13 - Chapter 3 PDF

CHAPTER 3
CONSUMER PROTECTION ACT, 1986
Introduction to Chapter 3:
The Acts mentioned in Chapter 2 “Consumer Protection Mechanism prior to
1986” were enacted to protect the interest of the consumers on different dimensions. But
the ground reality does not tend to be so as these legislations were not sufficient to
protect the interest of consumers. Therefore, the Consumer Protection Act was passed in
1986 to uphold the rights of consumers. In this Chapter an attempt has been made to
establish the ways and means of consumer protection and the various issues on
consumer advocacies which protect and promote the rights of consumers. The Chapter
also highlights the procedure of filing of complaints at the appropriate redressal forums
and the reliefs available to the consumer against defective goods and services.
3.1 Meaning of Consumer Protection:
The assurance given to the consumer against “anti-consumer trade practices” by
the producers, traders and sellers refers to consumer protection. With growing
competition prevailing in the market, manufacturers, traders and service providers have
made an attempt to increase their sales by tempting themselves to engage in exploitative
and unethical malpractices which includes:
Sale of spurious goods i.e. selling something of little value instead of real
product;
Sale of sub-standard goods i.e. selling goods not conforming to prescribed
quality standards;
Sale of duplicate products;
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Overcharging i.e. charging more than Maximum Retail Price for the product;
Hoarding and black-marketing i.e. creating artificial scarcity in the market
thereby leading to price rise;
Misleading advertisements i.e. false advertisement claiming a product or service
to be of superior quality;
Sale of adulterated goods i.e. adding something inferior to the product;
Fractional weights and measures i.e. use of false weights and measures leading
to underweight;
Supply of defective goods;
Consumer Protection helps in curbing these anti-consumer trade practices through
legislative measures by taking necessary action against the producers, traders, and
service providers. It is that protective weapon in the hands of the consumer through
which they can protect their hard-earned money and in a parallel way create value for
money.
3.2 Salient Features of the Consumer Protection Act:
Ø Applies to all goods and services unless specifically exempted by the Union.
Ø All suppliers of goods and services cover all the sectors whether private, public
or co-operative.
Ø Enshrines the consumer’s rights related to safety, information, choice,
representation, redress and consumer education.
Ø Gives an additional remedy to consumers besides those which may be available
to them under the provisions of other existing laws.
Ø Provides for three-tier consumer grievance redressal machinery with District
Forum at the base, State Commission at the middle and National Commission at
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the apex level. The State and National level functions as appellate authorities
and any verdict given by the National Commission can be challenged in the
Supreme Court.
Ø Has a time frame for disposal of cases.
Ø Empowers consumers seeking discontinuance of certain unfair trade practices,
defects or deficiencies in services and withdrawal of hazardous goods from the
market.
Ø Complaints can be filed on behalf of group of consumers having a common
interest.
Ø No technicalities in the procedure of Redressal Forum. In fact, the Act provides
for a simple, speedy and inexpensive redressal of consumer grievances.
3.3 Persons considered as consumers (as decided in various NCDRC and
SCDRC with respect to various cases):
v A family member/beneficiary of consumer
v Payment of consideration makes a complainant consumer
v Persons applying for overdraft facilities or bank overdraft
v Members of Housing Societies
v Admission of child in hospital, parents are consumers-child beneficiary
v Patient of a private medical practitioner or a private nursing home
v Telephone subscriber
v Passenger in a train
v Buyer of electricity
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3.4 Problems confronting consumers:
Today’s consumer faces a lot of malpractices prevailing in the market, some of
which have been discussed as follows:
3.4.1 Misleading Advertisement:
Huge money is been spent on advertising the products and services by the
business organization. These advertisements make some vague claims for products
without explaining how the qualities of the products produce the benefits as suggested.
3.4.2 Rampant Adulteration:
Rampant adulteration is another cause of unfair trade practices whereby the
business organization resort to additives that look like original material to the goods to
increase their bulk. These substitution and additions of materials to the goods is a crime
and causes serious injury and damage to human health.
3.4.3 Poor Quality of Products:
Since a section of the consumers are not quality conscious, so the business
organizations do not tend to maintain quality standard of its products, even after
standards have been set up by the Government.
3.4.4 Promotional Contests:
Business concerns indulge in unfair practices in the name of promotional
contests to attract the customers to buy the product. On the contrary, the customers fall
an easy prey to these promotional contest.
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3.4.5 Bait Advertising (Switch Selling):
There are some advertisements which contain offer for a particular item on
slashed down price, but the intention of the advertiser is to attract the buyer to his retail
show-room so that they may buy goods other than advertised goods which are offered as
bait to them.
3.4.6 Offering Gifts and Prizes:
Various business organizations offer gifts and prizes to attract the customers as
premium package but their main intention is to attract the customers to buy the goods
not needed by them.
3.5 Scope of Consumer Protection:
The scope of Consumer Protection includes, in its ambit, three aspects-
Scope of Consumer Protection
Physical Protection of Protection of

protection of public interest economic
consumers interest
Exhibit 3: Scope of Consumer Protection
3.5.1 Physical protection of consumers:
This aspect includes measures to protect the consumers against products that are
unsafe or injurious to health.
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3.5.2 Protection of public interest:
This aspect includes the means to prevent monopolistic and restrictive trade
practices in order to safeguard the interest of general public.
3.5.3 Protection of economic interest:
This aspect involves measures to protect the consumers against unfair trade
practices and to provide adequate means to get their grievances redressed.
3.6 Importance of Consumer Protection:
The importance of Consumer Protection can be viewed from two perspectives-
Importance of Consumer Protection
Consumer’s Perspective Businessmen’s Perspective
Consumer Ignorance Social Responsibility
Unorganized consumers Stability of Business
Economic Considerations Ethical Justification
Tension- Free Environment Government Intervention
Widespread Consumer Exploitation Use of Society’s Resources
Exhibit 4: Importance of Consumer Protection
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3.6.1 Consumer’s Perspective:
3.6.1.1 Consumer Ignorance:
Widespread ignorance amongst the consumer gives ample opportunities to the
suppliers to flood the market with sub-standard products and charge higher prices. As
such, it becomes difficult for the consumer to differentiate between the original and
duplicate products. Therefore, in the light of the above, it becomes necessary to educate
the consumer about the various rights and the reliefs available to them so that they can
make themselves aware.
3.6.1.2 Unorganized consumers:
In a developing country like India, consumers are spread in every nook and
corner and as such they are more or less not organized. Moreover, there are a few
consumer organizations which work to protect the interest of consumers. So the
consumers feel the need of adequate legal protection machinery to withstand all the
malpractices of the producers and traders in the market attire.
3.6.1.3 Economic Considerations:
The hard-earned money of consumer should be put to proper use and for this
they are expected to pay for what they get in return. The producers and distribution
intermediaries should always have a tendency to include reasonable margin of profits in
their respective costs, but the problem comes to the forefront only when they indulge
themselves in profiteering and start charging more for the goods and services. At this
juncture, it is desirable to make a clear statement and a balance between the product
price and consumers’ protection. Thus, in this regard, consumers need to be protected.
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3.6.1.4 Tension- Free Environment:
If the consumers are exploited in the market, it creates an environment which is
full of tensions and worries and thereafter the exploited consumers suffer from
depression. Therefore, in order to generate a congenial atmosphere, the consumers need
to be given necessary protection so that they can lead a tension-free life.
3.6.1.5 Widespread Consumer Exploitation:
A consumer may be confronted with a variety of exploitation in the form of
hazardous goods, adulteration, false and misleading advertisement and the like by
unscrupulous traders. So in order to get rid of all these, there is a strong need for the
protection of consumers against various malpractices.
3.6.2 Businessmen’s Perspective:
3.6.2.1 Social Responsibility:
A business organization owes social responsibility towards various stakeholders
out of which consumers constitute an important interest group. So apart from earning
profit it must provide quality goods at reasonable price and render adequate services to
its consumers. Success of a business entity depends substantially on consumers’
satisfaction and discharging its responsibilities towards its society as well. So, it cannot
compromise the social well-being in and around the place wherein the business entity
performs its activities.
3.6.2.2 Stability of Business:
The stability of a business depends on its ability to satisfy its customers by
designing the products, maintaining continuity of their establishment and also keeping
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in mind the requirements of its customers. In the field of competition, the business
which ignores the interest of its consumers will definitely lose their goodwill in the
market. Moreover, consumer’s faith on the enterprise is of prime importance and this
can be achieved by offering good quality products at reasonable prices.
3.6.2.3 Ethical Justification:
Every business organization is a part and parcel of society and so it must be
guided by moral/ethical norms. These ethical standards are a means of making business
socially and morally responsible for protecting the interest of the consumers. The ethical
norms of the business can be put to practice by producing right quality goods and
offering them at reasonable prices to the consumers and at the same time avoiding
unscrupulous, exploitative and unfair trade practices.
3.6.2.4 Government Intervention:
Government is committed by itself to the welfare of general public by taking an
active participation in protecting consumers’ rights. Any business entity engaging in any
form of consumer exploitation or other irregularities would invoke government
intervention which would tarnish the image of the company. Over the years,
Government has enacted several regulations for providing adequate protection to
consumers. Consumer Protection Act, 1986 is a landmark legislation in this regard. So,
it is advisable that the business organizations voluntarily resort to such practices which
in other words protect the interest of consumers.
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3.6.2.5 Use of Society’s Resources:
A business enterprise is a trustee of society’s resources. So, it becomes
obligatory for the business entities to provide good quality products and render services
which are in public interest.
3.7 Responsibilities of a Consumer:
Source: Dept. of Consumer Affairs
Responsibilities of a consumer
Although various efforts have been made by various government and non-
government organization to protect the interest of consumers but the exploitation of
consumer will come to an end only when the consumer himself comes forward to
safeguard his own interest and exercise his discretion with full awareness of the
implications of his right. Consumer rights and responsibilities are the two sides of the
same coin and so there should be parity between the rights and responsibilities of the
consumer. So, in order to avail the rights, a consumer should be conscious enough to
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discharge his responsibilities. A consumer should be given adequate importance to the
following responsibilities.
3.7.1 Cautious in purchasing:
While buying a particular product, a consumer ought to be cautious enough to
get full information regarding the quality, quantity, design, utility, durability, price and
after- sales services of the goods and services. These would indeed help the consumer in
making the best choice within the limit of their own resources.
3.7.2 Quality Conscious:
On consumers’ consciousness regarding the quality of goods and services and
not compromising with the quality of the product, the problem of supplying sub-
standard, adulterated and duplicate products can easily be sorted out. While purchasing
goods and hiring any services consumers’ should look for standardized goods which
provide quality assurance and bear quality certification marks such as Indian Standards
Institute (ISI), AGMARK, Hallmark on Jewellery, Fruits Product Order (FPO),
Woolmark etc.
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Conscious regarding Quality
3.7.3 Exercising Legal Rights:
Keeping in mind the rights enshrined in Consumer Protection Act, various rights
have been provided to all the consumers under Consumer Protection Act which includes
right to safety, right to consumer information, right to choose, right to be represented,
right to be redress and right to consumer education. These rights will be put to practice
only when the consumer exercises his rights. After purchasing a product according to
consumer’s preference, if a consumer feels that any of these rights are violated by the
manufacturer or service provider, a consumer is free to file a complaint with the three-
tier-quasi-judicial machinery which is constituted under Consumer Protection Act and
thereby exercise his/her legal rights.
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Exercising Legal Rights
3.7.4 Valid Documentary Evidence:
While making a purchase of goods or availing any service from the supplier, a
consumer is supposed to insist on valid documentary evidences such as cash memos,
guarantee papers, invoice, warranty card, etc. These evidences will act as a proof and
will support a consumer in filing a complaint and getting redressed from the regulatory
provisions.
3.7.5 Consumer Education:
One of the primary and basic duty of consumer is to make them aware through
some educational strategy. On being educated, he/she will be well acquainted with the
product and at the same time will be well conversant with the important regulations
mentioned in the Act. To make it a success, a common slogan “Jago Grahak Jago”,
various awareness programme through television, radio etc. have been launched.
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3.7.6 Misleading advertisements:
Advertisements are often misleading as they exaggerate the quality of the
product or service and consumers in general, get swayed away by these advertisements.
But, it is the duty of the consumer not to be mislead by spurious advertisements and
infact try to carefully analyze whether the products or services advertised match with
the claims of the sponsors or not. If consumer finds any discrepancy in the features
advertised he/she should bring it to the notice of the sponsors of advertisement and the
appropriate authority and insist to stop showing such exaggerated facts.
Source: Dept.of Consumer Affairs
Misleading Advertisements
3.7.7 Filing of Complaints against genuine grievances:
This practice is often found lacking amongst the ignorant and unaware
consumers that even though they suffer loss on purchase of defective goods or services,
they hesitate to lodge a complaint to the appropriate consumer redressal platform.
Inactivity of aggrieved consumers gives indulgences to the corrupt businessman and
they continue to flood the market with substandard or defective goods and services. On
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being conscious by the aggrieved consumers to file a complaint even for mitigating a
minor loss, then along with the consumers the sellers will also be more conscious to
supply quality products in the market.
3.7.8 Provide adequate information to the seller:
The consumers ought to undertake the responsibility of providing adequate
information to the seller about their needs and preferences. This practice will in turn,
enable the seller to provide right kind of products and services to the consumer.
3.7.9 Aware of consumer rights:
It is desirable that consumer ought to be well conversant with the rights
mentioned in the Consumer Protection Act. If the consumers are well versed with the
rights they can make themselves prepared to exercise the same while buying any goods
and services.
Awareness of Consumer Rights
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3.7.10 Proper use of product /service:
It is usually expected from the consumers that they should use and handle the
products/services carefully and properly. But it is often seen that consumers tend to use
the product recklessly during the guarantee period with a view that it will be easily
replaced during that period. This practice of the consumers ought to be avoided, as far
as possible and practicable.
Apart from the above mentioned responsibilities, a consumer ought to be
conscious of his duty towards the society, ecology and towards other consumers and
make responsible choices.
3.8 Duties of a consumer:
Since self help is one of the best measures to protect the interest of consumers,
so a consumer should be aware of his duties and responsibilities towards the
enforcement of his own rights and also regarding the duties towards others. Basically
the duties which a consumer is required to perform have been mentioned as follows:
3.8.1 Duty to be aware:
The consumer rights have been framed for the consumer and so it becomes the
duty of each and every consumer to be aware of the rights and assert it in a proper
manner. In an attempt to create awareness amongst the consumer, World Consumer
Rights Day is observed on 15th March each year and National Consumer Rights Day is
observed on 24th December each year with various themes protecting the interest of
consumers. The Consumers International declared “Consumer Right in the Digital Age”
as the theme of World Consumer Rights Day, 2014 and the theme of National
Consumer Day for the year 2014 is “Empowering Consumers-Universality of Consumer
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Rights”. The Government has also undertaken various steps in order to make consumers
aware which includes “Jago Grahak Jago”- a national campaign which attracted the
attention of the masses within a short duration; CONFONET (Computerization and
Computer Networking of Consumer Fora)-an internet based case monitoring system for
automating the work flow of consumer forums; National Consumer Helpline (NCH), a
project undertaken by the Union Ministry of Consumer Affairs to empower Indian
consumers by providing telephonic advice and guidance. National Consumer Helpline
(NCH) also provides a National Toll Free No-1800-11-4000 (for BSNL/MTNL Users)
and other users can dial 011-23708391 (normal call charges applicable). Consumers can
also find solutions to their problems by sending SMS to 8130009809 (24 Hrs.),
mentioning their name and city. They can also log in their complaints at
www.nationalconsumerhelpine.in.Consumer Online Recourses and Empowerment
(CORE) Centre also helps in consumer advocacy and online redressal of consumer
grievances by filing complaint on http://www.core.nic.in/complainant/
CRegistration.aspx. The complaint can also be filed through telephone by calling at the
toll free number 1800-180-4566.
3.8.2 Duty to protect:
If the consumer confronts any malpractices in relation to transactions relating to
goods and services he ought to be courageous enough to protest against such
malpractices. If any remedial action is not taken by the concerned trader or service
provider, the consumer can seek help of consumer forum. In this regard, The National
Consumer Helpline has issued food safety tips for the consumer which is as under-
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Table 3.1
Food Safety Tips
Food Articles Adulterant Adulterant Adulterant

