Consumer Protection Act

1986
• The Consumer Protection Act 1986 is a social welfare
legislation which was enacted to protect a large body of
consumers from exploitation .
•The main object of the legislature in the enactment of
this act is to provide for the better protection of the
interests of the consumer and to make provisions for
establishment of consumer councils and other
authorities for settlement of consumer disputes.
.

Who is consumer ?
A person who buys any goods or hires services for consideration is
a consumer. It includes the person who uses the goods or sevices
with the approval of the person who has bought the goods. It also
includes the person who is beneficiary of services .

What is consumer dispute ?

When a person against whom the complaint is filed ,denies the

allegations contained in the complaint ,a consumer dispute arises
According to the CPA, ‘Complaint’ means any of the
following allegations made in writing by a
complainant-
• any unfair trade practice or a restrictive trade practice has been
adopted by a trader

• The goods hired or bought suffer from one or more defects

• The goods hired or availed of are deficient in any respect

• A trader has charged price in excess of price fixed by law or

displayed on the goods or any package containing goods

•Goods which will be hazardous to life and safety when used, are
being offered for sale to the public in contravention of the
provisions of any law requiring traders to display information in
regard to the contents, manner and effect or use of such goods.
It provides the following rights of consumers:-
(a) right to be protected against the marketing of goods and
services which are hazardous to life and property .
(b) right to be informed about the quality, quantity, potency,
purity, standard and price of goods or services so as to protect
the consumers against unfair trade practices .
(c) right to be assured, wherever possible, access to a variety of
goods and services at competitive prices .
(d) right to be heard and to be assured that consumers’ interests
will receive due consideration at the appropriate forum.
(e) right to seek redressal against unfair trade practices or
unscrupulous exploitation of consumers .
(f) right to consumer education .
To provide a simple, speedy and inexpensive redressal of consumer
grievances, the act provide a three-level quasi-judicial machinery at
the national, state and district levels. These are:
• National Consumer Disputes Redressal Commission known as
National Commission .
• State Consumer Disputes Redressal Commissions known as State
Commissions .
• District Consumer Disputes Redressal Forum known as District
Forum .

Limitation period :- two years from the date on which cause of

action arises is stipulated time to file the complain before forums .
• DISTRICT FORUM :
Monetary limit – should not exceed Rs. 20 lakhs
• STATE COMMISSION :
Monetary limit – should be 20 lakh to 1 Cr.
• NATIONAL COMMISSION :
Monetary limit –more than 1 Cr.
Procedure for making a complaint :-

• Every complaint shall be accompanied by a fee as specified

in the Consumer Protection Rule 1987 .

• On receipt of the complaint the forum may allow the

complain to be proceeded with or rejected .

• the admissibility of the complaint will be decided within 21

days from the date on which complaint was made .
Procedure on admission of complaint :-
• Refers a copy of the complaint within 21 days from the date of
its admission to the opposite party & grant him time of 30 days to
present his version of case .
• Where complaint alleges a defect in goods which can’t be
determined by without testing of goods, forum should get a
sample of the goods, seal it and authenticate it .
• Refers the sealed sample to the appropriate laboratory for test
• laboratory should report the findings within 45 days .
• Complainant has to deposit the fees with the forum .
• Copy of the report should be sent to opposite party .
• After hearing the parties, forum issue appropriate order .
Time limit for deciding the complaint:-
•If the complaint does not require analysis or testing of
commodity :- 3 months from date of notice received by the
opposite party else the time is extended for 5 months .
Relief to the complainant :-
• Remove the defect from the goods as pointed by the laboratary
or
• Replace the goods with new goods or
• Return to the complainant the price or
• Pay compensation to the consumer for any loss or
• To discontinue unfair trade practices or
• Not to offer hazardous goods for sale or
Presented by :-
Shruti Sharma
Swati Khandelwal