‘‘NEED FOR CONSUMER PROTECTION ACT IN AN ERA OF FREE COMPETITION WHERE ‘CONSUMER IS A KING’ – SO KING NEEDS PROTECTION’’

1. ‘‘NEED FOR CONSUMER PROTECTION ACT IN
AN ERA OF FREE COMPETITION WHERE
‘CONSUMER IS A KING’ – SO KING NEEDS
PROTECTION’’

2. INTRODUCTION:
o Consumer protection is a group of laws and organizations designed to
ensure the rights of consumers
o Consumer protection Act enacted in 1986
o Separate Consumer Dispute Redressal Forum have been set up
throughout India (in each and every district as well)
o The Consumer Protection Act, 1986 aims to provide better protection of
interest of consumers
o The Act extends to whole of India except the state of Jammu and
Kashmir

3. o The act was passed in Lok Sabha on 9th December,1986 and
Rajya Sabha on 10th December, 1986 and assented by the
President of India on 24th December, 1986
o This act was enforced on 15 April, 1987.

4. SOME IMPORTANT DEFINITIONS:
 Any person who buys
goods or services for a
consideration
 Any person means
individual company,
group/ association of
people
 User of such goods and
services
 Movable property
including shares, stocks,
growing crops
 Forming part of the land
 Excluding actionable
claims and money
 Tangible in Nature
1. CONSUMER
2. GOODS

5.  Service is made
available to potential
users
 Eg: Provision of
facilities - banking,
financing, insurance,
transport, supply of
electrical energy, board
or/and lodging
 Complaint is a
statement made in
writing by a person
competent to file it
 It contains the
allegations in detail
 Made in view to obtain
relief
3. SERVICES
4. COMPLAINT

6.  Unfair trade practice or a
restrictive trade practice
 Goods having defects
 Service having deficiency
 Excess price charged
 Hazardous goods
 Hazardous service
 Consumer or consumers
 Voluntary consumer
association
 Government which may
be Central or State
 In case of death: Legal
Heir, Beneficiary, Husban
d, Relative can file a
complaint
COMPLAINT MUST
CONTAIN:
5. COMPLAINANT

7. NEED, PURPOSE AND OBJECTIVE OF CONSUMER
PROTECTION
Consumer ProtectionCaveat Emptor TO

8. NEED FOR CONSUMER PROTECTION
 Protection from Exploitation
 Consumer Education
 Redressal of Complaints
 A Connecting Link
 Quality Life for consumer
 Ethical Obligations

9. PURPOSE & OBJECTIVE OF CONSUMER
PROTECTION
 Protection of Consumer against unfair trade practices
 Protection of enjoying the rights

10. IMPORTANCE OF CONSUMER PROTECTION IN A
BUSINESS ORGANIZATION
 Public Image
 Social Responsibility
 Increasing Awareness
 Customer Satisfaction
 Government Intervention

11. RIGHTS OF THE CONSUMERS:
1. The Right To Safety
2. The Right To Choose
3. The Right To Information
4. The Right To Be Heard
5. The Right To Redressal
6. The Right To Consumer Education
7. The Right For Basic Needs
8. The Right For Healthy Environment

12. 1. THE RIGHT TO SAFETY
 Before purchasing, consumers should inspect on the quality of the products as well
as on the guarantee of the products and services.
 They should preferably purchase quality marked products such as ISI, AGMARK,
FPO, Hallmark etc.

13. 2. THE RIGHT TO CHOOSE
 The consumer before purchase a product needs to be made aware of:
o Variety of products and services
o Fair prices
o Quality
o Quantity
o Competition
 Knowing this the consumer can make his/her choice for the product

14. 3. THE RIGHT TO INFORMATION
 The consumer has the right to be informed about the
quality, quantity, purity, standard and price of goods so as to protect
themselves against unfair trade practices.

15.  RTI & THE CONSUMER
PROTECTION ACT

16.  The consumer has the right to be heard and be assured that their interests or
views or complaints will be considered at consumer forums
4. THE RIGHT TO BE HEARD
5. THE RIGHT TO REDRESSAL
 The right to seek redressal against unfair trade practices or restrictive trade
practices or exploitation of consumers

17. 6. THE RIGHT TO CONSUMER EDUCATION
 The consumers should have access to informational programs and
materials that would enable them to make better buying decisions

18. 7. THE RIGHT FOR BASIC NEEDS
 Every consumer has the right to get the quality basic needs such as
food, clothing and shelter.
50%
25%
25%
BASIC NEEDS
Food
Shelter
Clothing

19. 8. THE RIGHT FOR HEALTHY ENVIRONMENT
 The manufacturer should aim at producing more environment friendly and
energy efficient products.
 The products which can be recycled has the following symbol:
NOTE: Rights number 7 & 8 have been added by the
amendment in the act in 1993 and 2002 respectively.

