1. BISHWJIT GHOSHAL
14/PMM-483
1st SEM
DOPM, NIPER, MOHALI

2. Flow of presentation
 Introduction
 Definition of consumer
 Types of consumer
 Consumer protection in different countries
 Consumer Protection Act
 Structure of consumer forums
 Legal avenues for consumers against medical professionals
 Case Studies
 Conclusion

4. Introduction
The industrial revolution and the development in the
international trade and commerce has led to the vast
expansion of business and trade, as a result of which a
variety of consumer goods have appeared in the market
to cater to the needs of the consumers and a host of
services have been made available to the consumers like
insurance, transport, electricity, housing,
entertainment, finance and banking. For the welfare of
the public, the glut of adulterated and sub-standard
articles in the market has to be checked.

5. Introduction (Contd.)
In spite of various provisions providing protection to the
consumer and providing for stringent action against
adulterated and sub-standard articles in the different
enactments like Code of Civil Procedure, 1908, the
Indian Contract Act, 1872, the Sale of Goods Act, 1930,
the Indian Penal Code, 1860, the Standards of Weights
and Measures Act, 1976 and the Motor Vehicles Act,
1988, very little could be achieved in the field of
Consumer Protection. In order to provide for better
protection of the interests of the consumer the

7. Definition of Consumer
For the purpose of GOODS
(i) One who buys or agrees to buy any goods for a consideration
which has been paid or promised or partly paid and partly promised
or under any system of deferred payment.
(ii) It includes any user of such goods other than the person who
actually buys goods and such use is made with the approval of the
purchaser.
For the purpose of SERVICES
(i) One who hires or avails of any service or services for a
consideration which has been paid or promised or partly paid and

8. TYPES OF
CONSUMERS
Personal
Consumer
Organizational
Consumer

9. Personal Consumer
Personal consumer is that consumer who purchases goods and
services for his own personal consumption or uses. We can say
consumer is also called to be the ultimate or final person
because when the marketer produces the goods then he hand
over the goods to personal consumer for final consumption.
Organizational Consumer
Organizational consumer consists of the government agencies,
business organization, non governmental organization (NGO),
and different types of manufacturing companies who purchases
goods and services in order to run the business of the firm or

11. Consumer Protection
Group of laws and organizations to ensure
rights of consumers
Designed to prevent businesses engaging in
fraud or unfair practices.
 Linked to the idea of:
Consumer Rights
Formation of consumer organizations
Help with consumer complaints

12. Consumer protection in
different countries
AUSTRALIA
In Australia, the corresponding agency is
the Australian Competition and Consumer
Commission or the individual ‘State Consumer
Affairs’ agencies. The Australian Securities and
Investments Commission has responsibility for
consumer protection regulation of financial

13. GERMANY
A minister of the federal cabinet is responsible for
rights and protection (Verbraucherschutzminister). In
current cabinet of Angela Merkel, this is Heiko Maas.
INDIA
In India, the Consumer Protection Act of 1986 is
the law governing consumer protection. Under this
law, Separate Consumer Dispute Redresal Forum

14. UNITED KINGDOM
The United Kingdom, as member state of the European Union, is bound
consumer protection directives of the European Union. Consumer
issues are dealt with when complaints are made to the Director-General
Trade. The Office of Fair Trading will then investigate, impose an
injunction or take the matter to litigation.
UNITED STATES OF AMERICA
In the United States a variety of laws at both the federal and state
regulate consumer affairs. Among them are the federal Fair Debt
Collection Practices Act, the Fair Credit Reporting Act, Truth in
Lending Act ,Fair Credit Billing Act, and the Gramm-Leach-Bliley Act.

16. CONSUMER PROTECTION
ACT
 Before the enactment of the Consumer Protection Act, 1986 a person
aggrieved by the defective goods or deficiency in service had to
approach the ordinary civil court to get his grievances addressed.
 The proceeding in the ordinary civil court is very complex, expensive
and time consuming. In order to give more protection to the interest
of consumers of goods and service the parliament enacted the
Consumer Protection Act, 1986.
 The law relating to consumer protection is contained in the Consumer
Protection Act, 1986. The Consumer Protection Act-1986 and enforced
from 10th June 1987 in India aimed at providing simple, quick and
HISTORY

