Consumer Protection

Act, 1986
Introduction
The Consumer Protection Act, 1986 (COPRA) was an Act by the
Parliament of India enacted to protect the interests of
consumers in India. It was replaced by the Consumer
Protection Act, 2019. It was made for the establishment of
consumer councils and other authorities for the settlement of
consumer's grievances and matters connected with it. The act
was passed in Assembly in October 1986 and came into force
on December 24, 1986.
This Act is regarded as the 'Magna Carta' in the field of
consumer protection for checking unfair trade practices,
‘defects in goods’ and ‘deficiencies in services’ as far as India is
concerned. It has led to the establishment of a widespread
network of consumer forums and appellate courts all over
India. It has significantly impacted how businesses approach
consumers and have empowered consumers to a greater
extent.
There are various objectives which are sought to be protected
under the Consumer Protection Act such as-

1. To promote and protect all the six rights of the consumers

which will be discussed later.
2. To provide simple and speedy disposal to the cases by
providing quasi-judicial machinery for the redressal of
consumer disputes.
3. The act also aims to provide inexpensive redressal to the
issues of the consumer.
4. A consumer dispute redressal forum called state
commission has been set up in order to settle the disputes
of each and every consumer in all the states of the
country.

BASIC CONCEPTS: CONSUMER,

SERVICE, GOODS

CONSUMER
The expression consumer is defined in S. 2(1)(d) of the Act.
The primary purpose of the definition is to restrict the
availability of consumer remedies only. The method adopted
is to confine the Act to non-business buyers from business
sellers.
According to Section 2(d), 'CONSUMER' means any person
who-
(i) buys any goods for a consideration which has been paid
or promised or partly paid and partly promised, or under any
system of deferred payment and includes any user of such
goods other than the person who buys such goods for
consideration paid or promised or partly paid or partly
promised, or under any system of deferred payment when
such use is made with the approval of such person, but does
not include a person who obtains such goods for resale or
for any commercial purpose; or
(ii) [hires or avails of] any services for a consideration which
has been paid or promised or partly paid and partly
promised, or under any system of deferred payment and
includes any beneficiary of such services other than the
person who [hires or avails of] the services for consideration
paid or promised, or partly paid and partly promised, or
under any system of deferred payments, when such services
are availed of with the approval of the first-mentioned
person;
[Explanation: For the purposes of sub-clause (i), “commercial
purpose”does not include use by a consumer of goods
bought and used by him exclusively for the purpose of
earning his livelihood, by means of self-employment;]
The definition of the term 'consumer' given in clause (d) of
section 2(1) of the Act is comprehensive one so as to cover
not only consumer of goods but also consumer of services.
The definition is wide enough to include in consumer not
only the person who buys any goods for consideration but
also any user of such goods with the approval of the buyer.
Similarly, it covers any person who hires or avails of any
services for consideration and also includes any beneficiary
of such services, when availed with the approval of the hirer.
Thus, any user of goods or any beneficiary of services. other
than the actual buyer or hirer, is a consumer for the purpose
of this Act and he is competent to make a complaint before
the Consumer Redressal Forum under this Act. The Act aims
to protect the economic interest of a consumer as
understood in commercial sense as a purchaser of goods
and in the larger sense of user of service.
The important characteristic of goods and services under the
Act is that such goods are supplied at a price to cover the
costs which consequently result in profit or income to the
seller of goods or provider of services. It includes anyone
who consumes goods or services at the end of the chain of
production.
The Supreme Court in its decision in Lucknow Development
Authority
v. M. K. Gupta [(1994) 1 SCC 243] noted that the word
'consumer' is comprehensive expression. It extends fro am
person who buys any commodity either as eatable or
otherwise from a shop, business house, corporation, store,
fair-price shop to use it for private use or consumption and
not for a commercial purpose. The term 'consumer' also
includes any person who uses the goods with the permission
of the buyer though he is not himself buyer.

