SlideShare a Scribd company logo
1 of 18
qCONSUMER PROTECTION ACT—1986

Consumer is at the core of business world in the present day economy. Quantity and quality of goods are
produced as per the needs of the consumer. Advancement of any business unit depends on the satisfaction
of the consumer. That product will be in great demand which gives maximum satisfaction to the
consumer and so will be produced on large scale. As a result, the concerned production unit will develop
and earn large profit. Despite the Fact that Importance of the consumer is widely recognized, he is
deprived of his rights and privilege and is subjected to diverse kinds of exploitation. For instance
exploitation in the form of short weight and measure poor quality of the product, adulteration, supply of
fake goods, boarding and black marketing of the goods, delivery of goods not on schedule. With a view to
protecting the consumers from such exploitation and making them aware of their rights, a method of
consumer protection has been launched. Need for protection arid satisfaction of the consumer is now
being widely recognized across the world. India has also adopted the concept of consumer protection
more seriously and vigoursly.




Meaning of Consumer Protection:

Consumer protection means the protection of the consumers from their exploitation by the unfair trade
practices of the producers/sellers. In fact, providing proper protection of the fundamental rights and
Interests of the consumers, freeing them from exploitation, creating consumer awareness, consumer
providing the right to clean business environment to the consumers by means of Legal amendments Is all
that protection means,

Consumer Protection Act In India:

In India, Central and State Governments have passed various legislative enactments regarding Consumer
Protection. Among them, main Acts are:

Drug and Cosmetics Act 1940,

Industries Development and Regulation Act 1951

Indian Standards Institution (Certification Marks) Act 1952

Prevention of Food Adulteration Act 1954

Essential Commodities (Supply) Act 1955
The Trade and Merchandise Marks Act, 1958

Monopolies and Restrictive Trade Practices Act 1969

Packaged Commodities Regulation Order 1975

Standards of Weights and Measures Act 1976

Prevention of Black Marketing and Maintenance of Supplies of Essential Commodities Act 1980

Standards of Weights and Measures (Enforcement) Act. 1985

In spite of above Acts Interests of the consumers were not being properly safeguarded. There are many
reasons for it, but main among them are two,

First consumer in general had no knowledge about the authority to whom complaints under these acts
were to be addressed.

Second to seek remedy under these various acts consumer had to take legal action Involving lot of time
and money.

Need was therefore felt to enact such a legislative measure as provide quick and less expensive remedy to
the aggrieved consumer. Consequently, to protect properly the interest of the consumers and to settle
quickly their disputes, in December 1986 Consumer Protection Act was passed in India. It was enforced
with effect from April 15,1987. Last amendment In the Act was made in. 2002.

SCOPE AND EXTENT OF THE ACT:

Except Jammu and Kashmir state, this Act extends to whole of India

Provisions of this Act are In addition to the provisions made previously in the context of the consumers

This Act shall apply to all goods and services that come under the scope of this Act.

Main Elements/Features of Consumer Protection Act, 1986:

Consumer Protection Act is the most progressive Act of Social well are and is referred to as

Magna Carta of consumer protection. It is a land mark event In the history of Acts In India.

Main features of the Act are as under
•It applies to all kinds of goods and services.

•Provisions of this Act are in addition to the provisions of any other Act in force In the country. Thus, this
Act does not limit or reduce the scope of any other Act

•Under this Act, there Is a provision for the Centre and State Governments to setup Consumer Protection
Councils composing of both official and non-official members. The objectives of the council are:-

- to promote the rights and Interests of the consumers,-

-to educate and protect them.

This Act provides for the following rights to the consumer:

oRight to safety,

oRight to be heard,

oRight to consumer education,

oRight to seek redressal

oRight to Choose

oRight to be Informed

This Act is based on the principle of compensation wherein fair compensation to the aggrieved party is
provided for. To redress the grievance, there Is provision for three-tier judicial machinery

oDistrict level

oState level and

oNational LeveL

•This Act provides affective protection to the consumer from different types of exploitations, such as
defective goods, adulteration, under-weight, excessive price, unsatisfactory or deficient services and
unfair trade practices.

•This Act redresses in a simple, cheap and dynamic manner the grievance of the consumer in limited time
•All suppliers of goods and services belonging to private, public and co-operative sectors come under the
purview of this Act.

Right to Consumer:

In a free market economy, consumer is sovereign. He has the right to buy or not to buy a product offered
for sale, to expect the product to be safe; to expect the product sale, to bewhat it is claimed to be; to be
adequately informed about the most salient aspect of the product. He has a right to receive proper and
efficient service and satisfaction. Under section 6 of Consumer Protection Act, consumer has following
rights:

(I) Right to Safety:

Consumer has the right to be protected against marketing of such goods and services as are hazardous to
health, life and property. There are several fake, adulterated, inferior, defective, ineffective and dangerous
goods available in market .They are injurious to body and health. Consumer therefore, has the right to
safety from all such goods as well as are likely to cause harm to his body and health, besides causing loss
of money.

(II) Right to Choose:

Under this right, consumer can choose any from among the variety of goods and services available in the
market. One finds in the market goods of different brand, quality, shape, colour, size, design and price
produced by different manufacturers. Under this right, the consumer must be assured access to variety of
goods and services are competitive prices as far as possible. Misleading or false advertisement, wrong
information or in any other way, If any person (manufacturer, seller) influences his preference, in an
unfair or unnecessary manner, it will be treated as intervention in his right to choose.

(III) Right to be informed:

Consumer has the right to get all necessary information on the basis of which he may decide to buy the
good or service. He has therefore the right to be informed about the quality, quantity, purity, potency,
standard, price of goods, etc.

(IV) Right to be heard

: Consumer has the right to present before the appropriate forum or authorities all those matters which
effect his interests. This right Includes the right to make protest and file complaints. This right implies
that matters of interest to the consumer will receive due consideration at appropriate forums, so that he is
encouraged to express his problems, complaints and unjust treatment meted out to him.

(V) Right to seek redressal:

Consumer has the right to get his claims and complaints settled against the manufacturers and sellers.
This right provides the consumer freedom from unfair trade practice or unscrupulous exploitation by the
trader. Besides, it helps him secure compensation.

(VI) Right to Consumer Education:

Under this right, consumer is entitled to get Information or educated about those things which are
necessary for him. Such an education creates awareness about his rights and he comes to know when to
approach for the redressal of his grievance and exploitation. This helps a consumer protect himself against
fraudulent, deceptive and misleading advertisement and poor or negligent services.

