Need For Consumer Protection Act

Made By: Ankita Deshpande (152) Arpita Baxi (154) Rahul Dawar (156) Nitisha Goyal (158) Karan Paleja (161) Deepal Mehta (164) Nehal Khosla (167) Kartik Sabharwal (169) Shivendra Singh (172) Neerav Sundriyal (174)

Threats to consumer
Sale of adulterated goods Sale of spurious goods Sale of sub-standard goods Sale of duplicate goods Use of false weights and measures leading to underweight

Threats contd
Hoarding and black-marketing leading to scarcity and rise in price Charging more than the Maximum Retail Price (MRP) fixed for the product Supply of defective goods

Misleading advertisements
Supply of inferior services

Necessary measures
Social Responsibility Increasing Awareness Consumer Satisfaction Principle of Social Justice Principle of Trusteeship Survival and Growth of Business

Fundamental Consumer Rights

Salient Features of Consumer Protection act 1986. Applies to all goods, services and unfair trade practices. Covers all sectors private, public or co-operative. Established of consumer protection councils at the central, state and district. A three tier quasi judicial machinery to deal with consumer grievances and disputes. Provides a statutory recognition to the six rights of consumers.

Objectives
Right to be protected against the marketing of goods and services. Right to be informed about the quality, quantity, potency, purity, standard and price of goods. Right to be assured. Right to be heard and to be assured that consumers' interests will receive due considerations. Right to seek redressal against unfair trade practices. Right to consumer education.

Definitions
1. Consumer:
Any person who buys goods or avails services for consideration Consideration may be fully paid, partially paid or fully promised to be paid or partially promised to be paid Any body who uses the goods or services with the consent of the consumer Legal heir of consumer in case death of consumer Does not include any person who buys goods for resale or commercial purpose and services for commercial purpose However any person who buys goods for commercial use but exclusively for his livelihood by means of self employment is a consumer.

Complainant
A consumer; voluntary consumer association registered under the Companies Act, 1956 (1of 1956)or under any other law for the time being in force The Central Government or any State Government one or more consumers, where there are numerous consumers having the same interest in case of death of a consumer, his legal heir or representative; who or which makes a complaint

Complaint
Complaint means any allegation in writing made my a compliant that : I. unfair trade practice II. Defective goods III. Deficiency of service in any respect

Consumer dispute
Means a dispute where the person against whom a complaint has been made, denies or disputes the allegations contained in the complaint.

Defect
Fault Imperfection Shortcoming In the

Quality Quantity Potency Purity Or Standards

Which is required to be maintained by or under any law for the time being in force

Deficiency
Fault Imperfection Shortcoming Or Inadequacy In the Quality Standard and Manner of performance

Which is required to be maintained by or under any law for the time being in force

Unfair trade practice

A trade practice which, for the purpose of promoting the sale, use or supply of any goods or for the provision of any service, adopts any unfair method or unfair or deceptive practice

Consumer Protection Councils

Central Consumer Protection Council

Central Council shall consist of the Minister in charge of the consumer affairs in the Central Government, who shall be its Chairman, and such number of other official or non-official members representing such interests as may be prescribed. The Central Council shall meet as and when necessary, but at least one meeting of the Council shall be held every year.

State Consumer Protection Council

The State Council shall consist of The Minister in-charge of consumer affairs in the State Government who shall be its Chairman; Such number of other official or non-official members representing such interests as may be prescribed by the State Government. Such number of other official or non-official members, not exceeding ten, as may be nominated by the Central Government. The State Council shall meet as and when necessary but not less than two meetings shall be held every year.

District Consumer Protection Council

The District Consumer Protection Council shall consist of the Collector of the district who shall be its Chairman such number of other official and non-official members representing such interests as may be prescribed by the State Government.

The District Council shall meet as and when necessary but not less than two meetings shall be held every year.

International Consumer Rights Protection Council is a registered NGO that helps and guides grieved consumers to handle their consumer complaint in the consumer court.

Consumer Disputes Redressal Agencies

Consumer Disputes Redressal Agencies

Consumer Disputes Redressal Forum to be known as the "District Forum Consumer Disputes Redressal Commission to be known as the "State Commission National Consumer Disputes Redressal Commission.

District Forum
Section 10: Composition
District Forum shall consist of a person who is, or has been, or is qualified to be a District Judge, who shall be its President; two other members, one of whom shall be a woman

Section 11:Jurisdiction
Value of the goods or services and the compensation, if any, claimed ''does not exceed rupees twenty lakhs.

