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Consumer Protection Act
Consumer Protection Act has been implemented(1986) or we can bring into
existence to protect the rights of a consumer. It protects the consumer from
exploitation that business practice to make profits which in turn harm the
well being of the consumer and society.
This right help to educate the consumer on the right and responsibilities of
being a consumer and how to seek help or justice when faced exploitation as
a consumer. It teaches the consumer to make right choices and know what is
right and what is wrong.
Who is a consumer?
Section 2(d) of the CPA defines "consumer" as a person who:
"(a) 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 and includes
any user of such goods other than the person who buys such goods for a
consideration paid or promised or partly paid or partly promised, or under any
system of deferred payment, when such use is made with the approval of such
person, but does not include a person who obtains such goods for resale or for
any commercial purpose;
(b) Hires or avails of any services for consideration which has been paid or
promised or partly paid and partly promised, or under any system of deferred
payment and includes any beneficiary of such services other than the person
who hires or avails of the services for a consideration paid or promised, or
partly paid and partly promised, or under any system of deferred payment,
when such services are availed of with the approval of the first mentioned
person but does not include a person who avails of such services for any
commercial purpose. It may, however, be noted that "commercial purpose"
does not include use by a person of goods bought and services exclusively for
the purposes of earning his livelihood by means of self-employment."
From the above definition, it can be observed that:
The goods or services must have been purchased or hired or availed of for a
consideration which has been paid in full or in part or under a system of
deferred payment, i.e., in respect of hire-purchase transactions;
The goods purchased should not be meant for resale or for a commercial
purpose. Goods purchased by a dealer in the ordinary course of his business
and those which are in the course of his business to supply would be deemed
to be for re-sale;
In addition to the purchaser(s) of goods, or hirer(s) or user(s) of services, any
beneficiary of such services, a user of goods/services with the approval of the
purchaser or hirer or user would also be deemed to be a "consumer" under the
Act.
Redressal: Three Tier System Under
Consumer Act
District Forum: These fora are set by the district of the state concerned in
each district wherein it consists In this, the complaining party of President
and two members of which one should be a woman and is appointed by
the State Government. should not make a complaint more than 20 Lacs and
once the complaint is filed the goods are sent for testing and if they found
defective the accused party should compensate and if the party is dissatisfied
can make an appeal with state commission within 30 days.
State Commission: This is set up by each state It consists of President and
two members. Complains should be at least 20 lacs and exceed not more than
1 crore. The goods are sent for testing and if found defective are asked for
replacement or compensation. If not satisfied can make an appeal within 30
days in front of the National Commission.
National Commission: Consist of President and 4 members. The complaint
must exceed an amount of 1 crore. The goods are sent for testing and if found
defective are asked for replacement or compensation.
Remedies under the CPA
Depending on the facts and circumstances, the redressal forums may issue orders for one or more of the following relief(s):
Removal of defects from the goods;
Replacement of the goods;
Refund of the price paid;
Award of compensation for the loss or injury suffered;
Withdrawal of the hazardous goods from being offered for sale; or
Award for adequate costs to parties.
Removal of defects or deficiencies in the services;
Discontinuance of unfair trade practices or restrictive trade practices
or direction not to repeat them;