Machinery for Redressal of Consumer Grievances:

To provide simple, speedy and inexpensive redressal of consumer grievances, the act envisagesthree- tier
quasi-judicial machinery at the national, state and district levels.

* National Consumer Disputes Redressal Commission - known as 'National Commission'

.* Consumer Disputes Redressal Commissions known as 'State Commission”.

* Consumer Disputes Redressal Forums- known as 'District Forum”.

(I) The District Consumer Protection Council:

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.

Composition of the district forum

:Each District Forum shall consist of

•A person who is, or who has been or is qualified to be, a District Judge, who shall be its President;

•There will be 2 other members who shall be persons of ability, integrity and standing and have adequate
knowledge or experience or have shown capacity In dealing with problems rebating to economics, law,
commerce, accounting, industry, public affairs or administration, one of whom shall be a women.
•Every appointment shall be made by the State Government on the recommendation of Selection
Committee

consisting of the following namely:

oThe President of the State Commission- Chairman,

oSecretary, Law Department of the State- Member,

oSecretary, in charge, of the Department dealing with Consumer affairs in the State- Member.

Terms and age:

Provided that a member shall be eligible for re-appointment for another term of 5 years or up to the age of
65 years, whichever is earlier.

Jurisdiction of the district forum

:(1) Subject to other provisions of this Act, the District Forum shall have jurisdiction to entertain
complaints where the value of the goods or services and the compensation if any, claimed does not exceed
rupees twenty lakhs.

(2) A complaint shall be instituted in a District Forum within the local limits of whose jurisdiction, -




The opposite party or each of the opposite parties, where there are more than one, at the time of the
institution of the complaint, actually and voluntarily resides or carries on business or has a branch office,
or personally works for gain; or

(b) Any of the opposite parties where there are more then one, at the time of the institution of the
complaint, actually and voluntarily resides, or carries on business or has a branch office, or personally
works for gain, provided that insuch case either the permission of the District Forum is given, or the
opposite parties who do not reside, or carry on business or have a branch office, or personally works for
gain, as the case may be, acquiesce in such institution; or (c) The cause of action, wholly or in part arises.




(II) The State Commission:

Regarding State Commission following provision have been made In Consumer Protection Act 1986.
Establishment: In every state, the state government, by issuing a notification can establish consumer
Grievance Redressal Commission to be called ‘State Commission’.

Composition: Each State Commission shall consist of:

•A person (member) who is or has been a judge of a High Court, appointed by the State Government. who
shall be its President. But his appointment shall be made only after consultation with the Chief Justice of
the High Court.

•There will be 2 other members who shall be persons of ability, integrity andstanding and have adequate
knowledge or experience or have shown capacity Indealing with problems rebating to economics, law,
commerce, accounting,industry, public affairs or administration, one of whom shall be a women.

•Every appointment shall be made by the State Government on therecommendation of the selection
committee. The

Selection committee shall be composed of:

oPresident of the State Commission — Chairman

oSecretary of the Law Department of the State — Member

oSecretary incharge of the Department dealing with Consumer Affairs in the State — Member

Terms and Age

:Every member of the State Commission shall hold office for a term 5 years, or up to the age of 67 years,
whichever is earlier, and shall not be eligible for re-appointment.

Jurisdiction of State Commission

:Subject to the other provision of this Act., the State Commission Shall have Jurisdiction:

(a) to entertain:

   (i) complaints where the value of the goods or services and compensation, if any claimed exceeds
rupees 20lakhs but does not exceed rupees one crore

 .(ii) appeals against the orders of any District Forum within the Stale; and

(b) to call for the records and pass appropriate 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 the
State Government that such District Forum has exercised a jurisdiction not vested In it by law or has
failed to exercise a Jurisdiction so vested or has acted in exercise on its jurisdiction illegally or with
material irregularity.

III. The National Commission:

Following are the provisions of the Consumer Protection Act in NC

Establishment :By issuing a notification Central Government can set up a National Commission This
Commission has been established at New Delhi.

Composition:

The National Commission shall compose of:

•A person (member) who is or has been a judge of the Supreme Court shall be appointed by the Central
Government. He shall be its President. Provided that no appointment under this clause shall be made
except after consultation with the Chief justice of India.

•There shall be 4 other members including one woman. They shall be persons of ability integrity,
experience of, or have shown capacity in dealing with problems relating to economics, law, commerce,
accountancy, industry, public affairs or Administration.

Every appointment shall be made by the Central Government on the recommendation of a

Selection Committee consisting of the following namely:

•A person who is a judge of the Supreme Court, to be nominated by the chief justice shall be its
Chairman.

•The secretary Department of Legal Affairs In the government of India shall be Hmember.

•Secretary of the Department dealing with consumer affairs in the government of India shall be its other
members.

Term of Members

:Every member of the National Commission shall hold office for a term of 5 years or upto the age of 70
years, whichever is earlier..
Jurisdiction of the National Commission

Subject to the other provisions of this Act, the National Commission shall have Jurisdiction as under

to entertain complaints where the value of the goods or services and compensation, if any, claimed
exceeds rupees 1crore.

•to entertain 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 the National Commission that such State
Commission has exercised a jurisdiction not vested in it by Law, or has failed to exercise a jurisdiction so
vested, or has acted in the exercise of its jurisdiction illegally or with material irregularity
Statement of Objects

The Consumer Protection Bill, 1986 seeks to provide better protection of interests of the
consumers and for that purpose to make provision for establishment of consumer councils and
other authorities for the settlement of consumer’s disputes and for matters connected therewith.

It seeks to promote and protect the rights of consumers, such as:

       The right to be protected against marketing of goods where are hazardous to life and
       property.
       The right to be informed about the quality, quantity, potency, purity, standard and price
       of goods to protect the consumer against unfair trade practices.
       The right to be assured, wherever possible, access of variety of goods at competitive
       prices.
       The right to be heard and to be assured that consumers’ interests will receive due
       consideration at appropriate forums.
       The right to seek redressed against unfair trade practices or unscrupulous exploitation of
       consumers, and
       The right to consumer education.

