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ACT 1986 INDIAN COMMERCIAL LAW
CONSUMER PROTECTION ACT
Need for Consumer Protection Act in an Era of Free
Competition where Consumer is the ‘KING’; therefore King needs Protection.
INDEX
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Name
of Topic
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Page
No
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INTRODUCTION
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NEED FOR THE ACT
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PURPOSE OF THE ACT
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OBJECTIVES TO THE ACT
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CONSUMER PROTECTION ACT,1986
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FEATURES OF THE ACT
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PROCEDURE OF FILING A COMPLAINT
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FORUMS
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CGSI
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STATISTICAL DATA
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CASE STUDIES
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Introduction:
When we
approach the market as a consumer, we expect value for moneyi.eright quality,
right quantity, right prices, information about the mode of use, etc. But there
may be instances where a consumer is harassed or cheated.
An Act to provide for the
better protection of the interest of consumers and for that purpose to make
provision for the establishment of consumer councils and other authorities for
the settlement of consumer disputes and for matters connected therewith.
International Scenario:
The process of development
coupled with increasing liberalisation and globalisation across the country has
enabled consumers to realise their increasingly important role in society and
governance. However, concentration of the market power in the hands of a select
few has affected consumers’ behaviour over time. In a developing country like
India where the incidence of poverty and unemployment is very high and the
level of literacy is very low, the people face a volume of problems,
particularly in the context of consumer related issues. Unlike in the developed
world, consumers in these countries have not been able to play a greater role
in the development process.
The purpose of economic
planning is to allocate resources, as far as possible, for the maximum
satisfaction of consumers’ needs. Any goods or services produced in an economy
are ultimately meant for consumers. There is a logical, moral and political
force in the proposition that the consumers themselves should have the right to
take decisions about the allocation of resources for their own needs.
Realising this need, the
International Organisation of Consumer Unions, now known as Consumers
International, took the initiative and under its consistent lobbying, the
United Nations adopted a set of Guidelines for Consumer Protection on April 9,
1985 which were revised in 1999. The Guidelines address the interests and needs
of consumers worldwide and provide a framework for Governments, particularly
those of developing and newly independent countries, to use for elaborating and
strengthening consumer protection policies and legislation.
The UN Guidelines have outlined the following eight areas for developing
policies for consumer protection:
- Physical safety;
- Promotion and
protection of consumers’ economic interests;
- Standards for safety
and quality of consumer goods and services;
- Distribution
facilities for essential consumer goods and services;
- Measures enabling
consumers to obtain redress;
- Education and
information programmes;
- Promotion of
sustainable consumption; and
- Measures relating to
specific areas like water, food and pharmaceuticals.
These areas
have been translated into the following eight consumer rights by the Consumers’
International:
1) Right to Basic Needs
2) Right to Safety
3) Right to Choice
4) Right to Information
5) Right to Consumer
Education
6) Right to Redressal
Consumer Protection Act of 1986:
Consumer Protection Act is
an Indian federation law enacted in 1986 to protect interests of consumers in India. It makes provision for
the establishment of consumer councils and other authorities for the settlement
of consumerdisputes and for matters connected therewith. The growing
interdependence of the world economy and international character of many
business practices have contributed to the development of universal emphasis on
consumer rights protection and promotion. Consumers, clients and customer’s
world over, are demanding value for money in the form of quality goods and
better services. Modern technological developments have no doubt made a great
impact on the quality, availability and safety of godsend services. But the
fact of life is that the consumers are still victims of unscrupulous and
exploitative practices. Exploitation of consumers assumes numerous forms such
as adulteration of food, spurious drugs, dubious hire purchase plans, high
prices, poor quality, deficient services, deceptive advertisements, hazardous
products, black marketing and many more. In addition, with revolution in
information technology newer kinds of challenges are thrown on the consumer
like cyber crimes, plastic money etc., which affect the consumer in even bigger
way. “Consumer is sovereign” and “customers the king” are nothing more than
myths in the present scenario particularly in the developing societies.
However, it has been realised and rightly so that the Consumer protection is a
socio- economic programme to be pursued by the government as well as the
businesses the satisfaction of the consumers is in the interest of both. In
this context, the government, however, has a primary responsibility to protect
the consumers’ interests and rights through appropriate policy measures, legal
structure and administrative framework.
The intention and object of the Consumer Protection Act, is to provide a
speedy remedy and for better protection of interests of consumer.
The Consumer Protection Act, 1986 has defined the term CONSUMER. Only the
complainant who falls under the definition of Consumer can be benefited through
Consumer Protection Act. Hence the definition of CONSUMER is of much importance
to determine the applicability of the Act.
Needs for customer
protection act:
When we approach the market as a consumer, we expect value for money, i.e., right quality, right quantity, right prices, information about the mode of use, etc. But there may be instances where a consumer is harassed or cheated.
The Government understood the need to protect
consumers from unscrupulous suppliers, and several laws have been made for this
purpose.
Many
a time, the imperfections on the supply side, like hoarding and black
marketing, mercilessly gouge the consumer. Hence, a socially responsible
producer should see to it that whatever is produced reaches the ultimate
consumer in time and at reasonable prices.
Secondly,
the Government has to come to the rescue of the helpless consumer to prevent
him from being mislead, duped, cheated and exploited. It should also take
special care of the vulnerable sections. Governments should establish or
maintain legal and or administrative measures to enable or, as appropriate,
relevant organizations to obtain redress through formal or informal procedures
that are expeditious, fair, inexpensive and accessible. Such procedures should
take particular account of the needs of low-income consumers.