Milk Synthetic Milk Take few drops between It gives a soapy feeling
fingers and rub it It turns yellow on boiling
Effect of boiling It turns yellow after sometime
Effect of storage
Sugar Chalk Powder Dissolve in glass of water Chalk settle down at the bottom
Honey Sugar/Water Put on a small piece of If adulterated, sample will make
paper/cotton cloth and burn it chirping sound
Mustard Argemone Seed Mustard seeds have a smooth When crushed, mustard seeds
Seed/Mustard surface whereas argemone have yellow colour inside
Oil seeds have rough surface and whereas argemone seeds have
are black in colour and white colour inside.
increases weight
Common Salt White powered Stir a spoonful of sample of The presence of chalk will
stone, chalk salt in a glass make solution white and
insoluble impurities will settle
down
Chilli Powder Sawdust and Sprinkle chilli powder on the Sawdust will float on water and
colour surface of water added colour will make water
coloured
Coriander Horse dung Soak coriander powder in Horse dung will float on water
Powder powder water
Coffee Chicory and Gently sprinkle coffee powder Coffee floats over water but
tamarind seeds on the surface of water chicory begins to settle down
Green chilles, Malachite Take a small portion of the Coloured impressions on the
green peas and Green to sample and place it over a blotting paper indicate the
other vegetables accentuate the moistened white blotting presence of Malachite green.
bright, glowing paper.
green colour of
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Food Articles Adulterant Adulterant Adulterant
Paneer, khoya, Starch added Take a small sample of the The solution turns blue, if
condensed milk gives a thick, product in a test tube, add 20 starch is present there.
and milk rich texture ml of water and bring to a boil.
Cool to room temperature and
add a drop or two of iodine
Ice cream Washing solution.