To provide steady and simple redressal to consumers’ disputes, a quasi-judicial machinery is
sought to be set up at the district, state and central levels. The quasi-judicial bodies will observe
the principles of natural justices and have been empowered to give relieves of a specific nature
and to award wherever appropriate compensation to consumers. Penalties for non-compliance
of the orders given by the quasi-judicial bodies have also been provided.

Salient features of the Consumer Protection Act, 1986

The salient features of the Act are as follows:

1) The Act provides speedy redressal to consumer Redressal Forum in every district, a
commission at the State level and the National commission at the Centre. The Forum in the
District will have original jurisdiction to redress complaints up to claim of Rs. 1lakh (after
amendment up to 10 lakhs). The National Commission can entertain any claim for damages
above Rs. 10 lakhs (after amendment above 20 lakhs). The State Commission will be vested with
appropriate Appellate and Revisional powers.

2) To promote voluntary consumer movement and to ensure involvement of consumers. The
Bill provides for the establishment of Consumer Protection Councils in centre and the states.
These Councils will have both non-official and official members. The objects of the Council will
be to promote and protect the rights of the consumers.

3) It shall apply to all goods and classes of goods or all services or classes of services except
those which are specially exempted by notification by the central government.

4) The provisions of the Bill shall be in additional to and not in derogation of any other law for
the time being in force.
5) Necessary penal and punitive provisions have been corporate to ensure that the proposed
legislation is effective in protecting consumers.

6) The complain can be filed by a consumer or an organization being a society registered under
the Societies Registration Act, or a company registered under the Companies Act, representing
consumers or by the central or state government.

7) The complaint can be field on account of any unfair trade practices resulting in loss or
damage, defect in the goods, deficiency in the services, prices charged in excess of the prices
fixed by or under any law or displayed on the goods/packets

Definition's According Consumer Protection Act
(a) "complainant" means
(I) a consumer; or
(ii) any voluntary consumer association registered under the Companies Act, 1956 (1 of
1956), or under any other law for the time being in force; or
(iii) the Central Government or any State Government who or which makes a complaint;
(iv) one or more consumers, where there are numerous consumers having the same
interest;
(b) "complaint" means any allegation made by a complainant that -
(I)an unfair trade practice or a restrictive trade practice has been adopted by any trader;
(ii)the goods bought by him or agreed to be bought by him suffer from one or more defects;
(iii) the services hired or availed of or agreed to be hired or availed of by him suffer from
deficiency in any respect;
(iv)a trader has charged for the goods mentioned in the complaint price in excess of the
price fixed by or under any law for the time being in force or displayed on the goods for
any package containing such goods,
(v) goods which will be hazardous to life and safety when used, are being offered for sale
to the public in contravention of the provisions of any law for the time being in force
requiring traders to display information in regard to the contents, manner and effect of
use of such goods. with a view to obtaining any relief provided by or under this Act;
(c) "consumer" means any person who, -
(I)buys any goods for a consideration which has been paid or promised or partly paid and
partly promised, or under any system of deferred payment and includes any user of such
goods other than the person who buys such goods for consideration paid or promised or
partly paid or partly promised, or under any system of deferred payment when such use is
made with the approval of such person, but does not include a person who obtains such
goods for resale or for any commercial purpose; or
(ii) hires or avails of any services for a consideration which has been paid or promised or
partly paid and partly promised, or under any system of deferred payment and includes
any beneficiary of such services other than the person who hires or avails of the services
for consideration paid or promised, or partly paid and partly promised, or under any
system of deferred payment, when such services are availed of with the approval of the
first mentioned person;
Explanation : For the purposes of sub-clause (I), "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;
(d) "consumer dispute" means a dispute where the person against whom a complaint has
been made, denies or disputes the allegations contained in the complaint;
(e) "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;
(f) "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;
(g)"District Forum" means a Consumer Disputes Redressed Forum established under clause
(a) of section 9;
(h) "goods" means goods as defined in the Sale of Goods Act, 1930 (3 of 1930);
(I) "manufacturer" means a person who -
(I)makes or manufactures any goods or parts thereof; or
(ii)does not make or manufacture any goods but assembles parts thereof made or
manufactured by others and claims the end-product to be goods manufactured by himself;
or
(iii) puts or causes to be put his own mark on any goods made or manufactured by any
other manufacturer and claims such goods to be goods made or manufactured by himself.
Explanation : Where a manufacturer dispatches any goods or part thereof to any branch
office maintained by him, such branch office shall not be deemed to be the manufacturer
even though the parts so dispatched to it are assembled at such branch office and are sold
or distributed from such branch office;
(j) "National Commission" means the National Consumer Disputes Redressed Commission
established under clause (c) of section 9;
(k) "State Commission" means a Consumer Disputes Redressed Commission established in a
State under clause (b) of section 9;
(l) "service" means service of any description which is made available to potential users
and includes the provision of facilities in connection with banking, financing, insurance,
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;
(m)"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;
(n) "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.



AMENDMENTS


   a) The Government has introduced Consumer Protection (Amendment) Bill, 2011, in Lok
      Sabha on December 16, 2011, to facilitate quicker disposal of cases and to widen and
      amplify the scope of some of the provisions of the Act.The enactment of the Consumer
      Protection Act, 1986, was an important milestone in the field of consumer protection. In
      terms of the Act, consumer disputes redressal agencies have been set up at the 629
      District, 35 State and National levels to render simple, inexpensive and speedy justice to
      consumers in respect of complaints against defective goods, deficient services and
      unfair/restrictive trade practices. With a view to faster redressal of complaints and to
rationalize procedure of appointments in consumer disputes redressal agencies, it has
       been felt necessary to amend the Ac



Amendments proposed provide for the following-

On line filing of consumer complaints

 Making provision for registering complaint by electronic form (on line filing complaint)- Since
the Consumer Forums are being computerized it is proposed to make provision in the law to
permit consumers to file complaints as well as pay fee online, which would make the consumer
for a move towards e-governance/ time bound redressal.

Enforcement of orders as a Decree of Civil Court

 Making provision that an order of the District Forum / State Commission/ National
Commission will be enforced as a Decree of a Civil Court- This modification is considered
essential in view of the experiences gained during implementation of the amended Act and is
intended to deter willful offenders and also to ensure speedy and proper execution of the order
of the consumer forums, so that justice to the aggrieved consumers is not frustrated.