Consumerism
is a social force to make the business more honest, efficient, responsive and
responsible, and pressurize the government to adopt the necessary measures to
protect consumer interests by guaranteeing their legitimate rights.
Reasons of
which consumer needs protection:
1. Illiteracy and Ignorance:
Consumers in India are mostly illiterate and ignorant. They do not understand
their rights. A system is required to protect them from unscrupulous
businessmen.
2. Unorganized Consumers:
In India consumers are widely dispersed and are not united. They are at the
mercy of businessmen. On the other hand, producers and traders are organized
and powerful.
3. Spurious Goods:
There is increasing supply of duplicate products. It is very difficult for an
ordinary consumer to distinguish between a genuine product and its imitation. It
is necessary to protect consumers from such exploitation by ensuring compliance
with prescribed norms of quality and safety.
4. Deceptive Advertising:
Some businessmen give misleading information about quality, safety and utility
of products. Consumers are misled by false advertisement and do not know the
real quality of advertised goods. A mechanism is needed to prevent misleading
advertisements.
Definitions:
1.
CONSUMERISMis defined as the protection of the interests of the buyers of goods and
services against defective or dangerous goods etc.
2. CONSUMER:
Consumers are persons to whom goods or services are
marketed, who have entered into transactions with suppliers, users of
particular goods or recipients/beneficiaries of services.
3. COMPLAINTANT:
Complainant means
- A
consumer to whom goods are sold or delivered or agreed to be sold or delivered
or such services provided or agreed to be provided.
- Voluntary Consumer
Organisation.
- The Central Government.
- The State Governments or
Union Territory Administration.
- One or more consumers,
where there are numerous consumers having the same interest.
Example:Where
a young child is taken to the hospital by his parents and the child is treated
by the doctor, the parents of such a minor child can file a complaint under the
Act - Spring Meadows Hospital v. Harjot Ahluwalia JT 1998(2) SC 620
The definition as provided
under Sec. 2(1) (b) is different from list of persons who can file complaint.
The legal heirs or representatives of the deceased have been included in
definition of ‘complainant’ by 2002 amendment but have not been specified in
Sec. 12(1) as person who can file complaint, which, creates a doubt that he
cannot file and can only continue as a complainant after the death of the
complainant. - Joseph Alias Animon v. Dr. Elizabeth Zachariah
(1) 1997 CPJ 96.
4. COMPLAINT:
A complaint must contain any of the following
allegations:
i.
An unfair trade practice or a restrictive
trade practice has been adopted by any trader.
Example:
Ramesh sold a six months old car to Sameer representing it to be a new one.
Here Sameer can make a complaint against Ramesh for following an unfair trade
practice.
ii.
The goods bought by him or agreed to be
bought by him suffer from one or more defects.
Example: Raj bought
a computer from Suprit. It was not working properly since day one. Raj can make
a complaint against Suprit for supplying him a defective computer.
iii.
The services hired or availed of or agreed to
be hired or availed of by him suffer from deficiency in any respect.
Example:
Pratik hired services of an advocate to defend himself against his landlord.
The advocate did not appear every time the case was scheduled. Pratik can make
a complaint against the advocate.
iv.
A trader has charged for the goods mentioned
in the complaint a price in excess of the price fixed by or under any law for
the time being in force or displayed on the goods or any package containing
such goods.
Example:
Sagar bought a sack of cement from Mayur who charged him Rs. 100 over and above
the reserve price of the cement declared by the Government. Here Sagar can make
a complaint against Mayur.
v.
Goods which will be hazardous to life and
safety when used, are being offered for sale to the public in contravention of
the provisions of any law for the time being in force requiring traders to
display information in regard to the contents, manner and effect of use of such
goods.
Example:
Rajesh bought a tin of disinfectant powder. It had lid which was to be opened
in a specific manner. Trader did not inform Rajesh about this. While opening
the lid in ordinary way, some powder flew in the eyes of Rajesh which affected
his vision. Here Rajesh can make a complaint against the trader.
A
Complaint should contain the
following information:
(a)
The name, description and address of the complainant;
(b)
The name, description and address of the opposite party or parties;
(c)
The facts relating the complaint and when and where it arose;
(d)
Documents ‘if any’ in support of allegations and
(e)
The relief which the complainant is seeking.
The
complaint should be signed by the Complainant or his/ her authorised agent.
PROCEDURE
TO FILE A COMPLAINT:
Procedures for filing complaints
and seeking redressal are simple. There is no fee for filing a complaint before
the District Forum, the State Commission or the National Commission. A stamp
paper is also not required. There should be 3 to 5 copies of the complaint on
plain paper. The complainant or his authorized agent can present the complaint.
The complaint can be sent by post to the appropriate Forum / Commission.
A complaint should contain the following information:-
The name, description and the address of the complainant. The name,
description and address of the opposite party or parties, as the case may be,
as far as they can be ascertained. The facts relating to complaint and when and
where it arose. Documents, if any, in support of the allegations contained in
the complaint. The relief, which the complainant is seeking. The complainant or
his authorized agent should sign the complaint. The complaint is to be filed
within two years from the date on which cause of action has arisen.
WRONGS AGAINST CONSUMER
i) Defect in Goods
ii) Deficiency in Service
iii) Charging of excess price
iv) Hazardous Goods
v) Unfair trade practice of restrictive trade practice
a)
Defects:
i.
Any fault,
imperfection or shortcoming in the quality, quantity, potency, purity or
standard which is required to be maintained by or under any law for the time
being in force or under any contract express or implied or as is claimed by the
trader in any manner whatsoever in relation to any goods.
b) Deficiency:
i.
