C ONSUMER P ROTECTION A CT

NEED FOR CONSUMER PROTECTION:

1. Consumer is the purpose of business: Customer ids the
foundation of business and keeps it in existence.
Business must provide goods and services of right
quality and right quantity and at right prices.
2. Business is a means of human welfare: Business cannot
survive and grow unless consumers and other people
are served well.
3. Multiple objectives: As a part of society business is
expected to take care of the interest of all sections of
society including consumers.
4. Growth with social justice: India’s Constitution describes
that the country is a socialist and secular democratic
republic. Consumer protection is in accordance with
the Directive Principles of State Policy laid down in our
Constitution.
5. Stakeholder approach: Business must protect the interests
of all the stakeholders including customers.
6. Responsibility with power: Business exercises considerable
power and influence over society in such a way that
the interests of society are not damaged.

Rights of Consumers
 The Right to safety

The Right to be The Right To

Informed Choose
The The Right
Right The Right The Right to
to seek to Healthy
to be Consumer Environment
heard Redressal
Education

Rights of the consumer

i. The Right to Safety: To be protected against the marketing of goods,

products or services which are hazardous to life and property;
ii. The Right to be Informed: To be informed about the quality, quantity,
potency, purity, standard and price of goods, products or services;
iii. The Right to be Choose: To be assured, wherever possible, access to
a variety of goods, products or services at competitive prices;

iv. The Right To Heard: To be heard and to be assured that consumers'

interests will receive due consideration at appropriate forum;

v. The Right to Seek Redressal: To seek redressal against unfair trade

practice or restrictive trade practices or unscrupulous exploitation of consumers;
and

vi. The Right to Consumer Education: The Consumer must be made

aware of his rights and the remedies available to him.

vii. The Right to Healthy Environment: Consumers have the right to

be protected against environmental pollution so as to improve the quality of life.
 Government
Control

Consumer
Associations

Consumer
Awareness

Self Help

1. Self Regulation by Business( Self-help):

Business Community must adopt self-discipline, code

of conduct, consumer- oriented marketing. Self control
will help to avoid government control.

2. Consumer Awareness:

The consumer himself must be alert, well-informed

and should protect his own rights. Self-help is the best
help.

3. Consumer Associations: Consumers must unite

themselves to protect their rights. Consumer
 associations and non-government organizations
(NGOs) can educate and awaken consumers.

4. Government Control: Government has passed several

laws for the protection of consumers. All the wings of
the government- legislature, judiciary and executive-
can assist in consumer protection. Other measures
provided by the Government:

 Awards: Government of India offers wards to

youth and women in order to encourage their
participation in consumer protection.

 Environment- friendly products: An ‘eco-mark’

scheme has been introduced to motivate
manufacturers and importers to reduce adverse
impact of products on the environment.

 Consumer welfare fund: Government of India

has created a fund which is to be utilized on
consumer education, training and research.

 Lok adalats: It is a speedy and economical

redressal system where aggrieved consumer can
directly present his grievance.

 Public interest litigation: In this system , any

individual or organization can file writ petition in
the court in the interest of a weak individual or
group.

 Consumer redressal forums: District Forums,

State Commission and National Commission have
 been set up for speedy and economical settlement
of consumer disputes.

THE CONSUMER DISPUTES REDRESSAL

COMMISSIONS

District State
Forum Commission

National
Commission

Comparative Study

COMPARATIVE ANALYSIS OF DISTRICT FORUM, STATE COMMISSION AND

NATIONAL COMMISSION :

Sr. Points of District Forum State Commission National

No. Distinguish Commission

1 Meaning A consumer dispute A consumer dispute A consumer dispute

redressal forum redressal forum working redressal forum
working at district level at state level working at national
 level

2 Monetary It can entertain the It can entertain the cases It can entertain the
Jurisdiction cases where the value where the value of cases where the value
of goods/services and goods/services and the of goods/services and
the compensation compensation claimed is the compensation
claimed is less than more than rupees twenty claimed is more than
rupees twenty lakhs lakhs and less than rupees one crore
rupees one crore

3 Duration Every member should Every member should Every members

hold office for a term hold office for a term of should hold office for a
of five years or up to five years or up to the terms of five years or
the age of sixty-five age of sixty-seven years, up to the age of
years, whichever is whichever is earlier. seventy years,
earlier. whichever is earlier.

4 Nature of Only original cases It can entertain original It can entertain original
Complaints can be entertained cases and also appeals cases and also
which are within the against the order of appeals against the
local limits of a district District Forum within the order of State
geographical limits of the Commission.
state

5 Members Other than presidents Other than president it Other than president it
it has minimum two has minimum two has minimum four
members members members.

6 Area It covers a particular It covers a particular It covers the entire

Covered district state country

7 President District Judge or High Court Judge or Supreme Court Judge

equivalent equivalent or equivalent.
 COMPARATIVE ANALYSIS: CONSUMER PROTECTION ACT, 1986
(OLD ACT) V. CONSUMER PROTECTION ACT, 2019 (NEW ACT)
KEY POINTS OLD ACT NEW ACT

District forum (upto 20 lacs) State

commission (from 20 lacs to 1 District forum (upto 1 crore)State commission (from 1
PECUNIARY crore)National commission (from 1 crore crore to 10 crore)National commission (from 10 crore and
JURISDICTION and above) above)

MRP/PURCHASE Earlier MRP was a criteria to decide

PRICE pecuniary jurisdiction Now discounted price/ actual purchase price is criteria

TERRITORIAL
JURISDICTION Where seller has office Where complainant resides or works

REGULATOR No such provision Central Consumer protection authority to be formed

Court can refer for settlement through mediation (Section

MEDIATION No such provision 80)

Earlier 30 days period for appeal against

the order of District forum (Section
15)Earlier 50% or 25,000 whichever is less
APPEAL is to be deposited Now it is 45 days (Section 41)Now 50% of award amount

Now all provision applicable to direct seller has been

E-COMMERCE Earlier no specific mention extended to e-commerce

Earlier DCF did not have the power to

REVIEW review Now DCF has power to review

Section 49(2) and 59(2) of the new act gives power to the
State Commission and NCDRC respectively to declare any
UNFAIR TERMS AND terms of contract, which is unfair to any consumer, to be
CONDITIONS No such provision null and void

AUTHORITY District consumer forumState consumer

forumNational Consumer Dispute District commissionState commissionNational Consumer
 Redressal Commission Dispute Redressal Commission

COMPOSITION OF
STATE COMMISSION President and 2 other members President and 4 other members