Payment to be made for non-compliance of the order

 Making provision for payment by every person for not complying of the order of District
Forum / State Commission / National Commission of an amount of not less than Rs.500 or 1½
per cent of the value of the amount awarded- whichever is higher, for each day of delay of such
non-compliance of the order. This modification is considered essential in view of the
experiences gained during implementation of the amended Act and is intended to deter willful
offenders and also to ensure speedy and proper execution of the orders of the consumer forums,
so that justice to the aggrieved consumers is not frustrated.

Powers to District Forum

 Empowering District Forum to function in any other place apart from District HQrs, in
consultation with State Government / State Commission - This provision is considered
necessary to allow State Governments the flexibility to club neighboring Districts Forum as also
give additional charge to President/Members to hear cases in more than one District Forum so
as to effectively deal with the non-functionality of Districts Forum caused due to vacancy of
President/Member.

Conferring powers to District Forum to issue order to the opposite party to pay reasonable rate
of interest on such price or charges as may be decided by the District Forum- This provision is
considered necessary to empower the consumer forum to award interest where the consumer
has suffered due to protracted litigation.

Powers to State Government in selection process

 Empowering State Government to refer back the recommendation of the Selection Committee
for making fresh recommendation in order to avoid any delay in the Selection process- This is
felt necessary to facilitate quicker filling up of the posts in the Consumer Forums and to avoid
the consumer Forum remaining non-functional for long due to such vacancy thereby adversely
affecting consumers’ interest.

Increase of age in the appointment

 Increasing the minimum age for appointment as Member in the case of State Commissions
from 35 to 45 years, and in case of National Commission from 35 to 55 years- This is proposed to
improve the quality of persons applying for these posts.

Experience for members

 Increasing the period of experience for appointment as Member in the case of State
Commission from 10 years to 20 years and in the case of National Commission from 10 years to
30 years-This is proposed in order to improve the quality of persons applying for these posts.

Powers to National Commission / State Commission to direct any one to assist the case

 Conferring powers to National Commission / State Commission to direct any individual or
organization or expert to assist National Commission / State Commission in the cases of large
interest of the consumers- This provision would enable the National Commission or the State
Commission, in cases involving the larger interests of the consumers, an opportunity to suo
moto enlist the services of an expert or an outside party, in an ongoing case, in the interest of
justice.

Monitoring system of pending cases

 Conferring powers to Central Government to call upon periodical reports of pending cases
from National Commission and to State Government from State Commission or any District
Forum- The provision is considered necessary to enable easy availability of data regarding filing
and disposal of consumer complaints, which would help in monitoring the functioning of the
consumer for a and effectiveness of the law. The above said amendments proposed in the Act
will go a long way in speedy redressal of Consumer grievances and sturdy protection of
Consumer rights.
b) Consumer to soon be king: Govt mulls more power for buyers through Consumer
Protection (Amendment) Bill 2010 to be Introduced in parliament very soon.


Bill amplifies the provisions of the Act, facilitates quicker disposal of consumer complaints
and rationalizes the qualifications and procedure of selection of President and members of the
consumer fora.


If a shopkeeper doesn’t give you a bill for your purchase, you may soon be able to take him to
court. At the same time, anything and everything you buy can be challenged legally if it is
found to be of poor quality. A product need not be “hazardous” at the beginning to be “unsafe”
later. Most importantly, consumers will be able to receive extra money from consumer fora in
case of protracted litigation.
The central government is mulling a clutch of amendments to Consumer Protection Act, 1986,
to empower consumers and to inject transparency in the three-tier consumer protection fora at
the district, state and national levels. If accepted, the Act will make a shopkeeper not issuing
cash memo or bills for goods sold as guilty under the law. The possession of bill makes a
consumer a “bonafide” customer and its absence robs him of a stronger footing in courts if he
challenges a sale. It will henceforth be dubbed an “unfair trade practice”.
The most consequential change may be the widening of the definition of “defect” and
“deficiency”. While the Act clubs a few shortcomings in a product to qualify as “defect”, it is
proposed to keep the definition open-ended — by replacing “means” which follows the spelt-
out defects with “includes” — to qualify any unspecified flaw as defect.
The seller will in future have to give the buyer every bit of information about a commodity. It is
proposed that withholding information about a good, which can influence the choice of a
customer, should be treated as an offence.
The definition of “unfair trade practice” is to be expanded to include the unforeseen modus
operandi of traders as offences. It will allow the law to not specify every unfair practice in the
law.
A key change relates to safeguarding the consumers who are fleeced by the sellers through
various contracts or conditions which place them in “unequal bargaining capacity”. The 199th
report of the Law Commission had suggested the change to bring the consumers on a stronger
footing to challenge any unfair practice. A contract or a condition will be “unconstitutional and
illegal” if it is between two parties of unequal bargaining capacities, one-sided and unfair to the
weaker party. Such a contract is said to be offending spirit of the Constitution.
The amendments also seek to bring transparency in consumer courts with regard to selection of
presiding officers, filing of cases and discharge of justice. Consumers will be able to file “cases
online” in what is an attempt to empower them. A key proposal says that presidents or
members in consumer fora should be barred from pleading before them. This includes those
who either held office in these for a or wielded administrative control there. It is an attempt to
stop any unfair clout to be pedalled in the courts.
The Act seeks to empower consumer courts to award “interest” to compensate consumers who
suffer from prolonged court battles.
State commissions are to be given more power to be able to renew their own orders if they
notice factual mistakes in the records. The powers of judicial magistrate first class will be more
explicit under the Act.
The quasi-judicial three-tier consumer disputes redressal machinery — national, state and
district — provided by the Consumer Protection Act has led to a culture of consumer
protection. The rising consciousness among people about their rights has led to consumers
going to courts to seek redressal against unfair deals or cases of cheating.
Consumer protection act

More Related Content

What's hot

consumer protection act (CPA)
consumer protection act (CPA)consumer protection act (CPA)
consumer protection act (CPA)Radhika Agrawal
 
Consumer Protection Act, 1986
Consumer Protection Act, 1986Consumer Protection Act, 1986
Consumer Protection Act, 1986AJAY NATH DUBEY
 
Consumer protection act1956
Consumer protection act1956Consumer protection act1956
Consumer protection act1956Pradeep Singha
 
Consumer protection Act
Consumer protection ActConsumer protection Act
Consumer protection ActRahul Sharma
 
Consumer protection act
Consumer protection actConsumer protection act
Consumer protection actBhavna Gupta
 
