Unit 4 CPA Flashcards
- Definitions Of Consumer
Section 2(7) of the Consumer Protection Act, 2019 defines a consumer as any person who buys goods or services in exchange for consideration and utilises such goods and services for personal use and for the purpose of resale or commercial use.
Information Technology Act, 2000
In 1996, the United Nations Commission on International Trade Law (UNCITRAL) adopted the model law on electronic commerce
(E-commerce) to bring uniformity in the law in different countries.
Further, the General Assembly of the United Nations recommended that all countries must consider this model law before making changes to their own laws. India became the 12th country to enable cyber law after it passed the Information Technology Act, 2000.
The Information Technology Act, 2000 provides legal recognition to the transaction done via electronic exchange of data and other electronic means of communication or electronic commerce transactions.
This also involves the use of alternatives to a paper-based method of communication and information storage to facilitate the electronic filing of documents with the Government agencies.
Objectives of the Act
The objectives of the Act are as follows:
1. Grant legal recognition to all transactions done via electronic exchange of data or other electronic means of communication or e-commerce, in place of the earlier paper-based method of communication.
2. Give legal recognition to digital signatures for the authentication of any information or matters requiring legal authentication
3. Facilitate the electronic filing of documents with Government agencies and also departments
4. Facilitate the electronic storage of data
5. Give legal sanction and also facilitate the electronic transfer of funds between banks and financial institutions
6. Grant legal recognition to bankers under the Evidence Act, 1891 and the Reserve Bank of India Act, 1934, for keeping the books of accounts in electronic form.
Non-Applicability
According to Section 1 (4) of the Information Technology Act, 2000, the Act is not applicable to the following documents:
1. Execution of Negotiable Instrument under Negotiable Instruments Act, 1881, except cheques. 2. Execution of a Power of Attorney under the Powers of Attorney Act, 1882.
3. Creation of Trust under the Indian Trust Act, 1882. 4. Execution of a Will under the Indian Succession Act, 1925 including any other testamentary disposition by whatever name called.
5. Entering into a contract for the sale of conveyance of immovable property or any interest in such property.
6. Any such class of documents or transactions as may be notified by the Central Government in the Gazette.
Non-Applicability of IT Act
According to Section 1 (4) of the Information Technology Act, 2000, the Act is not applicable to the following documents:
1. Execution of Negotiable Instrument under Negotiable Instruments Act, 1881, except cheques. 2. Execution of a Power of Attorney under the Powers of Attorney Act, 1882.
3. Creation of Trust under the Indian Trust Act, 1882. 4. Execution of a Will under the Indian Succession Act, 1925 including any other testamentary disposition by whatever name called.
5. Entering into a contract for the sale of conveyance of immovable property or any interest in such property.
6. Any such class of documents or transactions as may be notified by the Central Government in the Gazette.
Scope or Extent of the ACT
It extends to the whole of India
It also applies to any offence or contravention committed outside India by any person irrespective of his nationality, provided such offence or contravention involves a computer, computer system or network located in India.
CONSUMER PROTECTION ACT
The Consumer Protection act, 1986 (Old)
The Consumer Protection act, 2019 (New)
The Act came into effect by 20 July 2020
Aims to provide the timely and effective administration and settlement of
consumer disputes.
Need for the new (consumer) act
- New era of commerce and digital branding
- Provide timely and effective administration and settlement of consumer disputes
- Provides safety to consumers regarding defective products, dissatisfactory services, and unfair trade practices
Need for the new (consumer) act
- New era of commerce and digital branding
- Provide timely and effective administration and settlement of consumer disputes
- Provides safety to consumers regarding defective products, dissatisfactory services, and unfair trade practices
Scheme of the Consumer act
Chapter 1 - Definitions
Chapter 2 - Consumer Protection Council
Chapter 3 - Central Consumer Protection Authority
Chapter 4 - Consumer Redressal Commissions
Chapter 5 - Mediations
Chapter 6 - Product Liability
Chapter 7- Offence and Penalties
Chapter 8 - Miscellaneous
Key Highlights of the New Act
✓ Covers E-Commerce Transactions
✓ Enhancement of Pecuniary Jurisdiction
✓ E-Filing of Complaints
✓ Establishment of Central Consumer Protection Authority
✓ Product Liability & Penal Consequences
✓ Unfair Trade Practices
✓ Penalties for Misleading Advertisement
✓ Provision for Alternate Dispute Resolution
Rights of the consumers
❑ Right to Safety.
