The Power of One Voice- The Consumers Voice

o Musician Dave Carroll said his guitar was broken while in United Airlines' custody. He alleged that he heard a fellow passenger exclaim that baggage

handlers on the tarmac at Chicago's O'Hare International Airport were

throwing guitars during a layover on his flight from Halifax Stanfield International Airport to Omaha, Nebraska's Eppley Airfield. o He arrived at his destination to discover that his $3,500 Taylor guitar was severely damaged. Carroll filed a claim with United Airlines which informed

him that he was ineligible for compensation because he had failed to make
the claim within its stipulated "standard 24-hour timeframe.

CONSUMER PROTECTION ACT, 1986

o It aims at providing better protection of the interests of the consumers. o Act applies to whole of India except Jammu and Kashmir. o The Act applies to all goods and services unless expressly exempted by the

Central Government by notification.

SALIENT FEATURES OF CPA

o The Right to Safety - The right to be protected against marketing of goods
and services, which are hazardous to life and property. o The Right to be Informed - The right to be informed about the quality, quantity, purity, standard and price of the goods or services so as to protect consumers against unfair trade practice. o The Right to Choose - The right to be assured access to a variety of goods and services at competitive prices.

SALIENT FEATURES OF CPA

o The Right to be Heard -The right to be heard and to be assured that consumers interests will receive due consideration at appropriate authority. o The Right to Redress - The right to seek redressal against unfair trade practices or restrictive trade practices or unscrupulous exploitation of consumers. o The Right to Consumer Education - The right to acquire the knowledge and skills to

be an informed consumer.
o The Right to Healthy Environment- The right to healthy immediate surroundings

and protection against hazardous waste, misuse of pesticides/chemicals.

Basic Definitions as Per Law

WHO IS A CONSUMER ?

Any person who buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred

payment.
o Any person who hires or avails of any services for a consideration which has

been paid or promised or partly paid and partly promised, or under any
system of deferred payment.

WHAT IS A COMPLAINT?
Any allegation in writing made by complainant. o o o An unfair trade practice or a restrictive trade practice has been adopted by any trader or service provider The services hired or availed of or agreed to be hired or availed off by him suffer from deficiency in any respect. The goods bought by him or agreed to be bought by him suffer from one or more defects

WHAT IS A DEFECT ?
Defect is a
o o Fault Imperfection In the o o o o Quality Quantity Potency Purity

Shortcoming

Standards

FILING OF COMPLAINTS
A complaint may be filed by o The consumer to whom the goods are sold or services are provided

o
o o

Any recognized consumer association

One or more consumers with same interest The central government or state government

JURISDICTION
Forum / Commission District Forum State Commission Where the value of the goods or services and the compensation, if any claimed, Does not exceed Rs. 20 lakhs Rs. 20 lakhs and above but not exceeding One Crore Above One Crore

National Commission

FEES FOR FILING OF COMPLAINTS

Sr. No. Value of Goods / Service and Compensation Amount of Fees

1)

Up to Rs. 1 lakh rupees

Rs. 100

2)

Rs. 1 Lakh and above but less than Rs.5 lakhs

Rs. 200

3)

Rs. 5 Lakhs and above but less than Rs. 10 lakhs

Rs. 400

4)

Rs. 10 lakhs and above but less than Rs. 20 lakhs

Rs. 500

MODE FOR FILING A COMPLAINT

o In person
o Through agent/lawyer o By Registered Post A.D.

APPEAL

o Shall be filed within thirty days. o Delay in filing appeal may be disregarded if there is sufficient cause. o The grievance must be filled with any of the redressal forums within two years

from the date on which the cause of action has arisen.

PENALTIES
o Punishable with imprisonment for a term which shall not be less than one

month but which may extend to three years

o Fine which shall not be less than two thousand rupees but which may

extend to ten thousand rupees

o Or with both.