Consumer protection act
Consumer protection actConsumer protection act
Consumer protection actPritha Upmanyu
 
Consumer protection act presentation
Consumer protection act presentation Consumer protection act presentation
Consumer protection act presentation SSbm1
 
Consumer Protection Act-1986
Consumer Protection Act-1986Consumer Protection Act-1986
Consumer Protection Act-1986Prathamesh Parab
 
Consumer protection act,1986 by Alpana
Consumer protection act,1986 by AlpanaConsumer protection act,1986 by Alpana
Consumer protection act,1986 by AlpanaAlpana31
 
Consumer Protection Act
Consumer Protection ActConsumer Protection Act
Consumer Protection ActNamrata Kumari
 
Consumer protection act final
Consumer protection act finalConsumer protection act final
Consumer protection act finalPiyush Kapoor
 
Consumer protection act,1986
Consumer protection act,1986Consumer protection act,1986
Consumer protection act,1986Ajit Kumar
 
Consumer Protection Act 1986 India
Consumer Protection Act 1986  IndiaConsumer Protection Act 1986  India
Consumer Protection Act 1986 Indiaabdu_569
 
Consumer Protection Act 1986
Consumer Protection Act 1986 Consumer Protection Act 1986
Consumer Protection Act 1986 GRISHMA CHUNEKAR
 
NEED FOR CONSUMER PROTECTION ACT
NEED FOR CONSUMER PROTECTION ACTNEED FOR CONSUMER PROTECTION ACT
NEED FOR CONSUMER PROTECTION ACTbindishah05
 
Consumer Protection Act 2019
Consumer Protection Act 2019Consumer Protection Act 2019
Consumer Protection Act 2019Dr. Vikas Khakare
 

What's hot (19)

consumer protection act (CPA)
consumer protection act (CPA)consumer protection act (CPA)
consumer protection act (CPA)
 
Consumer protection
Consumer protection Consumer protection
Consumer protection
 
Consumer protection act
Consumer protection actConsumer protection act
Consumer protection act
 
Consumer Protection Act, 1986
Consumer Protection Act, 1986Consumer Protection Act, 1986
Consumer Protection Act, 1986
 
Consumer protection act1956
Consumer protection act1956Consumer protection act1956
Consumer protection act1956
 
Consumer protection Act
Consumer protection ActConsumer protection Act
Consumer protection Act
 
consumer protection act 1986
consumer protection act 1986consumer protection act 1986
consumer protection act 1986
 
Consumer protection act
Consumer protection actConsumer protection act
Consumer protection act
 
Consumer protection act
Consumer protection actConsumer protection act
Consumer protection act
 
Consumer protection act presentation
Consumer protection act presentation Consumer protection act presentation
Consumer protection act presentation
 
Consumer Protection Act-1986
Consumer Protection Act-1986Consumer Protection Act-1986
Consumer Protection Act-1986
 
Consumer protection act,1986 by Alpana
Consumer protection act,1986 by AlpanaConsumer protection act,1986 by Alpana
Consumer protection act,1986 by Alpana
 
Consumer Protection Act
Consumer Protection ActConsumer Protection Act
Consumer Protection Act
 
Consumer protection act final
Consumer protection act finalConsumer protection act final
Consumer protection act final
 
Consumer protection act,1986
Consumer protection act,1986Consumer protection act,1986
Consumer protection act,1986
 
Consumer Protection Act 1986 India
Consumer Protection Act 1986  IndiaConsumer Protection Act 1986  India
Consumer Protection Act 1986 India
 
Consumer Protection Act 1986
Consumer Protection Act 1986 Consumer Protection Act 1986
Consumer Protection Act 1986
 
NEED FOR CONSUMER PROTECTION ACT
NEED FOR CONSUMER PROTECTION ACTNEED FOR CONSUMER PROTECTION ACT
NEED FOR CONSUMER PROTECTION ACT
 
Consumer Protection Act 2019
Consumer Protection Act 2019Consumer Protection Act 2019
Consumer Protection Act 2019
 

Viewers also liked

Consumer protection-act-1986
Consumer protection-act-1986Consumer protection-act-1986
Consumer protection-act-1986suparswa
 
Consumer protection act,1986
Consumer protection act,1986Consumer protection act,1986
Consumer protection act,1986Rohan Negi
 
Discharge of negotiable instrument - Legal Environment of Business - Business...
Discharge of negotiable instrument - Legal Environment of Business - Business...Discharge of negotiable instrument - Legal Environment of Business - Business...
Discharge of negotiable instrument - Legal Environment of Business - Business...manumelwin
 
Problems of entrepreneurship
Problems of entrepreneurshipProblems of entrepreneurship
Problems of entrepreneurshipdeepu2000
 
Entrepreneurship development programmes
Entrepreneurship development programmesEntrepreneurship development programmes
Entrepreneurship development programmesDaksh Goyal
 
Consumer protection
Consumer protectionConsumer protection
Consumer protectionayushig
 
Foreign Exchange Management Act
Foreign Exchange Management ActForeign Exchange Management Act
Foreign Exchange Management ActDr. Sneha Sharma
 
Entrepreneurship development programme notes
Entrepreneurship development programme notes Entrepreneurship development programme notes
Entrepreneurship development programme notes Sonam kapil
 
FEMA-Foreign Exchange Management Act
FEMA-Foreign Exchange Management ActFEMA-Foreign Exchange Management Act
FEMA-Foreign Exchange Management ActVignesh Sreenivasan
 
Channel Management
Channel ManagementChannel Management
Channel Managementdcsastudent
 
Workers participation in management
Workers participation in management Workers participation in management
Workers participation in management parags06
 
Factors that determine the size of a business
Factors that determine the size of a businessFactors that determine the size of a business
Factors that determine the size of a businessmiemslou
 
Entrepreneurship Lecture Notes Part 1
Entrepreneurship Lecture Notes Part 1Entrepreneurship Lecture Notes Part 1
Entrepreneurship Lecture Notes Part 1Odofin Caleb
 
Business Environment- Features,Meaning,Importance,Objectives & Porter's Model
Business Environment- Features,Meaning,Importance,Objectives & Porter's Model Business Environment- Features,Meaning,Importance,Objectives & Porter's Model
Business Environment- Features,Meaning,Importance,Objectives & Porter's Model Nikhil Soares
 

Viewers also liked (18)

Consumer protection-act-1986
Consumer protection-act-1986Consumer protection-act-1986
Consumer protection-act-1986
 
Consumer protection act,1986
Consumer protection act,1986Consumer protection act,1986
Consumer protection act,1986
 
Discharge of negotiable instrument - Legal Environment of Business - Business...
Discharge of negotiable instrument - Legal Environment of Business - Business...Discharge of negotiable instrument - Legal Environment of Business - Business...
Discharge of negotiable instrument - Legal Environment of Business - Business...
 
