Consumer Protection Act

1986
Consumer Protection Act
The Consumer Protection Act was
enacted in 1986. Amendments were made
in 2002. The Act applies to the whole of
ndia 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.
Every individuaI is a consumer, regardIess
of occupation, age, gender, community or
reIigious affiIiation.
W onsumer rights and weIfare are now an
integraI part of the Iife of an individuaI and
we aII have made use of them at some or the
other point in our daiIy routine.
W Every year 15th March is observed as "WorId
onsumer Rights Day".
t commemorates a historic decIaration (1962) by
former US President John F. Kennedy of four basic
consumer rights:
efinition of 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.
ho is not a consumer??
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
onsumer Disputes : sec 2(1)e
W a dispute where the person against whom a
complaint has been made denies or disputes the
allegations contained in the complaint.
"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
&nfair trade practice
W The unfair trade practice means a trade
practice which for the purpose of
promoting the sale, use or supply of any
goods or for the provision of any service, a
trader adopts any unfair method or
deceptive practice.
t includes the following practices
namely..
W aking statements.
W Publication
W ifts and prizes
W ithholding any scheme
W Sale or supply of goods
W oarding of goods
W Spurious goods.
#estrictive trade practice
W s one which tends to bring about
manipulation of price or its condition of
delivery or to affect flow of supplies in the
market relating to the goods or services in
such a manner as to impose on customers
unjustified costs or restrictions.
t includes.
W elay beyond the period agreed to by the
trader in supply of goods or rendering of
services which has led to rise in prices.
W Any trade practice which requires a
consumer to buy, hire or avail of any
goods or, as the case maybe service as a
precedent to buying, hiring or availing or
other goods or service.
Consumer isputes #edressal
Forums
The aims and objectives of the Act are
achieved by the constitution and creation
of
istrict Forum
State Commission and
National Consumer isputes #edressal
Commission.
A istrict 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
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 overnment
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