What is ‘Class Action’ Under Consumer Protection Act

 

Simple meaning is -An action which is preferred by a class

Specifically under Consumer Protection Act ,it shall be an action by class of people for defective goods, deficiency in services and for unfair trade practices .

Consumers are not having dual Rights –

·        Right before Consumer Courts

·        Rights Before Central Consumer Protection Authority

 

Before the Central Consumer Protection Authority

 

Who can complain-

(when these come on behalf of more than one consumer for the same cause,against the same person or authority or unit or establishment  ,for the similar relief  )

Section 2 (5) "complainant" means—(7 type of persons )

(i) a consumer; or

(ii) any voluntary consumer association registered under any law for the

time being in force; or

(iii) the Central Government or any State Government; or

(iv) the Central Authority; or

(v) one or more consumers, where there are numerous consumers having

the same interest; or

(vi) in case of death of a consumer, his legal heir or legal representative; or

(vii) in case of a consumer being a minor, his parent or legal guardian;

For what purpose

·        For defective goods, deficiency in services and for unfair trade practices .

·        Any act against the rights of consumers

 

Against whom

·        "electronic service provider

·        "endorser, of  an advertisement which is found misleading

·        "establishment" includes an advertising agency, commission agent,

manufacturing, trading or any other commercial agency which carries on any business,

trade or profession or any work in connection with

 

Whom to complain (sec. 17)

1.     May be forwarded either in writing or in electronic mode, to any one of the authorities, namely, the District Collector or the Commissioner of regional office or the Central Authority.

 

How it is taken up and dealt with By Central Consumer Protection Authority (sec. 19)

(4.steps )

1.     Conduct a preliminary inquiry o be made by the Director General or by the District Collector.

 

2.     If  the Central Authority is of the opinion that thematter is to be dealt with by a Regulator established under any other law for the time being in force, it may refer such matter to the concerned Regulator along with its report.

3.     May call upon a person referred to in and also direct him to produce any

document or record in his possession.

 

 

4.     If  Found sufficient evidence to show violation of consumer rights or unfair trade practiceby a person,it may pass such order as may be necessary,

(4 orders)

 

(a) recalling of goods or withdrawal of services which are dangerous, hazardous

or unsafe;

(b) reimbursement of the prices of goods or services so recalled to purchasers of

such goods or services; and

(c) discontinuation of practices which are unfair and prejudicial to consumers' interest:

Provided that the Central Authority shall give the person an opportunity of being heard before passing an order under this section.

 

 

(d) Penality If the Central Authority is of the opinion that it is necessary to impose a penalty- ten lakh rupees TO  fifty lakh rupees.

 

 

 

Procedural Rights For the purpose of conducting an investigation (sec. 22.)

 

(4 actions )

(a) Enter at any reasonable time into any such premises and search for any

document or record or article or any other form of evidence

and seize such document,record, article or such evidence;

(b) make a note or an inventory of such record or article; or

(c) require any person to produce any record, register or other document or article

 

An appeal against order to the National Commission within a period of thirty

Days from the date of receipt of such order.

 

 

 

 

 

How it is dealt by Consumer Commissions

1.     Complete Procedure as in courts

2.     Segregate cases in different groups according to grievance and relief

3.     Order –common order or separate order as the case may be

Relief –

Remove defect ,change,refund  along with compensation and cost of litigation

Remove deficiency inservices,order for refund

Removing unfair clause in contract ,remove and compensate for unfair trade practice

Example of class case –

Builder cases

Education

Product liability cases ,

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