Problems of entrepreneurship
Problems of entrepreneurshipProblems of entrepreneurship
Problems of entrepreneurship
 
Entrepreneurship development programmes
Entrepreneurship development programmesEntrepreneurship development programmes
Entrepreneurship development programmes
 
Ethical Consumerism
Ethical ConsumerismEthical Consumerism
Ethical Consumerism
 
Redressal agencies in India
Redressal agencies in IndiaRedressal agencies in India
Redressal agencies in India
 
Consumer protection
Consumer protectionConsumer protection
Consumer protection
 
Consumerism 1
Consumerism 1Consumerism 1
Consumerism 1
 
Foreign Exchange Management Act
Foreign Exchange Management ActForeign Exchange Management Act
Foreign Exchange Management Act
 
Entrepreneurship development programme notes
Entrepreneurship development programme notes Entrepreneurship development programme notes
Entrepreneurship development programme notes
 
FEMA-Foreign Exchange Management Act
FEMA-Foreign Exchange Management ActFEMA-Foreign Exchange Management Act
FEMA-Foreign Exchange Management Act
 
Channel Management
Channel ManagementChannel Management
Channel Management
 
Workers participation in management
Workers participation in management Workers participation in management
Workers participation in management
 
Factors that determine the size of a business
Factors that determine the size of a businessFactors that determine the size of a business
Factors that determine the size of a business
 
Entrepreneurship Lecture Notes Part 1
Entrepreneurship Lecture Notes Part 1Entrepreneurship Lecture Notes Part 1
Entrepreneurship Lecture Notes Part 1
 
Distribution strategy
Distribution strategyDistribution strategy
Distribution strategy
 
Business Environment- Features,Meaning,Importance,Objectives & Porter's Model
Business Environment- Features,Meaning,Importance,Objectives & Porter's Model Business Environment- Features,Meaning,Importance,Objectives & Porter's Model
Business Environment- Features,Meaning,Importance,Objectives & Porter's Model
 

Similar to Consumer protection act

consumerism-in-india-ppt.ppt
consumerism-in-india-ppt.pptconsumerism-in-india-ppt.ppt
consumerism-in-india-ppt.pptRAVISHANKARRAI4
 
The Consumer Protection Act 1986.pdf
The Consumer Protection Act 1986.pdfThe Consumer Protection Act 1986.pdf
The Consumer Protection Act 1986.pdfVimpexCambodia
 
(RAW MATERIAL) business laws presentation.docx
(RAW MATERIAL) business laws presentation.docx(RAW MATERIAL) business laws presentation.docx
(RAW MATERIAL) business laws presentation.docxPiyushAnand65
 
Consumerism,Consumer Rights & Consumer Protection Act 1986
Consumerism,Consumer Rights  & Consumer Protection Act 1986Consumerism,Consumer Rights  & Consumer Protection Act 1986
Consumerism,Consumer Rights & Consumer Protection Act 1986Venkat. P
 
consumer protection Act part 1.pdf
consumer protection Act part 1.pdfconsumer protection Act part 1.pdf
consumer protection Act part 1.pdfPOOJA UDAYAN
 
Consumer protection act
Consumer protection actConsumer protection act
Consumer protection actARUNAYESUDAS
 
Consumer protection act
Consumer protection actConsumer protection act
Consumer protection actRohit Mahajan
 
Consumerism in India (Consumer Protection Act-1986)
Consumerism in India (Consumer Protection Act-1986)Consumerism in India (Consumer Protection Act-1986)
Consumerism in India (Consumer Protection Act-1986)R V Institute of Management
 
Business Law BBA sem 5 NS.pdf
Business Law BBA sem 5 NS.pdfBusiness Law BBA sem 5 NS.pdf
Business Law BBA sem 5 NS.pdfompandya94
 
Adv. Sagar Bansal - Consumer Protection Act,1986
Adv. Sagar Bansal - Consumer Protection Act,1986Adv. Sagar Bansal - Consumer Protection Act,1986
Adv. Sagar Bansal - Consumer Protection Act,1986Sagar Bansal
 
A Project Report on CONSUMER RIGHTS.pdf
A Project Report on CONSUMER RIGHTS.pdfA Project Report on CONSUMER RIGHTS.pdf
A Project Report on CONSUMER RIGHTS.pdfPhlanwa
 
Consumer Protection Act.pptx
Consumer Protection Act.pptxConsumer Protection Act.pptx
Consumer Protection Act.pptxAnju Kumawat
 
Business Law unit- 4 - Consumer Protection Act
Business Law unit- 4 - Consumer Protection ActBusiness Law unit- 4 - Consumer Protection Act
Business Law unit- 4 - Consumer Protection ActBalasri Kamarapu
 
Consumer protection act, 2019
Consumer protection act, 2019Consumer protection act, 2019
Consumer protection act, 2019DrSailajaPetikam
 
Legal presentation
Legal presentationLegal presentation
Legal presentationVIT-MMS
 

Similar to Consumer protection act (20)

consumerism-in-india-ppt.ppt
consumerism-in-india-ppt.pptconsumerism-in-india-ppt.ppt
consumerism-in-india-ppt.ppt
 
The Consumer Protection Act 1986.pdf
The Consumer Protection Act 1986.pdfThe Consumer Protection Act 1986.pdf
The Consumer Protection Act 1986.pdf
 
(RAW MATERIAL) business laws presentation.docx
(RAW MATERIAL) business laws presentation.docx(RAW MATERIAL) business laws presentation.docx
(RAW MATERIAL) business laws presentation.docx
 
Consumerism,Consumer Rights & Consumer Protection Act 1986
Consumerism,Consumer Rights  & Consumer Protection Act 1986Consumerism,Consumer Rights  & Consumer Protection Act 1986
Consumerism,Consumer Rights & Consumer Protection Act 1986
 