Any fault,
imperfection, shortcoming 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 contract or otherwise in relation to any service.
Kinds of consumer under the act
Consumers of goods Consumers of services
1)
Buys or agrees to buy
goods 1) Hires or avails any service 2)Any
users of such goods 2) Any
beneficiary of such
c) CHARGING EXCESSIVE PRICE
A complaint may be made against a trader who has charged a price in
excess of the price:
(a) fixed by or under any law for the time being in force, or
(b) displayed on the goods, or
(c) displayed on any package containing the goods.
Example:
Mahaboobnagar Milk Chilling Centre charged 15 paise extra per half litre
of milk supplied in sachets in comparison to the other varieties of milk. The
National Commission held that in the absence of any law requiring an article to
be sold at or below a particular price fixed thereunder, and when there was no
declaration of the price on the packet containing the goods, a case for
excessive pricing may not be construed.
d) HAZARDOUS GOODS
The term “Hazardous goods’ has not been defined in the Act. The
dictionary meaning of the term is - dangerous or risky. However, the term is
used in context of ‘goods’ only, i.e., a person can make a complaint if he is
not informed about the hazardous nature of the goods but the same is not true
in case of hazardous services.
The law seeks to ensure that those responsible for bringing goods to the
market, in particular, suppliers, exporters, importers, retailers and the like
should ensure that while in their care these goods are not rendered unsafe
through improper handling or storage.
Consumers should be instructed in the proper use of goods and should be
informed of the risks involved in intended or normally foreseeable use. Vital
safety information should be conveyed to consumers.
Example:
A bought an insecticide from B. B did not inform A that touching this
insecticide with bare hands can create skin problem. A, while using the
insecticide came in contact with it and suffered from skin problem
consequently. Here B can be held liable under the Act.
e) Unfair
Trade Practice:
I.
Adopting unfair methods or
deception to promote sale, use or supply of goods or services.
i.
Misleading public about
price (e.g. bargain price when it is not so).
ii.
Charging above MRP printed.
iii.
Misleading public about
another’s goods or services
iv.
Falsely claiming a
sponsorship, approval or affiliation
v.
Offering misleading warranty
or guarantee.
f) Restrictive
Trade Practice:
i.
Price fixing or output
restraint delivery/flow of supplies to impose unjustified costs/restrictions on
consumers.
ii.
Collusive tendering, market
fixing territorially among competing suppliers, depriving consumers of free
choice, fair competition.
iii.
Supplying only to particular
distributors or on condition of sale only within a territory.
iv.
Delaying in supplying
goods/services leading to rise in price.
v.
Requiring a consumer to
buy/hire any goods or services as a pre-condition for buying/hiring other goods
or services.
Example:
A, a gas distributor instead his customers to buy gas stove as a
condition to give gas connection. It was held that it was a restrictive trade
practice - Re. Anand Gas RTPE 43/1983 (MRTPC).
However, where there is no such precondition and the buyer is free to
take either product, no tying arrangement could be alleged even though the
seller may offer both the products as a single unit at a composite price.
Consumer
Rights under the Act
The Act consists of the following rights:
i.
The right to be protected against the marketing of goods
which are hazardous to life andproperty
ii.
The right to be informed about the quality, quantity,
potency, purity, standard and price of goods so as to protect the consumer
against unfair trade practices;
iii.
The right to be assured, wherever possible access to variety
of goods at competitive prices;
iv.
The right to be heard;
v.
The right to seek redressal against unfair trade practices or
unscrupulous exploitation of consumer and
vi.
The right to consumer education.
Highlights of the Consumer
Protection (Amendment) Act, 2002asnotified on 15th March 2003–
1. In case of death of a
consumer, his legal representative – a new sub-clause (1) under Section 2 of
the Principal Act. –
Exclusion of a person who
avails of such service for any commercial purpose from the category of the
consumer. However, the “Commercial purpose” does not include use by a7 Ibid Sec
14 (1)
2. Person of goods bought
and used by him and services availed by him exclusively for the purpose of
earning his livelihood by means of self-employment. - “Spurious goods and
services” in the form of new clause (oo) after clause (o) under Section 2 of
the Principal Act. 3. With a view to promote and protect within the district
the rights of the consumer laid down under the Principal Act “establishment of
the District Consumer Protection Council” under the Chairmanship of the
District Collector, insertion of new Sections 8A and 8B is proposed.
4. Qualifications
including academic and also disqualifications for members. - Re-appointment of
a member for another term of five years or up to the age of sixty-five years,
whichever is earlier.
5. Power to issue
“corrective advertisement” to neutralize the effect of misleading advertisement
at the cost of the opposite party, new clause (nc) under Sub-Section (1) of
Section 14. - Benches of the State Commission may be constituted by the
President of the State Commission with one or more members. - Insertion of new
Section 17A authorising the State Commission, on the application of the
complainant or of its own motion, to transfer any complaint.
Consumers
Dispute Redressal Agencies:
1) DISTRICT FORUM:
The State Government shall
establish for every district such council are to be known as District Consumer
Protection Council.
a) Composition of District
Forum:
·
A person who is, or who has been or who is qualified to be a
District Judge, who shall be its President
·
There will be 2 other one of whom shall be a woman member who
shall be persons of ability, integrity and standing and have adequate knowledge
or experience or have shown capacity in dealing with problems relating to
economics, law, commerce, public affairs etc.
b) Jurisdiction of District
Forum:
·
Subject to the other provisions of this Act, the District
Forum shall have jurisdiction to entertain complaints where the value of the
goods or services and the compensation, if any, claimed does not exceed rupees
twenty lacs.
c) Appeal:
·
Any person aggrieved by an order made by the District Forum
may prefer an appeal against such order to the State Commission within a period
of 30 days from the date of the order.
