Amity School of Business BBA (GEN), IMBA- III Semester Module-V CONSUMER PROTECTION ACT, 1986 Swati Mittal 1
Amity School of Business BRIEF HISTORICAL BACKGROUND · Scenario in early 70 s & 80 s · Existing laws providing consumer protection · Shortcomings of such Laws 2
UN GUIDELINES FOR THE CONSUMER Amity School of Business PROTECTION · Protect from hazard to health & safety; · Promote & protect economic interests; · Provide adequate information for informed choice; · Consumer education; · Provide effective redress—formal and informal procedures; · Freedom to form groups & present views in decisionmaking affecting consumers; 3
THE CONSUMER PROTECTION ACT, Amity School of Business 1986 (ACT) • Applicability • Amendments – Amendments in the year 1993 – Amendments in the year 2002 4
WHO IS A CONSUMER? School of Business Amity • Two kinds of consumer under the Act – Consumer of goods • buys or agrees to buy goods • any user of such goods – Consumer of services • hires or avails any services • any beneficiary of such service 5
CONSUMERS NEED PROTECTIONBusiness Amity School of AGAINST • Unfair trade practice • Restrictive trade practice • Defects • Deficiencies 6
Amity CONSUMERS NEED PROTECTION School of Business AGAINST UNFAIR TRADE PRACTICE Ø Adopting unfair methods or deception to promote sale, use or supply of goods or services e. g. Ø Misleading public about price (e. g. bargain price when it is not so). Ø Charging above MRP printed. Ø Misleading public about aother’s goods or services. Ø Falsely claiming a sponsorship, approval or affiliation. Ø Offering misleading warranty or guarantee. 7
CONSUMERS NEED PROTECTIONBusiness Amity School of AGAINST RESTRICTIVE TRADE PRACTICE · Price fixing or output restraint re: delivery/flow of supplies to impose unjustified costs/restrictions on consumers. · Collusive tendering; market fixing territorially among competing suppliers, depriving consumers of free choice, fair competition. · Supplying only to particular distributors or on condition of sale only within a territory. · Delaying in supplying goods/services leading to rise in price. · Requiring a consumer to buy/hire any goods or services as a pre-condition for buying/hiring other goods or services. 8
CONSUMERS NEED PROTECTIONBusiness Amity School of AGAINST • DEFECTS – Any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard which is required to be maintained by or under any law for the time being in force or under any contract express or implied or as is claimed by the trader in any manner whatsoever in relation to any goods. • DEFICIENCY – Any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance which is required to be maintained by or under any law for the time being in force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service. 9
CONSUMER'S RIGHTS School of Business Amity · Right to safety against hazardous goods and services · Right to be informed about quality, quantity, purity, standard, price · Right to choose from a variety at competitive prices · Right to be heard · Right to seek redressal · Right to consumer education 10
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