Cases of violation of Consumer Rights

Ms. Anamika Singh Vs. RICM Institute, Chandigarh

Introduction:
o The students led, by Anamika Singh, who had undergone the Post-Graduate Diploma in

Management in the 2010-12 session from the institute had filed a complaint before the
district forum alleging that the RICM (Regional Institute of Co-operative Management, Chandigarh) had wrongly represented that its diploma was equivalent to Master of Business

Administration and recognized by the Association of Indian Universities for that. The students
sought refund of the fees and compensation for loss of opportunity and time. o Deepak Aggarwal, counsel for the students, contended that they could not apply for further studies due to the wrong information.

Ms. Anamika Singh Vs. RICM Institute, Chandigarh

Objection: o Pankaj Chandgothia, counsel for the institute objected that the diploma was duly

recognized by the AICTE, which was the only mandatory recognition required under
law. Therefore, the diploma was valid but the additional benefit of MBA equivalence was not available.

Ms. Anamika Singh Vs. RICM Institute, Chandigarh

Conclusion: o The district forum agreed with the contention of college counsel and declined the

prayer for refund but awarded 1 lakh to each student as compensation for the
wrong claim of MBA equivalence.

o The students filed an appeal before the state commission, which modified the order
and directed the Regional Institute of Co-operative Management to shell out over Rs. 38 lakh to its seven former students who were wrongly told that the institutes diploma was equivalent to an MBA.

Vimal Chaudhary Vs. McDonald's India

Facts: Delhi resident Vimal Chaudhary alleged that she ordered for two vegetarian burgers, but she was delivered one non-vegetarian and one vegetarian burgers. She said that she realized it was a non-veg burger only after eating half of it and thereafter, she started vomiting. The woman also alleged that being an Arya Samaj follower and a Hindu, eating the nonvegetarian food hurt her emotionally and she also suffered religiously.

Vimal Chaudhary Vs. McDonald's India

Objection: In its defense, the McDonald's had contended that the woman had wilfully accepted the non-veg burger instead of the vegetarian one ordered by her.

Decision:
The South West District Consumer Disputes Redressal Forum said, "By delivering her a nonvegetarian burger instead of the vegetarian burger ordered by her is a gross negligence on the part of the delivery-crew-member, whose conduct is tantamount to deficiency-in-service. "Allowing the complaint, we direct the opposite party (McDonald's) to pay to the complainant Rs.

10,000 as compensation and Rs. 5,000 as cost of litigation,"

Mr. Raghuvanshi Vs. Meridian Mobile Pvt. Ltd.

Introduction: o In September 2008, Mr. Ravindra Raghuvanshi resident of Mira Road, Kalyan purchased a Fly mobile handset from Big Bazaar for 8,900. o This case was against the New Delhi-based phone manufacturer Meridian Mobile Pvt. Ltd and the mobile phone dealer i.e. Big Bazaar.

Mr. Raghuvanshi Vs. Meridian Mobile Pvt. Ltd.

Complaint at Thane District Consumer Redressal Forum: o The complainant said, within a couple of weeks, the mobile started giving problems

and was sent to the company's authorized service center who returned it after repairs.
However, in December 2008, it again stopped functioning and was again given to the service center. o Raghuvanshi told the forum that this time the service agent neither returned the mobile, nor did he tell him as to when it would be available. He also said that due to these problems, he suffered losses in his business.

Mr. Raghuvanshi Vs. Meridian Mobile Pvt. Ltd.

Objection: o The mobile company and the dealer objected to his claim and contended that the he had used the mobile for his business and so, he does not fall under the category of customer and cannot be covered under the Consumer Protection Act.

Mr. Raghuvanshi Vs. Meridian Mobile Pvt. Ltd.

Conclusion: o The forum said that the respondents were "deficient in their services" and had

supplied a "defective" mobile to the consumer and ordered them to pay Rs 8,900
towards the cost of the mobile, with an interest of 12% from the date of purchase within a period of three months from the date of the order, failing which they have to pay an interest at the rate of 15% per annum. o An additional amount of Rs 10,000 was also paid to Raghuvanshi towards his legal expenses.