2) STATE COMMISSION:
A
State Commission has jurisdiction in whole of the State for Which it is constituted
The orders of District Forum of that particular State. It is situated in the
capital of the
State.
a)
Composition of State Forum:
State Commission consists of a president and
two members one of whom is to be a
Woman. President is a person who is or has
been a Judge of a High Court, and the
Members, are persons of ability, integrity
and standing and have adequate knowledge
or experience of, or have shown capacity in
dealing with, problems relating to
Economics, law, commerce, accountancy,
industry, public affairs or administration.
b)
Jurisdiction of State Forum:
It can hear
the cases involving the amount more than rupees Twenty lacs and up to rupees
one crore. It has also jurisdiction to hear appeal against
c)
Appeal:
In case the
aggrieved party is not satisfied with the order of the State Commission he can
appeal to the National Commission within 30 days of passing of the order
3.
National
Commission –
National
Commission is on the top hierarchy of ConsumerCourts. It is only one for whole
India and situated in Delhi the capital of India.
a)
Composition of National
Commission:
·
The
National Commission consists of a president, and four other members (one ofwhom
is to be a woman).
·
The
president should be the one who is or has been aJudge of the Supreme Court, and
the members should be the persons of ability,integrity and standing and have
adequate knowledge or experience of, or have showncapacity in dealing with,
problems relating to economics, law, commerce,accountancy, industry, public
affairs or administration.
b)
Jurisdiction of State Forum:
·
It
can hear cases involving amount above rupees one crore. It can also hear
appealsagainst the order of State Commission.
c)
Appeal:
·
An appeal can be filed against the order of
the National Commission to the Supreme Court within 30 days from the date of
order passed.
·
It may be noted that in order to attain the
objects of the Consumers Protection Act, the National Commission has also been
conferred with the powers of administrative control over all the State
Commissions by calling for periodical returns regarding the institution,
disposal and pending of cases and issuing instructions for adoption of uniform
procedures, etc
Consumer Court:
With an aim to
deal with cases pertaining to consumer grievances and disputes, the consumer
courts also known as special purpose courts were established in India. Set up
by the government, these judiciary courts aim to protect the rights of
consumers. Their main function centre’s on maintaining the trade practices that
are offered by the seller to the consumers. Consumers are free to file a case
against the seller if they have been exploited or harassed. On having proof of
exploitation (bills or supporting documents) the court will give verdict in favour
of the consumers. However failure on part of the consumer to produce proper
documents will make it difficult for him to file or win the case.
Consumer Court Fee:
The Central
Government of India, New Delhi has recently amended its rule that fell under
the Consumer Protection Rule 1987 which focused on fixing the filing fee which
is required to paid in Consumer Dispute. As per Section 12(2), of the CPA 1987,
this fee must be filed in accordance with the current amendments before the
Consumer Forum.
Value of service,
goods, & compensation claimed determine the amount of fee to be paid:
1.DISTRICT FORUM (w.e.f. 10-2-2005)
|
VALUE OF GOODS AND COMPENSATION |
AMOUNT PAYABLE
|
|
Less
than Rs. one lakh
|
Rs.
100
|
|
Rs.
one lakh and above, but less than Rs. five lakh
|
Rs.
200
|
|
Rs.
five lakh and above, but less than Rs. ten lakh
|
Rs.
400
|
|
Rs.
ten lakh and above
|
Rs.
500
|
This amount must
be deposited while filing the complaint. Duly crossed and drawn in the favour
of President, Consumer Disputes Redressal Forum, (name of district), this
payment must be made through Nationalized Bank Demand Draft.
2. STATE COMMISSION (w.e.f. 10-2-2005)
|
VALUE OF GOODS AND COMPENSATION |
AMOUNT PAYABLE
|
|
Rs.
twenty lakh and above, but less than Rs. 50 lakh
|
Rs.
2000
|
|
Rs.
50 lakh and above, but less than Rs. 1 crore
|
Rs.
4000
|
The above
mentioned amount must be deposited while filing the complaint. Duly crossed and
drawn, in the favour of Registrar, State Consumer Disputes Redressal Commission
……… State, this payment must be made through a Nationalized Bank Demand Draft.
3. NATIONAL COMMISSION (w.e.f. 10-2-2005)
|
VALUE OF GOODS AND COMPENSATION |
AMOUNT PAYABLE
|
|
Above
Rs. 1 crore
|
Rs.
5000
|
The amount
mentioned above must be deposited when the complaint is being lodged. Duly
crossed and drawn, in the favour of Registrar, National Consumer Disputes
Redressal Commission, this payment must be made through a Nationalized Bank
Demand Draft.
Penalties:
1.Wherea trader or a person against whom a complaint is made or the
complainant fails or omits to comply with any order made by the District Forum,
the State Commission or the National Commission, as the case may be, such
trader or person or complainant shall be punishable with imprisonment for a
term which shall not be less than one month but which may extend to three
years, or with fine which shall not be less than two thousands rupees but which
may extend to ten thousand rupees, or with both.
2. Notwithstanding anything contained in the Code of Criminal
Procedure, 1973, (2 of 1974), the District Forum or the State Commission or the
National Commission, as the case may be, shall have the power of a Judicial
Magistrate of the first class for the trial of offences under this Act, and on
such conferment of powers, the District Forum or the State Commission or the
National Commission, as the case may be, on whom the powers are so conferred,
shall be deemed to be a Judicial Magistrate of the first class for the purpose
of the Code of Criminal Procedure, 1973 (2 of 1974).
