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Consumer Protection

The document discusses consumer protection laws in India, focusing on the Consumer Protection Act of 1986 and its replacement by the Consumer Protection Act of 2019. It outlines the rights of consumers, the role of redressal agencies, and landmark judgments that have shaped consumer rights. The conclusion emphasizes the importance of ongoing recognition and expansion of consumer rights within a comprehensive legal framework.

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0% found this document useful (0 votes)
8 views

Consumer Protection

The document discusses consumer protection laws in India, focusing on the Consumer Protection Act of 1986 and its replacement by the Consumer Protection Act of 2019. It outlines the rights of consumers, the role of redressal agencies, and landmark judgments that have shaped consumer rights. The conclusion emphasizes the importance of ongoing recognition and expansion of consumer rights within a comprehensive legal framework.

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ashlynjain2606
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You are on page 1/ 23

A STUDY ON

CONSUMER
PROTECTION LAWS
Law Of Torts
SUBMITTED
TO: MS DISHA KHULLAR
BY: ASHLYN JAIN
B. COM LLB
1st semester
2251
SYNOPSIS
•Consumer
•Why Protect the consumers?
•Consumer Protection Act, 1986
•Consumer Protection Act, 2019
•Comparison
•Section 2 (1) (d)
•Rights of consumer
•Redressal Agency
•Consumer Protection around the
world
•Landmark Judgements
Who is a consumer?
• Any person who buys any commodity or
service or is a user of such commodity or
service is known as consumer.
• Any person must satisfy two conditions to
claim himself as a consumer :-
1) The service must have been rendered to
him
2) He must have paid or promised to pay for
the same.
• If any person buy capital goods to provide
services to other individuals, then he is also
Why protect the consumers?
Reason for Enacting the Act--
• Doctrine of Caveat Emptor -This implies that
the responsibility of identifying goods and finding
defects with them lies with buyer.
• Collective Bargaining- Sellers Lobby; Forming
cartels; Artificially keeping prices high!!!!
• Multiple Laws- India Contract Act; Sale of Goods
Act; Essential Commodities Act
• Hurdles in the Litigation - Going to regular
court; Expensive & Time Consuming
• Remedy- Punishment in the form of Punitive &
Deterrent measure
Consumer Protection Act,1986

• In order to provide for better


protection of the interests of the
consumer the Consumer Protection
Bill, .1986 was introduced in the Lok
Sabha on 5th December, 1986.
• The Consumer Protection Act 1986
is a social welfare legislation which
was enacted as a result of widespread
consumer protection movement.
Objective of CPA

•The main objective of CPA is to


provide speedy and simple redressal to
consumer disputes.
•It is one of the benevolent pieces of
legislation intended to protect the
consumers at large from exploitation.
CONSUMER PROTECTION ACT
2019
The Consumer Protection Act, 2019 (the Act)
received the President's assent on 9 August
2019 which has replaced the Consumer
Protection Act, 1986. The Act aims at
protecting and strengthening the rights of
the consumers by establishing authorities,
imposing strict liabilities and penalties on
product manufacturers, electronic service
providers, misleading advertisers, and by
providing additional settlement of consumer
disputes through mediation.
Who is a Consumer? Sec. 2 (1)
(d)

Any person who:


• Buys any goods for a consideration
which has been paid or will be paid.
• Hires or avails any service for a
consideration which has been paid or
will be paid.
• It does not include a person who
obtains goods for resale or any
commercial purpose.
Rights of Consumer
Right to
Safety

Right to
Right to be
Consumer
Heard
Education

Rights of
Consumer

Right to Right to be
Redressal Informed

Rights of
Consumer
Redressal Agency
District Forum

State Commission

National
Commission.
District Forum
• It shall consist of a person who is or has
been or is qualified to be a District Judge as
its President,2 other members, one of whom
shall be a woman.
• Every member of the District Forum shall
hold office for a term of 5 years or up to the
age of 65 years which ever is earlier.
• It shall have jurisdiction to entertain
complaints where the value of the goods or
services and the compensation, if any,
claimed does not exceed Rs.20 Lacs
State Commission
•It is established by SG by notification .
•It shall have jurisdiction to entertain
complaints where the value of the goods or
services and compensation, if any, claimed
exceeds Rs. 20 Lacs but does not exceed
Rs.1 Crore and appeals against the orders of
any District Forum within the State.
National Commission
• It shall consist of a person who is or has
been a Judge of the Supreme Court, as its
President. Not less than 4 and not more than
such number of members as may be
prescribed and one of whom shall be a
woman
• Every member of the National commission
shall hold office for a term of 5 years or up to
the age of 70 years which ever is earlier.
• It shall have jurisdiction to entertain
complaints where the value of the goods or
services and compensation, if any, the claim
Consumer protection around
the world

