Consumer Protection Act Flashcards
1
Q
Key amedments in 2019
A
- Central consumer protection authority- investigation, order recall, dicontinuance of UTP/ misleading advertisement, imposing penalties
- Rules for e commerce
- Product liablity - manufacturer responsible for injury caused by defective product- manufacturing defect, design defect, deviation from specifications, not confirming to warranty, not containing adequate instructions for use
4 cancellation of license in case of second or subsequent convictions
- Mediation cells under consumer commission. No appeal against settlement through mediation
6 consumer can file complaints electronically and in consumer commissions that have jurisdiction over place of his residence
- Central consumer protection council - under union min of consumer Affairs. Advisory body on consumer issues
- Jurisdiction of district - 1 cr
State 1 cr to 10cr,, national - > 10 cr
2
Q
Who is a consumer
A
- Consumes goods / services for which he pays
ARUN BHATIYA vs HDFC bank ( 2022) - A user or beneficiary with the approval of the buyer
- A will not include - goods brought for resale or CP
CP doesn’t include the one who brought it to earn his livelihood through self employment
Expanded to include online , offline - e commerce, telescoping, direct selling, multilevel marketing
3
Q
Consumer rights
A
- Protected
- Informed
- Access to variety of goods at competitive prices
- Heard
- Seek redress all
- Awareness
4
Q
Service
A
- Includes service of any description, not limited to banking, insurance, transport etc.
- Consideration should be paid - car plus lucky draw
- Not contract of service
In a 2021 case- deficiency case against advocate only if it can be proved ,, not just because case lost
5
Q
Does hospital and doctors fall under the ambit of “ services” under CPA
A
- Indian medical association vs VP SHANTA
- both govt and private hospitals
- services rendered by medical practitioner by way of consultation, diagnosis, treatment, medical or surgical falls within the ambit of service
- not in the case if free medical service or a contract OF personal service
- cannot claim it to be free service if expenses are paid by insurance company - In Savita Garg vs national heart institute
hospital in responsible for 2 class, no Distinction
- treating doctor is a staff of the hospital ( contract of service )
- doctors whose service is temporarily taken ( contract for service )
6
Q
Complaints
A
- Unfair trade practices or restrictive trade practices
- Defective goods
- Deficiency in service
- Goods sold in excess price
- fixed by law
- displayed on goods/ price list
- agreed - Sale of hazardous or prohibited goods, which the seller knows to be hazardous
- Claim for product liability
Limitation
7
Q
Unfair trade practices
A
2(47)
Following categories
- False Representation
- about standard, quality etc of goods or service
- old, second hand goods as new goods
- about warranty, guarantee
- sponsorships, performance approvals, use or need
- misleading facts disparaging the goods or services of another person - False offer of Bargain Price:
but in reality there is no such intention to offer the same or for a reasonable period or reasonable quantity it may amount to unfair trade practice. - Free Gift Offer and Prize scheme with ulterior motive
- Representing that something is given for free but in actual the cost or part of the cost is being charged.
• Offering any prizes by conducting contest, lottery or any game of chances to the buyers but with the real intention was to promote sales or business. - When any goods are sold or supplied to the customer which does not adhere with the standards prescribed by the competent authority
- Any person practicing any activity that permits the hoarding or destruction of goods or refusing to sell the goods , with the intention to increase the price of the good or similar goods in future
- 2019- failure to give bills, goods returned within 30 days, divulging info about consumer given in confidence
Rajiv Shukla vs GOLD RUSH SALES case ( 2022)
8
Q
Remedies
A
- Defect
- Replacement
- Return price / charges
- Compensation
- Discontinue utp/rts
- Stop hazardous
- Misleading ad
- Corrective ad
9
Q
Product liability
A
- Manufacturing defect
- Design defect
- deviations from manufacturing specifications
- not confirming to express warranty
- Not providing adequate instruction for use
Product liability even if the seller proves that he was not negligent or acted fraudulently
10
Q
Note on central consumer protection authority
A
- CPA 2019. Chief commissioners and other commissioners as decided by the CG
- Duties
- protect, enforce and prevent violation of consumer rights
- utp
- false misleading advertisement - Powers
- investigate suomotto or on complaint recieved or direction of CG
- penalty upto 10 lakh
- power to recall goods if dangerous or hazardous
- reimbursement of price to customers of recalled goods
- issue guidelines
Ex: guidelines for prevention of misleading adv or endorsement of misleading adv 2022 - Recent examples
- notice to Ola and Uber for utp- unreasonable levy of cancellation charge , different prices for same routes etc
- notification that restaurants shouldn’t include service charge on bills by default - Appeal against CCPA goes to the national commission
11
Q
Note on 3 tier grievance redress all mechanism
A
- CPA 2019
- Table
- pecuniary jurisdiction- upto 50 lakh, 50- 2 cr, > 2cr
- territorial jurisdiction
- appellate jurisdiction - no, 45 days, 30 days
- qualification of president - Common
- doesn’t take away power of civil court
- how pecuniary jurisdiction calculated
- all have the power to review its own orders either on its own or application by complainant within 30 days - Procedure
Remember key words - e Dakhil portal, mediation, 3 months - Recent CITY BANK UNION vs R CHANDRAMOHAN case (2023)- consumer commission can’t decide complaints which involve highly disputed facts, criminal and tortious acts
12
Q
Keywords for unfair contacts
A
- Security deposits
- Penalties
- Entitling one party to unilaterally withdraw without reasonable clause
- Early repayment of debt
- Unreasonable charge , obligation or condition
13
Q
Mediation under consumer protection act
A
- Intro about importance
- Procedure - consumer can complain online also at his place , consumer commission on consent of parties, time limit- 30 days
- Role of mediator - facilitate voluntary resolution, communicate views to each other, generate option, nudge the parties to resolve. Shall not impose his own terms
- Matters not to be referred to mediation
- medical negligence- grevious hurt and injury
- offences for which application of compounding has been made by one of the parties
- cases which involves allegation of fraud, forgery , impersonation etc
- involve public interest or interest of numerous person who are not parties to the complaint before commission
Any other case which commission thinks not got for mediation
- Refund of full fee to the complainant in case of settlement via mediation
- Parties shouldn’t initiate any arbitrary or judicial proceeding wrt subject matter of mediation
- Settlement agreement shall not be discharged by death of one of parties, shall be enforced by legal representative of the deceased
14
Q
Key points to distinguish between 1986 and 2018 act
A
- Pecuniary jurisdiction (20 lakh, 20-1 cr)
- Territorial jurisdiction - seller has office vs where the complainant resides
- Power to review orders - previously only national commission had power to review its own order for error apparent on the face of order vs all 3
- Regulator - central consumer protection authority
- ADR
- E commerce - will come under direct selling
- Product liablity - consumers can seek compensation for harm caused
- Unfair contracts
- Unfair trade practices widened
15
Q
Evolution of cpa
A
- In line with dpsp and FR - consumer protection act 1986
- 6 basic rights - safety, info, choose, heard, redressal, edn
- over the years - unawareness, extensive delays
- Law commission recommended separate law
- Bills in 2011 and 2015 which had provisions to file online complaints and unfair contracts , eventually got lapsed
- Cp bill 2018 introduced to replace 2015 bill, but lapsed with 16th LS
- Finally Cp 2019
