The Consumer Protection Act,
1986
Content
s
• Salient features of Act.
• Definitions-Consumer, Complaint, Services, defect
and Deficiency,
• Rights and Reliefs available to consumer.
• Procedure to file complaint.
•Consumer Dispute Redressal Agencies.
(Composition, Jurisdiction, Powers and functions).
• Procedure followed by Redressal Agencies.
Introduction
• Consumer sovereignty in the Indian market is
a myth. Consumer faces various problems in
developing countries due to “Poverty and
Illiteracy”. But it must always be noted that
consumer protection is very important as
consumer plays a vital role in the
development of the economy of the nation
and consumer protection is of imminent
necessity.
Why we need the Consumer
Protection Act?
• Illiteracy and Ignorance:- Consumers in India
are most ignorant and illiterate and do not
understand their rights and are mostly
unaware of their rights, therefore a system is
required by which they can be protected.
• Unorganized Consumers:- Consumers in India
are widely dispersed and not united and so
they are at the mercy of businessman and this
attitude needs to be changed.
• Spurious goods and services:- Supply of
duplicate products are increasing ordinary
consumers can’t fail to differentiate between
original and duplicate. So, consumer
protection is necessary. So that consumer gets
what they deserved.
• Deceptive Act:- It means false and misleading
information about the quality, quantity, and
safety of the products. Consumers must not
be misled and do not know about the real
quality of the advertised goods. A mechanism
should need to be implemented to prevent
such practices.
• Malpractices of Businessman:- Unethical and
monopolistic trade practices on part of the
businessman lead to exploitation of
consumers. Consumers also get substandard,
inferior quality and defective goods and
services. So they have the right to complain
against such malpractices which is possible
only through consumer protection.
What we face as Consumers
• Adulteration of food substances by traders
through addition of substances which are
injurious to health or removal of substances
which are nutritious or by lowering their quality
standards
• Supply of defective goods
• Use of deceptive or incorrect rates on products
• Use of false or non-standard weights and
measures in supply of goods
• Selling above the MRP
• Unauthorized sale of essential products like
medicines, etc. beyond their expiry date to
ignorant consumers
• Poor customer services
The consumer protection: An overview
• [Link]
PQ_A4
Introduction to Act
• Consumer Protection laws are designed to ensure
fair competition and the free flow of information.
• Laws are specifically designed to prevent the
business from engaging in fraud, unfair trade
practices etc.
• Consumer law is a public law and covers a wide
range of right and liabilities.
• It was enacted in order to ensure the smooth
facilitation of market functions/activities.
Consumer Protection Act
• Enacted by the Parliament in 1986
• To provide for better protection of interest of
consumers.
• To make provisions for the establishment of
Consumer Councils and other authorities for
the settlement of consumer disputes.
Position prior to Act
• Non awareness of consumer
• Delay in judicial proceeding
• Expensive judicial proceeding
• Unprotected and un united consumers.
• United and strong traders
• Tolerance capacity of consumers
Object of Consumer Protection Act
1986
• Right to be protected against marketing of goods which are hazardous to life
and property;
•Right to be informed about the quality, quantity, potency, purity,
standard and price of goods to protect the consumer against unfair trade
practices;
• Right to be assured, wherever possible, access to an authority of goods
at competitive prices;
• Right to be heard and to be assured that consumers interests will
receive due consideration at appropriate forums;
• Right to seek redressal against unfair trade practices or unscrupulous
exploitation of consumers;
• For better protection of consumers rights.
Rights provided by Consumer Pro. Act
• Right to safety
• Right to information
• Right to choice
• Right to make representation
• Right to re-dressal
• Right to consumer education
Definitions- Consumer
• Sec. 2 (d): consumer means,
• Who buys any goods for consideration, and any user of such goods.
Excluding who buys goods for resale or for commercial purpose.
•Who hires or avails any services for consideration, and any
beneficiary of such services. Excluding who avails such service for any
commercial purpose.
• Consideration may be paid or promised or partly paid or partly
promised, or under any system of deferred payment.
•Commercial purpose does not include use by a consumer of goods
bought and used by him exclusively for the purpose of earning his
livelihood, by means of self-employment;
What is a consumer complaint?
•Sec. 2(c): consumer complaint means any allegation in
writing made by a complainant with a view to obtaining
any relief provided by or under this Act.
• Such complaint may be about
1. Unfair or restrictive trade practice.
2. Goods are suffering from one or more defects.
[Link] hired or availed are suffering from any
deficiency.
[Link] or service provider price in excess than fixed
under law, displayed on goods, displayed on goods, or as
agreed by them.
Who can make consumer complaint?
•Sec. 2(b) A consumer complaint may be made
by
• a consumer,
• a registered voluntary consumer association,
• Central or State Government,
• one or more consumers,
• in case of death of consumer his legal heirs or
representative.
consumer dispute
• "consumer dispute" means a dispute where
the person against whom a complaint has
been made, denies or disputes the allegations
contained in the complaint.
"defect"
• "defect" means any fault, imperfection 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 under any contract, express
or implied or as is claimed by the trader in any
manner whatsoever in relation to any goods;
"deficiency"
• "deficiency" 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.