Organisation for economic Co-operation and


Development (OECD).
The OECD mission is to promote policies that will
improve the economic and social well-being of
people around the world. The OECD provides a
forum in which governments can work together to
share experiences and seek solutions to common
problems. It works with governments to understand
what drives economic, social and environmental
change.The OECD addresses a wide range of issues
relevant for consumers, in particular through its
Committee on Consumer Policy (CCP).
Objective are:

• Providing consumers with


proper information and redress;
• Stopping rogue traders and
unfair commercial practices
•Ensuring that only safe
products are placed in the
market.
•Landmark Judgments
•Manjeet Singh Vs. National Insurance Company Ltd. &
Anr
• National Insurance Company Ltd. Vs. Hindustan
Safety Glass Works Ltd. &Anr.
•V.N. Shrikhande Vs. Anita Sena Fernandes.
•Nizam Institute of Medical Sciences v Prasanth S.
Dhananka, & Anr.
•Nandan Biomatrix v. S. Ambika Devi
•Lilavati Kirtilal Mehta Medical Trust v. Unique Shanti
Developers andOrs. 24
•Singhal Maternity and Medical Centre, Uttar Pradesh
and others v. Nishant Verma S/o Bijendra Singh Verma
and others.
•Godfrey Phillips India Ltd. v. Ajay Kumar
CASES EXPLIANED:
Nandan Biomatrix v. S. Ambika Devi

Facts:
The Complainant (respondent herein) entered into an
agreement with the Appellant to buyback safed musli,
a medicinal crop. Accordingly, she purchased 750 kgs
of wet musli from the Appellant and cultivated the
same. The Appellant was to buy back the produce at
minimum price from the respondent. The Appellant
failed to buy back her produce which led to destruction
of a greater part of the crop.
Issue:
Whether the Respondent is a "consumer" within the
meaning of the Consumer Protection Act, 1986?
Decision:

The NCDRC held that the Respondent was a


"consumer" within the meaning of Section 2(1)(d) of
the 1986 Act it held that the covenants entered into
between the parties were in the nature of both sale
of product and rendering of service, since the
Appellant had agreed to provide wet mush for
growing for the Respondent. Further, we cannot say
that the agreement was entered into for a
commercial purpose because the Respondent had
started cultivation of mulsi for cking our a livelihood
for herself. Thus, when a farmer purchases goods or
avails services in order to grow produce in order to
eke out a livelihood, the fact that the said produce is
being sold back to the seller or service provider or to
a third party cannot stand in the way of the farmer
Nizam Institute of Medical Sciences v Prasanth S.
Dhananka, (2009) 6 SCC 1: (2009) 4 All LJ 549: (2009) 2 CPJ
61 (SC): 2009 Cri LJ 3102: (2009) 3 CPR 81 (SC): (2009) 2
SCC (Civ) 688: MANU/SC/0803/ 2009
Facts:
This consumer protect act case arises out of a complaint of
medical negligence where a 20-year-old engineering student
was admitted to the Nizam Institute of Medical Sciences
(NIMS) after he complaint about the acute chest pain. After
several tests and x-rays, a tumor was revealed. Though, it
could not be diagnosed whether the tumor was malignant or
not, therefore, the patient was advised to undergo surgical
removal of the same. After the surgery, the patient developed
paralysis. There was a complete loss of control over the lower
limbs. and other related complications also raised leading to
urinary tract infections, bedsores, etc. The family of the
patient held NIMS and the State of Andhra Pradesh statutorily
liable (being a government hospital) liable for this utmost
negligence. Family also claimed that no pre-operative tests
conducted, no neurosurgeon was present during operation.
Consent was only taken for the tumor excision, but the doctors
also removed ribs, tumor mass and destroyed blood vessels
Judgment:

Based on the evidence, Supreme Court


held that a huge negligence was made out
on the part of doctors and the hospital.
Hence, the court awarded damages worth
Rs. 1 crore to compensate present and
prospective medical expenses and
suffering of life.
CONCLUSION
It is clear that there is a growing recognition and
expansion of consumer rights along with changes in
various sectors of our society. Across sectors,
landmark judgements are given in the favour of
consumers, which ensure that there is a greater
obligation to provide high quality goods and services
in all aspects of the activity.

Legislations like the Consumer Protection Act, 2019


are only a single step in the development of a robust,
comprehensive and efficient framework for the
purpose of identification and resolution of consumer
disputes. The Act aimed to provide for the protection
of the interest of the consumer through

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