Consumer Protection Act 1986 An important landmark in Consumer protection endeavours(attempt) in India is the Consumer Protection Act

1986, which provides for a system for protection of consumer rights and the redressal of consumer disputes. This Act extends to whole India except the State of Jammu & Kashmir, & it applies to all goods and services.

The objectives of the Act: * is to provide for the better protection of interests of consumers * for the purpose to make provision for the establishment of consumer councils and authorities for the settlement of consumers disputes and for the matters connected therewith. .

or under any system of deferred payment. who(a) buys any goods for consideration which has been paid or promised or partly paid and partly promised . but (c) does not include a person who obtains such goods for resale or for any commercial purpose. when such use is made with the approval of the buyer. .Consumer Of Goods Under sub-clause (i) of section 2 (i)(d) a consumer for the purpose of goods means any person. and (b) includes any user of such goods other than the person who buys them.

Commercial purpose does not include a person of services availed by him exclusively for the purpose of earning his livelihood by means of selfemployment. a consumer for the purpose of services means any person. when such services are availed of with the approval of the hirer. who(a) hires or avails of any services for consideration which has been paid or promised or partly paid and partly promised or under any system of deferred payment. . but (c) does not include a person who avails of such services for any commercial purpose. (b) includes any beneficiary of such services other than the person who hirer or avails of them.Consumer Of Services Under sub-clause(ii) of section 2 (1)(d) of the Act.

The State Council shall consist of such members as may be specified by the State Government by notification from time to time. . The Council shall meet as & when necessary but atleast one meeting of the council shall be held every year. 2) The Central Council shall consist of : The Minister in charge of consumer affairs in the Central Government.CONSUMER PROTECTION COUNCILS 1) The Act provides for the establishment of a Central Consumer protection Council by the Central Government and a State Consumer Protection Council in each State by the respective State Governments. of other official and non-official members representing such interests as may prescribed. who shall be its Chairman And such no.

quantity. price of goods & services so as to protect the consumer against unfair trade practices. Council are to protect within the State the rights of the consumers listed above. wherever possible. access to a variety of goods at competitive prices. standard. potency. b) the right to be informed about the quality. The object of S. f) the right to consumer education. c) the right to be assured.Objects of Councils: The objects of Central Council are to promote and protect the rights of consumers. d) the right to be heard & assured that consumer·s interests will receive due consideration at appropriate forums. . such as: a) the right to be protected against marketing of goods and services which are hazardous to life & property. purity. e) the right to seek redressal against unfair trade practices or unscrupulous(corrupt) exploitation of consumers.

Government in August 1988. iii) A National Commission. i) A District Forum(DF) in each district of every state. If the State Government deems it fit. The NCDRC was established by the C. At present. there are 604 District Forums and 34 State Commissions with the National Consumer Disputes Redressal Commission (NCDRC) at the apex. The responsibility for the establishment of other 2 agencies. Government. ii) A State Commission in each State.CONSUMER DISPUTES REDRESSAL AGENCIES: There are 2 levels of consumer disputes redressal agencies in the State & 1 agency at the National level. more than 1 DF may be established in a district. resets with respective S. . with the prior approval of the C. Government.

public affairs or administration. industry. Composition of State Commission. government. b) 2 other members who shall be persons of ability. b) a person of eminence in the field of education. one of whom shall be a woman. accountancy. appointed by the S. trade or commerce. or qualified to be a District Judge nominated by the S.shall consist of a) a person who is or who has been a judge of a High Court. . or has been. Government who shall be its President. law commerce.Composition of DF-The DF shall consist of: a) a person who is. integrity and standing & have adequate knowledge or experience of or have shown capacity in dealing with problems relating to economics. & c) a lady social worker. who shall be its President.

appointed by the C. integrity and standing & have adequate knowledge and experience of or have shown capacity in dealing with problems relating to economics. one of whom shall be a woman. if any is less than rupees 5 lakhs is to be dealt with DF.Composition of (NCDRC). Court. b) 2 other members who shall be persons of ability. More than rupees 20 lakhs. Government. law commerce. public affairs or administration. accountancy. Where such value exceeds rupees 5 lakhs but doesn·t exceed rupees 20 lakhs-State Commission. A complaint where the value of the goods or services and the compensation.fall within the jurisdiction of the NCDRC. . industry. who shall be its President.shall consist of a) a person who is or who has been a judge of the S.

Points to remember: * The State Commission will also entertain appeals against the orders of any DF within the State. . * Appeals against the orders of the National Commission(NCDRC) can be made to the Supreme Court. * Appeals against the orders of the State Commission can be made to the NCDRC.

. or has failed to exercise a jurisdiction so vested or has acted in exercise of its jurisdiction illegally or with material irregularity.Powers of State Commission: * is empowered to call for the records and pass appropriate orders in any consumer dispute which is pending before or has been decided by any District Forum within the State. The National Commission has similar jurisdiction over the State Commissions. * where it appears to the State Commission that such DF has exercised a jurisdiction not vested in it by law.

Consumer Complaints : A complaint. where there are numerous consumers having the same interest. or. d) the Central or State Government. whether the aggrieved consumer is a member of such association or not. b) any recognized consumer association. in relation to any goods sold or delivered or any service provided may be filed with the redressal agency bya) the consumer to whom such goods are sold or delivered or such services provided. c) one or more consumers. .

the charges paid by the complainant. . 3) to return to the complaint the price. 2) to replace the goods with the new goods of similar description which shall be free from all defects.Remedial Action: If the consumer disputes redressal agency is satisfied that any of the allegation contained in the complaint is true. as the case may be. or. it shall issue an order to the opposite party directing him to take one or more of the following things: 1) to remove the defect pointed out by the appropriate laboratory from the goods in question. 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.

8) to withdraw the hazardous goods from being offered for sale. 6) to discontinue the unfair/restrictive trade practice or not to repeat them.5) To remove the defects or deficiencies in the services in question. . 9) to provide for adequate cost to parties. 7) not to offer hazardous goods for sale.

Penalties: If a trader or person against whom a complaint is made or the complainant fails or omits to comply with any order made by the redressal agency. or with fine not exceeding 10 thousand rupees or with both . he shall be punishable with imprisonment for any term not exceeding 3 yrs.

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