3.All offences under this Act may be tried summarily by the District
Forum or the State Commission or the National Commission, as the case may be.
RELIEFS AVAILABLE
TO CONSUMERS
Depending on the facts and circumstances, the Redressal Forums may give
order for one or more of the following relief.
1. Removal of defects from the goods;
2. Replacement of the goods;
3. Refund of the price paid;
4. Award of compensation for the loss or injury suffered;
5. Removal of defects or deficiencies in the services;
6. Discontinuance of unfair trade practices or restrictive trade
practices or direction not to repeat them;
7. Withdrawal of the hazardous goods from being offered to sale; or
8. Award for adequate costs to parties.
There is no limit on amount of compensation you can claim, but it has to
be proportionate & rational with the loss or injury suffered by you. Always
be reasonable in the amount you want to claim as this will make it easier for
the court to make a finding in your favour.
WHO CAN NOT TAKE
BENEFIT OF CONSUMER PROTECTION ACT
As per definition of “Consumer”, “Goods” and “Services” given in Act,
following cannot take benefit of Consumer Protection Act -
i) Free Goods/Services - Person having Goods/ Services free of cost is
not Consumer and cannot be benefited by this Act.
ii) Reseller - Person Purchaser of Goods for resale cannot take benefit
of this Act.
iii) Commercial Purpose - Person purchasing Goods/ Services for
commercial purpose is also out of preview of this Act.
iv) Personal Services - Definition of Service exclude personal services
also from the preview of this Act. Personal Services means where relation of
Employer-Employee exists. An Employer though paid Employee for his services so
costing to the definition of Consumer he can also be termed as “Consumer” but
definition of “Service” in Consumer Protection Act specifically exclude this
relation out of the definition of Service and thus out of the preview of the
Act.
v) Statutory Services - Through various pronouncements of Supreme Court
and Consumer Courts now it is also clear that various services given by State
i.e. “Registration of Documents”, “Approval of Construction Plan” etc. do not
fall under “Service” as the fees paid for them is not consideration by
statutory levy, so user of such services also cannot take benefit of this Act.
National Consumer Helpline:
At the present
time, economy’s king is to be considered only the consumers. India’s
government had wide range of forum in order to promote and protect the
interests and rights of the consumers in all over the India. Today, there
were lots of forums organized by the India’s government where anyone consumer
can submit their complaints if they were be victim in any of the unfair part or
they were cheated by anyone or more. Government of India has launched the
laws that prevent the consumers from being cheated and fraud by anyone.
To protect all rights of the consumers, on 24th December 1986, a law of Consumer
Protection Act had been launched by the Parliament of the India. By the
15th March 2003, a new version of Act came into existence replacing the old
with more modifications. Government has set the judicial system at
the level of central, district and state for hearing of the grievances and
disputes of the consumers. Presently, about total of 35 State Forums,
Commission Center of National Consumer Redressal and Disputes, total of 629
District Forums are present. In order to report the problems of the consumers,
a 24 x 7 Customer Care Number is provided by the National Consumer Helpline in
order to cure the problem or in order to provide the advice to the consumer
regarding different services like related to water, medical, education,
electricity, courier, telecom, credit cards, LPG, automobiles, banking,
hospitality, telecom, home appliances, postal, and transport etc.
National Consumer Helpline Number:
National Consumer
Helpline Toll free Number: 1800-11-4000 (BSNL/MTNL)
National Consumer
Helpline Number: 011-270065000
National Consumer
Helpline SMS: <Name><city>to
8800939717
“JagoGrahakJago” Scheme of Govt. of India:
The Ministry of
Consumer Affair of India through their Logo “JagoGrahakJago” proved their
contribution to create a hardcore awareness among the people of India for the
rights of the consumers. This campaign enhances the strong awareness
among the people in every part of the country. This campaign proved their
service among the consumers of the India. The Department of Consumer
Affair established a helpline in the campus of the Delhi University by the
India’s Government support in order to get a fund for Welfare of the
Consumers. NCH is one of the helpline for the consumer that solves the
problems of the consumer regarding any transaction, dealing, or other services
on daily basis. One should also contact the National Consumer Helpline in
order to solve any problem regarding consumer affair.
National Consumer helpline Contact
Details:
Address: A Public Service Project of University of Delhi, Department of
Commerce,Delhi School of Economics, University of Delhi, Delhi – 110007
(INDIA)
The main motive of
the Helpline of the National Consumer is to provide the service to the
consumers through guidance, information, and telephonic advice to reorient the
policy of business and address the system of management regarding the
grievances and concerns of the consumers all over the world. There were
different ways to guide and support the consumer’s right like awareness
regarding the responsibilities and rights, solution of problems related to
services and products and also to proved the information regarding the
authorities and companies through which the consumers will be able to file
their problems and their problems will be hear in giving solutions to their
problems. A power is given to the consumers by the National Consumer
Helpline so that they will be aware of the services and get a solution
regarding their redressal and grievances and various consumer courts were
present all over the country.
Consumer Guidance Society
of India (CGSI)
CGSI’s
involvement in consumer education is concentrated in rural areas on the
outskirts of Mumbai and among the urban poor. CGSI first started its rural
project in 1997 and by 1999, its work extended to people from 112 villages. The
following are CGSI’s achievement in consumer education:
- Over
32,000 people received consumer education in two years, through talks,
demonstrations and exhibitions.
- 107
training programmes were organized and 5,700 potential activists were
given special training in consumer activism. This resulted in many local
consumer groups in remote villages, set up by the consumers themselves.