M/s. India Photographic Co. Ltd. Vs. H.D. Shourie

Facts: The Respondent, a consumer, had complained against the Appellant since the Appellant, who was selling films as representative of Kodak, was selling Kodak films without price printed on it. Issue raised: Whether any rule nor any statute mandated or cast upon the dealers an obligation to exhibit /publish or print the price on the films rolls being imported and sold in India by

its distributor.

M/s. India Photographic Co. Ltd. Vs. H.D. Shourie

Decision:
The Supreme Court upheld the decision of the National Consumers Disputes Redressal Commission and said that accepting the plea of the dealer would frustrate the provisions and object of the Consumer Protection Act and thereby, encourage the retailers or distributors of foreign made goods to charge prices according to their convenience

without letting the consumer know the actual price of the commodity. Accordingly, it
held that dealers are also obliged to display the price. It also held that neither manufacturer nor distributor nor retailer could escape the liability of complying with provisions of Rule 6, i.e. making of mandatory declarations on a package.

Government Campaign For Consumer Awareness

JAGO GRAHAK JAGO

o Under this initiative, the department of consumer affairs has tried to reach consumers through print advertisements, TV and Radio ads. o The government has intensified its consumer education initiatives by highlighting issues such as maximum retail price (MRP), labelling & standardization and hallmarking. o The National Consumer Helpline empowers consumers from all over the country to dial the toll-free number 1800-11-4000 and seek telephonic counselling.

Consumer Protection Groups in India

o CAI (Consumers Association of India) o AKHIL BHARTIYA UPBHOKTA UTHAN SANGATHAN (AICPO) o CAG (Citizen consumer and Civic action group) o CERC (Consumer Education and Research Centre) o FEDCOT (Federation of Consumer Organisations in Tamil Nadu) o CUTS (Consumer Unity of Trust Society) o Mumbai Grahak Panchayat o SMN Consumer Protection Council

Consumer Related Laws

STANDARDS OF WEIGHT AND MEASURES ACT 1976

Provisions Under This Act: o Provides to prescribe specification of measuring instruments used in commercial transaction, industrial production an measurement involved in public Health and Human safety. The specifications are given in the Standard of weights and Measures (General) Rules 1987.
Unit Mass Length Area Capacity Abbreviation Kilogram (kg), milligram (mg) gram (g),

Metre (m), centimetre (cm), milli metere (mm) Square metre (m2) Kilo litre (kl), litre (l or L), milli litre (ml)

Temperature Degree Celsius (C) of Degree Kelvin (K) Volume Cubic metre (m3), Cubic Centimetre (cm3) cubic milli metre (mm3)

STANDARDS OF WEIGHT AND MEASURES ACT 1976

o Regulation of inter-state trade and commerce in weights and measures and commodities sold, distributed or supplied by weights or measures;
o Regulation of pre-packed commodities sold or intended to be sold in the course of inter-state and commerce; o Approval (before manufacture) of models of weights and measuring instrument intended to be manufactured after the commencement of the proposed legislation;

o Control and regulation of export and import of weights and measures and commodities in packaged form;
o Establishment of an Indian Institute of Legal Metrology to provide training in legal metrology to inspectors and others;

STANDARDS OF WEIGHT AND MEASURES ACT 1976

o Surveys and collection of statistics for facilitating planning and enforcement of the proposed legislation. o Inspection of weighing and measuring instruments during their use to prevent fraudulent practices. o Powers of inspectors to search, seize and forfeiture of non-standard weight or measure o Power to file case in the court for prosecution

State of Maharashtra Vs. Subhash Arjundas Kataria

Facts:
The Inspector of Metrology (one of the Appellant's) had visited the Respondent's store

and seized some Sun glasses. Despite a satisfactory explanation, the Inspector seized the
sun glasses for allegedly not declaring name and address of the manufacturer/month and year of manufacturing which is in violation of provisions of the Act and the Rules. Issue raised: Whether sun glasses can be considered "pre-packed commodity" under Rule 2(l) of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977.

State of Maharashtra Vs. Subhash Arjundas Kataria

Decision: The Supreme Court said that the expression "pre-packed commodity" would be applicable to commodities which are packed and the commodity packaged has a predetermined value and that value cannot be altered without the package sold being opened at the time of sale or the product undergoes a modification on being opened.