Cpa 2019
Cpa 2019Cpa 2019
Cpa 2019
 
consumer protection Act part 1.pdf
consumer protection Act part 1.pdfconsumer protection Act part 1.pdf
consumer protection Act part 1.pdf
 
Consumer protection act
Consumer protection actConsumer protection act
Consumer protection act
 
Consumer protection act
Consumer protection actConsumer protection act
Consumer protection act
 
Consumerism in India (Consumer Protection Act-1986)
Consumerism in India (Consumer Protection Act-1986)Consumerism in India (Consumer Protection Act-1986)
Consumerism in India (Consumer Protection Act-1986)
 
Business Law BBA sem 5 NS.pdf
Business Law BBA sem 5 NS.pdfBusiness Law BBA sem 5 NS.pdf
Business Law BBA sem 5 NS.pdf
 
Adv. Sagar Bansal - Consumer Protection Act,1986
Adv. Sagar Bansal - Consumer Protection Act,1986Adv. Sagar Bansal - Consumer Protection Act,1986
Adv. Sagar Bansal - Consumer Protection Act,1986
 
Module 3(1).pptx
Module 3(1).pptxModule 3(1).pptx
Module 3(1).pptx
 
A Project Report on CONSUMER RIGHTS.pdf
A Project Report on CONSUMER RIGHTS.pdfA Project Report on CONSUMER RIGHTS.pdf
A Project Report on CONSUMER RIGHTS.pdf
 
Consumer Protection Act.pptx
Consumer Protection Act.pptxConsumer Protection Act.pptx
Consumer Protection Act.pptx
 
Consumer protection act
Consumer protection actConsumer protection act
Consumer protection act
 
Business Law unit- 4 - Consumer Protection Act
Business Law unit- 4 - Consumer Protection ActBusiness Law unit- 4 - Consumer Protection Act
Business Law unit- 4 - Consumer Protection Act
 
Consumer protection act, 2019
Consumer protection act, 2019Consumer protection act, 2019
Consumer protection act, 2019
 
Consumer Disputes Redressal Agencies
Consumer Disputes Redressal AgenciesConsumer Disputes Redressal Agencies
Consumer Disputes Redressal Agencies
 
