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CONSUMER
PROTECTION
ACT, 1986
Introduction of the Act
• Consumer Protection Act, 1986 is an act of
Parliament of India enacted in 1986 to
protect intere...
Objectives of the act
1. Better protection of interests of consumers.
2. Protection of the rights of the consumers:
(a) Th...
Cont.
(c) The right to be assured, wherever possible,
access to an authority of goods at
competitive prices
(d) The right ...
3. Protection by the Consumer Protection
Council.
4. Quasi-judicial machinery for speedy redressal
of consumer disputes.
Definitions
• CONSUMER:
(i) buys any goods for a consideration which has been
paid or promised or partly paid and partly p...
Cont.
(iv) or under any system of deferred payment
when such use is made with the approval of
such person,
(v) BUT does no...
Cont.
Second definition of Consumer:
(i)hires or avails of any services for a consideration
which has been paid or promise...
Cont.
(iv) or partly paid and partly promised, or
under any system of deferred payment,
(v) when such services are availed...
Cont.
• Appropriate laboratory [sec.2 (1)a]
It means a laboratory or organisation1) Recognised by the central government
2...
Cont.
• COMPLAINANT
1) A consumer
2)Any voluntary consumer association
registered under the companies act,1956, or
under a...
Cont.
4) One or more consumers, where there are
numerous consumers having the same intrest.
5) In case of death of a consu...
Cont.
• Complaint
It means any allegation in writing made by a
complainant with a view to obtaining any
relief provided by...
Cont.
2) the goods bought by him or agreed to be
bought by him suffer from one or more defects
3) the services hired or av...
Cont.
4) A trader or the service provider as the case may
be, has changed for the goods or for the services
mentioned in t...
Cont.
5) Goods which will be hazardous to life and safety
when used are being offered for sale to the publica) In contrave...
Cont.
6) Services which are hazardous or likely to be
hazardous to life and safety of the public when
used, are being offe...
Cont.
• DEFECT
It means any fault, imperfection or shortcoming
in the quality, quantity, potency, purity or
standard which...
Cont.
• DEFICIENCY
Means any fault, imperfection, shortcoming or
inadequacy in the quality, nature and manner of
performan...
Cont.
• GOODS
Goods as defined in the Sale of Goods Act,
1930“every kind of movable property other than
actionable claims ...
Cont.
• NATIONAL COMMISSION
It means the National Consumer Disputes Redressal
Commission established under clause (c) of s...
Cont.
(iii) puts or causes to be put his own mark on any
goods made or manufactured by any other
manufacturer.
• PERSON
It...
Cont.
• RESTRICTIVE TRADE PRACTICE means a trade
practice which tends to bring about
manipulation of price or conditions o...
Cont.
(b) any trade practice which requires a consumer to buy,
hire or avail of any goods or, as the case may be, services...
Cont.
•
•
•
•
•
•
•

Transport
Processing
Supply of electrical or other energy
Board or lodging or both
Housing constructi...
Cont.
•SPURIOUS GOODS AND SERVICE means such
goods and services which are claimed to be
genuine but they are actually not ...
Cont.
• TRADER in relation to any goods means a
person who sells or distributes any goods for sale
and includes the manufa...
ACT NOT IN DEROGATION OF ANY OTHER
LAW

THE PROVISIONS OF THIS ACT SHALL BE
IN ADDITION TO AND NOT IN
DEROGATION OF THE PR...
CONSUMER
PROTECTION
COUNCILS
CENTRAL CONSUMER PROTECTION
COUNCIL
• CENTRAL CONSUMER PROTECTION COUNCIL
(l) The Central Government shall,by notification...
Cont.
(a) the Minister in charge of the 1[consumer
affairs] in the Central Government, who shall
be its Chairman, and
(b) ...
Procedure for meetings of the Central
Council
( I) The Central Council shall meet as and
when necessary, but 2[at least on...
OBJECTIVES OF CENTRAL COUNCIL
Its main aim should be to pomote and
protect the intrests and rights of the
consumers:
•Righ...
