WHO IS CONSUMER?
All of us are consumers of goods and services. For the
purpose of the Consumer Protection Act, the word "consumer" has been
defined separately for "goods" and "services".
For the purpose of "goods", a consumer means a person belonging to the following categories:
(i) One who buys or agrees to buy any goods for a consideration which has been paid or promised or partly paid and partly promised or under any system of deferred payment
(ii) It includes any user of such goods other than the person who actually buys goods and such use is made with the approval of the purchaser.
Note: - A person is not a
consumer if he purchases goods for commercial or resale purposes. However, the
word "commercial" does not include use by consumer of goods bought
and used by him exclusively for the purpose of earning his livelihood, by means
of self employment.
For the purpose of "services", a
"consumer" means a person belonging to the following categories:
(i) One who hires or avails of any service or services for a consideration which has been paid or promised or partly paid and partly promised or under any system of deferred payment
(ii) It includes any beneficiary of such service other than the one who actually hires or avails of the service for consideration and such services are availed with the approval of such person
(i) One who hires or avails of any service or services for a consideration which has been paid or promised or partly paid and partly promised or under any system of deferred payment
(ii) It includes any beneficiary of such service other than the one who actually hires or avails of the service for consideration and such services are availed with the approval of such person
INTRODUCTION
The entire marketing effort of a business organization
revolves around the consumer. Marketing strategies and programmes of
progressive and professionally managed firms seek to deliver full expected
value for money to consumer and take care of him even in the post purchase
stage. Simultaneously, however, a large number of firms have a tendency to
exploit the consumer taking advantage of his poor knowledge and urgent and
basic need for the product. Producers and distributors Vis-a Vis are, on the
whole more organized and have better knowledge about the market. Even then, the
consumer is often called ‘sovereign’ or the ‘king’ as he commands the ultimate
veto power to reject the product. It can send chill down the spine of producer
who has big financial stake in business. It for this reason that the firms
thrive on consumer exploitation devise deceptive, misleading, luring and
indirect ways of coaxing them into buying their products. The ways are craftily
developed so as to escape the eye of laws aimed at consumer protection.
Wide prevalence of unethical or unfair practices in
business have led to what is known as consumerism it is an organized movement
that seeks to protect the interest and rights of consumer, both individual and
institutional, against irresponsible , unethical or unfair practices of
business firms both in public and private sectors. Such movements have taken
place in a number of countries and have led to various legislations seeking to
protect the customer’s interest and rights. These movements have been forcing
business firms to be socially responsible and responsive. At the rising tide of
consumerism, business managers should hang their heads in shame and revise
their marketing concepts. Consumerism, by itself, is a testimony that the
standard textbook concepts of marketing are yet to be adopted by a number of
business organizations.
DEFINITIONS & SCOPE
“Consumer protection act 1986” Consumer (Section 2 (1) (d))
A consumer is a person who:
1. 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
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; or
2. Hires or Avails of any
services
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 beneficiary
of such services other than the person who [hires or avails of] the services
for 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 commercial purpose).
SCOPE OF THE ACT
The act received president’s assent on 24
December 1986. However all provision of the act came into force on 15 April
1987.
The act extends to whole of India except the
state of Jammu and Kashmir and applies to all goods and services unless
otherwise notified by the central government
COMMON WAYS OF CONSUMER EXPLOITATION.
Hoarding or destruction of goods. The various ways
adopted by business firm to exploit the consumer are the following:
1)
Fixation of prices at levels which are not justified by production and
marketing costs.
2)
Offering false discount preceded by a rise in price.
3)
Undisclosed reduction in quality for the same or even higher price.
4)
False product differentiation.
5)
Sale of products, which are hazardous to health, life and property, without the
consumer knowing about it.
6)
Suppression of material information about the quality, purity, standard or
performance of the product.
7)
Reduction in competition through producer or trade collusion which reduces
product alternative for the consumer.
