Consumer Protection Act

CONSUMER PROTECTION ACT (1986)

CONSUMER  “Consumer” means an individual acting for personal, family or household purposes and does not include a person who is acting for business purposes.

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For the purpose of "goods", a consumer means a person belonging to the following categories:

(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.

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For the purpose of "services", a "consumer" means a person belonging to the following categories:

(i) One who hires or avails of any service or services 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 beneficiary of such service other than the one who actually hires or avails of the service for consideration and such services are availed with the approval of such person.

MANUFACTURER 

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The term “manufacturer” means a person who— makes or manufactures any goods or part thereof; or does not make or manufacture any goods but assembles parts thereof made or manufactured by others; or puts or causes to be put his own mark on any goods made or manufactured by any other manufacturer. Explanation. — Where a manufacturer dispatches any

goods or part thereof to any branch office maintained by him, such branch office shall not be deemed to be the manufacturer even though the parts so dispatched to it are assembled at such branch office and are sold or distributed from such branch office;

Rights of the consumers: Protection against hazardous goods.  Right to consumer information.  Right of access to variety and competitive prices.  Right to due attention at appropriate forums.  Right to seek redress.  Right to consumer education. 

1.Protection against hazardous goods. 

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The Act says in the first place that the consumer has a right to be protected against the marketing of goods which are hazardous to life and property. The consumer is assured that if he has been victimized into purchasing goods which have injured his person or property, he will have speedy and effecive remedy under the redressal hierarchy.

It also imposes a duty on the supplier, not to supply any consumer goods which fail to comply with the general safety requirement.  In this regard, the approved standards are published from time to time by the relevant authorities. 

2.RIGHT TO CONSUMER INFORMATION

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The consumer has been given the right to be informed by the producer about the quality, quantity, potency, purity, standard and prices of goods he buys.

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This is intended to save the consumer from unfair trade practices like false and misleading descriptions about the nature and quality of the goods.

Right to Consumer Information 

For example: a misrepresentation as to price may occur in a concealed way in throwing grand-clearance or reduction sales when, in fact, the prices are less than the original ones.

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In all cases of unfair trade practices, the consumer would have the option of either applying to the Monopolies Commission under MRTP Act,1969 or to the forums under the Consumer Act,1986.

3.

RIGHT OF ACCESS TO VARIETY AND

COMPETITIVE PRICES

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The Central Council as constituted under the Act has been charged with the responsibility of bringing about the organisation of markets and market practices in such a way that all dealers are supplied with a variety of goods for the benefit of the consumer and that the goods with a variety are being offered at competitive prices. This is based upon the belief that the best way to improve quality and value for money is to give the citizen wider choice through the mechanism of free competition. It is only then that the consumer will have access to variety and will be able to enjoy the benefit of competitive prices. This would require a certain degree of liberty of shopkeepers in selecting and stocking goods of choice.

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Shopkeepers’ freedom in this respect is often curtailed by the abuse of monopoly power in the shape of  monopolistic or restrictive trade practices.if a shopkeeper is making his customers helpless and is thereby leaving them with no choice but to buy goods of one kind only, the matter may be brought to the notice of the Monopolies Commission and the latter can examine whether the shopkeeper is himself tied up by the producer and, if so, the Commission may liberate him from the burden of his ties and restore him his choice as to stock-in-trade. Now by virtue of Section 6(c) this power will be exercisable by the Central Council also. This is a part of the belief that the best way to improve quality and value of money is to give the citizen wider choice through the mechanism of free competition.

4. RIGHT TO DUE ATTENTION AT APPROPRIATE FORUMS

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The Central Council is, in the fourth place, charged with the responsibility of assuring consumers that they would be heard as of  right by the appropriate forums and the consumer will receive due attention and consideration from such forums. Thus, it is the duty of the council so to organise and compose the different forums under the Act that an aggrieved consumer is heard as of right and receives due consideration at the hands of an appropriate redressal forums.

5.Right To Seek Redressal 

This right gives the consumers the right to seek redressal against unfair trade practices or restrictive trade practices or unscrupulous exploitation of consumers.

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The consumers have been given the right to seek redress against restrictive/unfair trade practices or unscrupulous exploitation. The right can be explained clearly by following example - where money was deposited in advance for the supply of a car within two months and the car was actually supplied some time after two months, in such situation retention of money beyond the period of  two months is an unfair trade practice and the consumers can claim proper interest on the deposit for the period

CONSUMERS NEED PROTECTION AGAINST

UNFAIR TRADE PRACTICE 

Adopting unfair methods or deception to promote sale, use or supply of goods or services e.g.

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Misleading public about price (e.g. bargain price when it is not so).

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Charging above MRP printed.

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Misleading public about another’s goods or services. s ervices.

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Falsely claiming a sponsorship, approval or affiliation.

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Offering misleading warranty or guarantee.

RESTRICTIVE TRADE PRACTICE

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Price fixing or output restraint re: delivery/flow deli very/flow of  supplies to impose unjustified costs/restrictions on consumers. Collusive tendering; market fixing territorially among competing suppliers, depriving consumers of free choice, fair competition. Supplying only to particular distributors or on condition of sale only within a territory. Delaying in supplying goods/services leading to rise in price. Requiring a consumer to buy/hire any goods or services as a pre-condition for buying/hiring other goods or services. This is also termed as TIE UP SALES. Eg: selling stabilizers alongwith air conditioners

6.Right to Consumer Education Need for consumer education 

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By increased information as to rights and remedies,the consumer will be better empowered to pursue his remedies. A consumer complaint which gives the impression that the consumer is fully conscious of and alive to his rights would bring about more positive response from his supplier. Once the people are rendered conscious of their power they may perhaps feel energised to struggle against exploitation by manufacturers and traders People’s awareness is likely to prove a better tool for putting the trade on sum level of discipline than tons of government controls.

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This right spells out the duty of fair conduct of trade towards the consumer.The enforcement of this duty is primarily the task of the administrative authorities constituted under the Act and other trading standards organisations.Independently of the departmental proceedings`individual consumers would have a right of action for damages,specific performance,a declaration,injunction and possibly an order that the goods be repaired or replaced.

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