STATE CONSUMER PROTECTION
COUNCIL
(1) The State Government shall, by notification,
establish with effect from such date as...
Cont.
b) such number of other official or non-official
members representing such interests as may 'be
prescribed by the St...
OBJECTIVES OF THE STATE CONSUMER PROTECTION
COUNCIL
The objects of every State Council shall be to promote
and protect wit...
Cont.
(2) The District Consumer Protection Council
(hereinafter referred to as the District Council)
shall consist of the ...
Cont.
(3) The District Council shall meet as and when
necessary but not less than two meetings shall be
held every year.
(...
Cont.
(B.) Objects of the District Council - The objects
of every District Council shall be to promote
and protect within ...
Consumer dispute redressal agencies
1) Distict forum established by the state government
in each district of the state by ...
Consumer dispute redressal forum
Each consumer redressal forum shall consist …
1)A person who is, or has been, or is quali...
Cont.
3) be person of abilty, integrity an standing, and
have adequate knowledge and experience of atleast
ten years deali...
Cont.
b)Is an undischarged insolvent; or
c)Is of unsound mind and stands so
declared by a competent court; or
d)Has been r...
Cont.
e) has, in the opinion of the state
government,such financial or the other interest
as is likely to affect prejudici...
Jurisdiction
.

JURISDICTION: If the relief claimed in the complaint is
less than Rs. 20,00,000/-, then the complaint must...
Lodging a complaint
A ‘prescribed fee’ is payable for filing a complaint
before the District Forum, State Commission or Na...
Cont.
The complainant can present his / her
complaint in person or by his / her
authorised representative to the District
...
CONSUMER REDRESSAL UNDER DISTRICT FORUM
COMPLAINT RELATING TO GOODS
1-Refrences of sample to laboratory where the
complain...
Cont.
3- Remission of fees to laboratory and forwarding
of report to opposite party.
4- objections by any of the parties.
...
CONT.
COMPLAINT RELATING TO SERVICES
•Reference of the claim to opposite parrty.
•Denial,etc. of allegation by the opposit...
CONSUMER REDRESSAL UNDER STATE
COMMISSION
• Jurisdication
• Tranfer of cases
• Circuit benches
• Procedure
• Appeal
• Hear...
CONSUMER REDRESSAL UNDER NATIONAL
COMMISION

•
•
•
•
•

Place of the national commision of india
Jurisdication
Appeal
Fina...
RIGHTS OF A CONSUMER
RIGHTS OF THE CONSUMERS ARE•RIGHT TO SAFETY
•RIGHT TO BE INFORMED
•RIGHT TO CHOOSE
•RIGHT TO BE HEARD...
• RIGHT TO SAFETY
Right to be protected against marketing of
goods and services which are hazardous to life
and property....
• RIGHT TO CHOOSE
the right to be assured, wherever possible, to
have access to a variety of goods and services
at compet...
• RIGHT TO SEEK REDRESSAL
The right to seek redressal against unfair trade
practices or restrictive trade practices or
ex...
RESPONSIBILITIES OF CONSUMERS
• CRITICAL AWARENESS
(ask questions on quality, price,and use of goods and services)

• ACTI...
APPROACH FOR REDRESSALS
Consumers can approach the commissions at the:
1.) District commission
2.) State commission
3.) Na...
REGARDS TO COMPLAINT
The consumer can file a case under consumer protection
act 1986 only if:
1.) he has suffered a loss o...
CONSUMER GROUP
Consumer organizations are advocacy groups that
seek to protect people from corporate abuse like
unsafe pro...
Establishment of consumer groups
Some of functions of consumer groups are:
•Educating consumers rights.
•Creating awarenes...
Prominent consumer groups in INDIA
• CGSI –Consumer Group Society of India.
• MGP– Mumbai Grahak Pnchayat
• CUTS– Consumer...