Squeeze a few drops of lemon If washing powder is present, it
powder juice on the ice cream. will start to bubble.
Black pepper Papaya seeds Float the sample in alcohol. Mature black pepper corns will
sink whereas papaya seeds will
float to the surface.
Turmeric, dals Metanil Yellow Dissolve half a spoon full of If the water turns pink, violet or
and pulses such and Kesari Dal besan or turmeric powder in 20 purple, it shows the presence of
as moong or ml of lukewarm water. Add a Metanil yellow.
channa few drops of hydrochloric acid
or any commonly available
acid at home.
Tea Leaves Colour Spray on wet blotting paper Coloured tea leaves change
colour on wet paper
Sella Rice Metanil Yellow Rub a few grains in the palms Yellow colour gets reduced or
(Parboiled Rice) (A Non- of hands disappears.
permitted
colour)
Split Dal Khesari Dal Khesari Dal has edged type Polishing of Khesari Dal make
(Arhar) appearance showing a slant on it look like Arhar Dal.
one side and square in
appearance.
Source: National Consumer Helpline
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3.8.3 Duty to demand:
While purchasing goods, it is the duty of all consumers to demand receipts,
warranty and guarantee cards. It is desirable that the consumers have the intention of
purchasing only ISI marked goods (under the Bureau of Indian Standards Act, 1986) as
because ISI mark guarantees quality, safety and reliability of products. Moreover, in
regard to packaged foods AGMARK certification goods (Quality Certification Mark)
should be purchased which includes food grains and vegetables, spices and condiments,
edible nuts, vegetable oils and fats, dairy and poultry products, fibre crop, essential oils
etc. However, other marks like- International Organization for Standardization (ISO)
Mark, Hologram, FPO (Fruit Products Order) and Vegetarian and Non-Vegetarian mark
indicating green circle and red circle respectively should be checked while purchasing
goods.
3.8.4 Duty to check:
The onus lies on the consumer that before purchasing any services or goods, the
consumer ought to check the necessary details regarding the manufacturing date, expiry
date, brand name, batch number, Maximum Retail Price (MRP) etc.
3.9 Ways and Means of Consumer Protection:
The ways and means to protect the consumer can be classified into two
categories-
Protection before transferring the goods to the consumers, i.e. pre-transfer means
Protection after transferring the goods to the consumers, i.e. post-transfer means
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3.9.1 Pre-Transfer Means:
It means the protection shield provided by the producers and other
intermediaries to the consumers against wrong supply of goods and services. It includes
the following-
3.9.1.1 Hygienic safeguards maintained at the production process:
The onus lies on the producers to announce what hygienic safeguards are to be
taken into consideration at different stages of production process and also while packing
the goods. This can be done through some promulgation.
3.9.1.2 Displaying the contents of the product:
It is desirable on the part of the producers to display the contents of the product
in detail on the body of the pack. This process is to be undertaken even when the goods
are sold in small quantities. This will enable the producers to be crystal clear in regard
to the different ingredients used in the product and on the other hand it will also enable
the consumers to get a transparent view over the particular product.
3.9.1.3. Standardization:
Through this device, quality control is maintained and consumers get an
assurance that the products which are being used by them passed the quality test. Any
producer willing to get their products standardized must approach the respective
authorities where the products are tested. If the products meet the requirement of the
laid down standards, the authorities allow the producers to put a mark of standardization
on the product and its package. This mark of standardization assures the consumer that
the products which they are consuming are properly tested. Some well known standards
established in India are AGMARK, Bureau of Indian Standards (BIS), Prevention of
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Food Adulteration Act (PFA), Woolmark, Bureau of Energy Efficiency (BBE) and the
like.
3.9.1.4 National Youth Award on Consumer Protection:
In order to create consumer awareness amongst the youth, the Government has
initiated an Annual National Youth Award on consumer protection awarding three
prizes of Rs 20,000; Rs 15,000; and Rs 10,000 and also certificates encouraging
Voluntary Consumer Association.
3.9.1.5 Awards for individuals and voluntary consumer organizations:
The Ministry of Civil Supplies, Consumer Affairs and Public Distribution,
Government of India has also been conferring appreciation awards to individuals and
voluntary consumer organization for their efficient and heartful contribution towards
campaining the cause of consumers. Through these National Award, Consumer
Association gets prize money of Rs. 50,000; Rs.40,000 and Rs. 30,000 along with
certificates.
3.9.1.6 Organizing Poster Competition:
The Ministry of Civil Supplies, Consumer Affairs and Public Distribution,
Government of India provides an opportunity to talent buds to express their creativity
for the cause of consumer protection by organizing poster competition. This competition
has been organized by the Government of India since 1992.
3.9.2 Post –Transfer Means:
It refers to the protection which is provided to the consumers after the wrong
supply of goods or services. It includes the following-
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3.9.2.1 Lok Adalats/Community Courts:
Lok Adalats are such authorities which provide an effective and economical
system for quick redressal of public grievances. Lok Adalats are held on a particular day
where the aggrieved parties can directly approach the adalat to mitigate their grievances
on the spot and take decisions immediately. Cases relating to electricity billing,
telephone billing etc. are dealt by Lok Adalats to settle the grievances of the user
immediately on the spot.
3.9.2.2 Public Interest Litigation (PIL):
Public Interest Litigation is a scheme whereby any person can approach the
court of law for remedial action in the interest of the society. If any person or
organization though not a party to the grievances feel that the consumer using the
products or services of any organization have been exploited by its unilateral decision,
then he may move to the court in order to protect the consumers from being exploited.
Such kind of request made to the court is known as ‘Public Interest Litigation’ (PIL).
3.9.2.3 Self-Awareness:
The term self awareness means that an individual should be in a position to
protect himself from buying defective goods or services. He should be well-versed with
the laws of consumer protection and buy standardized products by having full
knowledge of certification marks, standards of weights and measures and the like. The
consumer should be aware of the fact that if he is supplied with defective goods or
services, he has the full authority to return the goods to the supplier and ask for
compensation for the loss suffered by using the defective goods or services. In case the
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supplier refuses to compensate him for the loss suffered he can seek the help of
consumer forum for redressing his grievances.
3.9.2.4 Consumer Organizations/Non-Government Organizations:
Consumer Organizations play an active role in promoting and protecting the
interest of consumers. These organizations educate the consumers about their rights and
provide protection to them by forcing the business firms to avoid malpractices and
exploitation of consumers. Through the involvement of increasing number of consumer
association, the consumer movement is getting a foothold in India and helping the
consumers to get quick redressal of their grievances. Some of the important consumer
organizations include VOICE (Voluntary Organization in the Interest of Consumer
Education) New Delhi, CUTS (Consumer Unity and Trust Society) Jaipur.
3.9.2.5 Awareness Programme:
Various publicity measures are initiated by the Government of India to increase
the level of awareness amongst the consumers. One such awareness measure undertaken
by the Government is the observance of World Consumer Rights Day on 15th March
and National Consumer Day on 24th December every year. Various video/audio
programmes on consumer awareness are also broadcasted through television channels
and All India Radio (AIR). To encourage the involvement of public in consumer
protection, various slogan, competition and award winning programmes are initiated by
the Government.
3.9.2.6 Consumer Welfare Fund:
This fund was initiated and opened by Ministry of Finance in 1991. The
Government has taken the initiative of providing financial assistance for setting up
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facilities for training and research in consumer education, counselling and guidance
bureau, product testing laboratories, publishing literature for consumer literacy and the
like. These initiatives are taken by the Government which helps to strengthen the
voluntary consumer movement in the entire country.
3.9.2.7 Legislative Measures:
A variety of legislative measures have been promulgated by the Government of
India to safeguard the interest of consumers and protect them from unethical practices
of the business. These legislative measures include the following regulatory provisions:
Prevention of Food Adulteration Act, 1954
Essential Commodities Act, 1955
Standards of Weight and Measures Act, 1956
Bureau of Indian Standards Act, 1986 and the like
Although the object of all these enactments was to provide relief to the consumers, but
none of these laws could provide direct relief to the consumers. Thus, in 1986 the
Consumer Protection Act was passed to provide an elaborate mechanism to offer
necessary protection to the consumers by dealing with consumer grievances and
disputes.
3.9.2.8 Redressal Forums and Consumer Protection Councils:
Under the Consumer Protection Act, 1986, a three-tier judicial machinery was
set up to deal with consumer grievances at the district level, state level and national
level known as the District Redressal Forum, State Consumer Dispute Redressal
Commission (S.C.D.R.C) and National Consumer Dispute Redressal Commission
(N.C.D.R.C) respectively. Any aggrieved consumer can lodge a complaint at any of the
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forums depending upon the value of goods claimed for compensation. The Consumer
Protection Act, 1986 as amended in 2002 also laid provisions for setting up of
Consumer Protection Council at district level known as District Consumer Protection
Council (DPCC), at state level known as State Consumer Protection Council (SPCC)
and at national level known as National Consumer Protection Council (NPCC) for
protecting the rights of consumers. Following is the chart showing the statutory three-
tier redressal forum and advisory council-
Statutory three-tier Redressal Forum and Advisory Council

National Level State Level District Level
District
N.C.D.R.C CPCC S.C.D.R.C SPCC DPCC
Forum
Exhibit 5: Statutory three-tier Redressal Forum and Advisory Council

