Consumer Protection Act- Akosha

1
Consumer Protection

• Concepts and definitions

2
What is a Complaint ?

• The complainant has suffered loss or damage as a
  result of any unfair trade practice adopted by
  any trader or service provider
• The goods mentioned in the complaint suffer from
  one or more defects
• The services hired or availed suffer from
  deficiency in any respect

3
Contd.

• The trader or service provider has charged for
  the goods or for the service a price in excess of
  the price
• (a)  fixed by or under any law for the time being
  in force
• (b)  displayed on the goods or any package
  containing such goods
• (c)  displayed on the price list exhibited by him
  by or under any law for the time being in force
• (d)    agreed between the parties
• The goods or services which will be hazardous to
  life and safety when used are being offered for
  sale to public.

4
Who is a Consumer ?

• A consumer is a person who buys or hires and
  goods or services for a consideration, i.e. free
  services are not covered under the Act.
• It excludes a person who buys or hires for
  commercial purpose/activity and not for
  self-consumption.
• Therefore, you are a consumer, if you have paid
  for anything for self consumption, and not hired
  or purchased for selling it further or to be
  deployed in a commercial activity on a large
  scale, as was held in Laxmi Engineering Works vs.
  P.S.G. Industrial Institute on 4 April, 1995

5
What is commercial purpose ?

• Commercial purpose encompasses all business
  activities. It means occupied with commerce.
• All such cases where goods are purchased for
  being used in any activity directly to generate
  profit will come under the purview of commercial
  purpose. E.g.
• - Purchase of printing machine for commercial
  purpose, purchase of taxi for commercial purpose,
  purchase of machine in a plant or factory etc.

6
Contd.

• Exceptions
• If the goods are used by the buyer himself
  exclusively for purpose of self-employment or
  earning his livelihood then same will not come
  under the purview of commercial purpose.
• e.g. A purchase of truck as public carrier for
  self employment A starts a small PCO shop to
  earn his livelihood etc.

7
What is defect ?

• Defect mean lack or absence of something
  essential for completeness.
• So if there is any shortage in the quality of
  goods, it amounts to defect in goods.
• e.g. TV set purchased developed with black spots
  on its picture tube gas cylinder with excessive
  gas etc.

8
What is deficiency ?

• Deficiency means any fault, imperfection,
  shortcoming or inadequacy in the quality, nature
  and manner of performance which is required to be
  maintained by or has been undertaken to be
  performed by a person in pursuance of a contract
  or otherwise in relation to any service.
• Hence, deficiency refers to the service and
  defect refers to any goods.

9
Deficiency in Services

• We have read deficiency, now lets read services
• "service" means 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,

10
Contd.

• - board or lodging or both,
• - housing construction,
• - entertainment, amusement or the purveying of
  news or other information,
• but does not include the rendering of any
  service free of charge or under a contract of
  personal service.

11
Contd.

• So services means services made available to
  potential users that is not only to actual users
  bit also the those who are capable of using it
• It should not be free of charge
• It should not be under a contract of personal
  service.
• Hence deficiency as explained earlier in
  mentioned services amount to deficiency in
  services under the Act.

12
Unfair Trade Practice

• Any trade practice which for the purpose of
  promoting the sale, use or supply of any goods or
  for provision of any services, adopts any unfair
  or deceptive practice including any of the
  following practices
• - falsely representing the goods as conforming
  to a particular standard, quality, quantity,
  potency, purity
• - falsely representing the services are of a
  particular standard, quality or grade

13
Contd.

• - falsely representing any re-built, second
  hand, renovated, reconditioned or old goods as
  new goods
• - falsely representing that the goods or
  services have a certain sponsorship or approval
  or affiliation, characteristics, accessories, use
  or benefits

14
Contd.

• - misleading representation concerning the need
  for, or the usefulness of any goods or services
• - giving any warranty or guarantee of the
  performance of efficacy of the product without
  any proper test thereof.