Cut throat competition between the company/manufacturers in the commercial world, leads to exploitation of consumers. To protect the rights of such consumers, the consumer Protection Act has been enacted/introduced.

1. protection of the interests of consumers

2. establishment of consumer councils and other authorities for the settlement of consumers’ disputes

3. and for incidental matters.

A consumer is any person who buys ‘goods’ for a consideration which he pays or promises to pay or partly pays and partly promises to pay. A consumer also includes a ‘user’ of goods bought other than the person who has paid the consideration for the same. However, a person who buys goods only for the purposes of resale or for commercial purposes is not a consumer.

e.g.

1. A subscriber to a Telephone connection is a consumer. A person using telephone with subscribers approval is a consumer. However, telephone purchased by nursing home has been held as commercial purpose.

2. A railway passenger who bought a ticket is a consumer.

3. A person who has purchased a house from Housing Board is also consumer.

4. Nominee of insurance policy is consumer.

5. Child brought to the hospital and availing medical treatment is a consumer.

6. Taxi purchased for running the business is commercial purpose.

Any person who hires or avails of any ‘services’ for a consideration paid or promised to be paid and the beneficiary of such a person is also a consumer. Thus, a consumer includes a person who avails of both goods and services.

‘Goods’ means and includes every kind of moveable property.

e.g. furniture, books, clothes, pens etc. are all goods.

‘Service’ means a service of any description which is made available to persons desirous of availing them. Services such as banking, financing, insurance, supply of electricity, boarding or lodging or both, entertainment, etc.

Rendering of any service free of charge or under a contract of personal service does not constitute a ‘service’.

Example : Rita is a maid for the D’Souza family. D’Souza family is not a consumer in this respect and Sita does not render ‘service’ as stated above.

When a consumer is dissatisfied with the goods purchased or services availed of by him, he is entitled to file a ‘complaint’.

A ‘complaint’ is an allegation in writing made by a complainant on the ground that :

1. The trader or service provider has adopted an unfair trade practice; or

2. The goods bought by the complainant suffer from a defect; or

3. The services availed of are deficient; or

4. A trader or service provider has charged a price in excess of the price fixed by law or displayed on the goods or agreed between the parties; or

5. The goods or services which are being offered for sale or which are being provided are hazardous (dangerous) to life and safety.

A ‘Complainant’ may be a consumer; a registered voluntary consumer association; the Central or State Government; one or more consumers where there are numerous consumers having the same interest; legal heir of a deceased consumer.

Unfair Trade Practice – is a deceptive practice adopted for the purpose of promoting the sale or use of any goods or services.

Example : Tasty Point (a vegetarian restaurant) falsely represents that it has been awarded the best vegetarian restaurant award, in order to attract more customers, when actually it was not so.

Defect – means any fault or shortcoming in the quality, quantity or standard of goods which is required to be maintained by law or as claimed by the trader.

Drugs and Cosmetics Act, Essential Commodities Act, etc. lay down the standards in terms of quality, quantity, purity etc. of goods covered under respective legislations. If standards are not fulfilled , the goods will be deemed defective.

Deficiency – means any fault or imperfection in the quality, nature or manner of performance which is required by law or undertaken to be performed by any person in relation to any services.

Examples :

1. Any defect in food supplied by Airlines is regarded as deficiency in service.

2. Not providing berth against reserved accommodation is deficiency in the service in respect of Railway.

3. Failure to honour cheque despite sufficient balance in the account is gross negligence on part of the Bank and is a deficiency in service.

Some relevant services are:

It is the responsibility of a courier service company to ensure that the mail/parcel is delivered safely and on time to the addressee. At the time of delivery, it is obligatory on the part of the courier company to take the receiver’s signature/acknowledgment that the mail/parcel has been received.

Example : Mr. Nimesh was sending a sample of certain types paper meant for export to his customer in Sao Paulo Brazil. The said sample was urgently required. He approached Speed Courier Company for delivering the said parcel, who assured him that the parcel would reach within 48 hours. After one week, his customer informed him that the parcel had not arrived. On making inquiries with the courier agency, it was revealed that the parcel was lost. Mr. Nimesh successfully filed a claim for loss of business and damages against the courier company.

Advocates are professionally and ethically bound to protect the interest of their clients and fight for their rights. An advocate cannot make any commitment or waive any right on behalf of his client, unless his client has authorized him to do so. An advocate is not entitled to retain papers of his client if his fees have not been paid. An advocate cannot advise both the parties who are opposing each other at the same time.

Example :

Workers of Mazdoor Union approached Ramanlal (an Advocate) to appear for them against their employers for payment of the unpaid wages since January, 2004. Mr. Ramanlal was explained the finer details of the case and was specifically told that the employers had obtained false receipts from the workers that their wages were paid. When the matter came up for hearing Mr. Ramanlal did not dispute the receipts produced by the advocate for the employers. This resulted in a loss of substantial money to the workers. The workers brought an action against their advocate, which was allowed and Mr. Ramanlal was directed to pay damages to the workers.

Hotels are also a part of the service industry. It is their duty to ensure the care, comfort and safety of their customers. The rooms must be in proper condition. Where (for example) the electrical appliances are not working, the hotel is responsible to have the same repaired or to provide the customer with a new room, without further inconvenience.