3.9.2.9 Business Associations:
The premier associations of trade, commerce and industry have framed a set of
code of conduct to be followed by their members while dealing with their customers.
These associations include the Confederation of Indian Industries (CII), Federation of
Indian Chambers of Commerce and Industry (FICCI), Associated Chamber of
Commerce (ASSOCHAM).
3.10 Approaches to Consumerism:
In order to satisfy and protect the consumers the combined effort of business,
State, consumer himself and consumer association is necessary. These groups can work
together to stop the exploitation against the consumer. Following are four approaches to
consumerism-
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CONSUMERISM
VOLUNTARY
CONSUMER
BUSINESS STATE CONSUMER
HIMSELF
ASSOCIATION
Exhibit 6: Approaches to Consumerism
3.10.1 Business self-regulation:
The business organization by enforcing self-discipline within their community
can help in providing protection and satisfaction to the consumer. They can set their
own ethical standards and by maintaining these self-regulation strive to check the
malpractices prevailing in the market.
3.10.2 Role of the State:
All the three organs of the State-legislature, executive and judiciary can emerge
as a strong agency by enacting legislature which is strictly enforced by the executive
and by modifying laws enforced by the judiciary.
3.10.3 Voluntary Consumer Associations:
The Consumer Associations plays a pivotal role in making the consumers aware
against the malpractices of business and at the same time educate the consumers to
avoid the victimization and achieve satisfaction.
3.10.4 Consumer himself:
There is an adage “Self-help is the best help”. In this context a consumer ought
to be able to safeguard himself from being cheated in the market.
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3.11 Terminology in connection with Consumer Protection Act:
3.11.1 Complainant:
A complainant means-
(i) A consumer; or
(ii) Any voluntary Consumer Association registered under the Companies Act, 1956
or under any other law for the time being in force, or
(iii) The Central Government or any State Government, who or which makes a
complaint; or
(iv) One or more consumers, where there are numerous consumers’ serving the same
interest who or which makes a complaint; or
(v) In case of death of a consumer, his legal heir or representative. [Sec 2(1) (b) as
amended in CPA 2002]
3.11.2 Complaint:
Complaint means any allegation in writing made by a complainant that-
(i) an unfair trade practice or a restrictive trade practice has been adopted by any
trader or service provider;
(ii) the goods bought by him or agreed to be bought by him suffer from one or more
defects;
(iii)the services hired or availed of or agreed to be hired or availed of by him suffer
from deficiency in any respect;
(iv) a trader or the service provider, as the case may be, has charged for the goods or
for the services mentioned in the complaint, a price in excess of the price-
a) fixed by or under any law for the time being in force;
b) displayed on the goods or any package containing such goods;
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c) displayed on the price list exhibited by him or under the law for the time being
in force;
d) agreed between the parties;
(v) goods which will be hazardous to life and safety when used, are offered for sale
to the public-
a) in contravention of any standards relating to safety of such goods as required to
be compiled with, by or under any law for the time being in force;
b) if the trader could have known with due diligence that the goods so offered are
unsafe to the public;
(vi) services which are hazardous or likely to be hazardous to life and safety of the
public when used, are being offered by the service provider which such person
could have known with due diligence to be injurious to life and safety.[Sec 2 (1)
(c) as amended in CPA 2002]
3.11.3 Consumer Dispute:
Consumer Dispute means a dispute where the person against whom a complaint
has been made, denies or dispute the allegations contained in the complaint. [Sec 2 (1)
(e)]
3.11.4 Defect:
Defect means any fault, imperfection or shortcoming in the quality, quantity,
potency, purity or standard which is required to be maintained by or under any law for
the time being in force or under any contract, expressed or implied or as is claimed by
the trader in any manner whatsoever in relation to any goods [Sec 2(1) (f)]
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3.11.5 Deficiency:
Deficiency means any fault, imperfection, shortcoming or inadequacy in the
quality, nature and manner of performance which is required to be maintained by or
under any law for the time being enforced or has been undertaken to be performed by a
person in pursuance of a contract or otherwise in relation to any service [Sec 2(1) (g)]
3.11.6 Goods:
Goods mean goods as defined in the Sale of Goods Act, 1930 [Sec 2(1) (i)]
According to the Sale of Goods Act, goods mean every kind of movable
property other than actionable claims and money, i.e. legal tender. It includes shares,
patent rights, copyrights, trademarks, growing crops, grass, fruits, mineral water,
electricity etc.
3.11.7 Service:
Service means-
a. service of any description which is made available to potential users, and
b. includes, but not limited to, the provision of facilities in connection with
banking, financing, insurance, transport, processing, supply of electrical or other
energy board or lodging or both, housing construction, entertainment,
amusement or the purveying of news or other information, but
c. does not include the rendering of any service free of charge or under a contract
of personal service [Sec 2(o)]
Thus, this definition excludes two specific types of services from its scope (i) the
services rendered free of charge and (ii) the services rendered under the contract of
personal service.
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3.11.8 Person:
The term person includes-
(i) a firm whether registered or not
(ii) a Hindu Undivided Family
(iii) a co-operative society
(iv) every other association of persons whether registered under the Societies Registered
Act, 1860 or not [Sec 2(1) (m)]
3.11.9 Restrictive Trade Practices:
Restrictive Trade Practices means a trade practice which tends to bring about
manipulation of price or its conditions of delivery or to effect flow of supplies in the
market relating to goods or services in such a manner as to impose on the consumers
unjustified costs or restrictions and shall include the following:-
(i) Delay beyond the period agreed to by a trader in supply of such goods or in
providing the services which has led or is likely to lead to rise in price.
(ii) Any trade practice which requires a consumer to buy, hire or avail of any
goods or, as the case may be, services as conditioned precedent to buying,
hiring or availing of other goods or services. [Sec 2(1) (nnn) as amended in
CPA, 2002]
3.11.10 Trader:
Trader in relation to any goods means a person who sells or distributes any
goods for sale and includes the manufacturer thereof, and where such goods are sold or
distributed in package form, includes the packer thereof. [Sec 2(q)]
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3.11.11 Unfair Trade Practice:
Unfair Trade Practice means a trade practice which for the purpose of promoting
the sale, use or supply of any goods or for the provision of any service, adopts any
unfair method or unfair or deceptive practice.
3.12 Filing of Complaints:
3.12.1 Persons or Organization filing a complaint:
A complaint before the appropriate consumer forum can be made by the following
categories of persons-
a) A consumer; or
b) Any voluntary Consumer Association registered under the Companies Act, 1956
or under any other law for the time being in force, or
c) The Central Government or any State Government who or which makes a
complaint
d) One or more consumers, on behalf of numerous consumers serving the same
interest
e) A legal heir or representative of a deceased consumer.
3.12.2 Circumstances under which complaint can be filed:
An aggrieved consumer can file a complaint relating to any one or more of the
following circumstances-
a) If the goods purchased by the consumer are found to be defective;
b) If any unfair trade practice or a restrictive trade practice has been adopted by any
trader;
c) If the consumer suffers from any deficiency in the services hired or availed of;
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d) If the consumer is charged in excess for the price fixed by the seller or displayed
on the goods or any package containing such goods;
e) If the consumer uses goods or services which are hazardous or likely to be
hazardous to life and safety.
3.12.3 Procedure of filing a complaint:
Filing of complaint under Consumer Protection Act is very simple. A complaint
should contain the following information:
1. The complaint should be in writing by the complainant putting the necessary
facts relating to the complaint and when and where it arose;
2. The name, address and description of the complainant or authorized agent;
3. The name(s), address and description of the opponent;
4. Documents, if any, and affidavit in support of the allegations contained in the
complaint;
5. The relief asked for by complainant;
6. The complaint should be signed by the complainant(s) or his authorized agent;
7. The prescribed fee for filing a complaint before the Consumer Dispute Redressal
Forum is to be deposited;
8. The complaint can be presented before the Consumer Dispute Redressal Forum
by complainant/authorized agent in person, or else the complaint can be sent by
registered post in order to be filed before Consumer Dispute Redressal Forum.
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3.12.4 Sources of filing a complaint:
A complaint may be filed-
i) Where the value of goods and services and the compensation, if any, claimed does not
exceed rupees twenty lakhs, then the complaint can be filed in the District Forum which
has been notified by the State Government. The complaint may be filed in the District
Forum within the local limits of the jurisdiction of the opposite party where he actually
or voluntarily resides or carries on business or works for profit or has a branch office or
where the cause of action, wholly or in part arises. Appeals against the District Forum
can be filed in State Commission within 30 days which is extendable for further 15 days
and the person who is declared guilty by District Forum has to deposit Rs.25,000 or
50% of fine whichever is less. [Sec 15]
Supreme Court (Special Leave Petition)
National Commission (Appeal)
State Commission
District Forum (Claims upto Rs.20 Lakhs)
Exhibit 7: Pathway for making complaint from District Forum to Supreme Court
ii) Where the value of goods and services and compensation, if any, claimed exceeds
rupees twenty lakhs, but does not exceed rupees one crore, then the complaint can be
filed before the State Commission. Appeals against the State Commission can be filed
in National Commission within 30 days and the person who is declared guilty by State
Commission has to deposit Rs.35,000 or 50% of amount of compensation whichever is
less. For revision against the orders passed by the State Commission to the Supreme
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Court the limitation is 90 days from the date of the order or from the receipt of the copy
of the order. [Sec 19]
National Commission (Appeal)
State Commission (Claims exceeding Rs 20 lakhs to Rs 1crore)
Exhibit 8: Pathway for making complaint from State Commission to Supreme
Court
(iii) Where the value of goods and services and compensation, if any, claimed exceeds
rupees one crore, then the complaint may be filed before the National Commission.
Appeals against the National Commission can be filed with the Supreme Court within
30 days of the order or within such time as the Supreme Court allows. For revision
against the orders passed by the State Commission to the Supreme Court the limitation
is 90 days from the date of the order or from the receipt of the copy of the order. [Sec
23]
National Commission (Claims exceeding Rs 1 crore)
Exhibit 9: Pathway for making complaint from National Commission to
Supreme Court
3.12.5 Fees for filing a Complaint:
As per the Consumer Protection Act, 1986 no court fees were required to be paid
by any complainant for filing a case in the appropriate forum but after the amendment
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of the Consumer Protection Act in 2002, a nominal fees is required to be paid for filing
a case in respect of value of goods, services & compensation claimed.
District Forum (w.e.f. 10-2-2005)
Value of goods Compensation payable
Upto one lakh rupees-For complainants under Below NIL
Poverty Line holding Antyodaya Anna Yojana cards
Upto one lakh rupees-For complainants other than Rs.100
Antyodaya Anna Yojana cards holders
Above one lakh and upto five lakh rupees Rs.200
Above five lakhs and upto ten lakh rupees Rs.400
Above ten lakhs and upto twenty lakh rupees Rs. 500
State Commission (w.e.f. 10-2-2005)
Above twenty lakhs and upto fifty lakh rupees Rs. 2,000
Above fifty lakh rupees and upto one crore rupees Rs. 4,000
National Commission (w.e.f. 10-2-2005)
Above one crore rupees Rs.5,000
The amount of fees is to be deposited at the time of filing the complaint and the
payment should be made through a Nationalised Bank Demand Draft duly crossed and
drawn in favour of the Registrar of the court.
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3.12.6 Reliefs available to consumers:
The Redressal Forum/Commission may give orders for one or more reliefs
depending upon the nature of complaint and relief sought for by the consumer which are
enumerated below-
1. To remove the defect in goods or deficiency in services, if defective goods are
supplied to the customers.
2. To replace the defective product and supply proper goods to the consumers.
3. To take back the defective goods and refund the price paid for the product or
charges paid for the service to the aggrieved buyer.
4. To compensate the aggrieved buyer for supplying defective goods or wrong
services due to negligence of the supplier.
5. To reimburse the cost incurred by complainant while presenting the case at the
redressal forum.
6. To discontinue unfair trade practices or restrictive trade practices.
7. To warn the supplier to stop the selling of hazardous goods.
8. To contribute atleast 5% of the value of such goods and services towards the
Consumer Welfare Fund or any other organization.
9. To issue corrective advertisement to neutralize the effect of misleading
advertisement.
10. To provide adequate costs to parties.
3.12.7 Time-limit for filing the case:
The consumer can file the complaint within two years from the date on which
the cause of action had arisen. However, even after the expiry of two years the
consumer can file a complaint, provided sufficient cause is shown for the delay.
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3.12.8 Time-limit for deciding the case:
Every complaint must be disposed off by the adequate Forum/Commission with
a time period of three months from the date of notice received by the opposite party.
However, if the complaint requires laboratory testing of goods, this period can be
extended and complaint can be made within five months.
3.13 Alternative Dispute Redressal:
For prompt redressal of consumer grievances, Government of India has
facilitated online consumer complaint process whereby the consumer can register their
complaints and get their grievances redressed. One such redressal system funded and
supported by the Government is Consumer Online Resources and Empowerment Centre
(CORE). It also provides consumer advocacy. CORE was set up in 2005 with the
assistance from Ministry of Consumer Affairs, Food and Public Distribution and
Department of Consumer Affairs, Government of India to deal with various aspects of
consumer issues. One can file a complaint online by clicking the link to
http://www.core.nic.in/complaint/cregistration.aspx. and by using the toll free number
1800-180-4566.
Another source of redressal of consumer grievances is the National Consumer
Helpline (NCH) which is initiated by the Ministry of Consumer Affairs and operated
from Delhi University. This helpline helps the consumer in dealing with their problems
with the business and service providers. It also guides the consumers in finding solution
to their problems in relation to goods and services, facilitates consumer in filing
complaints against defaulting service providers, educates consumer about their rights
and responsibilities and also empowers the consumer to use available consumer
grievances redressal mechanism. One can call on the National Toll Free Number-1800-
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11-4000(for BSNL or MTNL Users) and others can dial -011-27006500 (normal call
charges applicable) for any guidance and information related to consumer issues. Users
can also send SMS to 8800939717 indicating their name and the city to which they
belong.
Akosha is also an online service which resolves the complaints of the consumers
with the various brands by charging a fixed processing fee. For filing a complaint with
Akosha one has to submit his/her name, email, mobile number, company name
(complaint against) loss amount and description of complaint. Its helpline number is
+91-1143443900. A consumer to get his complaint resolved has to go through three
steps which include the following-
Step 1: Complaints made by the complainant are taken to escalation team of the
company who has the necessary power to resolve the grievance. Necessary follow up
are made to the complainant through email, SMS and telephone.
Step 2: A letter containing the details of the complaint is sent to the company.
Step 3: Finally the consumers have to approach the consumer court where an affidavit
is drafted and the necessary documents are submitted to the consumer court. The time
period for processing of the case is 14 days (though in some cases it may take a longer
time period). This online service has extended its hands in the State of Assam whereby
the cases get resolved through Assam State Consumer Redressal Commission and
Assam Consumer Redressal Forum.
3.14 Consumer Protection Councils:
The Consumer Protection Act provides for establishment of Consumer
Protection Councils at Central, State and District level known as the Central Consumer
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Protection Council, State Consumer Protection Council and District Consumer
Protection Council to protect the interest of consumers.
3.14.1 The Central Consumer Protection Council:-(Sec 4)
3.14.1.1. Establishment of Central Consumer Protection Council:
The Central Government through a notification in the official Gazette establishes
a Council known as Central Consumer Protection Council. It acts as an apex body in
consumer affairs. The Council consists of-
a) The Minister-in-charge of the Consumer Affairs who shall be the Chairman of
the Council and
b) Other official or non-official members representing such interest as may be
prescribed
It has constituted a number of working groups to suggest amendments to the Act.
The functions of the working group include-
Ø Working on details of interaction between consumers and industry.
Ø Suggesting various schemes and projects for which Consumer Welfare Fund
may be utilized.
Ø Setting up a Public Utility Commission to regulate the functions of monopolistic
public utilities like-banking, insurance, road transport, electricity, tele-
