Module V: Consumer Protection Act 1986

RIGHTS AND DUTIES OF THE CONSUMER

TRIBUNAL FORUMS AND APPELLATE AUTHORITIES AN UNDERSTANDING OF SIGNIFICANT CASES AND ROLE OF NGOS.

GULLIBLE!!!!

OBJECTIVES

The objects of this Act are as follows Better protection of interests of consumers. Protection of rights of consumers. Consumer protection councils. Speedy Redressal of Consumer Disputes.

1. 2. 3. 4.

CONSUMER

According to section 2(d) of the Consumer Protection Act 1986 consumer means -Any person who buys or hires any goods or service is a consumer except if he uses such goods or service for commercial purpose. or if the goods/service provided is free of cost, the person shall not be considered a consumer. TWO-THIRDS of spending in the world economy ($ 30 trillion) is by consumers. YET THEY HAVE NO VOICE!

WHAT IS A SERVICE?
Service means service of any description, which is made available to potential users and includes, but not limited to the provisions of the facilities in connection with 1) banking 2) financing 3) insurance 4) transport 5) processing 6) supply of electrical or other energy 7) boarding or lodging or both 8) house construction 9) entertainment 10) amusement But does not include the rendering of any service free of charge or under a contract of personal service

CONSUMER RIGHTS
Rights 1 to 6 are directly guaranteed under the Consumer Protection Act 1986 while Rights 7&8 are implied under the Constitution of India.
1. Right to safety

Right to be protected against marketing of goods or services which are hazardous to life and property. 2. Right to information Right to be informed about the quality, quantity, potency, purity, standard and price of goods or services as the case may be, so as to protect the consumer against unfair trade practices.

3. Right to choose Right to be assured, wherever possible, access to a variety of goods and services at competitive prices. 4. Right to be heard Right to be heard and to be assured that consumers interest will receive due consideration at appropriate fora. 5. Right to redressal Right to seek redressal against Unfair Trade Practices or Restrictive Trade Practices or unscrupulous exploitation of consumers.

6. Right to consumer education Right to acquire knowledge and skills needed for taking action to influence factors which affect consumer decisions. 7. Right to Healthy Environment The right to physical environment that will enhance the quality of life. It includes protection against environmental dangers over which the individual has no control. It acknowledges the need to protect and improve the environment for present and future generations. 8. Right to basic needs Right to basic needs ensures basic goods and services which guarantee survival. It includes adequate food, clothing, shelter, health care,

DUTIES/RESPONSIBILITIES OF CONSUMER
1. WHILE BUYING Asking for demonstration regarding how to operate / use the product/service Enquiring about after-sales service and ensuring availability, phone number, address and e.mail of service center Reading and knowing the contents of guarantee / warranty card Insisting for approved sale bill with serial number, address, phone number, etc. Obtaining guarantee / warranty card and getting it signed/sealed by dealer

2. AFTER BUYING Using products as per instruction given in user manual Keeping bills and guarantee card safely In case of fault inform dealer and service center. Do not meddle or repair yourself Keeping record of all correspondences Seek immediate redressal of deficiency in product

CONSUMER DISPUTE REDRESSAL AGENCIES

1)

A Consumer Dispute Redressal Forum at the District level.

2)

A Consumer Dispute Redressal Commission at the State level.

3)

A National Consumer Dispute Redressal Commission at national level.

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

National Commission

Above One Crore

Besides, State and National Commission have appellate jurisdiction also ie. Appeal from Forum to State Commission, and then from State Commission to National Commission
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IMPORTANT CASES
Medical Profession: Indian Medical Association Vs V.P. Shantha and Others
Was argued that the doctor-patient relationship is similar to master servant relationship, which is a contract of personal service that should be exempted from CPA. But the NCDRCs order decreed that the doctor patient relationship is a contract for personal service and it is not master servant relationship. It is also said that the doctor is an independent contractor and the doctor, like the servant, is hired to perform a specific task. However, the master or principal (the hirer) is allowed to direct only what is to be done, and when. The how is left up to the specific discretion of the independent contractor (doctor). So, the doctor-patient relationship, cannot be excluded from CPA.

As a result of this judgment, medical profession has been brought under the Section 2(1) (o) of CPA, 1986 and also, it has included the following categories of doctors/hospitals under this Section: 1. All medical / dental practitioners doing independent medical / dental practice unless rendering only free service. 2. Private hospitals charging all patients. 3. All hospitals having free as well as paying patients and all the paying and free category patients receiving treatment in such hospitals. 4. Medical / dental practitioners and hospitals paid by an insurance firm for the treatment of a client or an employment for that of an employee.

BANKING INDUSTRY

In State Bank of India v. Raveendran Nair ,the National Consumer Dispute Redressal Commission observed that a bank draft was refused to be honoured since the signature of one of the two officials was missing. According to the Commission, the same was due to the fault of the bank officials themselves and therefore amounted to a deficiency of services rendered by the bank. A sum of Rs.19, 500/- was awarded as compensation on the grounds of mental agony and inconvenience caused. Likewise, in the case of Malti Bhat v. State Bank of India , issuance of an unsigned demand draft by the bank which resulted in depriving the candidate from appearing in an examination was held to be a case of deficiency of services rendered and was thus awarded

Dishonouring a cheque on vague and ambiguous grounds resulting in the account holder facing criminal charges would also amount to a deficiency of services provided by the bank as held in Manager, North Malabar Gramin Bank vs .M.Balakrishnan .

ROLE OF NGOS AND OTHER CONSUMER RIGHTS BODIES

There are several NGOs and other Institutions that take up the Case of the Consumers who cannot either afford to fight or are not aware of their Rights and to create more awareness. Eg. Consumer Education and Research Centre (CERC), Ahmedabad They can also file cases in the Consumer Fora as an Exception to the Rule that Only that person can file a case whose