8)
False, misleading or luring claims through advertisements.
9)
Supply of adulterated or spurious products.
10)
Giving guarantees or warranties which, are not honored by producers or sellers.
11)
Giving less quantity by using inappropriate weights and measures.
12)
Not listening to or redressing the genuine grievances of the consumers.
13)
Creating artificial shortages (through hoarding, etc.) to increase the prices.
14)
Making false or misleading representation about the need or the utility of a
product.
15)
Manipulating the conditions of delivery by imposing unnecessary costs or
restriction or inconvenience to customer
NEEDS OF CONSUMER
PROTECTION
With
new concepts of trade, the need for consumer protection has increased like
never before. The increasing size of production and distribution systems and
advertising, mass marketing methods and emergence of e-commerce has resulted in
decrease of private interaction between buyers and sellers has contributed to
the increased need of consumer protection. Though government is playing its
role in protecting rights of the customers, but as long as the customer is not
made aware, the problem cannot be addressed. Making laws would help but that is
not the solution if the customer is not aware. Education and awareness is the
most powerful means for the growth of the country and an educated individual is
able to make rationale choice as a consumer.
An
aware consumer protects himself from trade and business exploitation. Consumer
Protection Act (CPA) was enacted in 1986 and has been recognized as one of the
finest foundation of legislation enacted in any part of the world and India can
boast of being only country having such specialized legislation for consumer
protection. The CPA has hearing at different levels evolving standards for
different products to enable the consumers to make an informed choice about
different products. Standards are the essential building block for quality play
a main role in consumer protection. The standards are set generally by
Government or inter-Governmental bodies but worldwide it is being recognized
that voluntary establishment of standards play an equally important role for
protecting consumers. An aware consumer not only protects himself from
exploitation but induces efficiency, transparency and accountability in the
entire manufacturing and services sec-tor.
Role
of academic and consumer organisations as well as the NGOs is very important in
educating and involving the consumers in the movement. To advise the consumers
on the various issues concerning consumer protection a 'National Consumer Helpline'
is being operated through the University of Delhi with the support of
Department of Consumer Affairs. The toll no. 1800-11-4000 allows a consumer
anywhere in the country to call this number and get accurate advice regarding
his problem. These services further strengthened the consumer power. Another
area, which relates to consumer protection, is the implementation of weights
and measures laws. In helping the consumer exercise their rights, quality and
standards have a crucial role to play.
Standards
give consumers with reliable benchmarks of quality. Quality consciousness is
not yet a way of life in India as it is in the West. The Bureau of Indian Standards
has taken initiatives in introducing a certification scheme for foreign
manufacturers and imported goods, food safety certification as per ISO
Standards. Certification Scheme for Hallmarking of Gold and silver goods is a
good way for safeguarding consumer interests. Every consumer in own interest
has to realize the role and significance in the right perspective. In a
competitive economic environment, the consumer has to exercise the choice
either in favour of or against the goods and services
Problems Faced by Consumers
Consumers may be deceived in various ways by
unscrupulous businessmen including traders, dealers, producers and
manufacturers as well as service providers. Some of the following unfair practices
must have come to your notice sometime or the other:
1. Adulteration that is, adding something
inferior to the product being sold. This is a practice
We come across in the case of cereals,
spices, tea leaves, edible oil, petrol, etc. For example, mustard oil may be
adulterated with rape seed oil or argemone oil, black pepper is known to be
adulterated with dry papaya seeds, petrol is mixed with kerosene oil, vanaspati
may be mixed with ghee/butter. Sometimes, the inferior material used with the product
may be injurious to health.
2. Sale of spurious products, that is,
selling something of no value instead of the real product.
This is often found in the case of medicines
and drugs or health care products. Cases have Consumer Protection 155 been
reported where ampoules for injections contained only water or glucose water in
bottles contained only distilled water.