communication etc.
Ø Setting up of National Institute of Consumer Affairs for promoting consumer
protection activities in the country.
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3.14.1.2 Objectives of the Central Council: (Sec 6)
The objective of the Central Council is to safeguard and promote the right of the
consumers such as–
a) Right to protect against 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 in order to protect the consumer against unfair trade
practices;
c) Right to be assured to access a variety of goods and services at competitive
prices;
d) Right to be heard and to be assured that consumers’ interest will receive due
consideration at appropriate Forums;
e) Right to seek redressal against unfair trade practices;
f) Right to consumer education.
3.14.1.3 Members of the Central Consumer Protection Council:
The Central Council consist of 150 members which includes-
a) The Minister in-charge of Consumer Affairs who shall be the Chairman of the
Central Council;
b) The Minister of State or Deputy Minister in-charge of Consumer Affairs who
shall be the Vice- Chairman of the Central Council;
c) Minister- in-charge of Consumer Affairs in States or Food and Civil Supplies;
d) Five members from Lok Sabha and three members from Rajya Sabha;
e) Commissioner of Schedule Castes and Tribes;
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f) Representatives not exceeding twenty of the Central Government Departments
and autonomous organization concerned with consumer interest;
g) Representatives not below thirty-five of the Consumer Organization or
consumers;
h) Representatives of women not below ten;
i) Representatives of farmers, trade and industries not exceeding twenty;
j) Persons capable of representing consumer interest not exceeding fifteen;
k) The Secretary in charge of Consumer Affairs in the Central Government shall be
the member-secretary of the Central Council [Rule 3(1) of the Consumer
Protection Rules, 1987 as amended in 1997]
3.14.1.4 Procedure of meetings: (Sec 5)
As per Section 5 of Consumer Protection Act, at least one meeting shall be held
every year as and when necessary and the time and place of the meeting shall be
decided by the Chairman.
3.14.1.5 Term of office: [Rule 3(2)]
The term of office of the Council shall be three years.
3.14.2 State Consumer Protection Council: (Sec 7)
The State Government by notification shall establish a Council known as the
State Consumer Protection Council (hereinafter referred to as the State Council)
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3.14.2.1 Objectives of the State Council: (Sec 8)
The objective of every State Council is to promote and protect the rights of
consumers within the State as laid down in Section 6 of Consumer Protection Act.
3.14.2.2 Members of the State Consumer Protection Council:
The State Council shall consist of the following members, namely-
a) Minister-in-charge of Consumer Affairs in the State Government who shall be
its Chairman
b) Other officials or non-official members not exceeding ten as nominated by
Central Government representing such interest as prescribed by State
Government.
3.14.2.3 Procedure of Meetings:
The State Council shall conduct atleast two meetings every year as and when
necessary.
3.14.2.4 Place of Meeting:
The time and place of meeting shall be fixed by the Chairman. The State
Council shall meet at such time and place as the Chairman may think convenient.
3.14.3 District Consumer Protection Council: (Sec 8 A)
The State Government by notification shall establish for every district a council
known as the District Consumer Protection Council (hereinafter referred to as the
District Council)
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3.14.3.1 Objectives of the District Council: (Sec 8 B)
The objective of every District Council is to promote and protect the rights of
consumers within the State.
3.14.3.2 Members of the District Council:
The District Council shall consist of members namely-
1. Collector of the District (by whatever name called) who shall be its Chairman.
2. Other officials and non-official members as prescribed by the State Government.
3.14.3.3 Procedure of Meetings:
The District Council shall conduct atleast two meetings every year as and when
necessary.
3.14.3.4 Place of Meeting:
The District Council shall meet at such time and place within the District as the
Chairman may think fit and shall follow the procedure as prescribed by the State
Government.
3.15 Redressal Machinery for settlement of grievances:
The Consumer Protection Act, 1986 has made provisions for the setting up of a
three-tier consumer dispute redressal machinery for redressal of consumer grievances at
the District level, State level and Central level commonly known as the District
Redressal Forum, State Consumer Dispute Redressal Commission and National
Consumer Dispute Redressal Commission respectively and in brief they are referred to
as the District Forum, State Commission and the National Commission.
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3.15.1 District Forum:
District Forum is set by the State Government in each district of the State. If the
State Government feels the necessity, then it shall establish more than one District
Forum in a district. It is an advisory body which has been envisaged with the power of
protecting the interest of consumers in its district.
3.15.1.1 Composition of the District Forum: (Sec 10)
The District Forum is constituted by –
1. A person who shall be its President and is qualified to be District Judge and
2. Two other members, one of whom has to be a woman.
3.15.1.2 Qualification of Members:
To be a member of the District Forum one should possess the following
qualifications-
1. Should not be less than 35 years of age.
2. Should possess a bachelor’s degree from a recognized University.
3. Should be a person of ability, integrity and have adequate knowledge and
experience of atleast 10 years in dealing with problems relating to economics,
law, commerce, accountancy, industry, public affairs or administration.
3.15.1.3 Dis-Qualifications of Members:
A person, as a member also has the right to be disqualified from appointment on the
following grounds-
1. If the person is an insolvent.
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2. If the person has been convicted and sentenced to imprisonment because of
moral turpitude.
3. If the person has been declared of unsound mind by a competent court.
4. If the person has been dismissed from Government service or a body corporate
owned or controlled by the Government.
5. If the person has such other disqualifications as may be prescribed by the State
Government.
6. If the person in the opinion of the State Government has such financial or other
interest which is likely to affect prejudicially his discharge of his functions as a
member.
3.15.1.4 Appointment of the Members:
On the basis of the recommendations of a selection committee, the appointment
of the member is to be made. The appointment is to be made under the Chairmanship of
the President of the State Commission, Secretary of Law Department of State and
Secretary in-charge of the Department dealing with consumer affairs in the State as its
member.
3.15.1.5 Term of Office: [Sec 10(2)]
Member of the District Forum has to hold office for a term of 5 years or upto the
age of 65 years whichever is earlier. A member shall be reappointed for another term of
five years or upto the age of sixty-five whichever is earlier, provided he fulfills the
necessary qualifications and other conditions for appointment.
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3.15.1.6 Resignation:
A member may put forward his resignation addressed to the State Government
and on being accepted of the resignation his office shall be vacated and will be filled by
appointment as mentioned in Sec 10(2).
3.15.1.7 Salary:
The salary or honorarium and other allowances payable to the members of the
District Forum shall be prescribed by the State Government. The President of the
District Forum shall receive a salary of the Judge of a District Court on full-time basis
or an honorarium of Rs.150 per day on part-time basis. The members of the District
Forum shall receive an honorarium of Rs.2000 per month on whole-time basis or an
honorarium of Rs.100 per day on part-time basis. The President and members shall
receive travelling and daily allowance on official tour as admissible to Grade-I Officer
of the State Government.
3.15.1.8 Jurisdiction: (Sec 11)
A written complaint can be filed before the District Consumer Forum if the
value of goods or services along with the compensation claimed does not exceed rupees
twenty lakhs. Earlier in 1986, the District Forum had jurisdiction to entertain complaints
where the value of goods or services does not exceed rupees five lakhs. Complaint in
the District Forum can be filed by consumer himself to whom goods are sold or
delivered, by any recognized consumer associations even if the person who is recipient
of goods or services is not a member of the association, by one or more consumers
where there is a group of consumers or by Central or State Government either in its
individual capacity or as a representative of the interest of the consumers in general.
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On receiving the complaint, the District Forum shall refer the complaint to the party
against whom the complaint is filed. If required, the sample of goods thereof shall be
sent for testing in a laboratory. After taking into consideration the test report from the
laboratory and after hearing to the party against whom complaint is filed, an order shall
be passed by the District Forum directing to either remove the defect pointed out by the
laboratory, or replace the goods with new goods of similar nature which is free from any
defect or return the complainant of the price of the goods or charges for the services
paid, or compensate the consumer for loss or injury suffered due to the negligence made
to the goods.
3.15.1.9 Appeal:
If the aggrieved party is dissatisfied with the judgement of the District Forum, an
appeal against the order of the District Forum can be filed before the State Commission
within a period of 30 days of the passing of the order of the District Forum and by
depositing Rs 25,000 or 50% of the penalty whichever is less.
3.15.2 State Commission: (Sec 16)
The State Consumer Dispute Redressal Agency is set up by the State
Government and its jurisdiction is restricted to the boundaries of the concerned State.
3.15.2.1 Composition of the State Commission:
The State Commission is headed by a –
1. Judge of a High Court who shall be designated as its President and
2. Two other members, one of whom shall be a woman
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To be a member of the State Commission one should possess the following
qualifications-
2. Should possess a bachelor’s degree from a recognized University.
3. Should be a person of ability, integrity and have adequate knowledge and
experience of atleast 10 years in dealing with problems relating to economics,
law, commerce, accountancy, industry, public affairs or administration provided
that not more than 50% of the members shall be from amongst persons having
judicial background.
3.15.2.3 Dis-Qualification of Members:
following grounds-
1. If the person is declared insolvent.
moral turpitude.
3. If the person is of unsound mind as declared by a competent court.
Government.
member.
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the President of the State Commission. If the President of the State Commission is not
present then the State Government may refer the matter to the Chief Justice of the High
Court to act as the Chairman.
3.15.2.5 Term of Office:
The term of office of the member of the State Commission is for a period of five
years or till the incumbent reaches the age of sixty-seven years, whichever is earlier. A
member shall be reappointed for another term of five years or upto the age of sixty-
seven whichever is earlier, provided he fulfills the necessary qualifications and other
conditions for appointment.
A member may put forward his resignation addressed to the State Government
and on being acceptance of such resignation his office shall become vacated and may be
filled by appointment of a person possessing any of the qualifications mentioned in the
Act.
3.15.2.7 Salary:
State Commission shall be prescribed by the State Government. The President of the
State Commission shall receive a salary of the Judge of a High Court on full-time basis
or an honorarium of Rs.200 per day on part-time basis. The members of the State
Commission shall receive a consolidated honorarium of Rs.3000 per month on whole-
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time basis or a consolidated honorarium of Rs.150 per day on part-time basis. The
President and members shall receive travelling and daily allowance on official tour as
admissible to Grade-I Officer of the State Government.
A written complaint can be entertained by the State Commission where the value
of goods or services and compensation claimed if any, exceeds rupees twenty lakhs but
does not exceed rupees one crore. In 1986, it had jurisdiction to entertain complaints
where the value of goods or services exceeds rupees five lakhs but does not exceed
rupees twenty lakhs. The appeals against the orders of any District Forum within the
State can also be filed before the State Commission. On receiving the complaint, the
State Commission shall refer the complaint to the party against whom the complaint is
filed. If required, the goods or a sample thereof shall be sent to the laboratory for
testing. The State Commission after considering the test report and being satisfied that
the goods were defective can issue an order directing the opposite party to either remove
the defect, or replace the goods or return the price paid, or pay compensation to the
consumer for loss or injury.
3.15.2.9 Appeal:
If the aggrieved party is not satisfied with the judgement of the State
Commission, then it can prefer an appeal against such order before the National
Commission within 30 days of the passing of the order and by depositing Rs. 35,000 or
50% of penalty amount whichever is less. A late appeal may also be entertained
provided that the Commission is satisfied that there was a sufficient cause for not
preferring an appeal within the prescribed period.
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3.15.3 National Commission: (Sec 20)
The National Redressal Commission is set up by the Central Government in
1988 which serves as an apex body in the three- tier-judicial machinery for redressal of
grievances. The National Commission shares the same powers as that of a Civil Court
while dealing with cases and also follows the procedures prescribed by the Central
Government. The National Commission is headed by a retired judge of the Supreme
Court.
3.15.3.1 Composition of the National Commission:
The National Commission shall consist of –
1. A President appointed by the Central Government who is the Judge of the
Supreme Court. His appointment is made in consultation with the Chief Justice
of India.
2. Four other members appointed by the Central Government, one of whom should
be a woman.
The following qualification should be possessed by a member of the National
Commission-
2. Should possess a bachelor degree from a recognized University.
3. Should be a person of ability, integrity and standing and have adequate
knowledge and experience of atleast 10 years in dealing with problems relating
to economics, law, commerce, accountancy, industry, public affairs or
124
administration provided that not more than 50% of the members shall be from
amongst persons having judicial background.
3.15.3.3 Dis-Qualification of Members:
following grounds-
1. If the person is declared insolvent.
moral turpitude.
3. If the person is of unsound mind as declared by a competent court.
Government.
member.
the Judge of the Supreme Court and the Secretary in the Department of Legal Affairs in
the Government of India and the Secretary of the Department dealing with consumer as
its member.
125
3.15.3.5 Term of Office:
Every member of the National Commission shall hold office for a term of five
years or upto the age of seventy years whichever is earlier. A member shall be
reappointed for another term of five years or upto the age of seventy years whichever is
earlier, provided he fulfills the necessary qualifications and other conditions for
appointment.
A member may put forward his resignation addressed to the Central Government
and on being accepted of the resignation his office shall be vacated and will be filled by
appointment of a person possessing any of the qualifications mentioned in the Act.
3.15.3.7 Salary:
National Commission shall be prescribed by the Central Government. The President of
the National Commission shall receive a salary of the sitting Judge of the Supreme
Court. The members of the National Commission shall receive a consolidated
honorarium of Rs.10,000 per month on whole-time basis or a consolidated honorarium
of Rs.500 per day on part-time basis. The President and members shall receive
conveyance allowance of Rs.150 per day of its sitting or a sum of Rs. 1500 per month.
The President and members shall be entitled to travelling and daily allowances on
official tour as admissible to Grade-A Officers of the Central Government.
126
All complaints pertaining to those goods and services and compensation whose
value exceeds rupees 1 crore can be filed before the National Commission. The appeals
can also be filed before the National Commission against the orders of a State
Commission. On the receipt of the complaint, the National Commission shall refer the
complaint to the party against whom the complaint is filed. If the National Commission
feels necessary then it may also send the goods or sample thereof for testing in a
laboratory. After considering the test report the National Commission shall pass an
order for recall of defective goods for replacement, removal of deficiency in service and
can also make the manufacturer comply with safety provisions and pay compensation
for loss or injury caused.
3.15.3.9 Appeal:
If the aggrieved is not satisfied with the judgement of the National Commission,
then it can make an appeal against the order of the National Commission to the Supreme
Court of India within a period of 30 days, by depositing Rs. 50,000 or 50% of penalty
amount. But cases where the value of goods or services exceeds Rs. 1 crore, the
aggrieved can file an appeal in Supreme Court against National Commission.
It may be noted that in order to achieve the objectives of Consumer Protection
Act, 1986, the National Commission has been entrusted with the powers of
administration control over all the State Commission. The State Commission has to
submit periodical return regarding the total number of cases filed, number of cases
disposed and number of pending cases for adoption of uniform procedures.
127
3.16 Penalties: (Sec 27)
A person against whom a complaint is made and fails to comply with the orders
of the District Forum, State Commission or National Commission, as the case may be,
such person shall be punished with an imprisonment of not less than one month and
may extend upto three years, or with a fine which shall not be less than Rs. 2,000 but
which may extend to Rs. 10,000 or with both.
The set-up of the three-tier redressal machinery for settlement of grievances of
consumer is exhibited below-
District Forum State Commission National Commission
Establishment In every District by In every State by State By Central Government