Section 13:Procedure Of Complaint

1.District Forum on admission of a complaint, if it relates to any goods(which can be tested in laboratory) Refers a copy of the admitted complaint, within twenty-one days from the date of its admission to the opposite party Directing him to give his version of the case within a period of thirty days only Settled in maximum 5 months 2.If the complaint admitted by it relates to goods in respect of which the procedures above cannot be followed, or if the complaint relates to any services, Refers a copy of such complaint to the opposite party directing him to give his version of the case within a period of thirty days Settled in maximum 3 months

Section 14 : Findings of the District Forum

To replace the goods with new goods of similar description which shall be free from any defect To return to the complainant the price, or, as the case may be, the charges paid by the complainant To withdraw the hazardous goods from being offered for sale

1. To cease manufacture of hazardous goods and to desist from offering services which are hazardous in nature 2. To issue corrective advertisement to neutralize the effect of misleading advertisement at the cost of the opposite party

Section 15:Appeal
Any person aggrieved by an order made by the District Forum may prefer an appeal against such order to the State Commission within a period of 30 days from the date of the order The Appellant has deposited in the prescribed manner fifty per cent. of that amount or twenty-five thousand rupees, whichever is less

State Commission
Section 16: Composition:
Each State Commission shall consist of a person who is or has been a Judge of a High Court, appointed by the State Government, who shall be its President: not less than two, and not more than such number of members, as may be prescribed, and one of whom shall be a woman

Section 17& 18:Jurisdiction and Procedure

State Commission is entitled 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 Appeals against the orders of any District Forum within the State Pass appropriate orders in any consumer dispute which is pending before or has been decided by any District Forum within the State

Section 19:Appeal
A person aggrieved by an order made by the State Commissio can appeal against such order to the National Commission within a period of thirty days from the date of the order . Appellant to the National Commission has to deposit in the prescribed manner 50 per cent. of the amount or rupees thirty-five thousand, whichever is less

National Commission
Section 20 : Composition: A person who is or has been a Judge of the Supreme Court, to be appointed by the Central Government, who shall be its President Not less than four, and not more than such number of members, as may be prescribed, and one of whom shall be a woman

Section 21: Jurisdiction

National Commission will entertain
Complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees one crore and Appeals against the orders of any State Commission
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

Section 24A
Limitation period. - The agencies will not accept complaints until they are not less than two years old Section 26 : Dismissal of frivolous or vexatious complaints : When a complaint instituted before the District Forum, the State Commission the National Commission, is found to be frivolous- dismiss the complaint

Make an order that the complainant shall pay to the opposite party such cost, not exceeding ten thousand rupees, as may be specified in the order

Section 27: Penalties

When the ordered person fails to comply with the order made by the agencies he is punishable for a term which shall not be less than one month but which may extend to three years Fine which shall not be less than two thousands rupees but which may extend to ten thousand rupees

Consumer Protection Bill 2011

Amendments Proposed in Consumer Protection Act

On line filing of consumer complaints
e-governance/ time bound redressal

Payment to be made for non-compliance of the order Powers to District Forum Powers to State Government in selection process

 Increase of age in the appointment

State Commissions from 35 to 45 years National Commission from 35 to 55 years

Experience for members

State Commission from 10 years to 20 years National Commission from 10 years to 30 years

 Powers to National Commission / State Commission

to direct any one to assist the case

Monitoring system of pending cases

help in monitoring the functioning of the consumer

Necessary Protection or License to Kill

...In the matter of professional liability,
professions differ from other occupations for the reason that professions operate in spheres where success cannot be achieved in every case and very often success or failure depends upon factors beyond the professional mans control...
Supreme Court in Indian Medical Association Vs V.P Shantha and Others

The Supreme Court of India Judgement in Indian Medical Association VS V.P. Shantha & Others Contract of personal service VS Contract of service

Medical negligence
Subjectivity

Objectivity

What is, Whats not?

In the case of a medical man, negligence
means failure to act in accordance with the standards of reasonably competent medical men at the time. That is a perfectly accurate statement, as long as it is remembered that there may be one or more perfectly proper standards; and if he conforms with one of those proper standards, then he is not negligent...

 He is not guilty of negligence if he has acted in

accordance with a practice accepted as proper by a responsible body of medical men skilled in that particular art...

A man is not negligent, if he is acting in

accordance with such a practice, merely because there is a body of opinion who would take a contrary view...

Interpretations
Bolam Case Jacob Mathew Case

BOLAM Rule .A highly skilled professional may be

possessed of better qualities, but that cannot be made the basis or the yardstick for judging the performance of the professional proceeded against on indictment of negligence....

