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