TITLE OF THE PAPER: CONSUMER PROTECTION AND LEGAL FRAMEWORK FOR CONSUMER PROTECTION

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TITLE OF THE PAPER CONSUMER PROTECTION
AND LEGAL FRAMEWORK FOR CONSUMER PROTECTION

• By
• PROF.CMA.CS. V.N. PARTHIBAN
• FICWA, ACS, ML, LLM, MBA

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syllabus

• INDIAN CONTRACTS ACT / LAW OF CONTRACT
• NEGOTIABLE INSTRUMENTS ACT
• COMPANY LAW
• INCOME TAX ACT 1961
• THE CENTRAL EXCISE ACT 1944
• CENTRAL SALES TAX ACT 1956
• Chapter 7 THE CUSTOMS ACT 1962

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Continue.

• Chapter 8 - FOREIGN TRADE POLICY
• Chapter 9 - THE CONSUMER PROTECTION ACT , 1986
• Chapter 10 - THE ENVIRONMENT PROTECTION ACT
• Chapter 11 VAT- VALUE ADDED TAX
• Chapter 12 FRINGE BENEFIT TAX - CONCEPT AND
  COMPLIANCE

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CONSUMER PROTECTION ACT, 1986

• Introduction
• Meaning Need for Consumer Protection
• Coverage of the CP Act, 1986
• Who can file a complaint
• Legal framework for consumer protection
• Jurisdiction, Limitation period etc.
• Legal remedies available to consumer
• Conclusion

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• Consumer Protection Act, 1986 the guardian of
  consumers was enacted on 24th December, 1986
  after a long struggle of various social actions
  groups and it was enforced from 15th April, 1987

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INTRODUCTION

• Object of the Act is to promote and protect the
  rights of consumers.
• Legislation gives statutory protection to
  innocent and ill-informed consumers against
  unfair trade practices.
• It provides a forum for inexpensive and speedy
  justice to the consumers almost at their
  doorsteps.

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FEATURE OF C.P. ACT

• The Act applies to all goods and services unless
  specifically exempted by the Central Government,
  it covers all the sectors whether public, private
  or co-operative, and the provisions of the Act
  are compensatory in nature.

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MEANING OF CONSUMER PROTECTION

• It means protection to every member of society
  from all types of unfair means of trade practices
  of market operations and includes within its
  scope compensatory, preventive and punitive
  protection.

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NEED FOR CONSUMER PROTECTION

• (1) The widening information gap and the unequal
  bargaining power between buyers and sellers in
  the market place necessitates measures for
  consumer protection.
• (2) The scrupulous sellers are always on the look
  for devising new means and methods to deceive the
  consumers for extracting more profits for their
  sales to the later.
• Hence, there is a need for an appropriate
  Consumer Protection Act with stringent provisions
  in order to safeguard the interests of the buyers

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COVERAGE OF THE ACT

• THE ACT APPLIES TO ALL GOODS SERVICES UNLESS
  SPECIFICALLY EXEMPTED BY THE CENTRAL GOVT.
• It covers all the sectors whether private, public
  or co-operative.
• The provisions of the Act are compensatory in
  nature.

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WHO CAN FILE A COMPLAINT

• A Consumer
• Any voluntary consumer organisation
• The Central Government.
• The State Govt./Union Territory Admn.
• One or more consumers on behalf of numerous
  consumers who are having same interest.

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LEGAL FRAMEWORK FOR CONSUMER PROTECTION

• District Forum
• State Commission
• National Commission
• supreme Court

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JURISDICTION - PECUNARY

• The pecunary jurisdiction of the District Forum
  is up to Rs.20 lakh and that of the State
  Commission is above Rs.20 lakh and below Rs.One
  crore. All claims, involving more than Rs. one
  crore are filed directly before the National
  Commission. Appeals from the District Forum are
  to be filed before the State Commission and from
  there to the National Commission, within thirty
  days of knowledge of the order.

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LIMITATION PERIOD

• A Complaint with the District Forum, the State
  Commission or the National Commission, with their
  respective jurisdiction, must be filed within 2
  years from the date on which the cause of action
  has arisen.
• However, the authority may condone the delay

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PRESCRIBED COURT FEE

• THE DISTRICT FORUM FEE
• i) Rs.100/- if the claim including compensation
  and cost is less than Rs.1 lakh.
• ii) Rs.200/- if the claim as above is less than
  Rs.5 lakh.
• iii) Rs.400/- if the claim as above is less than
  Rs.10 lakh
• iv) Rs.500/- If the claim as above is less than
  Rs.20 lakh.

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COURT FEE FOR STATE / NATIONAL COMMISSION

• i) Rs.2,000/- if the claim including compensation
  and cost is less than Rs.50 lakh.
• ii) Rs.4,000/- if the claim as above is less than
  Rs.1 Crore.
• THE NATIONAL COMMISSION FEE
• i) Rs.5,000/- if the claim including compensation
  and cost is Rs.1 Crore and above

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RELIEF AVAILABLE TO THE CONSUMERS

• The Redressal Forums may give orders for one ore
  more of the following reliefs-
• Removal of defects from the goods
• Replacement of the goods
• Refund of the price paid
• Removal of defects/deficiencies in the services
• Discontinuance of UTP or RTP or direction not to
  repeat them
• Withdrawal of hazardous goods from sale
• Award for adequate costs to parties.

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SALIENT FEATURES OF CP ACT

• The Consumer Protection Act, 1986 seeks to
  promote and protect the interest of consumers
  against deficiencies and defects in goods or
  services.
• It also seeks to secure the rights of a consumer
  against unfair or restrictive trade practices,
  which may be practiced by manufacturers and
  traders.

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Features of CP Act

• The provisions of the Act are compensatory in
  nature.
• There are various levels of adjudicatory
  authorities that are set up under the Act, which
  provides a forum for consumers to seek redressal
  of their grievances in an effective and simple
  manner.

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CONCLUSION

• The enactment of the Consumer Protection Act,
  1986 is an important landmark in the legal
  history of our country and is also vested as a
  classical example of a legislative measure
  adopted to achieve the avowed socio-economic
  goals in the post independence era.
• The availability of a cheap, time bound and
  speedy remedy without payment of court fees and
  reduced adherence to procedural formalities and
  legal technicalities under the Act, has come as a
  ray of hope to the common man when he was on the
  verge of losing faith in judicial system .

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• THANK YOU