The sun glasses are tested by the buyer for his suitability only, and therefore, sun glasses,
whether it be a frame or glass is not a pre-packed commodity within the definition of the expression "pre-packed" under Rule 2(l) of the Act.

HIRE PURCHASE ACT, 1972

HIRE PURCHASE AGREEMENT : o An agreement under which the goods are let on hire and under which the hirer has an option to purchase them in accordance with the terms of agreement and includes an agreement under which o Possession of goods is delivered by owner thereof to a person on condition that such persons pay the amount in periodical installments. o The property in the goods is to pass to such a person on the payment of last of such installments

o Such a person has right to terminate the agreement at any time before the property so passes

RIGHTS AND DUTIES OF HIRER

RIGHTS DUTIES

o Purchase with rebate

o Terminate agreement

o Pay on time
o Care of goods

o Appropriate payments
o Assign and transmit o Refund on seizure of goods

o No unauthorized use
o Provide information

RIGHTS AND DUTIES OF OWNER

RIGHTS DUTIES

o Terminate agreement on payment

default

o Provide copy of contract

o Give hirer information of installments

o Terminate agreement on unauthorized

use o Right on termination o Seizure of goods

K.L. Johar and Company vs Deputy Commercial Tax Officer

o K.L. Johar was the financer for the hire-purchase agreements of a Motor dealer. o The sales tax authorities impose sales tax on him for the vehicles under hire-purchase agreements financed by him. o K.L. Johar appealed in Supreme court after the assessment in Madras High Court failed.

K.L. Johar and Company vs Deputy Commercial Tax Officer

K.L. Johar

K.L. Johar is paying for full amount instead of purchaser

Loan Agreement of paying periodic installments

Motor Dealer

Purchaser under hire purchase

Hire-Purchase agreement

K.L. Johar and Company vs Deputy Commercial Tax Officer

K.L. Johar

Transfer of Ownership on day of Hire-Purchase agreement

Transfer of ownership on last installment

Motor Dealer

Purchaser under hire purchase

Hire-Purchase agreement

Drugs and Cosmetics Act ,1940

o Prohibition of manufacture and sale or certain drugs and cosmetics o Appointment and Powers of Inspectors o Ban of following quality of Drugs and Cosmetics : (a) Misbranded Drugs and Cosmetics (b) Spurious Drugs and Cosmetics (c) Adulterated Drugs

Misbranded drugs and Cosmetics

o If it is so coloured, coated, powdered or polished that damage is concealed or if it is made to appear of better or greater therapeutic value than it really is

o If it is not labelled in the prescribed manner

o If its label or container or anything accompanying the drug bears any statement,

design or device which makes any false claim for the drug or which is false or
misleading in any particular.

Spurious drugs and Cosmetics

o If it is manufactured under a name which belongs to another drug o If it is an imitation of another drug o If the label or container bears the name of an individual or company is fictitious or does not exist o If it has been substituted wholly or in part by another drug or substance o If it purports to be the product of a manufacturer of whom it is not truly a product.

Adulterated Drugs
o If it consists in whole or in part, of any filthy, putrid or decomposed substance
o If it has been prepared, packed or stored under unsanitary conditions whereby it may

have been contaminated with filth or whereby it may have been rendered injurious to
health o If its container is composed, in whole or in part, of any poisonous or deleterious substance which may render the contents injurious to health o If it bears or contains, for purposes of colouring only, a colour other than one which is prescribed

State Drugs and Cosmetics Cell vs Cipla Case

o As part of their routine process, state drug inspectors collect random samples from
the market to test for safety and efficacy. o The drug samples were picked up from Sikkim by the states Drugs and Cosmetics Cell. o During testing, some batches of these drug failed to qualify the dissolution test o Which indicated that samples of Ciplas Ibugesic 200 and 400, both manufactured by Ciplas Kumrek unit in East Sikkim, were of substandard quality o Till last news DCGI office is contemplating the penalty, which will be in line with the provisions of the Drugs and Cosmetics Act.

Thank You!!!