Example :

Mr. Raju Singh had booked himself and his family (of four) in Star Hotel, in Bangalore from 1st to 7th of March, 2003. The reservations were made and money was paid in Mumbai, in advance. However, on the desired date when Mr. Raju Singh reached the Hotel, he was informed that the Hotel was fully booked and that there was no reservation in his name. After seeking the advice of his lawyer, Mr. Raju Singh preferred an action against the Hotel. The Hotel was directed to reimburse Mr. Raju Singh (and his family) for the expenses incurred, along with travel costs and damages.

Services rendered to a patient by medical practitioner are covered under the Consumer Act. Husband of Complaint was suffering from a kidney problem and required immediate dialysis and also transplantation of his kidney. Treatment was denied on account of delay in payment of bill, resulting in death of patient. The doctor is guilty of medical negligence.

1. To protect against the marketing of goods and services which are hazardous to life and property.

2. To be informed about the quality, quantity, purity, standard and price of goods or services so as to protect the consumer against Unfair Trade Practices

3. To be assured as well as have access to a variety of goods and services at competitive prices.

4. To seek redressal against unfair trade practices or restrictive trade practices or fraudulent exploitation.

5. Right to consumer education.

• Central Consumer Protection Council – object is to promote and protect the rights of consumers.

• State Consumer Protection Council – to promote and protect within the State the rights of the consumers.

• District Consumer Protection Council. – to promote and protect within the District the rights of the consumers.

1. District Forum, in each district of the State

2. State Commission

3. National Commission

This is the three-tier system for consumer redressal.

The District Forum has jurisdiction to entertain complaints where the value of the goods or services (and compensation, if any) claimed does not exceed Rs. 20 lakhs.

A complaint before the District Forum can be filed where the opposite party or parties are either residing or working within its jurisdiction. When there are more than one opposite parties residing within different districts, the complaint may be filed in the District Forum with its permission or with the consent of the other opposite parties. Lastly, a complaint may also be filed before the Forum within whose jurisdiction the ‘cause of action’ arose in whole or in part. Cause of action means every fact which is necessary to be proved to entitle the complainant to relief.

Example : Suman Singh (staying in Mumbai Central) purchased a washing machine of a reputed brand from an authorized agent in Thane. The head office of the washing machine company is in Flora Fountain, Mumbai. The washing machine stopped working on the third day itself. Suman can file a complaint in the District Forum, either where the washing machine was purchased from (i.e., Thane) or in the Forum within whose jurisdiction the head office of the company is located.

The State Commission will have jurisdiction to entertain complaints where the value of goods or services (including compensation, if any) claimed exceeds Rs. 20 lakhs but is less than Rs. 1 crore. The Commission has jurisdiction to entertain appeals against the District Forum.

The provisions as regards the State Commission before which a complaint can be filed are similar to that of the District Forum.

The National Commission has jurisdiction to entertain complaints where the value of goods or services (and compensation, if any) claimed exceed Rupees one crore. It has the power to call for the case pending before a State Commission, if it feels that the State Commission has failed to exercise its jurisdiction or acted in excess of its jurisdiction or has acted illegally or irregularly.

A person aggrieved by an order of the National Commission can prefer an Appeal to the Supreme Court of India.

1. the Consumer to whom such goods are sold or delivered or agreed to be sold or delivered or such service provided or agreed to be provided.

2. any recognized consumer association whether the consumer to whom goods sold or delivered or agreed to be sold or delivered or any service provided or agreed to be provided is a member of such association or not

3. one or more consumers, where there are numerous consumers having the same interest, with the permission of the District Forum, on behalf of, or for the benefit of all consumers so interested or

4. the Central or State Government, as the case may be either in its individual capacity or as a representative of interests of the consumers in general.

2. every complaint filed shall be accompanied with such amount of fee and payable in such manner as may be prescribed.

3. on receipt of the complaint, the District Forum may by order allow process with the order or reject the same. A complaint shall not be rejected unless opportunity of being heard has been given to the complainant. The Admissibility of the Complaint shall be decided within 21 days from the date on which complaint was received.

4. where a complaint is allowed to be proceeded, the District Forum may proceed in the manner prescribed under the Act. Where a complaint has been admitted by the District Forum, it shall not be transferred to any other court or Tribunal or any authority set up by or any other law for the time being in force.

The District Forum, the State Commission or the National Commission shall not admit any complaint unless it is filed within two years from the date on which the cause of action has arisen, unless the complainant gives sufficient reasons for not filing the complaint within such period.

Where either of the 3 Forums come to a conclusion that the complaint filed is frivolous or where the complainant has come with unclean hands, an order directing the complainant to pay the opposite party a maximum of rupees ten thousand and dismissing the complaint can be passed by them. However, they must record the reasons in writing for the doing so.

Each one of us is a consumer in some form or another. More often than not, we come across either ‘goods’ or ‘services’ in our daily lives. We have a right to quality goods and services and a remedy to enforce the said right in case of any defect or deficiency.

The provisions of Consumer Protection Act are required to applied harmoniously with the provisions of other laws since this Act is in addition to the existing laws. The provisions of this Act do not override the provisions of other laws and they are supplementary in nature. The consumer is at liberty to initiate legal proceedings in a Civil Court of law or elsewhere as permitted.