State Government Government
Constitution President (District President (Judge of President (Judge of
Judge)+ two members High Court) + two Supreme Court) + four
(one woman) members (one woman) members (one woman)
Qualification Not less than 35 years of Not less than 35 years Not less than 35 years
of Members age, possessing of age, possessing of age, possessing
bachelor’s degree from bachelor’s degree from bachelor’s degree from
recognized University. recognized University. recognized University.
Experience of atleast 10 Experience of atleast Experience of atleast
years in dealing with 10 years in dealing with 10 years in dealing with
problems related to problems related to problems related to
economics, law, economics, law, economics, law,
commerce, industry, commerce, industry, commerce, industry,
accountancy, accountancy, public accountancy, public
public affairs or affairs or affairs or
administration administration administration
Term of 5 years or upto 65 years 5 years or upto 67 years 5 years or upto 70 years
Office whichever is earlier whichever is earlier whichever is earlier
128
Salary President President President

Full Time Basis: Salary Full Time Basis: Salary Full Time Basis: Salary
of District of Judge of High Court of sitting Judge of
Judge Part Time Basis:Rs.200 Supreme Court
Part Time Basis:Rs.150 per day Members
per day Members Full Time Basis: Rs.
Members Full Time Basis: Rs. 10,000 per month
Full Time Basis: Rs. 3000 per month Part Time Basis: Rs.
2000 per month Part Time Basis: Rs. 500 per day
Part Time Basis: Rs. 150 per day
100 per day
Jurisdiction Value of goods or Value of goods or Value of goods or
services along with the services along with the services along with the
compensation claimed compensation claimed compensation claimed
does not exceed Rs.20 exceeds Rs.20 lakhs but exceeds Rs.1 crore
lakhs does not exceed Rs.1
crore
Appeal Within a period of 30 Within a period of 30 Within a period of 30
days of the passing of days of the passing of days of the passing of
the order of District the order of State the order of National
Forum and by Commission and by Commission and by
depositing Rs. 25,000 or depositing Rs. 35,000 depositing Rs. 50,000
50% of penalty or 50% of penalty or 50% of penalty
whichever is lower. whichever is lower. whichever is lower.
Exhibit 10: Redressal Machinery for settlement of Grievances
129
3.17 Performance Appraisal of Consumer Courts in India:
The total number of cases filed and disposed of in the National Commission, State
Commissions and District Fora, as on 1.08.2014, since inception, are given below:
Total number of Consumer Complaints Filed/ Disposed since inception under
Consumer Protection Law (Updated on 01.08.2014)
Table 3.2
Sl. No. Name of Agency Cases Cases Cases Percentage
registered disposed of Pending of total
since since Disposal of
inception inception Cases
1. National Commission 89495 77770 11725 86.90%
2. State Commission 645486 554341 91145 85.88%
3. District Forum 3442730 3176518 266212 92.27%
TOTAL 4177711 3808629 369082 91.17%
Source: Annual Report of Department of Food, Consumer Affairs and Public
Distribution (2013-14)
130
Statement of Cases Filed / Disposed / Pending in the National Commission and
State Commissions (Update on 31.03.2014)
Table 3.3
Sl Name of State Cases Cases Cases Percentage As on
No. filed disposed Pending of
since of since Disposal
National Commission inception

88166 inception
76731 11435 87.03 31.03.14
1. Andra Pradesh 30404 29087 1317 95.67 28.02.14
2. A&N Islands 42 38 4 90.48 31.01.08
3. Arunachal Pradesh 68 66 2 97.06 31.01.14
4. Assam 2653 2293 360 86.43 28.02.14
5. Bihar 17332 12087 5245 69.74 31.12.13
6. Chandigarh 13032 12912 120 99.08 31.12.13
7. Chhattisgarh 9379 8697 682 92.73 28.02.14
8. Daman &Diu and DNH 25 20 5 80 31.03.11
9. Delhi 37005 34363 2642 92.86 28.02.14
10. Goa 2486 2441 45 98.19 28.02.14
11. Gujarat 47867 43953 3914 91.82 28.02.14
12. Haryana 43999 43644 355 99.19 28.02.14
13. Himachal Pradesh 8381 8134 247 97.05 28.02.14
14. Jammu& Kashmir 6727 6170 557 91.72 31.03.13
15. Jharkhand 5271 4774 497 90.57 31.12.13
16. Karnataka 46699 42847 3852 91.75 28.02.14
17. Kerala 26815 25160 1655 93.83 28.02.14
131
18. Lakshadweep inception