3. Use of false weights and measures is
another malpractice which some traders adopt while
Selling the goods. Goods which are sold by
weight (kg.) like vegetables, cereals, sugar, etc., those sold by measures
(meter) like textile fabrics, suit pieces, are sometimes found to be less than the
actual weight or length. False weights (Kg, 500 grams, 250 grams, etc) or measuring
tapes or sticks having false markings are used for the purpose and buyers are cheated.
Sometimes packaged goods and sealed containers (tins) contain less quantity, than
what is stated on the label or packet. This cannot be easily verified. Sweets
are often weighed along with the card board box which may weigh up to 50-100
grams. You pay for it at the same rate as the sweets.
4. Sale of duplicates, that is, goods that indicates
a mark which shown it is of superior quality than what it actually is. For
example, goods which are locally made are sold at a higher price as imported
items expected to be of superior quality. Certain products like washing soap,= detergent
powders, tube lights, jams, edible oil, even medicines, carry well known brand
names although these are made by others.
5. Hoarding and black-marketing is another
problem that consumer often face. When any essential commodity is not made
available in the open market and stocks are intentionally held back by dealers
it is known as hoarding. Its purpose is to create an artificial scarcity, to
push up the prices. Black marketing is the practice of selling hoarded goods,
secretly at a higher price. These practices are sometimes adopted when there is
short supply of any product. You may have read in the newspapers sometime back
about scarcity of onions in the open market in some states and high prices
being charged by traders who had stocks.
6. Tie-in-Sales: Buyers of durable consumer
goods are sometimes required to buy some other goods as a pre-condition to sale
or may be required to pay after-sales service charges for one year in advance.
You may have heard about tying up of new gas connections with the sale of gas
stoves (burners). Also TV sets are sometimes sold on the condition that the
buyers will make advance payment of a year’s service charge.
7. Offering gifts having no additional value,
or coupons to collect a gift on the next purchase of
Some products are practices aimed at alluring
consumers to buy a product. Often gifts are offered after the price of the
product on sale has been increased. Dealers also announce contests or lottery
among buyers of a product without the intention of awarding any prize.
8. Misleading advertisement is yet another
practice by which consumers are deceived. Such advertisements falsely represent
a product or service to be of superior quality, grade or standard, or falsely
assert the need for or usefulness of a product or service. A pharmaceutical
company advertised that use of its paracetamol tablet did not have any side effects
like aspirin, but it suppressed the experts’ report that the use of paracetamol
had adverse effect on the liver. A company announced in its advertisement that
it was manufacturing 150 cc. scooters in technical collaboration with a foreign
company, although no such collaboration had been entered into. In another case,
a company used the trademark Business Studies 156
Of a well-known company ‘Philips’ in its
advertisement for TV sets... On enquiry it was found that the company did not
have the necessary permission from Philips for the use of its trade mark on TV
sets. It was a case of misrepresentation of facts although that company was authorized
to use the trademark ‘Philips’ on its audio products (radio sets) only.
9. Sale of sub-standard goods i.e., sale of
goods which do not conform to prescribed quality standard particularly for safety.
Such products include pressure cookers, stoves, electric gadgets (heaters, toasters,
etc.), and cooking gas cylinders.
LOOP HOLES IN THE
CONSUMER PROTECTION ACT.
Major
loop holes of the act which were not amended by the 2002 Amendments Act.
1.
One of the biggest achievements of the Consumer Protection (Amendment)
Act 2002 was that the consumer forums or commissions were conferred with First
Class Magistrates powers. But the main problem here is that the gazette
notification for the conferment of First Class Magistrates Powers to the
Consumer Forum or Commissions has still not been issued. Thus it is practically
impossible for the Forums or Commissions to exercise this power conferred by
the Act.
2.