❑ Right to be Informed.
❑ Right to Choose.
❑ Right to be heard.
❑ Right to seek Redressal.
❑ Right to Consumer Education.
Consumer
Means any 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 deferred payment and includes any user of such goods other than
(ii) 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
(ii) hires or avails of any service 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 service 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 service for any commercial purpose.
purposes of this clause Consumer
(a) the expression “commercial purpose” does not include use by a person of goods bought and used by him exclusively for the purpose of earning his livelihood, by means of self-employment;
(b) the expressions “buys any goods” and “hires or avails any services” includes offline or online transactions through electronic means or by teleshopping or direct selling or multi-level marketing;
Complaint
Any allegation in writing an unfair contract or unfair trade practice or a restrictive trade practice has been adopted by any trader or service provider;
the goods bought by him or agreed to be bought by him suffer from one or more defects;
the services hired or availed of or agreed to be hired or availed of by him suffer from any deficiency;
a trader or a service provider, as the case may be, has charged for the goods or for the services mentioned in the complaint, a price in excess of the price—
(a) fixed by or under any law for the time being in force; or
(b) displayed on the goods or any package containing such goods; or
(c) displayed on the price list exhibited by him by or under any law for the time being in force; or
(d) agreed between the parties;
- the goods, which are hazardous to life and safety when used, are being offered for sale to the public
◦ a claim for product liability action lies against the product manufacturer, product seller or product service provider, as the case may be;
Defect
Section 2 (10) “defect” means any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard which is required to be maintained by or under any law for the time being in force or under any contract, express or implied or as is claimed by the trader in any manner whatsoever in relation to any goods or product and the expression “defective” shall be construed accordingly;
Deficiency
A deficiency means any fault, imperfection or
shortcoming or inadequacy in the quality, nature
and manner of performance which is required to
be maintained by or under any law for the time
being in force, or has been undertaken to be
performed by a person in pursuance of a contract
or otherwise in relation to any service.
Product
liability
“Product liability” means the responsibility of
a product manufacturer or product seller, of
any product or service, to compensate for any
harm caused to a consumer by such defective
product manufactured or sold or by deficiency
in services relating thereto;
A product manufacturer shall be liable in a
product liability action
Restrictive
trade practice
“restrictive trade practice” means a
trade practice which tends to bring about
manipulation of price or its conditions of
delivery or to affect flow of supplies in the
market relating to goods or services in such a
manner as to impose on the consumers
unjustified costs or restrictions and shall
include—
(i) delay beyond the period agreed to by a
trader in supply of such goods or in providing
the services which has led or is likely to lead to
rise in the price;
(ii) any trade practice which requires a
consumer to buy, hire or avail of any goods or,
as the case may be, services as condition
precedent for buying, hiring or availing of
other goods or services;
Unfair Trade
Practice
An unfair trade practice means a trade practice
which for the purpose of promoting the sale
use or supply of any goods or for the provision
of any service, adopts any unfair method or
unfair or deceptive practice
WHO CAN FILE A COMPLAINT
Complainant – Section 2 (5)
(i) a consumer
(ii) any voluntary consumer association registered under any law for the
time being in force
(iii) the Central Government or any State Government
(iv) the Central Authority
(v) one or more consumers, where there are numerous consumers having
the same interest
(vi) in case of death of a consumer, his legal heir or legal representative
(vii) in case of a consumer being a minor, his parent or legal guardian
Consumer Disputes Redressal
Commissions (CDRCs)
- The Central Council
- The State Council
- The District Council
The CDRCs will entertain complaints related to:
◦ Overcharging or deceptive charging
◦ Unfair or restrictive trade practices
◦ Sale of hazardous goods and services which may be hazardous to life.
◦ Sale of defective goods or services
◦ As per the Consumer Disputes Redressal Commission Rules, there will be no
fee for filing cases up to Rs. 5 lakh.
Consumer Disputes Redressal
Commissions (CDRCs)
Appeals:
❑ Appeals from a District CDRC will be heard by the State CDRC. Appeals from the State CDRC will be heard by the National CDRC.
❑ Final appeal will lie before the Supreme Court.
Jurisdiction of CDRCs:
❑ The District CDRC entertain complaints where value of goods and services does not exceed Rs one crore.
❑ The State CDRC entertain complaints when the value is more than Rs one crore but does not exceed Rs 10 crore.
❑ Complaints with value of goods and
