Consumer protection Act 1986

Definitions
‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Consumer Unfair Trade Practice Restrictive Trade Practice Defect Deficiency Rights of a consumer Complaint Relief District Forum State Commission National Commission

2(1) of Sale of Goods Act 1930]: A person who buys or agrees to buy goods for a consideration ‡ Goods: as defined in the Sale of Goods Act 1930: movable goods (Does not cover immovable goods) . It excludes a buyer for resale or commercial purposes.Consumer [S. including any user of such goods or service with the approval of the buyer. use for earning livelihood is not commercial use ‡ Customer : is a buyer ‡ Buyer [S. However. 2(d)] ‡ Consumer means a person who buys any goods or avails of any service for a consideration.

Medical practitioner is a consumer because he is using it himself for earning his livelihood . Users of water and sewerage services. 2. not a contractual duty made for a consideration). User is therefore not a µconsumer¶. Municipal corporation of Delhi fails to maintain a public drain (Maintenance of drains is a statutory duty. are consumers because they pay a consideration for it. The scanner stops functioning within a short period of time. however.Consumer: Examples 1. A medical practitioner purchases an ultrasound scanner for his practice.

Treatment at AIMS. is not a service. diagnosis . hospital. a service covered by the CP Act ‡ A lottery ticket holder is not a consumer ‡ An applicant for allotment of shares is not a consumer. ‡ A buyer of immovable property is not a consumer . is. He becomes a consumer after a share is allotted to him and he pays for it. for consideration is a service. however. etc. ‡ Medical treatment. consultation. which is subsidised. Free Treatment in a govt.Examples ‡ Student is a consumer of educational services. however. Undue delay in declaration of results is a deficiency in service.

Unfair Trade Practice [S. 3. 2. including: False claim of quality. quantity. 7. Unfair or deceptive practice for promoting sale.2(r)] ‡ 1. 6. 5. standard of goods/services Passing off second hand goods as new False claim of sponsorship or approval False claim of usefulness Misleading warranty or guarantee of performance False or misleading facts disparaging the goods or services of another person Misleading the public regarding market price of like products/ services . 4.

Hoarding of goods to raise their cost . Conduct of contest. Sale of goods that do not comply with safety standards 12.) 8. Misleading advertisement for sale at a bargain price 9. lottery or game of chance or skill for sale promotion 11. Misleading offer of gifts/prizes 10.Unfair Trade Practice [S.2(r)] (contd.

. etc. It is an unfair trade practice.Example ‡ Withholding results of scheme offering gifts. The results should normally be published in the same news paper in which the scheme was originally advertised.

2(nn)] ‡ Requiring a consumer to buy goods or services as a precondition for buying other goods and services ‡ Imposing unjustified costs on the consumer by affecting flow of supplies in the market or by manipulation of price or by imposing conditions on delivery.Restrictive Trade Practice [S. etc. .

or conditions of delivery. Which tends to bring about manipulation in price. or 2. .2(0) MRTP Act 1969] ‡ A trade practice restricting competition in any manner. and in particular: 1. Which tends to obstruct the flow of capital or resources into the stream of production.Restrictive Trade Practice [S. or to affect the flow of supplies in the market so as to impose on the consumer unjustified costs or restrictions.

Co. µfull line forcing¶: Agreements with whole-salers or distributors to buy other products along with (as a precondition) the products they actually want: 1. The co. may send´ 2. Gestner: Photocopier+ toner+ other related products of the co. ³ Shall purchase and accept from the company such stock as the co. International salt Co. etc. at its discretion.. Hindustan Liver Ltd. (1977) 47 Company Cas 543 (MRTP): Dalda+Lux+Lifebuoy+Sunlight+Baby milk powder+ animal feeds. 4. Bata India Ltd.Examples Trade practices like. v US [332 US 392 (1947)]. (1976): Bata+ BSC products 3. µTie up sale¶ or µtie in sale¶. Company is the largest producer of salt in the US. required that the lessee should use the machine only with the salt purchased from the lessor (ostensibly to ensure high quality of salt) ‡ Cement companies in India reducing supplies in the busy construction season and pushing up prices . also had patents over two machines for processing salt.

. or claimed by trade.2(f)] Means any fault in quality or quantity or standard prescribed by law or contract.Defect [S.

entertainment. finance. house construction. It excludes a contract of personal service. ‡ Services include banking. water/ electric supply. . board or lodging.Deficiency [ S. transport. 2(g)] ‡ A defect in relation to a service. insurance.

Fire was caused by leakage of gas.a. Gas company held liable for loss of life due to deficiency in service . ‡ A gas cylinder with a leaking valve was supplied. from 3 months after the date of the death of the assured.Example ‡ Life Insurance claim not entertained for 14 years. Gas distributor¶s supply person failed to check the defect at the time of the delivery. National Commission awarded interest 12% p. and there was loss of life.

price. quantity. of goods or services ‡ Right to choose at competitive prices ‡ Right to be heard ‡ Right to seek redressal ‡ Right to consumer education .Rights of a consumer (S.6) ‡ Right to safety: against marketing of goods and services which are hazardous ‡ Right to be informed of quality. purity. etc. standard.

Unfair trade practice 2.Complaint [S. Overcharging 6. . 2(c)] Means an allegation of: 1. Restrictive trade practice 3. Defect in goods 4. Sale of hazardous goods. etc. No court fee is required for lodging a complaint. Deficiency in service 5.

2(b)] ‡ Means a consumer. any registered voluntary consumer association or Central/state govt.Complainant [ S. who makes a complaint .

restrain a public issue . or not to repeat them 6. 3. 14] 1. To discontinue the unfair or the restrictive trade practice. the Forum can not grant an injunction or interim order. To withdraw the hazardous goods 7. To pay costs to the parties However.Relief from District Forum[S. To remove the defect To replace with new goods free from the defect To remove the deficiency in service To pay compensation to the consumer due to the negligence of the opposite party 5. 4. Eg. 2.

one of whom is a woman. . It is headed by a person who is or has been or is qualified to be a District Judge. 2)h)] ‡ Means a Consumer Disputes redressal Forum established under S. It consists of two other persons of ability and integrity. It can entertain complaints of value not exceeding Rs 5 lakh. 9(a) of the Act.District Forum [S.

and can entertain complaints whose value exceeds Rs 5 lakh but does not exceed Rs 20 lakh . 16) ‡ President of the State Commission is a person who is or has been a judge of a High Court. one of whom is a woman. It hears appeals against the orders of a District forum.State Commission (S. It consists of two other members who are persons of ability and integrity.

It consists of two other members who are persons of ability and integrity. It hears appeals against the orders of a District forum. and can entertain complaints whose value exceeds Rs 20 lakh . one of whom is a woman. 20) ‡ President of the National Commission is a person who is or has been a judge of the Supreme Court High Court.National Commission ( S.