18 inception
16 2 88.89 28.02.14
19. Madhya Pradesh 44813 38835 5978 86.66 28.02.14
20. Maharashtra 58904 45091 13813 76.55 30.06.13
21. Manipur 139 96 43 69.06 30.09.08
22. Meghalaya 262 175 87 66.79 31.10.12
23. Mizoram 207 201 6 97.10 31.12.13
24. Nagaland 25 6 19 24.00 31.12.11
25. Odisha 22360 16036 6324 71.72 30.09.13
26. Pondicherry 979 955 20 97.95 31.01.14
27. Punjab 30377 24737 5640 81.43 30.06.13
28. Rajasthan 54042 49413 4629 91.43 31.01.14
29. Sikkim 42 41 1 97.62 31.12.12
30. Tamil Nadu 25212 22866 2346 90.69 31.01.14
31. Tripura 1559 1456 103 93.39 28.02.14
32. Uttar Pradesh 70955 43262 27693 60.97 31.01.14
33. Uttarakhand 5034 4110 924 81.64 31.01.14
34. West Bengal 19224 16926 2298 88.05 30.06.13
Total 632333 54098 91425 85.54
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Statement of Cases Filed / Disposed / Pending in the District Fora
(Updated on 31.03.2014)
Table 3.4
inception inception
1. Andra Pradesh 196628 190457 6171 96.86 28.02.14
2. A&N Islands 330 301 29 91.21 31.03.06
3. Arunachal Pradesh 408 348 60 85.29 31.01.14
4. Assam 13704 11976 1728 87.39 31.08.10
5. Bihar 97345 81161 13184 86.03 31.12.13
6. Chandigarh 48859 47686 1173 97.60 31.12.13
7. Chhattisgarh 39209 36110 3099 92.10 28.02.14
8. Daman &Diu and DNH 162 144 18 88.89 31.03.11
9. Delhi 249505 234740 14765 94.08 31.12.14
10. Goa 6617 6158 459 93.06 28.02.14
11. Gujarat 183958 172909 11049 93.82 28.02.14
12. Haryana 229221 215053 14168 93.82 28.02.14
13. Himachal Pradesh 59217 56154 3063 94.03 31.01.14
14. Jammu& Kashmir 20792 18855 1937 90.68 31.12.07
15. Jharkhand 35437 31626 3809 89.25 30.11.13
16. Karnataka 164258 157606 6652 95.95 28.02.14
17. Kerala 187739 178721 9018 95.20 28.02.14
133
inception inception
18. Lakshadweep 77 65 12 84.42 28.02.14
19. Madhya Pradesh 195980 181727 14253 92.73 28.02.14
20. Maharashtra 265476 241398 24078 90.93 30.06.13
21. Manipur 1037 1012 25 97.54 30.09.08
22. Meghalaya 847 750 97 88.55 31.10.12
23. Mizoram 3466 2819 647 81.33 31.12.13
24. Nagaland 290 266 24 91.72 31.12.11
25. Odisha 96218 88912 7306 92.41 30.09.13
26. Pondicherry 2983 2743 240 91.95 28.02.14
27. Punjab 158946 153479 5467 96.56 30.06.13
28. Rajasthan 310192 279489 30703 90.10 31.01.14
29. Sikkim 296 280 16 94.59 31.12.12
30. Tamil Nadu 106274 99768 6506 93.88 31.01.14
31. Tripura 3018 2904 114 96.22 28.02.14
32. Uttar Pradesh 595574 519542 76032 87.23 31.01.14
33. Uttarakhand 36357 33765 2592 92.87 28.02.14
34. West Bengal 90611 85263 5348 94.10 30.06.13
Total 3398031 3134189 263842 92.24
134
After the performance of consumer courts CONFONET (Computerization and
Computer Networking of Consumer Fora in Country) Scheme has been launched in the
year 2005(during the 10th plan). Under this scheme, all the Consumer Fora at the three
tier-level were to be fully computerized. This internet based case monitoring system
acts as a consumer forum for redressing the grievances of consumer from registration of
cases upto the judgement and enables access of information and quicker disposal of
cases.
3.18 Role of Consumer Organizations and NGO’s in consumer protection:
NGO’s are non-profit voluntary organizations which work for the welfare and
well-being of the consumers’ interest. These organizations are fully or partially financed
by the government and they serve the society without hampering the policies of the
government. In India there are over 800 consumer organizations and NGO’s which
perform several functions for the promotion of interest of consumers. These include-
Ø Engaging themselves in educating the consumers by organizing seminars,
workshops, training programmes, etc.
Ø Carrying out comparative product testing in accredited laboratories against the
defaulting units.
Ø Enlightening the consumers about various consumer related developments and
also bringing out periodicals, journals and newsletters.
Ø Providing free legal advice to the members of consumer interest and help them
to take up their grievances with District Forum, State Commission and National
Commission set up under the Consumer Protection Act.
Ø Advising the consumers on ‘wise-buying’ and giving them proper guidance
about the selling outlets, prices of products and genuine products.
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Some of the well-known NGO’s working in India for consumer awareness and
protection are listed below-
v Voluntary Organization in the Interest of Consumer Education (VOICE), New
Delhi
v Consumer Unity and Trust Society (CUTS), Jaipur
v Federation of Consumer Association, West Bengal (FCAWB), Kolkata
v Consumer Education Research Centre (CERC), Ahmedabad
v Consumer Guidance Society of India (CGSI), Mumbai
v Citizen Consumer and Civic Action Group (CAG), Chennai
v Akhil Bharatiya Panchayat (ABP), Hyderabad
v Common Cause (CC), New Delhi
v Consumer Coordination Council (CCC), Noida
v Consumers’ Forum (CF), Udaipur
v Consumers’ Action Forum (CAF), Kolkata
v Consumer Protection Association (CPA), Tripura
v Daksh Education & Welfare Society (DE&WS)
v Centre for Consumer Education Research, Teaching, Training and Testing
(CONCERT)
v Citizen Consumer and Civic Action Group, Mumbai
v Federation of Consumer Organizations in Tamil Nadu (FEDCOT)
v Mumbai Grahak Panchayat, Mumbai
v Consumers Association of India, Chennai
v Consumer Guidance Society, Vijayawada
v Palakkad District Consumers Association, Kerala
v Citizens Awareness Group, Chandigarh
136
v Association for Consumer Action on Safety and Health (ACASH), Mumbai
v Consumer Protection Council, (CPC), Ahmedabad (Gujarat)
v Grahak Shakti, Bangalore (Karnataka)
3.18.1 Activities of Consumer Organizations:
The Consumer Organizations have come forward with a number of functions
concerning consumer affairs. These functions include the following-
3.18.1.1 Promoting Consumer Awareness:
The Consumer Organisation plays an effective role in making the consumers
fully aware of their rights and the availability of redressal machinery to get quick justice
without incurring high expenditure. They also try to organize campaigns in order to
assert consumer of their rights and remedies. One such annual feature of Consumer
Organisation, i.e. Consumer Guidance Society of India is the Grahak Jagriti Sapthak
(The Consumer Awareness Week)
3.18.1.2 Organizing Seminars, Workshops and Conferences:
Seminars and Workshops are organized by the Consumer Associations for
focusing the problems of consumers and finding solutions for solving the problems.
3.18.1.3 Filing suits on behalf of the consumers:
The Consumer Associations which are being recognized by the Central
Government has been given a locus standi to file suits for offences on behalf of
consumers.
137
3.18.1.4 Collecting data on different products and testing them:
These Consumer Associations carry out tests on different products and inform
the findings of these tests to the consumers and business concerns.
3.18.1.5 Publishing Brochures and Journals:
Consumer Associations in order to accelerate the awareness level of the
consumer brings out journals and brochures concerning the problems of consumers. The
Consumer Guidance Society of India, Mumbai brings out a monthly journal
“KEEMAT” to educate the consumers. Similarly “Common Cause” a monthly
publication brings to light issues of public interest like blood banks, lawyer’s strike,
pensions etc. This publication also brings to light the findings of the tests conducted on
different products and also makes consumer aware of their rights.
3.18.1.6 Inform consumers about the prices of products:
This Consumer Association through their journals and bulletins makes an
attempt to make the consumers aware about the prices and trade practices prevailing in
the market and thereby bridging the gap between the marketing structure and the lack of
consumer information.
3.19 Consumer Advocates:
Consumer Advocates are persons or groups who protect and promote the rights
of consumers. These advocates educate the consumers and provide information on
specific issues such as education, food articles, electricity, insurance services, healthy
life style, telecom services and the like. They also comply with the consumer safety
138
product and expose unfair trade practices. Some of the issues on consumer advocacies
which provide information to the supplier as well as the public are enumerated below-
Education: Smart Shopping Tips:
www.media-cache-ak0.pinimg.com
www.socialoutreachseattleblog.com
Ø Take bill/ cash memo on every purchase.

Ø Choose the institution (school, college,
Ø Check date of expiry of medicine before
private institution) after proper
leaving the counter of chemist.
verification and checking proper records.
Ø Do not pay more than MRP (Maximum
Ø Always prefer registered and government
Retail Price), bargain on MRP. No
sponsored institution.
sticker allowed for increase in MRP.
Ø In case of private institutions, collect the
Ø Every packaged product shall bear the
details of management team and their
name, address, telephone number, e-mail
responsibilities.
address, if available of the person who
Ø Understand the fees structure clearly
can be or the office which can be,
before making payment.
contacted, in case of consumer
Ø Always insist on receipts for all
complaints.
payments.
Ø Use packaged food article/ cosmetic
Ø Make payments in installments.
before the ‘Best Before Date’/ ‘Use by
Ø Collect information on settlement of
Date’ as claimed on the label.
disputes/cases.
Ø Consumers be aware, approach 1800-11-
4000 (Toll Free for MTNL/BSNL) for
any complaints of products/services.
139
Buying Food Articles:
ATM Safety Tips:
www.i.dailymail.co.uk
Ø Check expiry/use by date/best before

date, month and year before purchasing
food articles. www.abana.com.sa
Ø Ascertain the edible oil/ghee used by
vendor while purchasing cooked food. Ø Memorise your PIN. Do not write it
Ø Non-Vegetarian, vegetarian food package down anywhere, and certainly never on
shall display red symbol and green the card itself.
symbol respectively in close proximity to Ø Your card is for your own personal use.
the name or brand name of food. Do not share your PIN or card with
Ø Packaged water/mineral water must have anyone, not even your friends or family.
the Bureau of Indian Standards Ø “Shoulder Surfer” can peep at your PIN
Certification Mark (ISI). as you enter it. So stand close to the
Ø List of ingredients would be declared in ATM machine and use your body and
descending order of ingoing hand to shield the keypad as you enter
weight/volume. the PIN.
Ø The amount of nutrient for which a health Ø Press the ‘Cancel’ key before moving
claim is made has to be declared on the away from the ATM. Remember to take
label. your card and transaction slip with you.
Ø Where any hydrogenated vegetable fat is Ø If you take transaction slip, shred it
used in preparation of any food, the immediately after use.
declaration that it contains trans-fatty Ø If your ATM card is lost or stolen, report
acid shall be given. it to your card-issuing bank immediately.
Ø In case of food with shelf-life of not more Ø When you deposit a cheque or card into
than seven days, the date of manufacture your ATM, check the credit entry in your
may not be mentioned on the label of account after a couple of days. If there is
140
food packaged food articles, the use by any discrepancy, report it to your bank.
date shall be mentioned on the label by Ø If your card gets stuck in the ATM, or if
the manufacturer or packer. cash is not dispended after you having
Ø For any complaints regarding keyed in a transaction, call your bank
adulteration in food articles, the Sub immediately.
Divisional Magistrate cum Local Health Ø If you have any complaint about your
Authority of District or the State Food ATM/Debit/Credit card transaction at an
Health Authority may be contacted. ATM, you must take it up with the bank
that issued the card to you.
Using Credit Cards:
Electricity:
www.nomadicchick.com
www.1.bp.blogspot.com
Ø Pay your credit card bills on time.
Ø If possible, pay off your balance in full
Ø While taking new electricity connection
each month.
service provider should give all the
Ø If you can’t pay off your balance in full,
details and provide the list of documents
then slow down on your credit card use
required along with the details of
for the next while.
security money.
Ø Check your statement carefully each
Ø If you are purchasing a property, it is
month.
your responsibility to check the dues
Ø Transfer your balance to a card with low
from the electricity company, if any to
interest rate.
avoid problem in future. Also apply for
Ø Negotiate for a lower interest rate with
change of name of consumer.
your credit card company.
Ø While applying for change of name one
Ø Use caution when giving your credit
has to fill required form, submit property
card number out on the phone or
documents, NOC from last owner and
internet.
copy of last bill paid.
141
Ø Review your credit history regularly Ø It is the responsibility of consumer for
through CIBIL. maintenance and safe custody of meter.
Ø Take advantage of any security features Ø In case of burning of meter, company has
your card offers. to provide electricity within six hours of
Ø Never share the credit card number or complaint.
photocopy of it with the vendor. Ø If the meter gets burnt due to technical
reasons like voltage fluctuation,
Real Estate: electricity company will bear the meter
charges. But if it gets burnt due to
spilling of water, tampering or high
voltage, `consumer will bear the charges.
Ø If in case consumer fails to pay the bill,
the electricity company will give him 15
days notice and after this they can
www.realestatelistingsanswers.com
disconnect the connection.
Ø If consumer does not pay the bill within
Ø When buying property from existing
six month of disconnection then
owner, check clear title of deed,
disconnection will be treated as dormant.
certificate of non-incumbence i.e. free
from any dispute, all dues including
Products:
municipal taxes, electricity, water etc.
paid.
Ø Do extensive survey about the market
rates and negotiate.
Ø When buying property from the
developer/builder check carpet area, built www.telephonetraininguk.co.uk
up area and super built up area, payment
terms, possession schedule, penalty Ø Do market analysis about prices, quality
clause etc. etc. before purchase.
Ø Check if any loans are offered by banks Ø Study and analyze published
for the property. comparative test reports.
Ø Study complete technical specifications Ø Avoid purchase of duplicate/fake
of the design, material and other products.
promised amenities. Ø Take an original invoice stating the
142
Ø Ensure that the design offered is details of the dealer, product description,
earthquake resistant. Tin number and the amount along with
Insurance: the taxes there on.
Ø Warranty/guarantee card duly signed and
stamped by dealer.
Ø Insist on ISI marked electric appliances.
Ø Purchase BEE labeled products to save
www.bp.blogspot.com energy.
While purchasing an insurance policy:

Ø Do not allow agents to influence your Drugs and Medicines:
decision of purchasing an insurance
policy. You should gather all data from
agent, evaluate the same and only then
decide.
Ø Read the policy documents carefully www.drugsbestbuy.com
before signing it. And cross the terms by
writing “N/A” which are not applicable Ø Buy all drugs/medicines from a licensed
in your case. chemist only and insist for cash memo.
Ø Carefully maintain all the receipts issued Ø Check manufacturing license number
by the insurance company. and distinctive batch number on label.
Ø Pay the premium regularly. Ø Do not purchase/consume the expired
Ø Keep your spouse or nominee well drug/medicine.
informed about the policies taken and the Ø Check date of expiry of medicine before
procedure of filing the claim. leaving the counter of chemist. From
Ø Clarify all your doubts and benefits. 01.04.2010 ayurveda, siddha and unani
Documents required while making a death claim: medicine also required to mention expiry
Ø Duly filled claim document along with date.
Original Bond Paper Ø Check medicine for visible defects.
Ø FIR Copy Ø Do not pay more than Maximum Retail
Ø Policy Final Verification Report Price printed on the label of the
Ø Death Certificate medicine.
Ø Post Mortem Report Ø Retain the cash memo till consumption
Ø Nominee ID Proof of medicines. It will be useful in case of
143
Ø Investigation Report submitted by investigation of adverse reaction or other
authorized surveyor complaint.
Ø Affidavit (in case of any discrepancy of Ø All complaint on prices as well as quality
the nominee age, name and other) of medicine can be lodged with the
Ø Driving License Copy Drugs Inspector of the District or the
Documents required while making accidental State Drug Controller.
claim:
Ø FIR Copy Telecom:
Ø Police Final Verification Report
Ø Photograph of the accidental place and
the vehicle
Ø Investigation report submitted by
www.0101.nccdn.net
authorized surveyor
Ø Affidavit (in case of any discrepancy of
Ø Marketing or offering tariff plan in any
the policyholder age, name and other) of
misleading manner is not permitted.
Driving License Copy
Ø The service providers must inform the
customer within a week of activation of
Be Safe and Healthy:
service, the complete details of his tariff
plan along with changes.
Ø Customer has the right to move from one
tariff to another plan offered by his
service provider any time without having
www.household-management-101.com
to pay any fee for the migration.
Ø No chargeable value added service, shall
Ø Always wash your hands well with soap
be provided to a customer without his
before and after food handling.
explicit consent.
Ø Wash fruits and vegetables thoroughly
Ø The service providers must publish in all
before consumption.
communications/ advertisements relating
Ø Wash all cutting board and utensils with
to premium rate services, e.g. ringtones,
hot water and soap after preparing each
wall paper, astrology, quiz etc. the pulse
food item and prior to moving on to cook
rate/ tariff for the service.
next food item.
Ø Credit limit set for a postpaid subscriber
Ø Keep hot food hot and cold food cold.
shall be intimated by the operator to him
144
Ø Never eat raw eggs. in advance and whenever he reaches
Ø Cook food thoroughly and cooked food is 80% of the credit limit, intimation should
not left at room temperature for more be given to him.
than two hours. When in doubt, throw it Ø The security deposit after adjustment of
out. dues, if any, is required to be refunded to
Ø Avoid artificially coloured food articles. subscribers within a time frame of 60
Ø Do not purchase/consume rotten or cut days. The service provider has also to
fruit and vegetables. pay an interest @ 10% per annum for
Ø Do not use printed paper or newspaper any delay in making refund within the
for wrapping/ storing/serving foods. stipulated period.
Ø Consumption of vegetable oil and fat Ø Consumers may approach the service
with high Trans Fatty Acid (TFA)/ Trans providers or Consumer Redressal
Fats should be avoided. Forum for redressal of their grievances.
Ø Re-heating of vegetable oil and fat should For speedy redressal of grievances of
be avoided. telecom consumers, TRAI has
Ø Throw away the outer leaves of leafy recommended to the Government for
vegetables such as cabbage as these may setting up of an Ombudsman.
contain pesticide residues.
Ø Perishable foods like meat, fish, poultry
should be kept refrigerated and cooked
within two days after bringing them from
the market.
Source: National Consumer Helpline
Summary of Chapter 3:
This Chapter highlighted the role of the redessal machinery in settling the grievances of
the consumers. It also brought to light the performance appraisal of the consumer courts
acting at the National, State and District level. Along with this, the chapter also
enumerates the role of alternate dispute redressal system and the functioning of the
consumer organisations and NGO’s for prompt redressal of consumer grievances.
145
3.20 References:
1. Sridevi S, Krishnaveni (Dr.) R. (2014) Consumer Preference towards the
Packaging Elements of FMCG Products in Tiruvarur Town, International Journal
of Research in Commerce and Management, Volume No.5, Issue No.11
(November), pp 37-39
2. Ramasethu (Dr.) A (2014) Impact of Consumer Protection Laws on Women
Consumers in Madurai District, International Journal of Research in Commerce
and Management, Volume No.5, Issue No.11 (November), pp 68-70
3. Srinivas Kumar (Dr.) N (2014) A Study on Consumers Preference on Brand
Loyalty, International Journal of Research in Commerce and Management,
Volume No.5, Issue No.09 (September), pp 11-12
4. Pandey (Dr.) P. K. (2014) Regulatory Framework of Business, Composition and
Jurisdiction of Grievance Redressal Machinery, Ashok Book Stall, pp 76-88
5. Srivastava Ankita, Bisen (Dr.) Vikram, (2014) Impact of Advertisement on
Consumers’ Buying Behaviour: A Study on FMCG Products in Lucknow City,
International Journal of Research in Commerce and Management, Volume No.
5, Issue No. 04 (April), pp 1-5
6. Sonia (Dr.), Dalal (Dr.) Garima (2014) To Study the Factor Affecting the Purchase
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CHAPTER 3

CONSUMER PROTECTION ACT, 1986

The Acts mentioned in Chapter 2 “Consumer Protection Mechanism prior to

3.1 Meaning of Consumer Protection:

The assurance given to the consumer against “anti-consumer trade practices” by

made an attempt to increase their sales by tempting themselves to engage in exploitative

and unethical malpractices which includes:

Sale of sub-standard goods i.e. selling goods not conforming to prescribed

Sale of duplicate products;

Hoarding and black-marketing i.e. creating artificial scarcity in the market

thereby leading to price rise;

Misleading advertisements i.e. false advertisement claiming a product or service

Sale of adulterated goods i.e. adding something inferior to the product;

Supply of defective goods;

Consumer Protection helps in curbing these anti-consumer trade practices through

3.2 Salient Features of the Consumer Protection Act:

Ø Enshrines the consumer’s rights related to safety, information, choice,

representation, redress and consumer education.

Ø Gives an additional remedy to consumers besides those which may be available

to them under the provisions of other existing laws.

Ø Provides for three-tier consumer grievance redressal machinery with District

Ø Has a time frame for disposal of cases.

Ø Empowers consumers seeking discontinuance of certain unfair trade practices,

defects or deficiencies in services and withdrawal of hazardous goods from the

Ø Complaints can be filed on behalf of group of consumers having a common

Ø No technicalities in the procedure of Redressal Forum. In fact, the Act provides

for a simple, speedy and inexpensive redressal of consumer grievances.

3.3 Persons considered as consumers (as decided in various NCDRC and

SCDRC with respect to various cases):

v A family member/beneficiary of consumer

v Payment of consideration makes a complainant consumer

v Persons applying for overdraft facilities or bank overdraft

v Members of Housing Societies

v Admission of child in hospital, parents are consumers-child beneficiary

v Patient of a private medical practitioner or a private nursing home

Today’s consumer faces a lot of malpractices prevailing in the market, some of

which have been discussed as follows:

3.4.1 Misleading Advertisement:

3.4.2 Rampant Adulteration:

Rampant adulteration is another cause of unfair trade practices whereby the

and causes serious injury and damage to human health.

3.4.3 Poor Quality of Products:

standards have been set up by the Government.

3.4.4 Promotional Contests:

Business concerns indulge in unfair practices in the name of promotional

an easy prey to these promotional contest.

3.4.6 Offering Gifts and Prizes:

not needed by them.

3.5 Scope of Consumer Protection:

The scope of Consumer Protection includes, in its ambit, three aspects-

Scope of Consumer Protection

Physical Protection of Protection of

Exhibit 3: Scope of Consumer Protection

3.5.1 Physical protection of consumers:

unsafe or injurious to health.

practices in order to safeguard the interest of general public.

3.5.3 Protection of economic interest:

practices and to provide adequate means to get their grievances redressed.

3.6 Importance of Consumer Protection:

The importance of Consumer Protection can be viewed from two perspectives-

Importance of Consumer Protection

Consumer’s Perspective Businessmen’s Perspective

Consumer Ignorance Social Responsibility