20. RESPONSIBILITIES OF A CONSUMER
 Be aware of various goods & services available in
the market
 Buy standardize products only (eg: ISI marked
products)
 Be aware of each & every aspect of the product
while purchasing it
 Buy legal products
 Ask & take the proof of the purchase
 File a complaint in an appropriate consumer forums
 Respect the environment

21. CONSUMER IS THE KING..

22. FREE MARKET

23. CONDITIONS FOR A FREE MARKET TO EXIST
Freedom Of Choice
Free Competition
Consumer Rationality
2
3
1

24. The Central
Consumer
Protection
Council
The State
Consumer
Protection
Council
The District
Consumer
Protection
Council
CONSUMER
PROTECTION
COUNCIL
NEED FOR
CPC:
To Promote
And Protect
The Rights Of
The
Consumers

25. THE CENTRAL
CONSUMER
PROTECTION COUNCIL
• Members:
Chairman, Vice
Chairman, other
members
• Meetings : at least
once in a year
THE STATE CONSUMER
PROTECTION COUNCIL
• Members:
Chairman, other
members prescribed by
the State
Government, Up to 10
members nominated by
Central Government
• Meetings : At least 2
meetings in a year
THE DISTRICT
CONSUMER
PROTECTION COUNCIL
• Members:
Chairman, other
members prescribed by
the State Government
• Meetings : Not less
than 2 meetings in a
year
COMPOSITION OF THESE COUNCILS

26. At National Level
• National Commission
At State Level
• State Commission
At District Level
• District Forums
CONSUMER DISPUTES REDRESSAL AGENCIES

27. COMPOSITION
• President : a person who is, or has been, or is qualified to be a District
Judge
• Two other members : persons of ability and integrity and have
knowledge (or experience) of
economics, law, commerce, accountancy, public affairs and
administration. One of the member shall be a woman
District Forum
• President: Judge of High Court
• Not less than 2 members and not more than the prescribed number (one
of them shall be a woman)
State Commission
• President: Judge of Supreme Court
• Members not less than four and not more than the prescribed numbers
(One of whom shall be a woman)
National Commission

28. 1. DISTRICT
FORUM
Value of services and
compensation claimed
does not exceed Rs 5
Lakhs
Complaint can be filed
by:
Consumer, Consumer
Association, Central or
state government
2. STATE
COMMISSION
Value of services and
compensation claimed
exceeds rupees 5 lakhs
but does not exceed
rupees 20 lakhs
Appeals against the
orders of any District
Forum within the state
Complaint can be filed
by:
Consumer, Consumer
Association, Central or
state government
3. NATIONAL
COMMISSION
Value of services and
compensation claimed
exceeds rupees 20
lakhs
Appeals against the
orders of any State
Commission
Complaint can be filed
by:
Consumer, Consumer
Association, Central or
state government
JURISDICTION

29. PROCEDURE ON RECEIPT OF A COMPLAINT
 It is the same for all the 3: District Forum, State
Commission & National Commission.
 But for the National Commission before the
procedure begins following should be kept in mind.

30. 1.The
name, description
and the address of
the complainant;
2. The name, description
and address of the
opposite party or
parties, as the case may
be, so far as they can be
ascertained;
3. The facts relating
to the complaint and
when and where it
arose
4. Documents in
support of the
allegations
contained in the
complaint
5. The relief which
the complainant
claims
A complaint containing the following particulars shall be presented by the
complainant in person or by his agent to the National Commission or be
sent by registered post, addressed to the National Commission

31. THE PROCEDURE
1. On the
basis of
evidence
brought by
complainant and
the opposite
party denies the
allegations
2. On the basis of
evidence brought by
the complainant and
opposite party fails
to take action
3. Complainant fails to
appear on such day, the
CDRA may dismiss the
complainant
complain, decide on
merit or ex-parte
4. Any party fails to
produce his evidence or
to cause the attendance
of witness – CDRA
may not withstand
5. On such cases
CDRA may adjourn
the hearing ( not more
than 1 adjournment
shall be given)
I] Referral of the complain copy to the opposite party;
II] If Opposite party denies or disputes the allegations or fails to take any action then
CDRA shall proceed to settle the dispute

32. • Any person aggrieved by
an order made by the
District Forum may appeal
against such order to the
State Commission within
a period of 30 days from
the date of the order.
District
Forum
• Any person aggrieved by
an order made by the
State Commission may
appeal against such order
to the National
Commission within a
period of 30 days
State
Commission • Any person, aggrieved by
an order made by the
National Commission, may
appeal against such order to
the Supreme Court within a
period of 30 days from the
date of the order
National
Commission
APPEAL

