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

1. TITLE OF THE PAPER:CONSUMER PROTECTION AND LEGAL FRAMEWORK FOR CONSUMER PROTECTION By PROF.CMA.CS. V.N. PARTHIBAN FICWA, ACS, ML, LLM, MBA

2. 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

3. 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

4. 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

5. 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

6. 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.

7. 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.

8. 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.

9. 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

10. 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.

11. 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.

12. LEGAL FRAMEWORK FOR CONSUMER PROTECTION: District Forum State Commission National Commission supreme Court

13. 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.

14. 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

15. 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.

16. 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

17. 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.

18. 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.

19. 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.

20. 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 .

21. THANK YOU