Council For Fair Business Practices

Important Information :

Recent Events Held:

Seminar on Consumer Courts, "how to make them more effective" held on 16 March, 2006 as a part of World Consumer Rights Day celebration.

The seminar to discuss issues raised by consumers was addressed by Shri V.B. Haribhakti, President, CFBP who also welcomed the distinguished gathering at the commencement.The objective of the Consumer Forum is to provide speedy redressal of consumer grievances. Today, however, the reality is that there are so many cases pending for several years in the Consumer Fora, which virtually defeats the purpose and objective of the Consumer Protection Act. Lengthy procedures include filing of affidavits. There is corruption, unnecessary adjournments and abnormal delays of judgement. Justice is also grossly delayed. It is therefore necessary and speedily to examine how consumer fora can be made more effective.

Shri Subash Chander Gogia, Chairman, Programmes Committee drew the attention of the gathering to the plight of Indian Consumers. They do not enjoy their full rights and must first, be educated about them. The CFBP has organised a series of programmes toward this end. The USA Canada and Australia are strongly aware of the consumer movement and the need of the hour is to follow suit.

At the request of CFBP President V, Haribhakti, Shri Apurva Aggarwal then made a presentation on the laws, rights and fora established for consumers.

Laws/Bodies for consumers

Consumer Protection Act 1986 (‘the Act’)
Appropriate Laboratories
Redressal Agencies
Consumer Protection Rules, 1987
State Rules
Consumer Welfare Fund Rules, 1992
Voluntary Consumer Organisations
Competition Act, 2002
Council for Fair Business Practices, 1966
UN Guidelines for Consumer Protection

The Act is unique in the world

Exclusive courts for consumer disputes in all districts, state and national capitals
Six consumer rights specified
Consumer Protection Councils from national to state and district levels
Covers private, public, cooperative sectors
Prevents practices with adverse effect on competition; promotes & sustains competition in markets; protects interests of consumers & ensures freedom of trade

Consumer’s Rights

1. Right to SAFETY against hazardous goods and services
2. Right to be INFORMED about quality, quantity, purity, standard, price
3. Right to CHOOSE from a variety at competitive prices
4. Right to BE HEARD
5. Right to seek REDRESSAL
6. Right to CONSUMER EDUCATION

Who can file a complaint

Consumer

Consumers - with permission of the District Forum
Recognized Consumer Association – effected consumer need to be a member
Central Government or State Government

Where to Lodge a Complaint

If claim is less than rupees twenty lakhs, in the District Consumer Disputes Redressal forum
If more than rupees twenty lakhs but less than rupees one crore, & appeals, in the State Consumer Disputes Redressal Commission
If more than rupees one crore, & appeals from SC, in the National Consumer
Disputes Redressal Commission
Appeals from NC lie to Supreme Court

Procedure for Filing a Complaint under the Act

There is nominal fee for filing a complaint before the District Forum, the State Commission or the National Commission
No stamp paper required
File in triplicate on plain paper to the District Consumer Disputes Redressal Forum where the seller has his business or residence or where the cause of action arises
File complaint within 2 years from the date of the cause of action

Essential Information in the Complaint

Name and full address of complainant
Name and full address of opposite party
Description of goods and services
Quality and quantity
Price
Date & proof of purchase
Nature of deception
Type of redressal prayed for

Applicable Court Fee (1)

Central Government has fixed the filing fee payable in Consumer Disputes to be filed before the Consumer forum as follows - Value of goods, Service & Compensation Claimed determine the amount of fee payable
The below amounts are to be deposited at the time of filing the Complaint

DISTRICT FORUM

Value of Goods and compensation	Amount Payable
Less than Rs. One Lakh	Rs. 100
Rs. One Lakh and above but less then Rs. Five Lakhs	Rs. 200
Rs. Five Lakh and above, but less than Rs. Ten Lakhs	Rs. 400
Rs. Ten Lakh and above	Rs. 500

Payment through a Nationalized Bank Demand Draft duly crossed, drawn in favour of "President, Consumer Disputes Redressal Forum".

Applicable Court Fee (2)

STATE COMMISSION

Payment through a Nationalized Bank Demand Draft in favour of "Registrar, State Consumer Disputes Redressal Commission, ___________ State".

NATIONAL COMMISSION

Payment through a Nationalized Bank Demand Draft in favour of "Registrar, National Consumer Disputes Redressal Commission".

