SRI K PUTTASWAMY FIRST GRADE COLLEGE

MYSURU
Subject: Business Regulatory Framework

Topic: Consumer Rights & Consumer Redressal

Agencies
Presented by:
Nanditha.S.K
Nehal
Presented by:
Mizba Saheer Ma’am
 CONSUMER
As per the consumer protection act a consumer as a person who-

1.Buys any good for a consideration or

2.Hires or avails of any services for consideration; or

3.Uses the goods with the approve of the person who has bought a good for consideration;
or

4.Is the beneficiary of services with the consent of the person who has higher the services
for a consideration

Rights of a Consumer:
The Consumer Protection Act recognizes six major consumer rights:

1. Right to Safety:

Consumers have the right to be protected against goods and services that may harm their
health or property. This applies especially to areas like electrical appliances, healthcare,
automobiles, and pharmaceuticals. Companies must test and verify their products before
marketing them.

Example: A faulty electric iron that might cause a short circuit must be tested and made safe
before being sold.

2. Right to Information:

Consumers are entitled to complete details about the quality, quantity, purity, and price of
goods and services. This right helps protect them from unfair trade practices by dishonest
traders.

Example: When buying a medicine, the expiry date, dosage, and side effects should be
clearly mentioned on the package.

3. Right to Choose:

Consumers have the right to access various goods and services at competitive prices and
select products freely, without pressure to buy from any specific brand or trader.

Example:A customer should be able to pick any brand of soap in a store, not just the one the
shopkeeper recommends.
4. Right to be Heard:

Consumers have the right to express their concerns and be assured that they will receive
attention. Companies should address complaints through proper customer service channels.

Example:If a consumer reports a defective mobile phone, the company’s customer service
should respond and resolve the issue

5. Right to Seek Redressal:

Consumers can seek compensation or damages if they are harmed by defective products or
poor services. A redressal system is in place to resolve such issues effectively.

Example: If a new washing machine stops working within a week, the consumer can demand
repair, replacement, or refund.

6. Right to Consumer Education:

Consumers have the right to be informed about their rights and laws for protection.
Government programs like ‘Jago Grahak Jago’ aim to raise awareness, especially in remote
areas.

Duties of a Consumer:
A consumer is under an obligation to discharge the following duties when he makes
purchases from the trader:

1. To Pay Price:

On purchasing goods or hiring any services, the consumer must pay for the same
immediately or after some time.

2. To Make Enquiry:

While purchasing something, the consumer must check the weight, balance, price, etc., and
also read carefully the instructions printed on the labels of the packages.

3. To Update Himself on Protection Schemes:

The consumer has to update himself about the various consumer protection schemes.

4.Doubly Cautious:

He must be careful while purchasing and should not fall into the trap of misleading
information and Advertisements.
5.Not to Buy Anything from Black Markets:

It is the duty of the consumer not to purchase anything from the black markets.

6.To Know his Rights and Duties

The consumer must be aware of his rights and duties and also spread awareness of the
same among others.

7. To Lodge Complaint:

The consumer has to file a complaint if the goods purchased by him are defective.

8.To Obtain Proper Bills:

Every consumer should secure the bills of the goods purchased or the services availed so
that if in the future he finds the goods or services to be defective, he can easily file a
complaint against the same and can prove it in the consumer forum.

Remedies Available to the Consumers:

The Consumer Protection Act provides consumers with numerous remedies. The following
are such remedies:

1. Removal of Defects:

If the consumer after conducting a proper test by using the product finds the product to be
defective, then the authority can pass an order for the removal of such defects in the
product.

2. Replacement of Goods:

The consumer can get the defective goods replaced with new ones, which are non-
defective.

3. Refund of the Price:

The consumer is entitled to get a refund of the price paid by him for the goods or charges
paid for the service if they are defective.

4. Award of Compensation:

A consumer can demand compensation from the trader or service provider due to his
negligence if the consumer has suffered any loss due to some physical injury.
5. Removal of Deficiency in Service:

The authority can pass orders for removal of the deficiency if there is any deficiency in the
delivery of the service. For instance, the court can pass orders to sanction the loan if the
bank is making unnecessary delay in sanctioning the loan.

6. Discontinuance of Unfair/Restrictive Trade Practices:

If a complaint is filed by the consumer against any unfair trade practice in the market, the
authority can order an immediate withdrawal of such a practice or even ban it.