The Amendment Act 2002 has a relatively softer approach towards the
judgment debtor in its certain provisions. For Instance, Sec.24 of the Consumer
Protection Act which relates to the Finality of the order, states that “Every
order of a District Forum, State Commission or the National Commission shall,
if no appeal has been preferred, against such order under the provisions of
this Act, be final. Thus the provision implies that non-preferment of appeal
renders the order final and therefore preferring an appeal means that the order
is not final. Hence once an appeal is preferred by the judgment debtor, he gets
a stay against the execution and thus there cannot be any execution. The
judgment debtors have misused the provision of the act to just buy time before
the Forum or Commission stating that appeal has been preferred .Therefore this
section urgently requires substitution of words “Appeal preferred” with the
words “Stay granted “
REMEDIES UNDER THE ACT
In case it is proved that there exists a
defect in the goods or that the services rendered were deficient in
nature the following remedies against the seller are available to the Consumer.
“Jago Grahak Jago”
weekly radio programme-
Radio being the cheapest and having widest reach, a 15 minutes
weekly programme “Jago Grahak Jago” is being broadcast through 110 stations of
All India Radio in 22 regional languages. To make the programme popular a
prize of Rs. 500/- per programme in every language is given. Now the
frequency of this programme is
being increased and one additional programme has been started from 14th
December, 2003. The episodes for second broadcast are to be made mainly on
the welfare schemes and activities for the benefit of consumers at large.
Video Programmes ‘Grahak Dost’:
A 12 episode video programme namely, “Grahak Dost” of 30 minutes
each, was produced by the Department in Hindi language which was
telecast on Doordarshan from time to time being popular. This programme was
further produced and telecast in 7 other regional languages. Now it is
further being produced in 5 more languages so that it
could spread the message of consumer awareness
particularly in rural areas. It has also been decided by the Department to
provide copies of all these programs to the Field Publicity Units of Ministry
of Information and Broadcasting for creating awareness particularly
in rural areas.
Video Programme ‘Jago Grahak Jago’:
Department
has selected 12 more topics for preparing video programmes each of
30 minutes duration, namely, “Jago Grahak Jago” in Hindi during the
year for telecast on Doordarshan and also to provide copies to Field
Publicity Units of Ministry of Information and Broadcasting.
Video programmes for schools:
Department
also prepared 4 video programmes in Hindi each of 30 minutes
duration specially targeting primary, upper-primary and secondary
level students of schools during the year. The programmes will be made
available in CD to schools, consumer clubs in the schools, State
Governments and others concerned to make the students involved in the
consumer movement.
Quarterly Magazine “ Upbhokta Jagaran”- Department
is bringing
out a bilingual quarterly magazine which is sent free of cost to voluntary
consumer organizations, State & Central Govt. Ministries/Departments,
libraries, Central Consumer Protection Council (CCPC) members and other
concerned to disseminate consumer related information.
Booklet on welfare schemes of the Ministry:
Department is bringing out a booklet on
welfare schemes of the Ministry in Hindi and English language which is
being forwarded up to block level for giving wide publicity to the
schemes of the Ministry so as to enable the people to take advantage of the
schemes.
Newspaper advertisements
CONSUMER
PROTECTION (AMENDMENT) ACT, 2002.
The consumer protection act, 1986, came to be, once
again, amended by the consumer protection (amendment) act, 2002, which made
following main amendments:--
1. It
amended by expanding the definitions of some of the key expressions including
the term “consumer”.
2. It
laid down that the State Government ‘shall’ (in place of ‘may’) by
notification, establish with effect from such date as it may specify in such
notification, a council to be known as the Consumer Protection Council
(hereinafter referred to as the State Council ) and the District Consumer
Protection Council (hereinafter referred to as the District Council) for every
district.
3. It
amended the composition of the District Forum.
4. It
enhanced the memory jurisdiction of the
a)
District Forum from Rs.“five lakhs” to Rs.