Consumer Protection Act, 1986
Consumer Protection Act, 1986
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Consumer Protection Act, 1986

  1. 1. CONSUMER PROTECTION ACT, 1986
  2. 2. Introduction of the Act • Consumer Protection Act, 1986 is an act of Parliament of India enacted in 1986 to protect interests of consumers in India. • It extends to the whole of India except the State of Jammu and Kashmir. • This Act is applied to all goods and services. • It shall come enforce through central govt. by notifications for different provisions of this act
  3. 3. Objectives of the act 1. Better protection of interests of consumers. 2. Protection of the rights of the consumers: (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, quantity, potency, purity, standard and price of goods to protect the consumer against unfair trade practices;
  4. 4. Cont. (c) The right to be assured, wherever possible, access to an authority of goods at competitive prices (d) The right to be heard and to be assured that consumers interests will receive due consideration at appropriate forums; (e) The right to seek redressal against unfair trade practices or unscrupulous exploitation of consumers; and (f) Right to consumer education.
  5. 5. 3. Protection by the Consumer Protection Council. 4. Quasi-judicial machinery for speedy redressal of consumer disputes.
  6. 6. Definitions • CONSUMER: (i) buys any goods for a consideration which has been paid or promised or partly paid and partly promised, (ii) or under any system of deferred payment and includes any user of such goods other than (iii) the person who buys such goods for consideration paid or promised or partly paid or partly promised,
  7. 7. Cont. (iv) or under any system of deferred payment when such use is made with the approval of such person, (v) BUT does not include a person who obtains such goods for resale or for any commercial purpose.
  8. 8. Cont. Second definition of Consumer: (i)hires or avails of any services for a consideration which has been paid or promised or partly paid and partly promised, (ii)or under any system of deferred payment and includes any beneficiary of such services other than the person (iii) who 'hires or avails of the services for consideration paid or promised,
  9. 9. Cont. (iv) or partly paid and partly promised, or under any system of deferred payment, (v) when such services are availed of with the approval of the first mentioned person.
  10. 10. Cont. • Appropriate laboratory [sec.2 (1)a] It means a laboratory or organisation1) Recognised by the central government 2)Recognised by a state government 3)Any laboratory or organisation eshtablished by or under any law for the time being in force ,which is maintained, financed or aided by the central government or state government.
  11. 11. Cont. • COMPLAINANT 1) A consumer 2)Any voluntary consumer association registered under the companies act,1956, or under any other law for the time being in force 3)The central government or any state government, who or which makes a complaint
  12. 12. Cont. 4) One or more consumers, where there are numerous consumers having the same intrest. 5) In case of death of a consumer, his legal heir or representative. (this clause has been introduced by the CPA amendment act, 2002)
  13. 13. Cont. • Complaint It means any allegation in writing made by a complainant with a view to obtaining any relief provided by or under this act. This allegation in writing must be that1) an unfair trade practice or a restrictive trade practice has been adopted by any trader or service provider.
  14. 14. Cont. 2) the goods bought by him or agreed to be bought by him suffer from one or more defects 3) the services hired or availed of or agreed to be hired or availed by him suffer from deficiency in any respect.
  15. 15. Cont. 4) A trader or the service provider as the case may be, has changed for the goods or for the services mentioned in the complaint, a price in excess of the pricea)Fixed by or under any law for the time being in force. b)Displayed on the goods or any package containing such goods. c)Displayed on the price list exhibited by him by or under any law for the time being in force. d)Agreed between the parties.
  16. 16. Cont. 5) Goods which will be hazardous to life and safety when used are being offered for sale to the publica) In contravention of any standards relating to safety of such goods as required to be complied with, by or under any law for the time being in force. b) If the trader could have known with due diligence that the goods so offered are unsafe to the public.
  17. 17. Cont. 6) Services which are hazardous or likely to be hazardous to life and safety of the public when used, are being offered by the service provider which such person could have known with due diligence to be injurious to life and safety.
  18. 18. Cont. • DEFECT It 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 under any contract, express or implied or as is claimed by the trader in any manner whatsoever in relation to any goods.
