THE CONSUMER
PROTECTION
ACT, 1986
Who is consumer ?
Any person who buys goods or avails
services for consideration
Consideration may be fully paid,
partially paid or fully promised to be
paid or partially promised to be paid
Any body who uses the goods or
services with the consent of the
consumer
cont.>>>
Legal heir of consumer in case death of
consumer
Does not include any person who buys goods
for resale or commercial purpose and services
for commercial purpose
However any person who buys goods for
commercial use but exclusively for his
livelihood by means of self employment is a
consumer
Consumer Protection
Act 1986
Enacted to provide for the better protection of
the interest of consumer
Chapter I, II and IV came into force on
15.4.1987. Chapter III came into force on
1.7.1987
The act was amended in 2002 and the
amendments came into force w.e.f. 15th March
2003
Consumer Protection
Act 1986
Consumer protection act has been amended
number of times first it was amended of in 1991.
There after the act was thoroughly amended in
1993.
It was again over hawled in 2002 &13
Provided teeth to the law enforcing agencies
The act extends to whole of india except the
state of jammu and kashmir .It came into
operation with effect from 15th april 1987 .
Aims and Objects of the Act
The main objective of the act is to provide for better
protection of the interest of consumers.
Better protection of interests of consumer:
The act seeks to provide for better protection of the interests
Of consumers and for that purpose ,makes provision for the
Establishment of consumer council and other authorities for
the settlement of consumer disputes and for matters
connected therewith (preamble to the act)
Protection of Rights of consumer : The act is intended to
protect following rights of consumers [under section 6]
(a) –The right to be protected against marketing of
goods ,which are hazardous to life and property.
(b)The right to be informed about the quality ,potency,
purity, standard, and price of goods to protect against unfair
trade practices.
(c) The right to be assured , and wherever possible ,access to
a variety of goods at competitive prices .
(d) The right to be heard and to be assured that consumers
interest will receive due consideration at
Appropriate forums.
(e) The right to seek redressal against unfair trade practices
Or unscrupulous exploitation of consumers.
(f) The right to consumer education.
(g) The right to healthy enviroment.
3 : Consumer Protection councils:
The above objects are sought to be promoted and
protected by the consumer protection councils
established at the central and state levels .
4. Quasi-judiciary Machinery for speedy Redressal of
Consumer Disputes.
CONSUMER RIGHTS
RIGHTS TO SAFETY
RIGHT TO CHOOSE
RIGHT TO SEEK REDRESSAL
RIGHT TO HEALTHY ENVIRONMENT
RIGHT TO BE INFORMED
RIGHT TO BE HEARD
RIGHT TO CONSUMER EDUCATION
RIGHT TO BASIC NEEDS
Object and Scope of the Act
The MRTP Act enacted in 1969 gained
the status of a specific consumer
protection legislation with the
amendments brought in it in 1984. Till
1984, there was no concept of ‘unfair
trade practice’.
.
Other salient features of the Act are:
It applies to all goods and services unless specifically
exempted by the Central Government.
It covers all sectors whether private, public or co-
operative.
It confers certain rights on consumers.
The provisions of this Act are in addition to and not
in derogation of the provisions of any other Act.
The Consumer Protection Act, 1986 was substantially
amended in 1991, 1993 and 2002
Nature and Scope of Remedies Available to Consumers
Who can File a Complaint? [s.12].
1. The consumer
2. Any recognised consumers association
3. One or more consumers
4. The Central or the State Government
How to File a Complaint? There is no fee for filing a complaint
before any of the aforesaid bodies. The complainant or his
authorised agent can present the complaint in person. The
complaint can also be sent by post to the appropriate
Forum/Commission. The complaint should be addressed to the
President of the Forum/Commission. Cont….
Importance of consumer protection
Act in India
Protection from Exploitation
Consumer Education
Redressal of complaints
Bulleteins and Periodicals
Encouraging honest Businessman
Connecting link
Unity
Quality life for consumer
Ethical obligation
Getting public support
What is complaint?
An allegation in writing by complainant that:
1) an unfair or restrictive trade practice was
practiced by trader or service provider.
2)goods bought or to be bought or services hired
or to be hired suffered from any deficiency.
3) trader or service provider has charged excess
price.
4) goods and services are hazardous or likely to be
hazardous to life and safety.
Who is a complainant?
A consumer
Any voluntary consumer association registered under
the Companies Act or any other law
Central or State Government, if it makes a complaint
One or more consumers having same interest
In case of death of a consumer, his legal heir or
representative.
A consumer dispute arises when a complaint is refused
or denied.
Machinery under the act.
Central Consumer Protection Council
to be established by Central Government
State Consumer Protection Council
to be established by State Government
District Consumer Protection Council
to be established by State Government for every district
Consumer Dispute Redressal Machinery
There are Consumer Fora at the District, State and
National level
District Forum – At the District level
State Commission – At the State level
National Commission – At the National level
Pecuniary Jurisdiction
Forum where complaints can be entertained
Depends on value of goods and service and
compensation claimed
Limits are :
District Forum
not exceeding Rs.20 lakhs
State Commission
exceeds Rs.20 lakhs but does not exceed Rs.1 Crore
National Commission
exceeds Rs.1 Crore.
Territorial Jurisdiction
Territorial Jurisdiction lies in the court of the place
Where the opposite party resides or carries on business
or personally works for gain
Where the cause of action wholly or partly arose.
Disposal of disputes
District Forum may
ask the opposite party to remove the defect,
replace the goods with new goods and free from defect
to return to the complainant the price of goods or
to pay any amount as compensation
Appeals to be preferred within thirty days
from the order of the District Forum to the State Commission and
from the order of the State Commission to the National Commission
Can entertain appeals beyond thirty days
on sufficient cause shown for the delay
It has to be disposed within ninety days from its
admission.
Time Limit for filing complaint
Within two years from the date on which the cause of
action arises
Even where the time limit expires, the complaint can
be taken up
provided complainant is able to satisfy the Forum or
Commission about the reasonableness in the delay
The delay for every single day has to be explained.
PENALTIES(SECTION 27)
IMPRISONMENT
One month to three years
FINE
Rs 2,000 TO Rs 10,000