CONSUMER OF GOODS
Under sub-clause (i) of section 2(1)(d), a consumer for the
purpose of goods means any person, whoa. buys any goods
for a consideration which has been paid or promised or
partly paid and partly promised, or under any system of
deferred payment, and
b. includes any user of such goods other than the person
who buys them, when such use is made with the approval of
the buyer, but
c. does not include any person who obtains such goods for
resale or for any commercial purpose. Commercial purpose
does not include use by a person of goods bought and used
by him exclusively for the purpose of earning his livelihood
by means of self- employment.
The above provision reveals that a person claiming himself
as a consumer should satisfy that- (i) there must be a sale
transaction between the seller and the buyer; (ii) the sale
must be of goods; the buying of goods must be for
consideration; (iv) the consideration has been paid or
promised or partly paid and partly promised, or under any
system of deferred payment; and (v) the user of the goods
may also be a consumer when such use is made with the
approval of the buyer.
However, the term consumer does not include a person
who obtains any goods for resale or for any commercial
purpose. It is obvious that the parliament intended to
restrict the benefits of the Act to ordinary consumers
purchasing goods wither for own consumption or even for
use in some small venture which they may have embarked
upon in order to make a living as distinct from large scale
manufacturing or processing activity carried on for profit.
Consumer of Services
The second category of consumer laid down under the act is
that of hirer or user of services. Under sub-clause (ii) of
Section 2(1)(d) of the Act, a consumer for the purpose of
services means any person, whoa. hires or avails of any
services for a consideration which has been paid or
promised or partly paid and partly promised, or under any
system of deferred payment, and
b. includes any beneficiary of such services other than the
person who hires or avails of them when such services are
availed of with the approval of the hirer; but.
c. does not include a person who avails of such services for
nay commercial purpose. Commercial purpose does not
include a person of services availed by him exclusively for
the purpose of earning his livelihood, by means of self-
employment.
In order to be a consumer for the purpose of services, it is
necessary that the services must have been hired or availed
of for consideration. But it is not necessary to pay the
consideration immediately, it may be paid afterwards or in
instalments. A student hiring the services of the university
on payment of fees for appearing at the examination; or
passenger getting railway reservation after payment is hiring
service for consideration, is a consumer of services.
For the purpose of "goods", a consumer means a person
belonging to the following categories:
(i) One who buys or agrees to buy any goods for a
consideration which has been paid or promised or partly
paid and partly promised or under any system of deferred
payment
(ii) It includes any user of such goods other than the person
who actually buys goods and such use is made with the
approval of the purchaser.

EXCEPTION- A person is not a consumer if he purchases

goods for commercial or resale purposes. However, the
word "commercial" does not include use by consumer of
goods bought and used by him exclusively for the purpose of
earning his livelihood, by means of self employment.

For the purpose of "services", a "consumer" means a person

belonging to the following categories:
(i) One who hires or avails of any service or services for a
consideration which has been paid or promised or partly
paid and partly promised or under any system of deferred
payment

(ii) It includes any beneficiary of such service other than the

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

Service
The term services according to sec. 2(1)(o) means service of
any description which is made available to potential users
and includes the provision of facilities in connection with
banking, financing, insurance,transport, processing, supply
of electrical or other energy, board or lodging or both,
entertainment, amusement or the purveying a news or other
information, but does not include the rendering of any
services free of charge or under a contract of personal
service.
In R.C. Dixit v. Principal, St. Paul School, [(2002) III CPJ 5] the
complainant's daughter was admitted in school on payment
of various fees and security deposits. Since there was no
proper arrangement in the school for teaching economics,
the complainant withdrew daughter and put her in another
school. The complainant sought full refund of the fees.
The State Commission held that since the withdrawal from
the school was voluntary, admission fees and monthly
tuition fees were not refundable, whereas the annual
maintenance, support fees and library fees were refundable
after proportionate deduction on account of deficiency in
services.
Characteristics of Services-
(i) Two party process –
there has to be a service provider and service recipient.
(ii) It has to be intangible and invisible, i.e., it cannot be seen
or touched.
Exception- Report of Consultant on a diskette is visible.
(iii) It has to be for consideration.- according to the Indian
Contract Act , a contract without consideration is void. A
party giving something has to get something in return. It
includes- granting, assignment, or surrender of any right. It
should not be free. If it is for free, no service tax can be
levied.

(iv) Merely may be made available, actual utilization not

necessary. If made available, it would be considered as
service. It is not mandatory for the other party to use it.
(v) It cannot be a personal service.
(vi) ‘Contract of service’ and ‘ Contract for service’-
Contract of service- employee can be turned out at any time
without any specific reason. He is under direction and
control of employer. Here master can direct what and how
to be done.

