Module-6 BL
Module-6 BL
Module-6 BL
PROTECTION ACT
Consumer Protection Act
• Enacted by the Parliament in 1986
• To provide for better protection of interest
of consumers.
• To make provisions for the establishment
of Consumer Councils and other
authorities for the settlement of consumer
disputes.
Who is a Consumer?
• Consumer is one who
– Buys any goods for a consideration and
includes a hire-purchaser;
– Any user of such goods for consideration but
excludes one, who obtains for re-sale or for
commercial purposes;
– Hires a service for consideration and includes
a beneficiary of such service, if availed of with
the approval of the hirer.
What is a Complaint?
• An allegation in writing by a complainant that:
– An unfair or restrictive trade practice is practised by
trader or service provider
– Goods bought or to be bought or services hired or to
be hired suffered from any deficiency
– Trader or service provider has charged excess price
– Goods and services are hazardous or are likely to be
hazardous to life and safety.
Who is a complainant?
• A consumer
• Any voluntary consumer association registered
under the Companies Act or any other law
• Central or State Government, if it makes a
complaint
• One or more consumers having same interest
• In case of death of a consumer, his legal heir or
representative.
Different redressal forums for
consumers
• Central Consumer Protection Council
– to be established by Central Government
• State Consumer Protection Council
– to be established by State Government
• District Consumer Protection Council
– to be established by State Government for
every district
Consumer Dispute Redressal
Machinery
• There are Consumer Fora at the District,
State and National level
– District Forum – At the District level
– State Commission – At the State level
– National Commission – At the National level
FILING OF COMPLAINTS
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Disposal of disputes
• District Forum may
– ask the opposite party to remove the defect,
– replace the goods with new goods and free from defect
– to return to the complainant the price of goods or
– to pay any amount as compensation
• Appeals to be preferred within thirty days
– from the order of the District Forum to the State Commission and
– from the order of the State Commission to the National
Commission
• Can entertain appeals beyond thirty days
– on sufficient cause shown for the delay
It has to be disposed within ninety days from its
admission.
Time Limit for filing complaint
• Within two years from the date on which
the cause of action arises
• Even where the time limit expires, the
complaint can be taken up
– provided complainant is able to satisfy the
Forum or Commission about the
reasonableness in the delay
• The delay for every single day has to be
explained.
What are the rights of a
‘consumer’?
– Protection from hazardous goods and
services
– Information about the quality, quantity, purity,
standard and price
– Access to a variety of goods and services at
competitive prices.
– Assurance that his interest will be considered
at appropriate fora
– The right to consumer education
WHAT IS A TORT?
• A tort is a civil wrong
• That (wrong) is based a breach of a duty
imposed by law
• Which (breach) gives rise to a (personal)
civil right of action for for a remedy not
exclusive to another area of law
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Application of Tortuous
liability in business situations
• Loss distribution/adjustment: shifting
losses from victims to perpetrators
• Compensation: Through the award of
(pecuniary) damages
– The object of compensation is to place
the victim in the position he/she was
before the tort was committed.
• Punishment: through exemplary or
punitive damages. This is a secondary
aim.
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