“twenty lakhs”,
b)
State
Commission from “not more than Rs. Twenty lakhs” to Rs. “not more than one
crore”, and
c)
National Commission from “rupees more than
one crore” and also the appellate jurisdiction of the National Commission
Parties to Consumer Protection
You
have realized the need for steps to protect consumer interest. The question is,
who will take those steps? Can consumers alone do it? Or, should we depend on
the government? Can businessmen do anything? Actually, for effective consumer
protection, it is essential that all the three parties must be involved, that
is, (a) Consumers; (b) Businessmen; and (c) Government. Let us consider what
each of the parties can do:
(a)
You will agree that self-help is the best help. So consumers should, as far as
possible, take care of their own interest and protect themselves from market
malpractices. For this purpose,
It
is necessary that they should try to know about their rights and exercise them.
They Business Studies 158 should not depend on the good sense of businessmen.
Consumers have a right to education and also a right to be heard. They should
attend training programmes for consumers arranged by local consumer
associations or by their own association and invite consumer activists to speak
to them on consumer rights and remedies available under the law to protect
them.
(b)
As regards businessmen, it is expected that producers, distributors, dealers,
wholesalers as well as retailers should pay due regard to consumer rights in
their own interest. They should ensure supply of quality goods and services at
reasonable prices. To prevent unfair practices, associations of traders,
chambers of commerce and industry, and manufacturers’ associations should
entertain consumer complaints against their members and take proper action
against those guilty of malpractice.
(c)
For Government, consumer protection is a responsibility to be undertaken in the
general interest of society. Enforcement of various laws and amending existing
laws to protect consumer interests are required to be taken up in the light of
viewpoints of consumer associations. Representations of consumer groups should
also be associated with the policymaking bodies set up by government at the
centre and the states. A number of measures have been taken by Government from
time to time.
LEGISLATIVE MEASURES FOR TRADE REGULATION AND
CONSUMER PROTECTION
Most of the practices are mentioned in a
number of business laws aimed at regulating trade and providing justice to consumer
and protecting his rights and interests. Most of these exploitative practices
are dealt with in MRTP Act (1969) (now repealed) and Consumer Protection Act
(1986) as amended from time to time. Other laws seeking to regulate trade and
protect the basic rights and interests of consumer are the following:
1)
The Sale of Goods Act, 1930
2)
Agriculture Produce (Grading and Marketing) Act, 1937
3)
The Food and Drugs Act
4)
The Essential Commodities Act
5)
Standard of Weights and Measures Act, 1976
6)
The Trading Stamps Act
7)
The Cigarettes (Regulation, Production, Supply and Distribution) Act, 1975
8)
Prevention of Food Adulteration Act, 1954
9)
The Railway Claims Tribunal Act, 1987
10)
The Drugs and Cosmetics Act, 1940
11)
Fruits Product Order, 1955
12)
Prevention of Black Marketing and Maintenance of Supplies of Essential
Commodities Act, 1980
13)
Hire Purchase Act, 1972
14)
The Drugs and Magical Remedies (Objectionable Advertisements) Act, 1954
15)
Bureau of Indian Standards Act, 1986
16)
Narcotic Drugs and Psychotropic Substances Act, 1985
17)
The Emblems and Names (Prevention and Improper Use) Act
18)
Packaged Commodities (Regulation) Order
19)
The Trade and Merchandise Marks Act, 1958
20)
Household Electrical Appliances (Quality Control) Order, 1976
A number of objectives of the above pieces of
legislation overlap. The multiplicity of laws for trade regulation and consumer
protection has been characterized by weak implementation as a result of which
unfair and exploitative practices abound in Indian markets. Lack of competition
in number of product areas, consumer’s illiteracy, consumer indifference
towards the products, weak consumer organization and lack of consumerism in the
country are among the major factors that further enable erosion of consumer
rights by business firms.
Rights
of consumer under consumer protection act
- The right to
satisfaction of basic needs - Access to basic,
essential goods and services: adequate food, clothing, shelter, health care,
education and sanitation. For Example, every person has the right to get
the basic necessities of Food, Clothing and Shelter. If a person can pay
the price for the same, there is no one who can prevent him from having
the same.
