Consumer Protection Act

Introduction

The Consumer Protection Act was enacted in 1986.

Amendments were made in 2002. The Act applies to
the whole of India except the State of Jammu and
Kashmir.
An Act to provide for the better protection of the
interest of the consumers. Establishment of
Consumer Councils and other authorities for the
settlement of consumers’ disputes.
 Objectives

► Right of protection to life and property

► Right to be informed
► Right to choose
► Right to be heard
► Right to redress
► Right to education
 Definitions

Consumer
he is a person
i) “who buys any goods for a consideration which
has been paid or promised,or partly paid and
partly promised, or under a system of deferred
payment.
ii) hires any services for a consideration which
has been paid or promised,or partly paid and
partly promised, or under a system of deferred
payment.
Who are not consumers?
1. A person who purchased goods for resale
2. A person who purchased goods for commercial purpose
3. A person who obtains services without consideration
4. A person who obtains services under a contract of
personal service
5. Tax-payers to municipality
6. Contractors
7. Applicants for jobs
8. Persons who filed suits in courts
Consumer Disputes : sec 2(1)e
“a dispute where the person against whom a
complaint has been made denies or disputes the
allegations contained in the complaint”.

Defect
“any fault, imperfections 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 has been undertaken to be
performed by a person in pursuance of a contract or
otherwise in relation to any service”.
Deficiency : 2(1) g
“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 in force or has been undertaken to be performed by a
person in pursuance of a contract or otherwise in relation to
any service”.

Service : Sec 2 (o)

service of any description which is made available to potential
users and includes the provisions of facilities in connection
with banking, financing, insurance, transport, processing,
supply of electrical or other energy, boarding or lodging of
good, house construction, entertainment, amusement or other
information.
Complaint
‘Complaint’ means any allegation in writing made by a complainant
that-
i) an unfair trade practice or a restrictive trade practice adopted by
any trade or service provider
ii) the goods bought by him or agreed to be bought by him suffers
from one more defect
iii) the services hired or availed of or agreed to be hired or availed
of 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
c) agreed between the parties
 Consumer Disputes Redressal Forums

The aims and objectives of the Act are achieved by the

constitution and creation of

 District Forum

 State Commission and

 National Consumer Disputes Redressal Commission.

 A District Forum shall have the powers
1. to remove the defect pointed out by the appropriate
laboratory from the goods in question

2. to replace the goods with new goods of similar

description which shall be free from any defect

3. to return to the complainant the price, or as the case may

be, the charges paid by the complainant

4. to pay such amount as may be awarded by it as

compensation to the consumer for any loss or injury
suffered by the consumer due to the negligence of the
opposite party
 District Forum
 Each District Forum shall consist of a person who is or has
been or is qualified to be a District Judge who shall be its
President two other members, one of whom shall be a woman
possessing a bachelor’s degree from a recognized university, be
a person of ability, integrity and standing and have adequate
knowledge and experience

 Every member of the District Forum shall hold office for a

term of 5 years or up to the age of 65 years which ever is
earlier.

 Subject to the other provisions of the Act a District forum shall

have jurisdiction to entertain complaints where the value of the
goods or services and the compensation, if any, claimed does
not exceed Rs.20 Lakhs.
 State Commission

Each State Commission shall have jurisdiction to entertain

complaints where the value of the goods or services and
compensation, if any, claimed exceeds Rs. 20 Lakhs but does
not exceed Rs.1 Crore and appeals against the orders of any
District Forum within the State.
 National Commission
∏ The ‘ National Commission’ shall consist of a person
who is or has been a Judge of the Supreme Court, shall be
its President. Not less than 4 and not more than such
number of members as may be prescribed and one of
whom shall be a woman with similar qualifications as
required in the case of appointment as a member to a
District Forum or a State Commission.

∏ Every member of the National commission shall hold

office for a term of 5 years or up to the age of 70 years
which ever is earlier.

∏ The National Commission shall have jurisdiction to

entertain complaints where the value of the goods or
services and compensation, if any, the claim exceeds Rs. 1
Crore and appeals against the orders of any State
Commission.
Consumer Disputes Redressal Forums
The District Forum, State Commission or the National
Commission shall not admit a complaint unless it is filed
within 2 years from the date on which the cause of action
has arisen.

Where a trader or a person against whom a complaint is

made fails or omits to comply with any order made by the
District Forum, the State Commission, the National
Commission, as the case may be, such trader or person
shall be punished with imprisonment for a term which
shall not be less than 1 month but which may extend to 3
years, or with fine which shall be not less than 2,000/- Rs.
but which may extend to 10,000/-Rs., or with both.
A complaint may be filed by
1. The consumer to whom such goods are sold
2. Any recognized consumer association, where the consumer
to whom goods are sold or delivered is a member
3. One or more consumers, where there are numerous
consumers having same interest
4. The Central and State Government
 Procedure of Complaint

Complaint relating to goods

1. Reference of sample to laboratory
2. Deposit of fees
3. Remission of fees to lab and forwarding of report to
opposite party
4. Objections
5. Reasonable opportunity to parties
Complaint relating to services
1. Reference of claim to opposite party
2. Denial of allegations by the opposite party
3. Settlement of dispute
4. Proceedings of district forum final
5. Death of complainant
6. period
 Findings and Verdicts

a) To remove the defect

b) To replace the goods with new goods of similar
description.
c) To return the complainant the price
d) To pay compensation to the consumer for any
loss or injury suffered
e) To remove the defects in the goods
f) To discontinue the unfair trade practices
g) Not to offer hazardous goods for sale
h) To provide adequate costs to parties
 Appeals

▒ Appeal to the State commission

▒ any person aggrieved by an order made by the district
forum may prefer an appeal against such order to the State
commission within a period of 30 days
▒ Appeal to the National commission
▒ any person aggrieved by an order made by the State
commission in exercise of its powers may prefer an appeal
against such order to the National commission within a period
of 30 days
 Hearing of appeal Sec 19(a)

▀ No adjournment shall be ordinarily granted by the

state commission or the National comission as the
case may by unless sufficient cause is shown and the
reasons for grant of adjournment have been
recorded.
▀ The State commission and the National commission
ads the case may be shall make such orders as to the
costs occasioned by the adjournment.
 Miscellaneous

╬ Protection of action taken in good faith

╬ Power to remove difficulties
╬ Power to make rules
╬ Laying of rules