UNIT-4
CONSUMER PROTECTION ACT 1986
INTRODUCTION
A consumer is the one who assumes to be treated like a King as they carry business to the vendor. Previously “consumer was requested to beware” but lately fingers are pointed to seller “let seller be beware” as thanks to policies introduced, authorities’ laws, consumer protection, NGO and thus the increased competition within the market.
Consumer Protection may be a term given to an exercise wherein we'd like to guard the consumer from the unfair practice, teaching them about their rights and responsibilities and also redressing their grievances.
In today’s world, the protection of the consumer is regarded to be of utmost importance. All round the world, mechanisms are pondered upon so as to uphold the satisfaction of the consumer.
The Consumer Protection Act was passed in 1986 and it came into force from I July, 1987. The most objectives of the Act are to supply better and every one round protection to consumers and effective safeguards against differing types of exploitation like defective goods, deficient services and unfair trade practices. It also makes provisions for easy, speedy and cheap machinery for redressed of consumer's grievances.
SALIENT FEATURES
• It applies to all goods, services and unfair trade practices unless specifically exempted by the Central Government.
• It covers all sectors-private, public or co-operative.
• It provides for establishment of consumer protection councils at the central, state and district levels to market and protects the rights of consumers and three-tier quasi-judicial machinery to affect consumer's grievances and disputes.
• It provides a statutory recognition to the six rights of consumers.
Key takeaways – the act includes protection to consumers and effective safeguards against differing types of exploitation like defective goods, deficient services and unfair trade practices.
DEFINTION:
The Consumer Protection Act says that consumer means a person who:
(i) buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of credit, and includes any user of such goods aside from the one that buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of credit when such use is formed with the approval of such person, but doesn't include an individual who obtains such goods for resale or for any commercial purpose; or
(ii) 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 credit, and includes any beneficiary of such services aside from the one that 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 primary mentioned person;
Examples:
1. A jeep was purchased to run it as a taxi. The question was whether the customer of the jeep was a consumer under the Act. The Rajasthan State Commission held that to use the jeep as a taxi with the thing to earn profits was a billboard purpose, and therefore, the consumer/user wasn't a consumer within the meaning of the Act.
Key takeaways - A consumer is any individual who purchases goods or services, which may be sold by manufacturers, wholesalers, or retailers.
WHAT IS MEANT BY “DEFICIENCY” IN SERVICE - SECTION 2(1) (G)
The Act provides that, “deficiency” means any fault, imperfection, shortcoming or inadequacy within the quality, nature and manner of performance which is required to be maintained by or under any law for the time being effective or has been undertaken to be performed by an individual in pursuance of a contract or otherwise in reference to any service.
Reading the above definition by breaking it into elements, we get
(a) “Deficiency” means any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance
Examples:
1. A boarded a train. The compartment during which he and his wife travelled was during a bad shape-fans not working, shutters of windows weren't working, rein of the upper was badly torn and there have been rusty nails which caused some injuries to the wife of A. A made a complaint against the railway department. it had been held that the complaint constituted ‘deficiency in service’ and therefore the compensation of Rs. 1500 was awarded to A
2. Dr. A treated P under Allopathic system, though he himself was a Homoeopathic practitioner afterward for wrong treatment. The Commission held it as deficiency in commission -
3. A booked a car for B and promised to deliver it within one month of booking. The car wasn't delivered even after four months. Here A might be held responsible for deficiency in commission.
Key takeaways - any fault, shortcomings, inadequacy, and imperfection in the quality, nature or manner of performance of the service is a deficiency
The Act provides that, “defect” means any fault, imperfection or shortcoming within the quality, quantity, potency, purity or standard which is required to be maintained by or under any law of the nonce effective under any contract, express or implied or as is claimed by the trader in any manner whatsoever in reference to any goods.
This is an exhaustive definition. It means the Act recognizes only those defects which are covered by the definition. Any sort of defect not mentioned here won't be entertained by Consumer Forums. Moreover, the defect has got to be in reference to goods only, i.e., if an item doesn't fall within the definition of ‘Goods’, no defect are often complained therein. However, the coverage of this definition is extremely wide.
Examples:
1. An autoclave burst and caused injury to the user. it had been held to be a producing defect
2. Failure to handover registration book alongside jeep purchased by complainant may be a defect.
3. Where laboratory test report showed that beverage wasn't fit human consumption, it had been held defective
4. Rape seed oil adulterated with toxic substances, which led to paralysis of limbs and other disabilities, has been considered as defective
5. Electric household appliances which aren't in accordance with the standards prescribed by ISI, being unsafe are defective
6. Gas Cylinder with excessive gas is flawed goods
7. Development of cracks of half inch to 3 and a half inch in walls and mosaic floor during a flat after occupation from a Housing Board
8. A supplied white marble to B. afterward the colour of the marble changed. B sued an alleging supply of defective marble. it had been held that A should have expressly told B that the marble wouldn't retain its colour when polished. within the absence of such assertion, it's deemed that A made B to know that the marble would retain its white colour and when the colour changed, it comes within the scope of ‘defect’ in goods under the Act
9. A sold a stolen car to B. B wanted to sue A for defect within the title of the car. Here B cannot sue A under the consumer Protection Act because the defect in title of products wouldn't constitute defective goods as defined under the Act.
Key takeaways
- The defect is defined as any imperfection, fault, a shortcoming in certain parameters of the good
References:
- Business law by Rajni Jagota
- Taxmann's Business Laws
- Business Law (Formerly Mercantile Law) by Dr. Avtar Singh