- The right to safety
- To be protected against products, production, processes and services
which are hazardous to health or life. For example, If a person needs
phenyl for washing his house, he has the right to see to it that the
phenyl doesn’t cause him physical harm like burnings and rashes.
- The right to be
informed - To be given facts needed to make an
informed choice, and to be protected against dishonest or misleading
advertising and labeling. For Example, If a customer buys medication for
cough which is available Over the Counter, the customer has the right to
know as to what is present in the Solution / Concoction. The Manufacturer
is bound by duty to place the contents and the procedure for use on the
label.
- The right to choose
- To be able to select from a range of products and services, offered at
competitive prices with an assurance of satisfactory quality. Presently
when we go to any mall to buy a microwave, we have around 4 to 6 different
brands and unlimited models in each brand. Now any person buying the
product has the right to choose which brand he needs. Also he cannot be
forced to buy any product unless he breaks / defaces it.
- The right to be heard
- To have consumer interests presented in the making and execution of
government policy, and in the development of products and services. For
Example, if you go to a restaurant and order food. And when the food
arrives cold, stale or you get a completely different dish from the one
you ordered. Also if the steward is rude, non cooperative, or basically
not attentive, you have the right to go up to the higher authorities
(Outlet Manager/ Owner) to raise a complaint. The owner cannot refuse to
not listen to you.
- The right to redress
- To receive a fair settlement of just claims, including compensation for
misrepresentation, shoddy goods or unsatisfactory services. For Example,
in the Cadbury v/s S.N. Maggo, the court ruled in the favor of the
complainant and an appropriate compensation was given.
- The right to consumer
education - To acquire knowledge and skill needed
to make informed, confident choices about goods and services, while being
aware of basic consumer rights and responsibilities and how to act on
them. For Example, If you want to buy a particular product, no person can
prevent him / her from getting the information of the product. If we go to
buy a Microwave, if we need to know technical details of the product, then
the manufacturer cannot refuse us the option gaining this information.
- The right to a healthy
environment - To live and work in an environment
that is non-threatening to the well - being of present and future
generations. As in the case of the Pacific Gas and Electric Company, were
contaminating the local water with hexavalent
chromium which created issues likes cancer. In this care, the US court
of law stated that under the Right to a Healthy Environment, they were
prosecuted and fined $333 million for the case.
CONSUMER PROTECTION THROUGH PRODUCT QUALITY
STANDARD
A major cause of consumer complaints relates
to the quality of products that consumers buy. One of the effective ways,
therefore, is to establish quality standard and to develop systems to ensure
that these systems are implemented. In a competitive environment, firms
themselves are concerned with their product quality to maintain or extend their
position in market.under monopolistic or imperfectly competitive market
situations firms may dump products of doubtful quality on consumers.
The national standard body in india is the
bureau of Indian standards(BIS). With a national network of regional offices
and branches it is engaged in developing need based standards with the help of
30,000 technical experts represented on a number of technical committees.
The main functions of
the bureau include;
Preparation
and implementation of quality standards;
Operation
of certification schemes both for product and quality systems;
Organization
and management of testing laboratory;
Spreading
consumer awareness
Maintaining
close liaison with international standards bodies;
Conducting
search and seize operation to curb misuse of standards and to protect consumer
from spurious product; and
Organizing training programmes on quality
control and development
For instance: in 1998-99 more than 17000
Indian standards existed serving as benchmarks for the major industrial segment
in the country and helping the firms to upgrade the quality of their
manufacturing process and products it has harmonized or aligned more than 3500
Indian standards with international standards to enhance the acceptability of
Indian products both in home and foreign markets
In order to provide assurance on quality
conforming to national standards, the bureaus maintains BIS Product
Certification Marks Scheme. As on march 31 1999 the total no of operative
license was more than 13000 covering a
wide range of consumer product though the scheme is basically voluntary it has mandatory standards for 135
products like cements steel LPG cylinders,and food colours which are important
from the point of view of product safety or items of mass consumption. Under
the BIS quality system certification schemes base on international standard of
quality management (ISO 9000 SERIES) the bureau had 438 operating license as on
march 31st 2000 the scheme has inernatinonal accreditation in a
number of technology areas. The bureau has recently collaborated with world
gold council to hallmark jewellery in india both for domestic consumption and
exports. It is worth mentioning that india is the worlds largest buyer of gold
and leading manufacturer of jewellery.
