Legal Aspects of Business

Consumer Protection Act 1986

LAB:15
 Consumer Protection Act 1986
 Enacted to provide for the better protection of the interest of
consumer
 This Act applies to all the goods and services.
 The act was amended in 2002 and the amendments came into
force w.e.f. 15th March 2003, subsequently a bill is placed in 2018.

Consumer is one who

– Buys any goods for a consideration and includes a
hire-purchaser;
– Any user of such goods for consideration but
excludes one, who obtains for re-sale or for
commercial purposes;
– Hires a service for consideration and includes a
beneficiary of such service, if availed of with the
approval of the hirer but does not include the
rendering of any service free of charge or under a
contract of personal service
 Background
• Buyer could be easily misled and duped.
• Common consumer is neither knowledgeable nor well informed.
• He needs support and protection from unscrupulous sellers.
• Under sale of goods Act the principle is ‘caveat emptor’
• Unjust enrichment of one person at the cost of another
 Rights of the Consumers
Act is intended to protect the following six
distinct rights of the consumers:
• Protection from marketing of the goods and
services which are hazardous to life and
property.

• To be informed about the quality, quantity,

purity, standard and price of the goods or
services so the consumers are protected
from unfair trade practices.

• To have access to variety of the goods and

services at competitive prices.

• The right to be heard and assured that

consumer’s interests will receive due
consideration at appropriate forums.

• Right to speedy and simple redressal to

consumer disputes.

• The right to consumer education.

http://www.nationalconsumerhelpline.in/
 Complaint
Complaint means any allegation made by a complainant in writing
that:
– An unfair trade practice or restrictive trade practice has been
adopted
– The goods bought or agreed to be bought or services hired or
availed or agreed to be hired or availed suffer from deficiency
– He has been charged a price in excess of the price
– Goods which are hazardous to life and safety being offered for
sale without information
 Definitions
• Restrictive trade practice: Any trade which tends to bring about manipulation of
price or its conditions of delivery or to affect flow of supplies in the market in such
a manner as to impose unjustified costs or restrictions.
• Unfair trade practice: A trade practice which for the purpose of promoting the sale
adopts any unfair method or unfair or deceptive practice.
 Hyderabad: Man Filed A Complaint Against INOX Movies- RTP
The practice of not allowing The Court observed, “In view of the above
customers to carry outside water judgement there cannot be two MRPs for
bottles into the screening area is a the same water bottle and manufacturer
restrictive trade practice where INOX also has no right to fix different MRP to two
creates a manipulative environment different water bottles of same quality and
to push customers into buying water quantity.”
bottles double its actual cost.”
The Hyderabad Consumer Forum judgement
In its 4 April 2017 order, it directed INOX multiplex to grant
the following reliefs:
1.The movie theatre to have visual
representation/notification in the theatre premises that the
customers can carry water bottles into the screening area.
2.Let them (customers) know the total number of screens
at INOX movies, GVK one and the total number of water
dispensers placed at this place. As he (Gopal) saw only
Gopal bought a water
one dispenser for multiple screens placed in a very
bottle from INOX,
isolated manner.
Maheshwari Parmeshwari
3.To take cognizance of this case and take required action
Mall, also in Hyderabad,
against INOX Movies (Hyd) at GVK One Mall and
for Rs 50, instead of the
directing them to stop such practices of looting ignorant
MRP of Rs 20.
customers.
What constitutes a defect or deficiency?
A defect or deficiency is a:

Fault
Imperfection
Shortcoming
Inadequacy
Quality
Nature
 Who is a complainant?
• A consumer
• Any voluntary consumer association registered under the
Companies Act or any other law
• Central or State Government, if it makes a complaint
• One or more consumers having same interest
• In case of death of a consumer, his legal heir or
representative.

A Consumer Dispute arises when a complaint is denied

or disputed.
The main objective of the Act is:-

• To provide simple, speedy and inexpensive redressal to the

consumer’s grievances.
• To provide a three-tier quasi-judicial machinery at the
national, state and district level has been envisaged under
the Act.
• National Consumer Disputes Redressal Commission
(National Commission).
• State Consumer Disputes Redressal Commission (State
Commission).
• District Consumer Disputes Redressal Forum (District
Forum).
 Jurisdiction & Court Fee as per CP Act 1986

*For Revised Limits – Check CP Bill 2018 Pecuniary Limits

Krishan Dass Chaurasia V. State Bank of India (1995) the total claim in
a complaint did not exceed Rs. 1,00,000/-. It was held that the matter
was not within the jurisdiction of the State Commission and such a claim
was rejected by the State Commission. The Complainant could seek the
remedy from the District Forum.
 Time Limit for filing complaint
• Within two years from the date on which the cause of
action arises

• Even where the time limit expires, the complaint can be

taken up
– provided complainant is able to satisfy the Forum or
Commission about the reasonableness in the delay

• The delay for every single day has to be explained.

THE COMPLAINT
BEFORE THE HON'BLE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM AT ............. OR
BEFORE THE HON'BLE STATE CONSUMER DISPUTES REDRESSAL COMMISSION AT .........OR
BEFORE THE HON'BLE NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION AT
NEW DELHI IN RE : COMPLAINT NO. ...... OF 20....... IN THE MATTER OF :
(FULL NAME) (DESCRIPTION) (COMPLETE ADDRESS)....Complainant
Versus
(FULL NAME) (DESCRIPTION) (COMPLETE ADDRESS) .....Opposite P
COMPLAINT UNDER SECTION 12 (Before District Forum)
SECTION 17 (Before State Commission) SECTION 21(Before National Commission)
OF THE CONSUMER PROTECTION ACT, 1986.

RESPECTIFULLY
1.INTRODUCTION
2.TRANSACTION For Complaint Registration
3.DEFECT/DEFICIENCY http://consumeraffairs.nic.in/
4.RECTIFICATION
5.OTHER PROVISIONS
6.EVIDENCE
7.JURISDICTION
8.LIMTATION
9.RELIEF CLAIMED
10.PRAYER CLAUSE It is, therefore, most respectfully prayed that this Hon'ble
Forum/Commission may kindly be pleased to ........ (Details of relief's which complainant
wants the Court to grant)
 Who is a consumer for the purpose of services?

a) One who hires any services for a consideration, which has

been paid or promised or partly paid or partly promised or
under any system of deferred payments. “Service” means
service of any description, which is made available to
potential users and includes, but not limited to the
provisions of the facilities in connection with:

1) banking 2) financing 3) insurance 4) transport

5) processing 6) supply of electrical or other energy
7) boarding or lodging or both 8) house construction
9) entertainment 10) amusement etc…

b) It includes any beneficiary of such service other than the

one who actually hires the service for consideration and
such services are availed with the approval of such person.

But does not include the rendering of any service free of

charge or under a contract of personal service