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Consumer Protection Act, 1986 And Its Significance In Indian Retail Industry

Consumer Protection Act

This Act may be called the Consumer Protection Act,

It extends to the whole of India except the State of

Jammu and Kashmir.

It shall come into force on such date as the Central

Government may, by notification, appoint and different dates may be appointed for different States and for different provisions of this Act.
Save as otherwise expressly provided by the Central

Government by notification, this Act shall apply to all goods and services.

Consumers Rights In India

On December 24 1986 Govt. of India enacted the Consumer Protection Act 1986 to:
Ensure Rights of Consumers Provide Remedies for Deceived Consumers


Objective to protect and promote the following rights of the consumers:
The right to be protected against the marketing of

the goods which are hazardous to the life and property.

The right to be informed about the quality,

potency, purity, standard and price of the goods to protect the consumer against unfair trade practices.
The right to be assured , wherever possible ,

access to variety of goods at competitive prices.

The right to seek redressed against the unfair

trade practices or unscrupulous exploitation of consumers

Right to consumer education.

To provide speedy and simple redressal

machinery to settle consumer disputes.

The right to be heard and to be assured that the

customers interest will receive due consideration at appropriate forms.

Who is a Consumer?
A consumer is a person who Buys any goods for a consideration. Hires or avails of any services for a consideration. uses the goods with the approval of the person who has bought the goods for consideration. Is beneficiary of services with the approval of the person who has hired the services for consideration.

Who is not a consumer?

A person is not a consumer if He obtains the goods for resale or for any commercial purpose. Buys goods without consideration. Hires or avails of any services without consideration. Uses the goods without the approval of the person who has bought the goods for consideration. Is beneficiary of services without the consent of the person who has hired the services for consideration. He obtains service under a contract of personal

Consumer Protection(Amendment) Act,1993

To enlarge the scope of the Act so as to enable

the consumers to file class action complaints where such consumers have a common interest and to file complaints relating to restrictive trade practices adopted by a trader. To enable the consumers who are self employed to file complaints before the redressal agencies where goods bought by them exclusively for earning their livelihood, suffer from any defect. To add services relating to housing constructions. To enable filing of class complaints on behalf of groups of consumers having the same interest.

Rights of the Consumer

Right to safety: against marketing of goods and

services which are hazardous Right to be informed of quality, quantity, price, purity, standard, etc. of goods or services Right to choose at competitive prices Right to be heard Right to seek redressed Right to consumer education

Innocence Leading To Exploitation

Adopting methods of deception to promote sale, use or supply of goods or services Misleading public about price Charging above MRP printed Misleading public about anothers goods or services Falsely claiming a sponsorship, approval or affiliation Exaggerated, misleading advertising, manipulating price or delivery or flow of supplies to impose unjustified costs or restrictions on consumers

Innocence Leading To Exploitation (Cont.)

Offering misleading warranty or guarantee

Sale of spurious or sub-standard goods/services

Offering used or renovated goods as new Used banned food colours

Packaged Commodities Rules

Name and Address of Manufacturer or Packer Net Quantity of the package If sold by number, the number contained in the

packaged should be displayed on it Month and year of manufacture or pre-packaging In case of food items, best before or expiry date If imported, name and address of the importer with valid registration MRP inclusive of taxes, no pre-packed commodity can be sold above the declared MRP in shops, restaurants, bars(including bottled water, soft and hard drinks)

Standard Marks and Labels

Standardization mark is a mark of symbol given to a product, which meets certain standards with respect to the quality in terms of material used, methods of manufacturing, labeling, packaging and performance

FPO Mark(Food Products ORDER)

Products made from fruits and vegetables should have FPO mark like Jam Jelly Pickles Fruit Juices Sauce Soft Drinks etc

Agricultural, horticultural, forestry and livestock products should have agmark mark like Cereals Pulses Spices Honey Pulses Rice wheat Flour Edible oil Ghee Butter

Gold products should have hallmark mark

Establishment of Consumer Disputes Redressal Agencies.

There shall be established for the purpose of this Act, the following agencies, namely: (a) A Consumer Disputes Redressal Forum to be known as the "District Forum" establishment by the State Government in each district of the State by notification (b) A National Consumer Disputes redressal Commission established by the Central Government by notification.

Significance in Retail Industry

Prior to the consumer Protection Act, 1986 for

any consumer complaint one had to go to an ordinary Civil Court.

Where Consumer Can Go?

Misleading Advertisement

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Unfair Practice For Promoting Sale

False claim of quality, quantity, standard of goods/

services Passing off second hand goods as new False claim of sponsorship or approval False claim of usefulness Misleading warranty or guarantee of performance False or misleading facts disparaging the goods o r services of another person

Unfair Practice For Promoting Sale (Cont.)

Misleading the public regarding market price of lik

e products/ services Misleading advertisement for sale at a bargain price Misleading offer of gifts/prizes Conduct of contest, lottery or game of chance or skill for sale promotion Sale of goods that do not comply with safety standards Hoarding of goods to raise their cost.

Means any fault in quality or quantity or standard

prescribed by law or contract, or claimed by trade. Failure to deliver the full quantity as ordered.

defect in relation to a service. A
Services include banking, finance, insurance,

transport, water/ electric supply, board or lodging, house construction, entertainment. It excludes a contract of personal service.

Relief from District Forum

To remove the defect

To replace with new goods free from the defect

To remove the deficiency in service To pay compensation to the consumer due to the

negligence of the opposite party To discontinue the unfair or the restrictive trade practice, or not to repeat them To withdraw the hazardous goods To pay costs to the parties