Consumer Protection

Act,1986
Prepared by,
Rose Mary John
MSW 1122

What is Consumer Protection

Act?

An Act to provide for better protection of

the interests of consumers and for that
purpose, to make provision for the
establishment of consumer councils and
other authorities for the settlement of
consumers' disputes and for matters
connected therewith.

Come into force on 15th April 1987.

The Consumer Protection Bill, 1986 was

passed by both the Houses of Parliament
and it received the assent of the President
on 24th December, 1986. It came on the
Statutes Book as the Consumer Protection
Act, 1986.

It extends to the whole of India except the

State of Jammu and Kashmir.

Who is a Consumer?
Any person who buys any goods for a
consideration which has been paid or
promised or partly paid or partly promised
or under deferred payment.
Any user of such goods other than the
person who buys.
Any one who hires or avails of such goods
for a full or partly paid or promised
consideration.

Any beneficiary of such services with the

approval of hirer, but,
Does not include a person who obtains such
goods for resale or for any commercial
purpose.

Rights of consumer such

as
The act seeks to promote and protect the rights
of consumer such as:
(a) the right to be protected against marketing of
goods which are hazardous to life and property;
(b) the right to be informed about the quality,
quantity, potency, purity, standard and price of
goods to protect the consumer against unfair
trade practices;
(c) the right to be assured, wherever possible,
access to an authority of goods at competitive
prices;

(d) the right to be heard and to be assured

that consumers interests will receive due
consideration at appropriate forums;
(e) the right to seek redressal against unfair
trade practices or unscrupulous exploitation
of consumers; and
(f) right to consumer education.

These objects are sought to be promoted

and protected by the Consumer Protection
Council to be established at the Central and
State level.
To provide speedy and simple redressal to
consumer disputes, a quasi-judicial
machinery is sought to be setup at the
district, State and Central levels.

The Consumer Protection

Councils.
The act has created central consumer protection
council at the centre and state with the object of
promoting and protecting the rights of consumers.
The Central Council shall consist of the following
members, namely: (a) the Minister in charge of the consumer affairs
in the Central Government, who shall be its
Chairman, and
(b) such number of other official or non-official
members representing such interests as may be
prescribed.

The State Council shall consist of the following

members, namely :
(a) the Minister in charge of consumer affairs in
the State Government who shall be its
Chairman;
(b) such number of other official or non-official
members representing such interests as may
'be prescribed by the State Government.
(c) such number of other official or non-official
members, not exceeding ten, as may be
nominated by the Central Government.)

Other Authorities

Consumer Dispute Redressal Agencies,

consists of a three-tier hierarchy. The one at
the lowest level is District forum in each
district, the one at the middle level is State
Commission in each state and one at the
top level is the National Commission at the
centre which are quasi- judicial bodies.

District forum- Consists of a serving or

retired district judge or a person qualified to
be district judge as its president, and two
other members, one of them being a
woman.
State commission- Consists of a serving or
retired judge of a high court, as its President
and two other members, one of them being
a woman.

National commission- consists of a serving

or retired judge of the supreme court as its
president and four other members, one of
them being a woman.

Compensation
The compensation which can be awarded to
consumers by forums at different levels:
National commission- above 20 lakhs
State commission- up to 20 lakhs
District forum- up to 5 lakhs.

Consumer dispute

A dispute where the person against whom a

complaint has been made, denies or
disputes the allegations contained in the
complaint.

Who can be a
complainant?
A consumer, or
Any voluntary consumer association
registered under the companies act, 1956
or under any other law for the time being in
force, or
The central government or any state govt,
or
One or more consumers, where there are
numerous consumers having same
interests.

Conclusion

The commissions will adjudicate consumer

disputes, in accordance with the principles
of natural justice as set out in the Act, and
award relief, which can enforce their own
orders or send them to concerned civil
courts and can also punish the disobeying
parties.