CONSUMER
COMPLAINT
WHO CAN FILE A
COMPLAINT?
The
following can file a complaint under the Act:-
1) A consumer
2) One or more consumers on behalf of
numerous consumers.
3) Central government
4) State government or union territory
administration
5) Any registered consumer
organization.
How
to file a complaint?
1)
The
complainant or his authorized agent can present the complaint in person.
2) The
complaint can be sent by post to the appropriate Forum / Commission.
3)
A
complaint should contain the following information:-
a.
The
name, description and the address of the complainant.
b.
The
name, description and address of the opposite party or parties, as the case may
be, as far as they can be ascertained.
c.
The
facts relating to complaint and when and where it arose.
d.
Documents,
if any, in support of the allegations contained in the complaint.
e.
The
relief which the complainant is seeking.
4) The
complaint should be signed by the complainant or his authorized agent.
When to file a complaint?
The complaint is to be filed
within two years from the date on
which cause of action has arisen.
Where
to file a complaint?
Three
tier redressal machinery
To provide cheap, speedy and
simple redressal to consumer disputes, quasi-judicial machinery is set up at
each District, State and National levels called District Forums, State Consumer
Disputes Redressal Commission and National Consumer Disputes Redressal
Commission respectively.
At present, there are 604
District Forums, 35 State Commissions with apex body as a National Consumer
Disputes Redressal Commission (NCDRC).
|
Consumer
Courts
|
Limit
of compensation (in Rs.)
|
|
District
Forums
|
Not exceeding Rs. 20 Lakhs
|
|
State
Commission
|
Exceeding
20 Lakhs but does not exceed 1 crore
|
|
National
Commission
|
Exceeding
1 crore
|
CONCLUSION
It is necessary to prevent damage to consumer
rights and provide remedy at the earliest. Market mechanism and law courts take
time to act and by the time they start acting, the damage probably would have
been done. Food or medicine adulteration may cause even death.
But awareness about existing safeguards for
the consumers is shockingly low. A strong consumer movement is needed to spread
consumer education and to publicize consumer rights. Provision of law and
courts is absolutely necessary, but not sufficient. They have to be utilized —
whether the subject of dispute is a product or a service — by alert consumers.
Quality control, in fact, lies in the hands of the consumers. Unattached
non-governmental organizations are best suited to undertake the task of educating
people on consumer rights and take this education to rural areas.
Instead of merely grumbling or griping, it is
high time that consumers use this powerful weapon to establish their right for
good quality products or efficient service. There is no substitute for
self-help through the Consumer Protection Act, in spite of its drawbacks.
Unless
there is a general awakening in the consumer public, consumer movement, and
consumer guidance or protection cannot have firm and strong foundation.
Consumer education assumes considerable importance in evolving a favorable
climate for exercising the sovereign right to demand, justice and fair trade
practices. Businessmen usually take full advantage of general apathy,
indifference and helplessness on the part of the consumer and adopt
anti-consumer policies to earn larger profits. Indian consumers
have some distance to go to protect ourselves. The basic problem is
shortsightedness. We see the short term cutting of corners and forget we are
losing long-term benefits. If India Inc is serious about being a world leader,
it had better find self-regulatory consumer protection ways to protect itself.
The best quality control check is the honest consumer.
