Tuesday 7 June 2016

Consumer Protection Act 1986 amended




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15th March of every year is celebrated as “World Consumer Rights Day” all over the world.  This has more significance in our country, since the amended ConsumerProtection Act, which is more powerful now has come into force from 15th March 2003.

As per the amended act, the Consumer Courts will be able to take the help of Police to enforce their orders, as Section 27 of the Consumer Protection Order is amended.  If the Opposite party fails to comply with the orders, they will face imprisonment, which will ensure that the consumers would get the justice swiftly.

The jurisdiction of State Commission has been raised to entertain complaints, where the value of goods or services and compensation claimed, exceed Rs.20.00 lakhs but not Rs.1.00 Crore, which is at present is above Rs.5.00 lakhs and up to Rs.20.00 lakhs. Complaints above Rs.1.00 Crore are to be filed with National Commission.  Consumers should submit as many copies of complaints as there are as Opposite parties to enable the Court to send them to the Opposite parties. 

Once the complaint is received, they will not be transferred to any other Court or Tribunal and they will be heard as expeditiously as possible.  The District Forums will be able to pass Interim orders wherever required. Section 14 empowers the District Forum if it is satisfied that the allegations contained in the complaint are proved, also to issue orders directing the Opposite party, inter alia, to pay punitive damages, cease manufacture of hazardous goods and desist from offering services which are hazardous in nature, pay not less than five percent of the value of defective goods sold or services provided where loss or injury has been suffered by a large number of consumers, and to issue corrective advertisement to neutralize the effect of misleading advertisement. 


The definition of “manufacturer” is amended to include any manufacturer who assembles goods from parts made by others or puts his mark on any goods made or manufacturer whether he claims such goods to be manufactured by himself or not. 

The definition of “restrictive trade practice” is enlarged to mean manipulation of price or conditions of delivery or flow of supplies leading to unjustified cost and restriction or the consumers and includes delay beyond the agreed period which has led or is likely to lead to rise in the price.

The “restrictive trade practice”, which shall now also include 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 to buying, hiring or availing of other goods or services.

The definition of “unfair trade practice” is enlarged to include withholding of information about final results of any scheme offering gifts, prizes or other items free of charge and manufacture of spurious goods and sale of spurious goods or adoption of deceptive practices in the provision of services.

The definition of “ spurious goods and services “ are defined as goods and services, which are claimed to be genuine but are actually not so. But perhaps the best amendment for Bangalore’s consumers has been the re-enforcement of Section 27.

Amendment
       
(a) proviso shall be omitted;

(b) after the proviso so omitted, the existing section shall be renumbered as sub-section (1) and after sub-section (1) so renumbered, the following sub-sections shall be inserted, namely:-

"(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, the District Forum or the State Commission or the National Commission, as the case may, shall have the power of a Judicial Magistrate of the first class for the trial of offences under this Act, and on such conferment of powers, the District Forum or the State Commission or the National Commission, as the case may be, on whom the powers are so conferred, shall be deemed to be a Judicial Magistrate of the first class for the purpose of the Code of Criminal Procedure, 1973.

(3) All offences under this Act may be tried summarily by the District Forum or the State Commission or the National Commission, as the case may be".    
Appeal against order passed under section 27. 24. After section 27 of the principal Act, the following section shall be inserted, namely :-

"27A. (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, an appeal under section 27, both on facts and on law, shall lie from - 

(a) the order made by the District Forum to the State Commission ; 

(b) the order made by the State Commission to the National Commission; 
and
(c) the order made by the National Commission to the Supreme Court.

(2) Except as aforesaid, no appeal shall lie to any court from any order of a District Forum or a State Commission or the National Commission.

(3) Every appeal under this section shall be preferred within a period of thirty days from the date of an order of a District Forum or a State Commission or, as the case may be, the National Commission :

Provided that the State Commission or the National Commission or the Supreme Court, as the case may be, may entertain an appeal after the expiry of the said period of thirty days, if, it is satisfied that the appellant had sufficient cause for not preferring the appeal within the period of thirty days.     


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