Amity Business School

Amity Business School

MBA ( G), Semester I
Economic and Business Legislation
Monica Suri

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CONSUMER PROTECTION ACT,

1986

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• INTRODUCTION
• Industrial development in the field of manufactured
goods has led to tIndustrial development in the field
of manufactured goods has led to the influx of
various consumer goods into the Indian market to
cater to the needs of the consumers.

• A variety of services such as banking, financing,

insurance, transport, housing construction,
entertainment have been made available to the
consumers.

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• In order to protect the consumers from exploitation

and to save them from adulterated and substandard
goods and deficient services the Consumer Protection
Act came into force on 15th April, 1986.

• It applies to the whole of India except the State of

Jammu and Kashmir.
• he influx of various consumer goods into the Indian
market to cater to the needs of the consumers.

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• OBJECTIVE
• To provide for better protection of the interests of
consumer.

 To provide protection against hazardous goods and

services.

 To make provision for the establishment of consumer

councils and other authorities for the settlement of
consumers’ disputes.

 Hearing of grievences at appropriate forums.

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Meaning of Consumer
Consumer means any person who- section 2(1) (d)

 Buys any goods for a consideration which has been paid or promised
or partly paid and partly promised and includes any user of such
goods.

 Hires or avails of any services for a consideration which has been

paid or promised or partly paid and promised and includes any
beneficiary of such services.

 But does not include a person who obtains such goods for resale or
for any commercial purpose.

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• Explanation to the section:

• Goods purchased or services availed should

not be meant for resale or for commercial
purposes.
• Any economic activity or transaction carried with
the motive of making profit would fall under the
term commercial purpose irrespective of the
scale of operation

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• Examples:
• Person buying a car for running it as a taxi
is not a consumer.
• Receiving additional gifts apart from the
main item –not consumer for those
additional gifts.
• Registration for a service a makes him a
consumer like LPG Gas
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• Warrant holder for a product.

• Passengers travelling by trains/ airlines

• Subscribers to telephone

• Users of electricity

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• JUDICIAL DECISIONS ON DEFICIENCY OF

SERVICES
• Ref.

Skypack Couriers Pvt. Ltd. Vs Anupama Bagla

Airpack Couriers ( India ) Pvt Ltd Vs. V. Suresh

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• RIGHTS OF CONSUMERS
• RIGHT TO SAFETY AGAINST HAZARDOUS GOODS
• RIGHT TO BE INFORMED ABOUT QUALITY,
QUANTITY
• RIGHT TO CHOOSE AMONG COMPETITIVE RATES
• RIGHT TO BE HEARD FOR CONSUMER WELFARE
• RIGHT TO SEEK REDRESSAL AGAINST UNFAIR
TRADE PRACTICES.
• RIGHT TO CONSUMER EDUCATION AND
INFORMATION

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