33. TOTAL NUMBER OF CONSUMER COMPLAINTS
FILED / DISPOSED / PENDING
UNDER CONSUMER PROTECTION LAW
0
100
200
300
400
500
600
700
Cases Filed
Cases Disposed
Cases Pending
84
72
10
618
527
90
333
307
260
National Commission State Commission District Forum
NumberOfCases(in‘000)

35. CONSUMER GUIDANCE SOCIETY OF INDIA
(CGSI)
 1st consumer organization to demand special Consumer Court for
redressal of consumers' complaints
 Founded by nine women in 1966
 Monthly magazine - "KEEMAT" (Currently 32nd Year of publication)
 Produced consumer guides (electrical appliances, edible oils, pesticides, etc)
 Handles consumer complaint & offers legal guidance
 The CGSI aims at making consumers conscious of their rights and responsibilities
and strives to ensure it
 Example :Consumer education for rural consumers

36. MUMBAI GRAHAK PANCHAYAT
 Mumbai Grahak Panchayat (MGP), or Bombay Consumer Forum, started as an
agitation against the increase of consumer prices near festival season for fair and
free distribution of consumer goods
 Indian Societies Registration Act 1960 and Indian Public Trust Act 1950 in the
name of MGP
 Primary objectives - organizing the consumers for common causes, educating them and
protecting consumer interest through legal and other means
 More than 27,900 members and it has a presence in Greater Mumbai, Thane, Raigad
and Ratnagiri district
 Various activities conducted here – Monthly distribution of groceries, Panchayat
Peth, Road Shows and Cosumer Clubs
 Example: V/S

37. CONSUMER EDUCATION AND
RESEARCH CENTRE
 Protects consumer interest in India through various mediums
 It is an UNITED NATIONS approved NGO
 Mission - environmental protection, creating transparency and
accountability in the public, etc
 Example: CERC's intervention compels mattress manufacturer to
refund partial cost of defective mattress

38. HINDUSTAN UNILEVER CUSTOMER
OMBUDSMAN INITIATIVE
 In 2008, Hindustan Unilever had roped in an ombudsman.
 It was restricted to end consumers of HUL products.
 This was the first time an FMCG company had appointed an
independent and expert mediation procedure for the benefit of its
consumers.

40. COMPARATIVE STUDY OF INDIA VS THAILAND
CONSUMER PROTECTION ACT
 Does not focus on the whether the
defendant is negligent. Plaintiffs just
have to Prove that the loss is caused
due to the product
 Special masters are appointed for
speedy and fair proceedings
 NO FAULT COMPENSATION
SCHEME
o Focus is to prove that the product is
defective, not necessarily unsafe
o Three-tier quasi-judicial system
o Defendant responsible for paying
compensation only if proved guilty or
negligent
THAILAND INDIA
1.The Act on Liability for Injury from
Unsafe Products
2. The Act on Court Proceedings for
Consumer Cases
3.The Medical Malpractice Victim Fund Bill

41. CASE STUDIES IN INDIA
 SC orders record Rs 5.96 Crore in a Medical Negligence
matter against Kolkata Hospital
 Nokia to pay Rs 67,000 for selling Defective Cell Phones
 Punjab Institute fined Rs 38 Lakhs for selling Diploma as
MBA

42. CASE STUDIES ABROAD
 Case #1: The Disappearing Car
 Case #2: The Pickup with Problems
 Case#3: The Chair Shortage

43. CASELETS
 Case #1: Jerome and Judith O'Callaghan sued American Airlines
for $100,000
 Case #2: Zeynep Inanli sued Starbucks for millions of dollars

45. BIBLIOGRAPHY
 http://en.wikipedia.org/wiki/Consumer_protection#India
 http://www.ncdrc.nic.in/1_1.html
 http://ncdrc.nic.in/statistics.html
 http://www.gizmopod.com/gallery/2868/10-ridiculous-
lawsuits?utm_content=buffer4049a&utm_medium=social&utm_campai
gn=buffer&utm_sorce=twitter.com

 http://articles-junction.blogspot.in/2013/06/what-is-need-and-
importance-of-consumer.html?m=1

 http://www.ask.com/question/why-do-we-need-consumer-protection

 http://agmarknet.nic.in/amrscheme/armstandconsu.htm
 http://ncdrc.nic.in/1_1_2.html

46. PRESENTED BY E-MBA(A) GROUP NO.2:
 Abhishek Bhatt - 13003
 Ankish Jain - 13005
 Anubhav Lal - 13007
 Baroz Khan - 13012
 Bindi Shah - 13015
 Divya Gandhi - 13021
 Faraz Patel - 13024

47. THANK YOU