7. Stopping of Sale of Hazardous Goods:

The consumers have a relief to remove or withdraw hazardous goods from the market.
Legal action can also be taken against the trader who has sold such goods.

Consumer Disputes Redressal agencies

To ensure affordable and speedy resolution of consumer disputes, the Government of India
has established quasi-judicial bodies at the district, state, and national levels—namely, the
District Commission, State Consumer Disputes Redressal Commission, and National
Commission—based on the value of goods or compensation claimed.

A consumer dissatisfied with a District Commission's decision can appeal to the State
Commission, and further to the National Commission. If still unsatisfied, an appeal can be
made to the Supreme Court of India within the prescribed time.

The Consumer Protection Act also mandates the formation of Consumer Protection Councils
at the central, state, and district levels to promote consumer awareness. The Central
Council is chaired by the Union Minister for Consumer Affairs, while the respective state
ministers head the State Councils.

District Commission
If the value of goods or compensation claimed does not exceed Rs. 1 crore (earlier Rs. 20
lakhs), the consumer must file the complaint with the District Commission. Each state
government establishes a District Commission at the headquarters of every district.

Composition:

1. President – A person who is, has been, or is qualified to be a District Judge.

2. Members – Two members under the age of 35 with a bachelor's degree from a
recognized university. They should possess integrity, ability, and adequate knowledge or
experience in fields like law, commerce, economics, public affairs, etc. One of the members
must be a woman.

Who Can File a Complaint:

A complaint can be filed by an individual consumer, a consumer association, a group of

consumers, or the Central Government.

Appeal Process:

If dissatisfied with the District Commission’s order, an appeal can be made to the State
Commission within 45 days. However, no appeal will be accepted unless the appellant
deposits 50% of the amount payable as per the District Commission's order.

State Commission
If the value of goods or compensation claimed is more than Rs. 1 crore but less than Rs. 10
crores (earlier above Rs. 20 lakhs but not exceeding Rs. 1 crore), the complaint must be filed
with the State Consumer Disputes Redressal Commission, commonly known as the State
Commission. Each state government establishes a State Commission, which operates from
the state capital.

Composition:

1. President – A person who is or has been a High Court Judge, appointed by the State
Government in consultation with the Chief Justice of the High Court.
2. Members – Two members below the age of 40, holding a bachelor's degree from a
recognized university and having at least 20 years of experience in consumer affairs,
economics, law, administration, engineering, technology, public health, or medicine.
One of the members must be a woman.

Appeal Procedure:

 An appeal must be filed in four copies (with additional copies equal to the number of
opposite parties) either in person or via registered post.
 It should include a certified copy of the District Commission’s order and supporting
documents.
 Appeals are registered and reviewed for defects, which must be rectified within 15
days.
 Normally, cases are admitted within 21 days of receipt and efforts are made to
dispose of them within 90 days from the date of admission.
Order of the State Commission:

 Orders are signed and dated by the Commission members and communicated to all
parties free of cost.
 A review application must clearly state the grounds for review and is usually
disposed of without oral arguments, preferably by the same members who passed
the original order.
 The State Commission can review its orders if there is an error apparent on the face
of the record, either on its own or upon an application by any party within 30 days of
the order.

National commission
The National Consumer Disputes Redressal Commission (National Commission) handles
cases where the value of goods or compensation claimed exceeds Rs. 10 crores (earlier Rs. 1
crore). Established by the Central Government, the National Commission is headquartered
in New Delhi. Its working days and hours are specified by the Central Government, and
sittings are convened by the President as needed.

Composition:

1. President – A person who is or has been a Judge of the Supreme Court, appointed by the
Central Government in consultation with the Chief Justice of India.

2. Members – At least four persons of ability, integrity, and standing with adequate
knowledge or experience in areas such as law, economics, commerce, accountancy,
industry, public affairs, or administration. One of the members must be a woman. All
appointments are made by the Central Government based on the recommendation of a
selection committee consisting of:

A Supreme Court Judge nominated by the Chief Justice of India – Chairman

Secretary, Department of Legal Affairs – Member

Secretary, Department of Consumer Affairs – Member

Penalty for Non-Compliance: Failure to comply with the order of any of the three
commissions—District, State, or National—can result in:

Imprisonment: Not less than 30 days, extendable up to 3 years

Fine: Not less than Rs. 25,000, extendable up to Rs. 1 lakh

Or both

These commissions are deemed equivalent to Judicial Magistrates of the First Class under
the Code of Criminal Procedure, thereby reinforcing the enforceability of their orders.