act, 2016
CONSUMER PROTECTION ACT, 2019
KEY POINTS
 Basically Passed in 1986 to Provide Protection to the Consumer.
 In 2019 Ministry of Law & Justice has passed new Act as
“Consumer Protection Act, 2019” which has received the assent by
the President of India on 9th August, 2019 and came into force on
20th July, 2020.
 Applicable in whole India except Jammu and Kashmir
 Provision for formation of “Consumer Disputes Redressal
Agencies” at District, State and Centre Levels
 Covers all Goods and Services
CONSUMER PROTECTION ACT, 2019 : SCOPE/FEATURES
 1. Coverage of Items
 Covers all goods and services unless especially debarred
out of the scope of this Act
 Covers transactions through all modes including OFF-LINE,
and ON-LINE through electronic means, teleshopping, multi-
level marketing and direct selling
 2. Coverage of Sectors
 All sectors are covered i.e. Private, Public, Co-operative
 3. Compensatory Nature of Provisions
 Provision for Compensating of Losses of Consumers
 4. Group of Consumer’s Rights
 Provides several Rights to the Consumer in terms of Safety,
Information, Choice, Representation, Education, Redressal,
etc.
CONTD…
CONSUMER PROTECTION ACT, 2019 : SCOPE/FEATURES
 5. Effective Safeguards
 Provides safety regarding defective products or
dissatisfactory services or unfair trade practices
 6. Three-tier Grievances Redressal Machinery
 At District Level : District Consumer Disputes Redressal Commission
 At State Level : State Consumer Disputes Redressal Commission
 At National Level : National Consumer Disputes Redressal Commission
 7. Time Bound Redressal
 All the Cases covered under this Act are dealt in Limited
Time Period
CONSUMER PROTECTION ACT, 2019 : PROVISIONS
(I) MEANING OF CONSUMER

 Someone who buys goods or hire services for consideration (it does
not include a person who obtain goods for re-sale/commercial purpose
or avails service for any commercial purpose)
 Someone who uses goods with the approval of buyer
 Someone who uses services with the approval of one who hires the
Services
 Someone who uses goods or hire services exclusively for earning
livelihood
Who is not considered as Consumer ?
IN CASE OF GOODS
 Someone who obtains goods without any consideration
 Someone who uses goods without the approval of buyer
 Someone who obtains goods for re-sale/commercial purposes
IN CASE OF SERVICES
 Someone who avails services without any consideration
 Someone who avails services without the approval of hirer
 Someone who avails services for commercial purpose
PROVISIONS OF CONSUMER PROTECTION ACT
(II) Grounds of Complaints

 Unfair / Restricted Trade Practice
 Defective Goods
 Deficiency of Services
 Excessive Charging of Price
 Supply of Hazardous goods
(III) Three-tier Judicial Machinery
 District Commission
 (District Level)
 State Commission
 (State Level)
 National Commission
 (National Level)
(IV) Complaint Disposal Period
 In Normal Situation :
 Maximum Time Limit for Disposal of complaint is 3 months
 In Special Situation :
 Maximum Time Limit for Disposal of complaint is 5 months
(V) Who can file a Complaint ?

 A Consumer
 A Registered Consumer Association
 One or More Consumers
 Central Government or any State Government
 In case a consumer being minor, his parent or legal guardian
 In case of death of a consumer, his legal heir or legal representative
(VI) Against whom Complaint can be Filed?

 A Complaint can be filed against the following persons:
 [A] FOR DEFECTIVE GOODS :
 (i) Seller, (ii) Manufacturer
 Meaning of Defective Goods : It refers to Quantity, Quality, or
Potency of goods are not in accordance with contract.
 [B] FOR DEFICIENCY OF SERVICES :
 Service providers
 Meaning of Deficient Service : It refers any Imperfection,
Shortcoming, or Inadequacy in the quality, nature and
manner of performance of services.
(VII) Complaint Fees

 With every complaint, its Fixed Court Fees (as prescribed) is to be
deposited in the consumer court.
(VIII) Remedies Available to Consumers