- Supreme Court

Degree of Negligence

Slight Neglect

Ordinary Neglect Gross Neglect

Civil

Criminal

Conclusion
Standard of care Reasonable degree of care Medical negligence liability

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION NEW DELHI 30th March 2012

M.O.H LEATHERS VERSUS UNITED COMMERCIAL BANK

Parties Involved
1 2 3 M.O.H. Leathers United Commercial Bank Ciel Leder, Dusseldorf of Germany M/s Dressdner Bank, Dusseldorf of Germany M/sDanzaz, West Germany Insurance Company M/s Oskar Schunck KG of West Germany M/s Scarlett Leder Complainant Opposite Party - Bank Foreign Buyer

4
5

Foreign Bank
Bonded Warehouse

Foreign Insurance Company

Second Foreign Buyer

Case Facts
In July 1987, Complainant exported 66 cartons of leather garments to West Germany as per order placed by Foreign Buyer with invoice of 1,50,000 DM In terms of Bills Purchaser Facility, opposite party-bank purchased the said bills from Complainant and became holder of value with absolute title over the goods.

Opposite party-bank endorsed the bills in favour of its collecting agent Foreign Bank. However, Foreign Buyer declined to clear the goods. Complainant requested opposite party-bank to instruct Foreign Bank to store goods in a Bonded Warehouse and get them insured with Foreign Insurance Company and it was done.

As Foreign Bank failed to pay the bills, Opposite Party-bank debited the amount with interest from the complainants account. The unpaid bills were not returned.

Case Facts Cont.

In August 1988, Complainant found a Second Foreign Buyer. Complainants representative went to West Germany to inspect and seal the goods with authorization from opposite partybank to Foreign Bank. The goods were found missing. Matter was reported to opposite party-bank and criminal investigation was started and Bonded Warehouse owner was asked to claim insurance

Foreign Insurance Company proposed to settle the claim at DM 50,000. Complainant decided to file a case against Bonded Warehouse and Foreign Insurance Company but Foreign Insurance Company rejected its claim as there was no contractual relation between the Complainant and the Policy Holder

Complainant asked opposite party-bank to instruct Foreign Bank to give its lawyer authority to file a suit against Foreign Insurance Company in the name of the Foreign Bank to claim recovery. Foreign Bank declined to give such an authority.

Complaint
Originally filed in March 1993 alleging deficiency in service and claiming :
to recover from the opposite party 1,85,200 DM (German Currency) or its rupees value; to award interest at 21% per annum on 1,85,200 DM from August 1988 till the amount is received; to recover Rs.1,00,000/- in Indian Currency towards the expenses incurred; to award costs, and grant such other relief as this Honble Commission may deem fit and proper in the circumstances of the case

The complainant filed a comprehensive complaint in the year 1995 which came up for consideration of the Commission on 30.05.1996. Since the complainant was not present or represented through his advocate when the complaint was taken up for hearing while the opposite party was duly represented, this Commission dismissed the complaint as barred by limitation

Complaint Cont.
Complainant filed an appeal ( Civil Appeal No. 10990/96) which was decided by the Supreme Court vide order dated 9.9.1997 that gave liberty to the complainant to move an application for setting aside the order and also to approach the Supreme Court after the final order is passed by the Commission. Complainant filed Miscellaneous Petition No. 1 of 2001 seeking review of the order dated 30.05.1996 thereby dismissing the complaint as barred by limitation. The said petition was dismissed.

Complaint Cont.
Complainant once again approached the Supreme Court by filing an appeal ( Civil Appeal No. 8155 of 2001) and the said appeal filed by the complainant was taken up for hearing by the Supreme Court. The appeal was decided by the Supreme Court by an order dated 19.08.2011 directing the National Commission to dispose of Original Petition No. 110 of 2003 de novo as expeditiously as possible and in any event within three months from the date of communication of the order.

Complaint Cont.
The Supreme Court order was communicated to the National Commission by the Registry of the Supreme Court vide forwarding letter order dated 15.09.2011 and was received in the Commission on 27.09.2011. On 08.12.2011 , the complaint along with order of Supreme Court was listed before the Commission for the first time seeking directions. The Commission took a serious note of the said lapse on the part of the Registry and ordered an enquiry into the same.