"unfair trade practice"
• "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, adopts any unfair
method or unfair or deceptive practice
including any of the following practices,
namely;
• -(1) the practice of making any statement,
whether orally or in writing or by visible
representation which,-
• (i) falsely represents that the goods are of a
particular standard, quality, quantity, grade,
composition, style or model;
• (ii) falsely represents that the services are of a
particular standard, quality or grade;
• iii) Falsely represents any re-built, second-
hand, renovated, reconditioned or old goods
as new goods;
• (iv) represents that the goods or services have
sponsorship, approval, performance,
characteristics, accessories, uses or benefits
which such goods or services do not have;
• (v) represents that the seller or the supplier has a
sponsorship or approval or affiliation which such
seller or supplier does not have;
• (vi)makes a false or misleading representation
concerning the need for, or the usefulness of, any
goods or services;
• (vii) gives to the public any warranty or guarantee
of the performance, efficacy or length of life of a
product or of any goods that is not based on an
adequate or proper test thereof
Redressal Mechanism
Redressal Mechanism
Consumer
Protection Council CONSUMER
DISPUTES
REDRESSAL
The Central
Consumer
The State
Consumer
The District
Consumer
AGENCIES
Protection Protection
Council Protection Council
Councils National
Consumer
District State Disputes
Commission Redressal
Forum Commission
The Central Consumer Protection
Council
• The Central Consumer Protection Council consist
of the following members
• 1) Minister in charge of the consumer affairs shall
be the chairman
• 2) such number of other official or non-official
members
• Central Council shall conduct meeting at
least once in an year.
• The objects of the Central Council shall be to
promote and protect the rights of the consumers
The State Consumer Protection
Councils
• The State Consumer Protection Councils consist of the
following members
• 1. Minister in charge of consumer affairs in the State
Government who shall be its Chairman
• 2. such number of other official or non-official
members prescribed by the State
Government
• 3. such number of other official or non-official
members, not exceeding ten, as may be nominated by
the Central Government
• The State Council shall meet as and when necessary
but not less than two meetings shall be held every
year.
The District Consumer Protection
Council
• The District Consumer Protection Council consist
of the following members
• 1) Collector of the district (by whatever name
called), who shall be its Chairman
• 2) such number of other official and non-official
members representing such interests as may be
prescribed by the State Government.
• District Council shall meet as and when necessary
but not less than two meetings shall be held
every year
Where to make consumer complaint?
A consumer complaint may be made to:
• i. District Forum, or
• ii. State Commission, or
• iii. National Commission.
Composition of the District Forum
• 1)a person who is, or has been, or is qualified to be a
District Judge, who shall be its President
• 2)two other members, one of whom shall be a woman,
who shall have the following qualifications, namely :-
• (i) be not less than thirty-five years of age,
• (ii) possess a bachelor’s degree from a recognized
university,
• (iii) be persons of ability, integrity and standing, and
have adequate problems relating to economics, law,
commerce, accountancy, industry public affairs or
administration.
Manner in which complaint shall be
made
• A complaint in may be filed with a District
Forum by-(a) the consumer (b) any recognized
consumer association (c) one or more
consumers (d) Central or the State
Government.
• The complaint should be given with required
amount of fee. Once the compliant is received
it should proceed with it with in 21 days .
Jurisdiction of District Forum
•Where the value of goods or services does not
exceed. 20 Lakh rupees. And
• Where the parties actually and voluntarily
resides within local limits of District Forum.
•Where the cause of action arised in wholly or
in part arises within local limits of the District
Forum.
Finding of the District Forum
• District forum will have following decisions:
• (a) to remove the defect pointed but by the
appropriate laboratory from the goods in question;
• (b) to replace the goods with new goods of similar
description which shall be free from any defect;
• (c) to return to the complainant the price, or, as the
case may be, the charges paid by the complainant;
• (d) 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
Contd..
• (e)to remove the defects in goods or
deficiencies in the services
• (f) to discontinue the unfair trade
practice
• (g) to withdraw the hazardous goods from
being offered for sale;
• (h)to cease manufacture of hazardous goods
and to resist from offering services which are
hazardous in nature
• (i) to provide for adequate costs to parties
Appeal
• Any person aggrieved by an order made by
the District Forum may prefer an appeal
against such order to the State Commission
within a period of thirty days from the date of
the order, in such form and manner as may be
prescribed.
Composition of the State Commission
• State Commission shall consist of-
• (a) a person who is or has been a Judge of a
High Court, appointed by the State
Government, who shall be its President
• (b) not less than two, and not more than such
number of members, as may be prescribed,
and one of whom shall be a woman.
Jurisdiction of State Commission.
•Where the complaint value of goods, services or
compensation is exceeds rupees twenty lakhs but does
not exceed rupees one crore.
• Appeals against the orders of any District Forum
within the State.
•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 where it appears to State Commission that
District Forum has exceeded jurisdiction or failed to
used its jurisdiction or acted illegally.
Appeals
• Any person aggrieved by an order made by
the State Commission in exercise of its powers
conferred by sub-clause (i) of clause (a) of
section 17 may prefer an appeal against such
order to the National Commission within a
period of thirty days from the date of the
order in such form and manner as may be
prescribed.
Composition of National Commission
• National Commission shall consist of-
• (a) a person who is or has been a Judge of the
Supreme Court, to be appointed by the
Central Government, who shall be its
President;
• (b) not less than four, and not more than such
number of members, as may be prescribed,
and one of whom shall be a woman.
Jurisdiction of National Commission.
•Where the complaint value of goods, serivces or
compensation is exceeds rupees one crore.
• Appeals against the orders of any State
Commission.
•To call for the records and pass appropriate orders in
any consumer dispute which is pending before or has
been decided by any State Commission where it
appears to National Commission that District Forum
has exceeded jurisdiction or failed to used its
jurisdiction or acted illegally.
• [Link] 2LZvEc
-5E
• [Link]
tration_english.mp4