CASES AND CASE STUDY REALATED TO CONSUMER
United
Insurance Co. Ltd. v/s Vallam Reddy Aruna
Parties involved: United Insurance Co. Ltd
(Petitioner)
Vallam Reddy
(respondant)
Complaint : The cause of death is due to
snake bite.
Complaint filed : NCDRC, New delhi.
The petitioner has relied upon the
investigation report and the report of the medical officer which inference the
death of the insured was due to snake bite. Moreover postmortem is to be
conducted as per the policy terms.
VERDICT: In a
small village when a person dies of snake bite the villagers will not wait for
postmortem and would not take the dead body to civil hospitals which is far
away. Hence the death of the insured is a natural one.
On April 9, the Dahisar based Sonal Shah and
her 7-year old daughter Hiral were electrocuted while sitting by the swimming
pool at the Palghar Resort with family friends. The accident was caused by an
electrical leak near the pool. Sonal’s husband Ketan, and son Rahul too
suffered serious injuries due to electric shocks and had to be hospitalized.
M.N. Narsimha Reddy v/s M.D. Maruti
Udyog Ltd.
Mr. Reddy had booked a maruti car through one of the dealers. Later he
was informed that the procedure for purchasing the car has been revised and was
also called upon to make some further payment before delivery of the car. He
filed a complaint with the state commission.The state commission dismissed the
complaint on the ground that the appellant was not a consumer under the act,
whereupon an appeal was filed with National Commission contending that the
charge in the procedure amounted to unfair trade practice.
The National commission dismissed the appeal stating that a
transaction of sale and purchase of goods should have taken place and the
complaint must relate either to any defect from which the goods supplied to the
complainant suffer or the charging of excessive price by the trader for the
goods supplied.
Honda Siel Cars India Ltd. & Others. V/s Divyang
Jain & Others.
Parties
Involved: The Complainant - Divyang Jain
The Petitioner
-Honda Siel Cars India Ltd.
The Complaint – The
paint of the car faded in a short period
The Complainant
Divyang Jain paid a sum of Rs.6,76,887/- to the
petitioners(Honda Siel Cars India Ltd. ) and
purchased a Honda City car and had it registered. Within a short period,
after the purchase of the car on 31-3-2004, he noticed (February, 2005) that
the paint of the car was fading. He approached the petitioners for corrective
action but the petitioners’ did not respond. Then he sent a legal notice
seeking refund of the cost of the car and some compensation. The petitioners
denied any deficiency in service on account of fading of the color.
Where the complaint was filed? – District
Forum
Verdict-
The
District Forum held the petitioners guilty of deficiency in service and passed
the following order:
(i)
To
carry out paint re-finishing to bring the exterior of the car to normal
condition without any charges.
(ii)
To
issue fresh warranty in respect of re-finishing of paint as per directions No.
i. for a period of ten
years (as per the expected life of the vehicles) without any charges.
(iii)
To
pay a sum of Rs.25,000/- as compensation and Rs.5,000/- as cost of litigation
to the complainant, as casual and insensitive approach of O.P.s gave birth to
this undesirable litigation.”
Paramount Iron & Steel works Pvt. Ltd. V/s Oriental Insurance
Co.Ltd
Parties involved: Paramount
Iron & Steel Works Pvt. Ltd. (complainant)
Oriental Insurance
Co.Ltd. (Petitioner)
Complaint:
Delay in payment of insurance claim.
A
fire took place in Paramount Iron & Steel works on 9.2.2005 and insurance
was claimed for the damages caused.Despite the surveyor report,the Oriental
Insurance co. had not made the payment due.
A
complaint was lodged before NCDRC,New delhi.
Verdict:
1. The insurance co. was asked to pay interest @
10% from 9.11.2005 till the date of payment of claim of Rs.1,50,47,206. For the
delay in payment of the claim approved by the Insurance co. dated 6.10.2006
2.
The interest is to be
paid within 4 weeks from 23.05.
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