CONSUMER PROTECTION ACT

1986
 INTRODUCTION
• The Consumer Protection Act 1986 is a social welfare legislation
which was enacted as a result of widespread consumer protection
movement.
• “Consumer law" regulates private law relationships between
individual consumers and the businesses that sell those goods and
services.
• Consumer Protection Act imposes strict liability on a manufacturer, in
case of supply of defective goods by him, and a service provider, in
case of deficiency in rendering of its services.
• The act was passed in Lok Sabha on 9th December,1986. Rajya Sabha
passed on 10th December, 1986 and assented by the President of India
on 24th December, 1986 and was published in the Gazette of India on
26th December, 1986.
• The provisions of the Act came into force with effect from 15-4-87.
• Consumer protection means safeguarding the interest and rights of
consumers. In other words, it refers to the measures adopted for the
protection of consumers from unscrupulous and unethical malpractices
by the business and to provide them speedy redressal of their
grievances.
Features of CPA
• It applies to all goods, services and unfair trade practices
unless specifically exempted by the Central Government.
• It covers all sectors whether private, public or co-operative.
• It provides for establishment of consumer protection councils
at the central, state and district levels to promote and protect
the rights of consumers and a three tier quasi-judicial
machinery to deal with consumer grievances and disputes.
Objects of CPA
The main objective of the Consumer Protection Act, 1986 is to protect
the interest and safeguard the rights of the consumers which are as
follows:
• Right to be protected against the marketing of goods and services
which are hazardous to life and property.
• Right to be informed about the quality, quantity, potency, purity,
standard and price of goods or services so as to protect the consumer
against unfair trade practices.
• Right to be assured , wherever possible , access to a variety of goods
and services at competitive prices
• Right to be heard and to be assured that consumers' interests
will receive due consideration at appropriate forums
• Right to seek redressal against unfair trade practices and
unscrupulous exploitation of consumers
• Right to consumer education.
 DEFINATIONS
Appropriate laboratory:
It means a laboratory or organisation-
• Recognised by the central government;
• Recognised by state government, subject to the guidelines as may be
prescribed by the central government or;
• Any laboratory or organisation established by or under any law for the time
being in force, which is maintained financed or added by the central
government r state government.
Consumer:
• “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.
• 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.
Not a Consumer:
• A person who purchased goods for resale; or
• A person who purchased goods for commercial purpose; or
• A person who obtains services without consideration; or
• A person who obtains services under a contract of personal service; or
Tax-payers to municipality: or
• Contractors; or
• Applicants for jobs; or
• Persons who filed suits in courts.
Complaint:
“Complaint" means any allegation in writing made by a complainant
that—
• An unfair trade practice or a restrictive trade practice has been adopted
by any trader or service provider;
• The goods bought by him or agreed to be bought by him; suffer from
one or more defects;
• The services hired or availed of or agreed to be hired or availed of by
him suffer from deficiency in any respect;
• A trader or service provider, as the case may be, has charged for the
goods or for the service mentioned in the complaint a price in excess
of the price.
• Goods / Service which will be hazardous to life and safety when used
or being offered for sale to the public.
Complainant:
“Complainant" means—
• A consumer; or
• Any voluntary consumer association registered under the Companies
Act,1956; or
• The Central Government or any State Government,
• One or more consumers, where there are numerous consumers having
the same interest;
• In case of death of a consumer, his legal heir or representative; who or
which makes a complaint;
Rights of Consumers
• Right to Safety – Hazardous goods & services
• Right to be Informed – About the quality, quantity, potency, purity,
standard and price of goods
• Right to Choose – Access to variety of goods and services at
competitive price
• Right to be heard - due consideration at appropriate forums.
• Right to seek Redressal – Right to seek redressal against unfair trade
practices or unscrupulous exploitation of consumers
• Right to Consumer Education –Right to acquire the knowledge and
skill to be an informed consumer throughout life.
 Consumer Protection Councils
Central Consumer Protection Council.(New Delhi)
1. Establishment: The central government shall establish, by notification, a council
to be known as the central consumer protection council.
2. Membership: the central council shall consists:
The Minister in charge of the consumer affairs in the Central Government, who
shall be its Chairman, and
such number of other official or non-official members representing such interests
as may be prescribed.
3. Procedure for meeting of the central council:
The central council shall meet as and when required
 The Council shall meet at least once an year.
It shall meet as such time and place as the chairman may think fit.
State Consumer Protection Council.
1. Establishment: the state government shall, by notification, establish with
the effect from such date as it may specify in such notification, a council
to be known as the consumer protection council.
2. Membership:
The Minister in-charge of consumer affairs in the State Government who
shall be its Chairman;
such number of other official or non-official members representing such
interests as may be prescribed by the State Government.
such number of other official or non-official members, not exceeding ten, as
may be nominated by the Central Government.
3. Meeting: The state council shall meet as and when necessary but not less
than two meetings that shall be held every year. It shall meet as such time and
place as the chairman may think fit.
District Consumer Protection Council.
Establishment:
The state government shall establish for every district, by notification, a
council to be known as the district consumer protection council with effect
from such date as it may specify in such notification.
Members:
 The Collector of the district (by whatever name called), who shall be its
Chairman;
such number of other official and non-official members representing such
interests as may be prescribed by the State Government.
Meeting:
 The state council shall meet as and when necessary but not less than two
meetings that shall be held every year. It shall meet as such time and place
as the chairman may think fit.
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, age not less than
35 years, 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
A Consumer Disputes Redressal Commission to be known as
the "State Commission" established by the State Government
in the State.
A person who is or has been a Judge of a High Court,
appointed by the State Government, who shall be its
President.
 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.
Procedure of Complaint
File within 2 years of cause of action in the forum where the
seller has his business or lives or where the incident
happened.
Submit 3 copies of complaint on plain paper with supporting
documents (receipt, bill etc.)
No lawyer is needed.
There is no fee for filing a complaint. Even an affidavit does
not need stamp papers. A complaint can be sent by post or
presented in person by complaint or his authorised agent.
Information must be required to furnished with the complaint
 Name and complete address of complainant
Name and complete address of the opposite party or parties as the case
may be.
Date of purchase/service obtained.
Amount paid for consideration.
Items of goods with quantities/nature of service.
Whether the complaint relate to unfair trade practice/ defective goods'
deficient service/charging excess price.
Copies of bills/vouchers/receipts and copies of correspondence made,
if any.
The relief sought-Under the Act.
Remedies
The forums/Commissions can order the following relief:
Removal of defects from the goods
Replacement of the goods
Refund of the price paid.
Award of compensation for the loss or injury suffered.
Removal of defects or deficiencies in the services.
Discontinuance of unfair trade practices/restrictive trade practices and
directing not repeating them.
Withdrawal of the hazardous foods from being offered for sale.
Award for adequate costs to practice.