17. CPA-1986 & Medical related
provisionsUnder the Act, following definitions have been laid down:
 CONSUMER
Any "person" who hires or ails of nay services for a consideration which has been paid
or promised or partly paid and partly promised any include any beneficiary of such
services for consideration paid or promised, or partly paid and partly promised, or
under any system of deferred payment, when such services are availed of with the
approval of the first mentioned person.
 COMPLAINANT
Any allegation, in writing made by a complaint that the service hired or availed of or
agreed to be hired or availed of by him suffer from deficiency in any respect.
 DEFICIENCY
Any fault, imperfection, short coming or inadequacy in the quality, nature and manner
of performance which is required to be maintained by or under any law for the time
being in force or has been undertaken to be performed by a person in pursuance of a

18. CONTD.
 SERVICE
Service of any description which is made available to potential users and includes the
provision of facilities in connection with banking, financing, insurance, transport,
processing, supply of electrical or other energy, board or lodging or both, housing,
construction, entertainment, amusement or the purveying of news or other information
but does not include the rendering of nay service free of charge or under a contrast of
personal services.
 Who can file a complaint?
 A consumer
 Any voluntary consumer organization registered under the Societies Registration
Act, 1860 or under the Companies Act, 1956 or under any other law for the time
being in force.
 The Central Government

19. CONTD.
 What constitutes a complaint?
Under the Act, a complaint means any allegation in writing, made by a
complainant in regard to one or more of the following:-
 Any unfair trade practice, as defined in the Act or restrictive trade practices like
tie-up sales adopted by any trader.
 One or more defects in goods: when goods are hazardous to life and safety,
when used, are being offered for sale to public in contravention of provisions
of any law for the time being in force.
 Deficiencies in services.
 A trader charging excess of price:
 Fixed by or under any law for the time being in force; or
 Displayed on goods; or
 Displayed on any packet containing such good;

21. CONSUMER RIGHTS UNDER CPA-
1986 Right to Safety
A consumer has the right to safety against such goods and services as
are the hazardous to his health, life and property.
 Right to be Informed/ Right to Representation
A consumer has the right that he should be provided with all
information on the basis of which he decides to buy goods or services.
 Right to choose
A consumer has the absolute right to buy any goods or services of his
choice from among the different goods or services available in the
market.
 Right to be Heard
A consumer has the right that his complaint be heard.

22. CONTD.
 Right to Consumer Education
Consumers must be aware of the rights to enjoy against the loss they
suffer on account of goods and services purchased by them.
 Right to Basic Needs
All the consumers have the right to fulfil basic needs of food, clothing,
shelter, energy, etc.
 Right to Healthy Environment
The right provides the consumers, protection against environmental
pollution so that quality of life is enhanced.
 Right to seek Redressal
Compensation to the consumers against unfair trade practice of the seller.

26. SUPREME
COURT
NATIONAL
COMMISSION
STATE
COMMISSIO
N
DISTRICT
(Final Appeal)
Original
Jurisdiction
over Rs 20 lacs
Original
Jurisdiction from
Rs 5 lacs to 20 lacs
Original
Jurisdiction up

27. CONSTITUTION OF COURTS
 DISTRICT FORUMS
This shall consists of:
 a person who is, or has been or is qualified to be a District Judge, who
shall be its President
 two other members who shall be persons of ability, integrity and
standing and have adequate knowledge or experience of or shown
capacity in dealing with problems relating to economics, law,
commerce, accountancy, industry, public affairs or administration, one of
whom shall be a woman.
 STATE COMMISSION
It shall consist of:
 A person who is or who has been judge of a High Court, appointed by

28. CONTD.
 NATIONAL COMMISSION
This shall consists of :
 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. (No
appointment under this clause shall be made except after consultation
with the Chief Justice of India).
 4 other members (qualification: As for District Forum/State Commission),
one of whom shall be a woman.
 SUPREME COURT
This shall consist of:
 A chief justice of India and, until Parliament by law prescribes a larger
number, of not more than 7-8 judges.