- Due
to its efforts, the Maharashtra Education Board introduced consumer
education at the 9th standard level, progressively covering
students from 4th standard upwards. Consumer education is also
introduced in colleges.
- Consumer
education is also promoted through its monthly magazine. “Keemat” and
consumer guides published by CGSI. It has also printed 85,000 illustrated
brochures in English, Hindi, and Marathi for free distribution.
- Currently
conducting ‘Training
- Provides
training for school and college students in consumer education.
- Conducts
training programme for the urban and rural low income consumers using
creative methods such as games and street plays. The combination of
amusement and instruction as a medium of education often produce
astounding success. Among the topics discussed are:
- Rights
and responsibilities of consumers
- Food
adulteration with simple household tests for detecting common adulterants
- Family
Budget
- Weights
and measures – how the consumer may be tricked by being given short
weight and measure
- Drugs
and cosmetics
- Importance
of breast feeding and the dangers of bottle feeding
- Misleading
advertisement
- Protection
of the Environment
- Rights
of Ration Card Holders
- Complaints
Rederessal and the Consumer Protection Act 1986
COMPLAINT REDRESSAL
CGSI handles consumer
complaints and offers legal guidance to those wishing to file suits in the Consumer
Court. In case where there are a number of complaint against a particular
party, both sides are brought together to resolve the issue. The CGSI'S
Complaints Committee meets twice a week. Many thousands of grievances have been
handled over the years, with 70% success in favor of the complaints cover
medical/surgical malpractice and negligence; insurance non-payment;
sub-standard drugs and medicines; home remedies; defective household
appliances; poor quality foods and drinks; misleading advertising claims; and
grievances concerning investments, real estate, insurance, telephones,
electricity supply, etc.
Following are some of the
landmarks achieved by CGSI:
1.
CGSI is the
earliest consumer organization in India, founded in 1966.
2.
CGSI was the first to demand a Consumer
Protection Act with Consumer Course to implement it. This becomes a reality in
1986.
3.
To date, 70% of the thousands of complaints
referred to CGSI have been redressed.
4.
CGSI established formal Product Testing in India.
5.
CGSI was the first to publish a monthly
magazine "Keemat" carrying information of importance to consumer.
6.
CGSI promotes consumer education; initiates
training projects in rural areas; Promotes publicity drives; represents
consumer interests with Government and other bodies.
7.
CGSI received the National Award for consumer
Protection in 1991.
8.
CGSI is the only Indian consumer organization
to be a council member of Consumer International for 25 years.
9.
CGSI is a member of the Maharashtra State
Consumer Protection Council.
10.
CGSI participates in a large number of
technical committees and government decision-making bodies.
Example:
March – April 2011
CGSI had taken up the issue of high
content of trans-fats in Vanaspati, which is health hazard. The good news is
that many biscuit manufactures have switched over to edible oil instead of
vanaspati in biscuits, in order to comply with “O” (zero) trans-fat
requirements for the export of Indian Biscuit.
Statistical Data:
|
Total
Number of Consumer Complaints Filed / Disposed
|
||||||||||
|
since
inception Under Consumer Protection Law
|
||||||||||
|
(Update on 06.11.2013)
|
||||||||||
|
Sl. No.
|
Name of Agency
|
Cases filed since inception
|
Cases disposed of since inception
|
Cases Pending
|
% of total Disposal
|
Remarks
|
||||
|
1
|
National
Commission
|
83498
|
72955
|
10543
|
87.37%
|
|
||||
|
2
|
State
Commissions
|
618438
|
527615
|
90823
|
85.31%
|
|
||||
|
3
|
District
Forums
|
3338315
|
3077639
|
260676
|
92.19%
|
|
||||
|
|
TOTAL
|
4040251
|
3678209
|
362042
|
91.04%
|
|
|
|||
|
Statement of Cases Filed
/ Disposed of / Pending in
the National Commission and State Commissions |
|||||||||||||
|
(Update
on 06.11.2013)
|
|||||||||||||
|
Sl.
No.