  19. 19. Cont. • 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. • DISTRICT FORUM It means a Consumer Disputes Redressal Forum established under clauseof section 9(a)
  20. 20. Cont. • GOODS Goods as defined in the Sale of Goods Act, 1930“every kind of movable property other than actionable claims and money, and includes stocks and shares, growing crops, grass and things attached to or forming part of land which are agreed to be served before sale or under the contract of sale”
  21. 21. Cont. • NATIONAL COMMISSION It means the National Consumer Disputes Redressal Commission established under clause (c) of section 9 • MANUFACTURER It means a person who— (i) makes or manufactures any goods or part thereof; or (ii) does not make or manufacture any goods but assembles parts thereof made or manufactured by others; or
  22. 22. Cont. (iii) puts or causes to be put his own mark on any goods made or manufactured by any other manufacturer. • PERSON It includes(i) a firm whether registered or not; (ii) a Hindu undivided family; (iii) a co-operative society; (iv) every other association of persons whether registered under the Societies Registration act 1860.
  23. 23. Cont. • RESTRICTIVE TRADE PRACTICE means a trade practice which tends to bring about manipulation of price or conditions of delivery or to affect flow of supplies in the market relating to goods or services in such a manner as to impose on the consumers unjustified costs or restrictions and shall include— (a) delay beyond the period agreed to by a trader in supply of such goods or in providing the services which has led or is likely to lead to rise in the price;
  24. 24. Cont. (b) any trade practice which requires a consumer to buy, hire or avail of any goods or, as the case may be, services as condition precedent to buying, hiring or availing of other goods or services. •SERVICE means service of any description which is made available to potential users and includes provisions of facilities in connections with:•Banking •Financing insurance
  25. 25. Cont. • • • • • • • Transport Processing Supply of electrical or other energy Board or lodging or both Housing construction Entertainment Amusement or the purveying of news or other information but does not include the rendering of any service free of charge or under a contract of personal service.
  26. 26. Cont. •SPURIOUS GOODS AND SERVICE means such goods and services which are claimed to be genuine but they are actually not so. •STATE COMMISSION means a Consumer Disputes Redressal Commission established in a State under clause (b) of section 9
  27. 27. Cont. • TRADER in relation to any goods means a person who sells or distributes any goods for sale and includes the manufacturer thereof, and where such goods are sold or distributed in package form, includes the packer thereof. • CONSUMER DISPUTE means a dispute where the person against whom a complaint has been made, denies or disputes the allegations contained in the complaint.
  28. 28. ACT NOT IN DEROGATION OF ANY OTHER LAW THE PROVISIONS OF THIS ACT SHALL BE IN ADDITION TO AND NOT IN DEROGATION OF THE PROVISIONS OF ANY LAW FOR BEING IN FORCE.
  29. 29. CONSUMER PROTECTION COUNCILS
  30. 30. CENTRAL CONSUMER PROTECTION COUNCIL • CENTRAL CONSUMER PROTECTION COUNCIL (l) The Central Government shall,by notification, establish with effect from such date as it may specify in such notification, a Council to be known as the Central Consumer Protection Council. (2) The Central Council shall consist of the following members, namely:
  31. 31. Cont. (a) the Minister in charge of the 1[consumer affairs] in the Central Government, who shall be its Chairman, and (b) such number of other official or non-official members representing such interests as may be prescribed.
  32. 32. Procedure for meetings of the Central Council ( I) The Central Council shall meet as and when necessary, but 2[at least one meeting] of the Council shall be held every year. (2) The Central Council shall meet at such time and place as the Chairman may think fit and shall observe such procedure in regard to the transaction of its business as may be prescribed.
  33. 33. OBJECTIVES OF CENTRAL COUNCIL Its main aim should be to pomote and protect the intrests and rights of the consumers: •Right to be protected against hazardous goods. •Right to be informed. •Right to be assured •Right to be heard •Right to seek redressal •Right for consumer education.
  34. 34. STATE CONSUMER PROTECTION COUNCIL (1) The State Government shall, by notification, establish with effect from such date as it may specify in such notification, a Council to be known as the Consumer Protection Council. (2)The State Council shall consist of the following members, namely : (a) the Minister Incharge of consumer affairs in the State Government who shall be its Chairman;
  35. 35. Cont. b) such number of other official or non-official members representing such interests as may 'be prescribed by the State Government. (c) such number of other official or non-official members, not exceeding ten, as may be nominated by the Central Government (3) The State Council shall meet as and when necessary but not less than two meetings shall be held every year.