29. Legal avenues for consumers
against medical professionals
Medical Council of India and Dental Council
of India
Civil Courts
MRTP (Monopolies and Restrictive Trade
Practices Commission)
Public Interest Litigation

30. INDIAN MEDICAL COUNCIL & INDIAN DENTAL
COUNCIL
An aggrieved patient can complain to the State Councils
registered medical practitioner about an alleged wrong
by him.
The Council initiates proper hearing where the concerned
given adequate opportunities to represent his side.
If it arrives at the conclusion that the doctor has indeed
an act, which involves an abuse of professional position that
reasonably by regarded as disgraceful or dis honorable by
professional men of good repute and competence, the doctor
either given a warning notice or temporarily or permanently

31. CIVIL COURTS
The aggrieved patients can file a case against the doctor for monetary
compensation for which the patient to pay court fees that depends upon
compensation sought. The legal remedies are based on the law of Torts,
1-A of the Fatal Accidents Act, 185536 and the Section 357 of Cr. P.C.,
to avail it, an aggrieved patient have to wait for years and spend
amount of money on litigations. The civil court cases take care the
Court, District Court, High Court and Supreme Court.
MONOPOLIES AND RESTRICTIVE TRADE
PRACTICES ACT
This Act is the precursor of CPA, 1986. Before the advent of CPA, this Act
the only resource to consumers against the unfair trade practices. The
commission that looks into the disputes brought under MRTP Act based

32. LANDMARK CASES

33. Spring Meadows Hospital vs. Harjo
AhluwaliaIn Spring Meadows Hospital vs. Harjo Ahluwalia the
Supreme Court was concerned with the rights of a
parent when a child dies due to medical negligence.
It was argued by the hospital that the parents were not
consumers under the Act so could not get any relief.
The Court rejected this argument and observed that
even parents were covered under the Act and there
was nothing in the law which prevented the parents as
well as the child from recovering damages.

34. CONTD.
 In this case, a child patient was treated for seven days in the
Spring Meadows Hospital (Noida) for typhoid. The consultant
physician prescribed “Chloramphenicol injection”, but the
unqualified nurse misread it as “chloroquine” and indented, for the
purchase of injection, “Lariago” (i.e. chloroquine). She injected
chloroquine 5 mg IV, which was at least 3-1/2 times of the normal
paediatric dose. The patient suffered irreversible brain damage.
Treatment for 21 days in AIIMS New Delhi, did not help. The
patient was compelled to live in a vegetative state.
 The National Consumer Commission, whose judgment was
confirmed by the Supreme Court, came to the conclusion, that the

35. CONTD.
 The Court made the following important observations:
 Very often in a claim for compensation arising out of medical
negligence a plea is taken that it is a case of bona fide mistake
which under certain circumstances may be excusable, but a
mistake which may tantamount to negligence cannot be
pardoned.
 Gross medical mistake will always result in a finding of
negligence.
 Use of wrong drug or wrong gas during the course of
anesthesia will frequently lead to the imposition of liability.
Even delegation of responsibility to another may amount to

36. CONTD.
The Court ordered the following compensation in the
case:
(a) Rs. 12.5 lakhs to the child (Rs. 10 lakhs
compensation, plus Rs. 2.5 lakhs for equipment).
(b) Rs. 5 lakhs to the parents, for mental agony.
The Supreme Court further held that when a young child
is taken to a hospital and treated by the hospital, then
(a) the child’s parents would come within the definition of
“consumer”; and

37. EXAMPLES OF PRESCRIPTION
DRUG CASESYasmin (2012): Bayer paid $110 million to settle more
than 500 lawsuits. Consumers who took the prescription
drug for birth control experienced blood clots.
Prempro (2011): Pfizer agreed to pay $330 million to
settle more than 2200 lawsuits. The company was
accused of hiding the menopause drug’s cancer risks.
Avandia (2010): GlaxoSmithKline agreed to pay $460
million to settle 10000 lawsuits. Claimants said the
company hid heart attack risks associated with the
diabetes drug.
Vioxx (2008): Merck paid $4.85 billion to settle a
reported 50000 claims. People who took the painkiller

38. Recent Advances
 Some new changes are being brought into the consumer
protection act that would give more teeth to the act.
 The government plans to amend a law to allow customers to
file case against sellers from their place of residence. As per
current norms, the case has to be filed at the place of
transaction.
 The requirement of engaging lawyers in the consumer
forums is likely to be done away with, if the goods or services
availed is of less than Rs 2 lakh value.
 The amended Act is likely to have provisions to cover e

40. CONCLUSION
 A well organized sector of manufacturers and traders with
better knowledge of markets has come into existence, thereby
affecting the relationship between the traders and the
consumers making the principle of consumer sovereignty
almost inapplicable.
 The Consumer Protection Act, 1986 is a milestone in the
history of socio-economic legislation in the country. It is one of
the most progressive and comprehensive piece of legislations,
enacted for the protection of consumers.
 Unlike existing laws, which are punitive or preventive in
nature, the provisions of this Act are compensatory in nature.
The act is intended to provide simple, speedy and inexpensive