Preliminary Objections in regard to maintainability of complaint

Complaint is barred by Limitation
Section 24A of the Act are peremptory in nature and consumer fora must consider the question of limitation before admitting the complaint. but section 24A has been brought on the statute book by Act 50 of 1993 enforced w.e.f. 18.06.93. The complaint in its original form was filed in this Commission in March 1993

Preliminary Objections in regard to maintainability of complaint

Non joinder of necessary parties, i.e. Foreign Buyer, Bonded Warehouse and Foreign Insurance Company
The complaint will not be dismissed as one bad for non joinder of necessary parties because by not impleading the necessary parties, the complainant has done so at his peril and will be deemed to have given up his claim against them and has restricted his claim qua the deficiency / negligence alleged on the part of the opposite party-bank.

Judgement
It is contended that non return of documents at the first available opportunity was an act of deficiency. The bank cannot be held liable for any omission or deficiency in service in debiting the amount of the Bills in the account of the complainant. Exchange Control Manual under FERA Rule 1974, Chapter-6 Para 6.C.19 which is to the following effect: The duplicate copies of / forms and shipping documents, once submitted to authorised dealers for negotiation, collection etc. should not ordinarily be returned to exports, except for rectification of errors and resubmission Opposite party-bank cannot be held for deficiency in service for non return of the bills even if we assume that this was an omission.

Judgement Cont.
Having considered the matter in its entirety and viewed from any angle, we have no hesitation to hold that the complainant has failed to establish any act of negligence amounting to deficiency on the part of the opposite party-bank in the entire transaction. Infact what appears to us is that the complainant having failed to pursue its remedy against the foreign bank, bonded ware house and the insurance company, has found in the opposite partybank, a soft target to vindicate its grievance which he actually had against the foreign bank owner of the bonded warehouse and the insurance company.

Analysis, Conclusion and Recommendations

1. Do you examine the expiry date of the food items and medicines when you buy them?
00 9%

Yes No

91%

2. Have you ever cross checked the weights of the products mentioned on the item?
Response
00 19% Yes No

81%

3. Do you compare the price of goods you buy, at other stores?

Response
00

26%

Yes No

74%

4. Have you ever come across adulteration in foodstuffs?

Response
00

30%

Yes No

70%

5. If yes, did you complain to?

Response
0

28% Shopkeeper Main Supplier Ignored 3% 69%

6. Have you been through or seen a case of medical negligence?

Response
00

Yes 45% 55% No

7. If yes, what did you do in that regard?

Response
00 Ignored

44% 56%

Complained to the doctor/higher hospital authorities Filed a case in consumer court

8. Do you know about the Consumer Protection Act?

Response
00 11% Yes No

89%

9. Are you aware of consumer courts, for redressal of grievances of consumers?

Response
0 0
4%

Yes No

96%

10. If yes, have you ever filed a case in the consumer court?
Response
0 0
6%

Yes No

94%

Consumer Protection
As per the survey conducted we have the following findings: Consumers are well aware(91%) about the
expiry dates of the medication and products which is very essential from the consumer awareness point of view. An astonishing 81% of the consumers do not cross check the weights of the item which is important aspect of the consumer awareness programme .

 Another interesting finding is that 74% of the consumers compare the price of the same good at various stores which help them understand & analyze the best choice 70% of the consumers have come across adulterated food so far, but is not of much use until they have actively acted against it A shocking finding is that when asked if the consumer has ever complained against adulterated food, a whooping 69% have only done so upto the shopkeeper level and 28% have ignored it. ONLY 3% HAS COMPLAINED DIRECTLY TO THE MAIN SUPPLIER

 On asked how many people have been through or witnessed a case of medical negligence, it was found that 45% have answered YES.
Further probing to ask the action taken against it we found 56% IGNORED the issue and 44% have complained to the higher authorities.

Out of the surveys conducted we found that : NO ONE SO FAR HAS FILED A CASE IN THE CONSUMER COURT SO FAR This could be because of the bias of this survey which was more towards students and young professionals

Conclusion
It is found that the consumers are overall well aware about the Consumer Protection Act but fail to use it. They fail to understand the benefits of doing so which is disheartening Factors for not filing a case could be:
Lack of knowledge Cost of filing a case Perception as that no change can be brought around out

Recommendations
Awareness programmes across rural and urban India should be conducted to illustrate the benefits of doing so NGOs should come forward and help economically weak consumers fight cases against large multinationals (MNCs). Information about concepts and Acts such as Packaged Commodities Rules should be spread among the consumers for their benefits. Become a part of Voluntary Consumer Organizations. Consumers should also be educated about other benefits of filing cases such as monetary benefits and compensation packages.

THANK YOU