  36. 36. OBJECTIVES OF THE STATE CONSUMER PROTECTION COUNCIL The objects of every State Council shall be to promote and protect within the State the rights of the consumers laid down in clauses (a) to (f) of section 6. (A) The District Consumer Protection Council – (1) The State Government shall establish for Every district, by notification, a council to be known as the District Consumer Protection Council with effect from such date as it may specify in such notification
  37. 37. Cont. (2) The District Consumer Protection Council (hereinafter referred to as the District Council) shall consist of the following members, namely – (a) the Collector of the district (by whatever name called), who shall be its Chairman; and (b) such number of other official and nonofficial members representing such interests as may be prescribed by the State Government.
  38. 38. Cont. (3) The District Council shall meet as and when necessary but not less than two meetings shall be held every year. (4) The District Council shall meet as such time and place within the district as the Chairman may think fit and shall observe such procedure in regard to the transaction of its business as may be prescribed by the State Government
  39. 39. Cont. (B.) Objects of the District Council - The objects of every District Council shall be to promote and protect within the district the rights of the consumers laid down in clauses (a) to (f) of section.
  40. 40. Consumer dispute redressal agencies 1) Distict forum established by the state government in each district of the state by notification. 2) State commission established by the state governmentin the state by notification. 3) Nation consumer dipute redressal commission established bycentral government by notification.
  41. 41. Consumer dispute redressal forum Each consumer redressal forum shall consist … 1)A person who is, or has been, or is qualified to be a district judge, who shall be its president. 2)2 other members, one of whom shall be a woman, who shall have the following qualifications: be not less than 35 years of age. posses a bachelor’s degree from a recognised university
  42. 42. Cont. 3) be person of abilty, integrity an standing, and have adequate knowledge and experience of atleast ten years dealing in problems relating to economics, law, commerce, accountancy, industry, public affairs or administration. Further a person is disqualified for appointment as a member, if he.. a)Has been convicted and sentenced to imprisonment for an offence which, in the opinion of the state government, involves moral turpitude; or
  43. 43. Cont. b)Is an undischarged insolvent; or c)Is of unsound mind and stands so declared by a competent court; or d)Has been removed or dismissed from the service of the government or a body corporated owned or controlled by the govrnment; or
  44. 44. Cont. e) has, in the opinion of the state government,such financial or the other interest as is likely to affect prejudicially the discharge by him of his functions as a member;or f) Has such other disqualifications as may be presribed by the government.
  45. 45. Jurisdiction . JURISDICTION: If the relief claimed in the complaint is less than Rs. 20,00,000/-, then the complaint must be filed before the District Consumer Forum. If the relief claimed is between Rs. 20,00,000/- and Rs. 1,00,00,000/-, then the complaint must be filed before the State Commission. When the relief claim exceeds Rs. 1,00,00,000/- then the complaint must be filed before the National Commission at New Delhi.
  46. 46. Lodging a complaint A ‘prescribed fee’ is payable for filing a complaint before the District Forum, State Commission or National Commission as follows: •Upto 1 lakh - Rs.100/•1 lakh to 5 lakhs - Rs.200/•5 lakhs to 10 lakhs - Rs.400/•10 lakhs to 20 lakhs - Rs.500/You can pay this by Demand Draft in favour of “President, State Consumer Disputes Redressal Commission, Chennai.
  47. 47. Cont. The complainant can present his / her complaint in person or by his / her authorised representative to the District Forum / State Commission. There is no requirement for a lawyer or consumer group to represent the complainant.
  48. 48. CONSUMER REDRESSAL UNDER DISTRICT FORUM COMPLAINT RELATING TO GOODS 1-Refrences of sample to laboratory where the complaint alleges a defect in the goods which cannot be determined without proper analysis or test of the goods. 2-Deposit of fees.