Contract for Service- master can direct only what and not
how. Example- Accountants, Lawyers, Surgeons, Builders.
(vii) Manner of Service- by rendering( doctor) , by
performing( mechanic) , by providing, by delivering( courier).
(viii) Service is a process. It cannot be stored or transferred.
However there can be pre storage ( refill cards), or post
stored ( music disk).
(ix) Nature of Service Tax- one point transaction.
(x) Aspects covered- (i) activity/ performance( employment,
professional, marketing)
(ii) resources (leasing, financing, renting)
(iii) risk ( insurance)- it is not a personal service.
(iv) Skill (Consulting)
(xi) It can be any act resulting in promoting interest or
happiness- contractual, legal, statutory, domestic, public etc.

Rights and Duties of a Consumer

The Consumer Protection Act has recognised six rights of a
consumer which are :

1. Right to Safety
2. Right to Information
3. Right to Choose
4. Right to be heard
5. Right to Redressal
6. Right to Consumer Education.
Right to Safety
This right refers to as the right to be protected against the
marketing of goods and services which are hazardous to life
and property of the consumers. This right has a very wide
scope of application, for instance, this right is available in the
areas of electrical appliances, healthcare, automobile,
pharmaceuticals, housing, travel etc. Nowadays, each and
every field has an office for researchers who research and
experiment and launch new products and appliances
accordingly. Most of these products are not tested by the
producers which prove to be harmful to the consumer.
Therefore, after the implementation of this act, there is a
mandate for each and every field to get all their products
which are a danger to the life to be carefully tested and
validated before launching it to the market.

Right to Information
It refers to the right of a consumer to be informed of the
quality, quantity, potency, purity, standard and price of the
goods and services being sold by the shopkeeper. This right is
given to the consumer in order to protect them from the
various unfair trade practices conducted by the seller in order
to earn more profits. Therefore, it is an obligation on the seller
to provide the consumer with all the relevant information of
the product he wishes to purchase.
Right to Choose
It is defined in the act as the right to be assured, wherever
possible, to have access to a variety of goods and services at
competitive prices. It is very common to find one product being
sold at different possible prices by different sellers. This reflects
the age of market competition which is found in almost all the
countries. Therefore it is the right of all the consumers to
purchase any product at any price which according to him is
the best. A consumer cannot be forced to purchase a product
of some particular brand or quality.

Right to be heard
It is referred to as the right to be heard and to be assured that
consumers’ interests will receive due consideration at
appropriate forums. This right was introduced for a consumer
in order to ensure that all the complaints and issues of the
consumers are heard duly under the appropriate authority.
This is because of this right that almost all the big selling
companies have a separate department known as the
customer service to help the consumers in case of any dispute
or any complaint regarding the quality or quantity of the
product.

Right to seek Redressal

If any consumer has been exploited by the seller or faced any
unfair trade practices he can seek redressal i.e. compensation
or damages under this right. This right ensures that all the
issues of the consumers are dealt with and justice is done to
him. A proper redressal mechanism has been set up by the
government of India such as the consumer courts and forums
at district and national level which is discussed later in this
article.

Right to Consumer Education

It is the right of each and every person who is a citizen of India
to have knowledge about all the laws and policies relating to
the consumer. Therefore it is made sure the material regarding
the consumer-related laws is easily available all over India but
there is still a major part of the population who is not aware of
his laws and rights. This is the reason many awareness
programmes have been organized by the government of India
such as ‘jago grahak Jago’ and the camps organized by various
lawyers in the remote areas of the country.

Duties of a consumer
Every consumer right comes with the opposite duty. Right of
one consumer is the duty of the others. Accordingly, there are
various duties such as:-

 On purchasing of goods or hiring of any services, it is the

duty of the consumer to pay for the same.
  While purchasing something it is his duty to check
weights, balances, prices etc. and also to give a careful
reading to the labels.
 It is the duty of the consumer to update himself about the
various consumer protection schemes.
 Duty to be careful while purchasing and not to fall in the
trap of misleading information and advertisements.
 It is the duty of the consumer to not purchase anything
from the black markets.
 It is the duty of the consumer to be aware of his rights
and duties and also spreading the awareness of the same
among others.
 It is the consumers’ duty to file a complaint if the goods
which he purchased are defective.
 Each and every consumer should secure the bills of the
goods purchased or the services availed so that if in the
future he finds the goods or services to be defective he
can easily file a complaint against the same and can prove
it.

Conclusion-
The Consumer Protection Act has proved to be a helping hand
to the consumers and protected them from being exploited in
the hands of huge companies and famous traders. The traders
and the firms are still working on how to make huge profits and
one of the ways is by exploiting the consumer. Corresponding
to this the Legislature and the Judiciary are making
amendments in the act from time to time but the consumer
himself needs to be careful and aware of the people in the
market.