Benefits

No lawyer or agent is necessary for filing complaint or to make submission
If due to lawyer’s conduct consumer suffers, it is a deficiency in service open to redress
Nominal fees payable
No charges for dispatching notices to opposite parties etc.

Finality of Orders

Every order shall, if no appeal is preferred, be final
Time allowed for appeal

Level of Appeal Time limit

After expiry of 30 days the appeal maybe entertained if sufficient cause for not filing within the time limit has been satisfied.

Level of Appeal	Time Limit
District Forum to State Commission	Within 30 Days from order date
State Commission to National Commission	Within 30 Days from order date
National Commission to Supreme Court	Within 30 Days from order date

Consumer Complaint

Under the Act, a complaint means any allegation in writing made by a complainant in regard to one or more of the following :-

Any unfair trade practice as defined in the Act or restrictive trade practices like tie-up sales adopted by any trader
One or more defects in goods. The goods hazardous to life and safety, when used, are being offered for sale to public in contravention of provisions of any law for the time being in force
Deficiencies in services
A trader charging excess of price
Fixed by or under any law for the time being in force; or
Displayed on goods; or
Displayed on any packet containing such goods

Redressal a Consumer may seek

Removal of defects in goods or deficiency in services
Replacement of defective goods
Refund against defective goods or deficient services
Compensation
Prohibition on sale of hazardous goods

The keynote address followed Shri Aggarwal's presentation and was delivered by Justice M.S. Rane, former President, Maharashtra State Consumer Commission. Justice M. S. Rane noted, that in India the Consumer Protection Act was enacted in the year 1986 which is an unique piece of legislation enacted after the Independence of India. Due to lack of funds and apathy of the Government, the setting up of Consumer Fora was delayed and after the intervention of the Supreme Court the government, the process of setting up the Consumer Foras and State Commissions was speeded up.

The objective of the Act was to give speedy redressal to consumer grievances. This has not been achieved, because of the lack of proper accommodation, inadequate staff and other infrastructure such as telephones, fax, and computers for the Fora. Other reasons for delay in disposing of pending cases was due to non-appointment of members to the fora. Justice Rane said that inspite of these problems, according to the National Commission, about 21.0 lakhs cases have been disposed of against 24.5 lakhs complaints lodged. Political interference also hinders the process of the functioning of the Consumer Fora effectively. If the Government does implement the CPA Act in toto, consumers will benefit greatly. Justice Rane cited an example.

In Mumbai there are only three District Fora for the population of 1.40 crore. The population of Thane District is approximately 90 lakhs and it has only one District Forum. Therefore, it is necessary to increase the number of fora in proportion to the population. Otherwise, one cannot expect speedy redressal of cases.

In conclusion Justice Rane said that organizations like CFBP and others should join together and present a memorandum to the Government about the problem being faced by the Consumer Grievances Redressal Agencies and Commissions.

Endorsing the viewpoint of Justice Rane, Shri Anand Patwardhan suggested the following to make Consumer Courts more effective.

1. The members of the Consumer Foras should be given proper training.
2. Remove the lengthy procedures / avoid filing affidavit etc.

Dr. Ramdas J. Gujarathi, Chairman, Mumbai Grahak Panchayat made the following remarks for making Consumer Courts more effective:

Provide Adequate infrastructure including Manpower, Computers, Stationery etc.
Provide Additional permanent benches for the State Commission at Nagpur and Aurangabad.
Provide Additional benches or additional Forum for Mumbai Suburban District and Thane.
Make Full-Time appointments of the Members on the Forum.
Discourage frequent adjournments by imposing heavy cost for unnecessary adjournments.
Encourage participation of representatives of genuine & recognized Consumer Bodies and guard against so-called Consumer Activists who also appear against the Consumers.
Adopt simple & Uniform procedure at all Fora.
Provide proper orientation to new incoming Presidents & Members.
Implement the regulations issued by the National Commission in letter and spirit.

Shri Shirish Deshpande suggested that organization like CFBP and other voluntary organizations should contribute adequately for a training programme for members of Fora. He also stated a joint proposal to the Govt.of Maharashtra listing all the suggestions made in the seminar should be sent to the Govt. for consideration and implementation for the benefit of consumers.

Shri Subash Chander Gogia, Chairman, Programmes Committee gave a hearty vote of thanks and said CFBP along with other Consumer organizations will certainly take up the issues with the Government for necessary implementation.

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