 1. Removal of defects
 2. Replacement of Goods
 3. Refund of Price
 4. Award of Compensation
 5. Removal of Deficiency in Services
 6. Discontinuance of Unfair Trade Practices
 7. Stopping the Sale of Hazardous Goods
 8. Withdraw of Hazardous goods from the market
 9. Payment of Adequate Cost
CONSUMERS’ RIGHTS
 1. Right to Safety
 2. Right to be Informed
 3. Right to Choose
 4. Right to be Heard
 5. Right to Seek Redressal
 6. Right to Consumer Education
CONSUMERS’ RESPONSIBILITIES
 1. Be aware about all similar products

 2. Focus on only standardized products *
 3. Learn about the associated risks
 4. Read labels carefully
 5. Assert yourself
 6. Be honest in your dealings
 7. Do not forget to get cash memo
 8. Always file complaint for genuine grievances
 9. Form consumer societies
 10.Respect the environment
*FOCUS ON ONLY STANDARDIZED PRODUCTS
Hallmark is Agmark is
standard for standard for
accurate prescribed
determination of agricultural
the precious commodities
metal. and live stock.
FPO aims at
standard for ISI is a standard
manufacture of for electrical
fruit & vegetable goods.
products.
*FOCUS ON ONLY STANDARDIZED PRODUCTS
Earthen Pitcher
Earthen Pitcher signifies
the products as
Environment Friendly
WAYS OF CONSUMER PROTECTION
 Self Regulation by Business

 Business Associations
 Consumer Awareness
 Consumer Organizations
 Protection provided by Government
REDRESSAL MACHINERY / AGENCIES
(A) District Commission

 A President and not less than two other members
 Can hear Disputes :
 upto 1 crore
 If aggrieved party is not satisfied with the District Commission,
appeal against the same can be made in State Commission within
45 Days.
(B) State Commission

 A President and not less than four other members
 exceeds 1 crore and upto 10 Crore
 Appeals against the order of the District Commission
 If aggrieved party is not satisfied with the State Commission, appeal
against the same can be made in National Commission within 30
Days.
(C) National Commission

 A President and not less than four other members
 exceeding 10 Crore [original pecuniary jurisdiction]
 appeals against the order of the State Commission
 If aggrieved party is not satisfied with the National Commission,
appeal against the same can be made in the Supreme Court within
30 Days (subjected to original pecuniary jurisdiction, i.e. 10 crore).
CONSUMER ORGANIZATION AND NGO’S
 KEY POINTS
 Plays a very important role in Protection of Consumer
 Extends Support to Government
 Presently about 500 Consumer Organizations are working in India, e.g.
 Consumer Coordination Council, Delhi
 Consumer Cause, Delhi
 Voluntary Organisation in Interest of Consumer Education [VOICE],
Delhi
 Consumer Education And Research Centre [CERC], Ahmedabad
 Mumbai Grahak Panchayat, Mumbai
 Karnataka Consumer Service Society, Bangalore
 Consumers’ Association, Kolkata
 Consumer Unity & Trust Society [CUTS], Jaipur
CONSUMER ORGANIZATION AND NGO’S : FUNCTIONS
 1. Educating the general public

 2. Publishing periodicals
 3. Carrying out comparative testing
 4. Encouraging consumers
 5. Providing legal assistance
 6. Filing complaints for consumers
 7. Filing complaints for general public
THE END

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UNIT - 12

 It refers to the steps taken to protect Consumer against the Unfair

 Generally Consumers are exploited by :

 Adulteration of Consumer Goods

 [A] From the Point of View of Consumers

 [B] From the Point of View of Business

 1. The Consumer Protection Act, 2019 (CPA)

(I) MEANING OF CONSUMER

(II) Grounds of Complaints

(III) Three-tier Judicial Machinery

(IV) Complaint Disposal Period

(V) Who can file a Complaint ?

(VI) Against whom Complaint can be Filed?

(VII) Complaint Fees

(VIII) Remedies Available to Consumers

 1. Be aware about all similar products

 Self Regulation by Business

(A) District Commission

(B) State Commission

(C) National Commission

 1. Educating the general public

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