|
Name
of State
|
Cases
filed since inception
|
Cases
disposed of since inception
|
Cases
Pending
|
%
of Disposal
|
As
On
|
|||||||
|
|
National Commission
|
83498
|
72955
|
10543
|
87.37
|
30.09.2013
|
|||||||
|
|
|
|
|
|
|
|
|||||||
|
1
|
Andhra Pradesh
|
29865
|
28613
|
1252
|
95.81
|
30.09.2013
|
|||||||
|
2
|
A & N Islands
|
42
|
38
|
4
|
90.48
|
31.01.2008
|
|||||||
|
3
|
Arunachal Pradesh
|
66
|
63
|
3
|
95.45
|
31.07.2013
|
|||||||
|
4
|
Assam
|
2577
|
1867
|
710
|
72.45
|
31.12.2012
|
|||||||
|
5
|
Bihar
|
15564
|
10943
|
4621
|
70.31
|
31.12.2012
|
|||||||
|
6
|
Chandigarh
|
12646
|
12498
|
148
|
98.83
|
31.07.2013
|
|||||||
|
7
|
Chattisgarh
|
9095
|
8292
|
803
|
91.17
|
30.09.2013
|
|||||||
|
8
|
Daman & Diu and DNH
|
25
|
20
|
5
|
80.00
|
31.03.2011
|
|||||||
|
9
|
Delhi
|
35981
|
33608
|
2373
|
93.40
|
31.08.2013
|
|||||||
|
10
|
Goa
|
2406
|
2355
|
51
|
97.88
|
30.09.2013
|
|||||||
|
11
|
Gujarat
|
46503
|
41766
|
4737
|
89.81
|
30.09.2013
|
|||||||
|
12
|
Haryana
|
43427
|
43232
|
195
|
99.55
|
31.08.2013
|
|||||||
|
13
|
Himachal Pradesh
|
8106
|
7938
|
168
|
97.93
|
31.08.2013
|
|||||||
|
14
|
Jammu & Kashmir
|
6727
|
6170
|
557
|
91.72
|
31.03.2013
|
|||||||
|
15
|
Jharkhand
|
5196
|
4761
|
435
|
91.63
|
30.06.2013
|
|||||||
|
16
|
Karnataka
|
46038
|
42029
|
4009
|
91.29
|
30.09.2013
|
|||||||
|
17
|
Kerala
|
26462
|
24794
|
1668
|
93.70
|
31.08.2013
|
|||||||
|
18
|
Lakshadweep
|
18
|
16
|
2
|
88.89
|
31.08.2013
|
|||||||
|
19
|
Madhya Pradesh
|
43843
|
38210
|
5633
|
87.15
|
30.09.2013
|
|||||||
|
20
|
Maharashtra[1]
|
58904
|
45091
|
13813
|
76.55
|
30.06.2013
|
|||||||
|
21
|
Manipur
|
139
|
96
|
43
|
69.06
|
30.09.2008
|
|||||||
|
22
|
Meghalaya
|
262
|
175
|
87
|
66.79
|
31.10.2012
|
|||||||
|
23
|
Mizoram
|
206
|
196
|
10
|
95.15
|
31.08.2013
|
|||||||
|
24
|
Nagaland
|
25
|
6
|
19
|
24.00
|
31.12.2011
|
|||||||
|
25
|
Odisha
|
22236
|
15965
|
6271
|
71.80
|
31.07.2013
|
|||||||
|
26
|
Puducherry
|
969
|
951
|
18
|
98.14
|
30.09.2013
|
|||||||
|
27
|
Punjab
|
30377
|
24737
|
5640
|
81.43
|
30.06.2013
|
|||||||
|
28
|
Rajasthan[2]
|
52943
|
48349
|
4594
|
91.32
|
31.08.2013
|
|||||||
|
29
|
Sikkim
|
42
|
41
|
1
|
97.62
|
31.12.2012
|
|||||||
|
30
|
Tamil Nadu
|
24809
|
22546
|
2263
|
90.88
|
31.08.2013
|
|||||||
|
31
|
Tripura
|
1508
|
1415
|
93
|
93.83
|
30.09.2013
|
|||||||
|
32
|
Uttar Pradesh[3]
|
69226
|
41126
|
28100
|
59.41
|
31.07.2013
|
|||||||
|
33
|
Uttarakhand
|
4904
|
3985
|
919
|
81.26
|
31.08.2013
|
|||||||
|
34
|
West Bengal[4]
|
17301
|
15723
|
1578
|
90.88
|
31.12.2012
|
|||||||
|
|
TOTAL
|
618438
|
527615
|
90823
|
85.31
|
|
|||||||
|
|
|||||||||||||
Case study:
1.Consumer
forum fines ICICI bank for wrongful delivery of ATM
ICICI bank has been directed by a consumer
forum to pay Rs 20,000 as compensation to one of its consumers whose ATM card
was delivered to a wrong hand, who withdrew money from the account fraudulently
without any information to the user.The ATM card landed at a wrong address and
was used for withdrawing over Rs 48,000 from the savings account of a person,
who was waiting for the same to be delivered at his address.
A District Consumer Disputes Redressal
Forum (Central) gave its ruling in the favour of account holder Datta Ram,
saying that the act of the private bank caused "mental agony and
harassment" to him for its failure to return the money to his account in
spite of information that it was not withdrawn by him using the ATM card.The
consumer forum also held that non-delivery of ATM card and withdrawal of money
from the account of the customer by somebody else amounts to "deficiency
of service" by the bank."The demand of Rs 48,900 from the complainant
and then the act of the bank to withdraw that amount from his saving account
amounts to deficiency in service," B B Chaudhary, President of the Central
Delhi consumer forum, said in the order."On account of the act of the
bank, the complainant had to send legal notice and suffered harassment, pain
and mental agony," the panel said while also awarding him Rs 5,000 towards
litigation charges.
The
complainant had said that on November 15, 2008 he received SMS alert that Rs
48,900 was withdrawn from his savings account through his ATM card and he had
immediately informed the bank that he never received the card and thus he could
not have done the transaction
.
2.
Chandigarh: Waterlogging damages cars, residents win claim
Two Tier
city residents, whose cars got stuck on waterlogged roads during the monsoon,
have got relief through the UT Consumer Disputes Redressal Forums after their
claims were denied by the respective insurance companies.
In the first
case, Harjit Singh, the Proprietor of Kanwar Enterprises in Industrial Area,
Chandigarh, had to knock the doors of the Consumer Forum after the insurance
company denied his claim. Singh told the court that in July 2011, he was going
from Chandigarh to Mohali when he was caught in heavy rain. His car stalled at
the YPS crossing in Mohali. It had to be towed to the workshop the next day.
The AC and
radio of the car were not working. Singh paid a total of Rs 1 lakh
approximately on repair, and submitted the insurance claim to the company.
3.
Mumbai: Consumer forum asks airline to pay Peddar Road resident Rs75,000
A city
consumer forum has directed Kingfisher Airlines to pay Rs75,000 to a Peddar
Road resident for failing to accommodate his family members on another flight
after their flight, for which tickets were booked six months in advance, was
cancelled.