  49. 49. Cont. 3- Remission of fees to laboratory and forwarding of report to opposite party. 4- objections by any of the parties. 5- reasonable opportunity to parties of being heard and issue of order.
  50. 50. CONT. COMPLAINT RELATING TO SERVICES •Reference of the claim to opposite parrty. •Denial,etc. of allegation by the opposite party. •Settlement of disputes •Proceedings of the district forum final •Death of the comlainant •Period
  51. 51. CONSUMER REDRESSAL UNDER STATE COMMISSION • Jurisdication • Tranfer of cases • Circuit benches • Procedure • Appeal • Hearing of appeal
  52. 52. CONSUMER REDRESSAL UNDER NATIONAL COMMISION • • • • • Place of the national commision of india Jurisdication Appeal Finality of orders Enforcement of orders of the district forum, the state commision or the national commission. • Dismissal of frivolous or vexatious complaints
  53. 53. RIGHTS OF A CONSUMER RIGHTS OF THE CONSUMERS ARE•RIGHT TO SAFETY •RIGHT TO BE INFORMED •RIGHT TO CHOOSE •RIGHT TO BE HEARD •RIGHT TO SEEK REDRESSAL •RIGHT TO CONSUMER EDUCATION
  54. 54. • RIGHT TO SAFETY Right to be protected against marketing of goods and services which are hazardous to life and property. applicable to specific areas like healthcare, pharmaceuticals and food processing. • RIGHT TO BE INFORMED The right to be informed about the quality, quantity, purity, standard and price of goods or services, so as to protect the consumer against unfair trade practices.
  55. 55. • RIGHT TO CHOOSE the right to be assured, wherever possible, to have access to a variety of goods and services at competitive prices. • RIGHT TO BE HEARD the right to be heard and to be assured that consumer's interests will receive due consideration at appropriate forums.
  56. 56. • RIGHT TO SEEK REDRESSAL The right to seek redressal against unfair trade practices or restrictive trade practices or exploitation of consumers is referred to as the right to redressal. • RIGHT TO CONSUMER EDUCATION The right of every Indian citizen to have education on matters regarding consumer protection as well as about her/his right is regarded as the last right provided by the Consumer Protection Act 1986.
  57. 57. RESPONSIBILITIES OF CONSUMERS • CRITICAL AWARENESS (ask questions on quality, price,and use of goods and services) • ACTION (know your consumer rights) • SOCIAL CONCERN (care for senior citizens and persons with disablities) • ENVIRONMENTAL AWARENESS ( help and maintain a clean environment) • SOLIDARITY (join consumer organisations and be heard as a consumer)
  58. 58. APPROACH FOR REDRESSALS Consumers can approach the commissions at the: 1.) District commission 2.) State commission 3.) National commission There is no court fee charged to the consumers and they does not have to go to through lawyers.
  59. 59. REGARDS TO COMPLAINT The consumer can file a case under consumer protection act 1986 only if: 1.) he has suffered a loss or damage as a result of any unfair trade practice adopted by any trader. 2.) the goods and services mentioned in the complaint suffer one or more defects. 3.) a trader has charged for the goods mentioned in the complaint a price in excess of the price which is fixed by law, displaced on the goods or displaced on any packet containig such goods.
  60. 60. CONSUMER GROUP Consumer organizations are advocacy groups that seek to protect people from corporate abuse like unsafe products, predatory lending, false advertising and pollution. Consumer organizations may operate via protests, campaigning or lobbying.
  61. 61. Establishment of consumer groups Some of functions of consumer groups are: •Educating consumers rights. •Creating awareness through publishing laboratory tests of goods and services in newspapers. •Filing a complaint on behalf of the consumers or the group of consumers. •Providing guidance to consumers against hazardous goods and services.
  62. 62. Prominent consumer groups in INDIA • CGSI –Consumer Group Society of India. • MGP– Mumbai Grahak Pnchayat • CUTS– Consumer Unity and Trust Society • VOICE – Voluntary Organisation in the Intrests of Consumer Education.
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