The Mumbai
Suburban District Consumer Disputes Redressal Forum found much substance in the
allegation levelled by Sanjay Banga that the airline had cancelled several
flights during the period in order to compel passengers to purchase new tickets
by paying full ticket amount at the eleventh hour, and thus get rid of tickets
booked in advance at concessional rates.
4.Mumbai:
Pay Rs30k for losing customer’s handset, mobile-maker told
Three years
after Gurav Sharma, a resident of Marol, Andheri (east), lodged a complaint
against Samsung Electronics Private Limited, the District Consumer Forum has
directed the company to pay him Rs30,000 as compensation for failing to repair
his mobile phone.
A division
bench of JL Deshpande and DeepaBidnuskar observed, “It will not suffice to
order the issuing of a new mobile phone, as the complainant must have already
purchased one. But the mental agony and harassment caused to him during the
intervening period without a phone, and the efforts gone into filing the
complaint and following up through a lawyer requires to be compensated.”
5.Delhi:
Discom to pay Rs 10K to woman for inflated bill: Consumer forum
BSES Yamuna
Power Ltd has been asked by a consumer forum here to pay Rs 10,000 to one of
its customers as compensation for “harassing” her by sending an inflated bill
and then disconnecting her electricity supply for not paying it.
The Delhi
District Consumer Disputes Redressal Forum said that the “arbitrary and
illegal” act of the discom of sending an inflated bill of over Rs 81,000 to the
complainant, ZarinaKhatoon, amounts to “deficiency” of service and “illegal
trade practice.”
Summary:
There are three major problems are confronting the consumer in India. The first problem concerns active
functioning of the Consumer Forums throughout the country. Notwithstanding the
fact that these Forums have now been established, by and large, throughout the
country, consumer activists and organizations have been repeatedly voicing
their grievances against the smooth functioning of these Forums. They argue
that these Forums have also started behaving like Civil Courts and are likely
to have mounting arrears soon. In addition, these Forums still lack basic
infrastructural facilities. The members sit only part-time and 90 days
decision- making requirement is not strictly adhered to. There are also ego and
status problems between judicial members and the members with non-judicial
background. Another significant problem is that the stay orders from the High
Courts have begun to hold up a large number of cases filed before the Consumer
Forums, thereby denying the benefits of speedy and inexpensive redressal machinery
promised under the Consumer protection Act, 1986.
The second problem concerns the applicability of the Consumer
protection Act, 1986 to various services. As is evident, ever since the
implementation of the 1986 Act, whereas there has hardly been any significant
case in which the ‘goods’ has been vehemently contested, there is a voluminous
amount of case law which involved determination of the meaning, definition, and
ambit of the term ‘service’. Consumer Protection Act, 1986 Act categorizes certain
specific types of services which include
·
banking
·
financing
·
insurance
·
transport
·
amusement
·
entertainment
The definition of the term ‘service’ had already been kept very wide and
now with the inclusion of the two terms ‘housing and construction’ by the Consumer Protection (Amendment) Act, 1993, it has been further widened.
Only two types of services have been kept out of the ambit of the 1986 Act.
They are services rendered free of charge and services rendered under a
contract of personal service. The non-mentioning of services like education,
health, housing, posts and telegraphs and telecommunications had presumably
given these services an impression of their exclusion from the ambit of this
legislation. At the initial stages, therefore, these services contested the
jurisdiction of the 1986 Act, thereby claiming complete immunity from their
governance by it. The Consumer Forums, however, have appreciably stood the test
of time and have brought all these services within the ambit of the 1986 Act.
Making consumers aware of their rights and taking consumer movement to
the rural India is the third and perhaps the most important problem and a
challenge before the consumer organizations. As is well known, most consumers
are still ignorant of their rights, much less of being assertive about them.
Though the Government appears to be serious of this issue, much however depends
upon the consumer organizations. They have still to cover a very long distance
so far as taking the movement to rural areas is concerned.
We, therefore, concluded that even though the Consumer is in a dominant
position with respect to numerous choices of products and services available in
the market due to fierce competition between the companies, he is still in a
vulnerable position. Consumers as a class can be called as King but an
individual consumer barely enjoys such a status. The king, in this case, is
vulnerable and requires protection form unfair trade practices.
The efficient and effective program of Consumer Protection is of special
significance to all of us because we all are consumers. Even a manufacturer or
provider of a service is a consumer of some other goods or services. If both
the producers/providers and consumers realize the need for co-existence,
adulterated products, spurious goods and other deficiencies in services would
become a thing of the past. The active involvement and participation from all
quarters i.e. the central and state governments, the educational Institutions,
the NGO’s, the print and electronic media and the adoption and observance of a
voluntary code of conduct by the trade and industry and the citizen’s charter
by the service providers is necessary to see that the consumers get their due.
The need of the hour is for total commitment to the consumer cause and social
responsiveness to consumer needs. This should, however, proceed in a harmonious
manner so that our society becomes a better place for all of us to live in.
a) Addition of substances in food material which are injurious to health
or removal of substances which are nutritious to health or by lowering their
quality standards.
b) Improper delivery of after sales services, supply of defective goods,
hidden price component, production of low quality goods in bulk quantities, Use
of deceptive or incorrect rates on products
c) Illegal fixation of Maximum Retail Price (MRP)
d) Selling above the MRP
e) Non-compliance with the terms and conditions of sales and services
f) Supply of false or incomplete information regarding the product
g) Poor customer services
h) Non-fulfillment of guarantee or warrantee
All such issues and problems must be handled more efficiently both at
the Centre and the
State level, with a view to protect the interests of the consumers and
promote their welfare.
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