Legal presentation
Legal presentationLegal presentation
Legal presentation
 
Ibe Unit V
Ibe Unit VIbe Unit V
Ibe Unit V
 

Consumer protection act

  • 1. qCONSUMER PROTECTION ACT—1986 Consumer is at the core of business world in the present day economy. Quantity and quality of goods are produced as per the needs of the consumer. Advancement of any business unit depends on the satisfaction of the consumer. That product will be in great demand which gives maximum satisfaction to the consumer and so will be produced on large scale. As a result, the concerned production unit will develop and earn large profit. Despite the Fact that Importance of the consumer is widely recognized, he is deprived of his rights and privilege and is subjected to diverse kinds of exploitation. For instance exploitation in the form of short weight and measure poor quality of the product, adulteration, supply of fake goods, boarding and black marketing of the goods, delivery of goods not on schedule. With a view to protecting the consumers from such exploitation and making them aware of their rights, a method of consumer protection has been launched. Need for protection arid satisfaction of the consumer is now being widely recognized across the world. India has also adopted the concept of consumer protection more seriously and vigoursly. Meaning of Consumer Protection: Consumer protection means the protection of the consumers from their exploitation by the unfair trade practices of the producers/sellers. In fact, providing proper protection of the fundamental rights and Interests of the consumers, freeing them from exploitation, creating consumer awareness, consumer providing the right to clean business environment to the consumers by means of Legal amendments Is all that protection means, Consumer Protection Act In India: In India, Central and State Governments have passed various legislative enactments regarding Consumer Protection. Among them, main Acts are: Drug and Cosmetics Act 1940, Industries Development and Regulation Act 1951 Indian Standards Institution (Certification Marks) Act 1952 Prevention of Food Adulteration Act 1954 Essential Commodities (Supply) Act 1955
  • 2. The Trade and Merchandise Marks Act, 1958 Monopolies and Restrictive Trade Practices Act 1969 Packaged Commodities Regulation Order 1975 Standards of Weights and Measures Act 1976 Prevention of Black Marketing and Maintenance of Supplies of Essential Commodities Act 1980 Standards of Weights and Measures (Enforcement) Act. 1985 In spite of above Acts Interests of the consumers were not being properly safeguarded. There are many reasons for it, but main among them are two, First consumer in general had no knowledge about the authority to whom complaints under these acts were to be addressed. Second to seek remedy under these various acts consumer had to take legal action Involving lot of time and money. Need was therefore felt to enact such a legislative measure as provide quick and less expensive remedy to the aggrieved consumer. Consequently, to protect properly the interest of the consumers and to settle quickly their disputes, in December 1986 Consumer Protection Act was passed in India. It was enforced with effect from April 15,1987. Last amendment In the Act was made in. 2002. SCOPE AND EXTENT OF THE ACT: Except Jammu and Kashmir state, this Act extends to whole of India Provisions of this Act are In addition to the provisions made previously in the context of the consumers This Act shall apply to all goods and services that come under the scope of this Act. Main Elements/Features of Consumer Protection Act, 1986: Consumer Protection Act is the most progressive Act of Social well are and is referred to as Magna Carta of consumer protection. It is a land mark event In the history of Acts In India. Main features of the Act are as under
  • 3. •It applies to all kinds of goods and services. •Provisions of this Act are in addition to the provisions of any other Act in force In the country. Thus, this Act does not limit or reduce the scope of any other Act •Under this Act, there Is a provision for the Centre and State Governments to setup Consumer Protection Councils composing of both official and non-official members. The objectives of the council are:- - to promote the rights and Interests of the consumers,- -to educate and protect them. This Act provides for the following rights to the consumer: oRight to safety, oRight to be heard, oRight to consumer education, oRight to seek redressal oRight to Choose oRight to be Informed This Act is based on the principle of compensation wherein fair compensation to the aggrieved party is provided for. To redress the grievance, there Is provision for three-tier judicial machinery oDistrict level oState level and oNational LeveL •This Act provides affective protection to the consumer from different types of exploitations, such as defective goods, adulteration, under-weight, excessive price, unsatisfactory or deficient services and unfair trade practices. •This Act redresses in a simple, cheap and dynamic manner the grievance of the consumer in limited time
  • 4. •All suppliers of goods and services belonging to private, public and co-operative sectors come under the purview of this Act. Right to Consumer: In a free market economy, consumer is sovereign. He has the right to buy or not to buy a product offered for sale, to expect the product to be safe; to expect the product sale, to bewhat it is claimed to be; to be adequately informed about the most salient aspect of the product. He has a right to receive proper and efficient service and satisfaction. Under section 6 of Consumer Protection Act, consumer has following rights: (I) Right to Safety: Consumer has the right to be protected against marketing of such goods and services as are hazardous to health, life and property. There are several fake, adulterated, inferior, defective, ineffective and dangerous goods available in market .They are injurious to body and health. Consumer therefore, has the right to safety from all such goods as well as are likely to cause harm to his body and health, besides causing loss of money. (II) Right to Choose: Under this right, consumer can choose any from among the variety of goods and services available in the market. One finds in the market goods of different brand, quality, shape, colour, size, design and price produced by different manufacturers. Under this right, the consumer must be assured access to variety of goods and services are competitive prices as far as possible. Misleading or false advertisement, wrong information or in any other way, If any person (manufacturer, seller) influences his preference, in an unfair or unnecessary manner, it will be treated as intervention in his right to choose. (III) Right to be informed: Consumer has the right to get all necessary information on the basis of which he may decide to buy the good or service. He has therefore the right to be informed about the quality, quantity, purity, potency, standard, price of goods, etc. (IV) Right to be heard : Consumer has the right to present before the appropriate forum or authorities all those matters which effect his interests. This right Includes the right to make protest and file complaints. This right implies
  • 5. that matters of interest to the consumer will receive due consideration at appropriate forums, so that he is encouraged to express his problems, complaints and unjust treatment meted out to him. (V) Right to seek redressal: Consumer has the right to get his claims and complaints settled against the manufacturers and sellers. This right provides the consumer freedom from unfair trade practice or unscrupulous exploitation by the trader. Besides, it helps him secure compensation. (VI) Right to Consumer Education: Under this right, consumer is entitled to get Information or educated about those things which are necessary for him. Such an education creates awareness about his rights and he comes to know when to approach for the redressal of his grievance and exploitation. This helps a consumer protect himself against fraudulent, deceptive and misleading advertisement and poor or negligent services. Machinery for Redressal of Consumer Grievances: To provide simple, speedy and inexpensive redressal of consumer grievances, the act envisagesthree- tier quasi-judicial machinery at the national, state and district levels. * National Consumer Disputes Redressal Commission - known as 'National Commission' .* Consumer Disputes Redressal Commissions known as 'State Commission”. * Consumer Disputes Redressal Forums- known as 'District Forum”. (I) The District Consumer Protection Council: 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. Composition of the district forum :Each District Forum shall consist of •A person who is, or who has been or is qualified to be, a District Judge, who shall be its President; •There will be 2 other members who shall be persons of ability, integrity and standing and have adequate knowledge or experience or have shown capacity In dealing with problems rebating to economics, law, commerce, accounting, industry, public affairs or administration, one of whom shall be a women.
  • 6. •Every appointment shall be made by the State Government on the recommendation of Selection Committee consisting of the following namely: oThe President of the State Commission- Chairman, oSecretary, Law Department of the State- Member, oSecretary, in charge, of the Department dealing with Consumer affairs in the State- Member. Terms and age: Provided that a member shall be eligible for re-appointment for another term of 5 years or up to the age of 65 years, whichever is earlier. Jurisdiction of the district forum :(1) Subject to other provisions of this Act, the District Forum shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation if any, claimed does not exceed rupees twenty lakhs. (2) A complaint shall be instituted in a District Forum within the local limits of whose jurisdiction, - The opposite party or each of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides or carries on business or has a branch office, or personally works for gain; or (b) Any of the opposite parties where there are more then one, at the time of the institution of the complaint, actually and voluntarily resides, or carries on business or has a branch office, or personally works for gain, provided that insuch case either the permission of the District Forum is given, or the opposite parties who do not reside, or carry on business or have a branch office, or personally works for gain, as the case may be, acquiesce in such institution; or (c) The cause of action, wholly or in part arises. (II) The State Commission: Regarding State Commission following provision have been made In Consumer Protection Act 1986.
  • 7. Establishment: In every state, the state government, by issuing a notification can establish consumer Grievance Redressal Commission to be called ‘State Commission’. Composition: Each State Commission shall consist of: •A person (member) who is or has been a judge of a High Court, appointed by the State Government. who shall be its President. But his appointment shall be made only after consultation with the Chief Justice of the High Court. •There will be 2 other members who shall be persons of ability, integrity andstanding and have adequate knowledge or experience or have shown capacity Indealing with problems rebating to economics, law, commerce, accounting,industry, public affairs or administration, one of whom shall be a women. •Every appointment shall be made by the State Government on therecommendation of the selection committee. The Selection committee shall be composed of: oPresident of the State Commission — Chairman oSecretary of the Law Department of the State — Member oSecretary incharge of the Department dealing with Consumer Affairs in the State — Member Terms and Age :Every member of the State Commission shall hold office for a term 5 years, or up to the age of 67 years, whichever is earlier, and shall not be eligible for re-appointment. Jurisdiction of State Commission :Subject to the other provision of this Act., the State Commission Shall have Jurisdiction: (a) to entertain: (i) complaints where the value of the goods or services and compensation, if any claimed exceeds rupees 20lakhs but does not exceed rupees one crore .(ii) appeals against the orders of any District Forum within the Stale; and (b) to call for the records and pass appropriate 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 the
  • 8. State Government that such District Forum has exercised a jurisdiction not vested In it by law or has failed to exercise a Jurisdiction so vested or has acted in exercise on its jurisdiction illegally or with material irregularity. III. The National Commission: Following are the provisions of the Consumer Protection Act in NC Establishment :By issuing a notification Central Government can set up a National Commission This Commission has been established at New Delhi. Composition: The National Commission shall compose of: •A person (member) who is or has been a judge of the Supreme Court shall be appointed by the Central Government. He shall be its President. Provided that no appointment under this clause shall be made except after consultation with the Chief justice of India. •There shall be 4 other members including one woman. They shall be persons of ability integrity, experience of, or have shown capacity in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or Administration. Every appointment shall be made by the Central Government on the recommendation of a Selection Committee consisting of the following namely: •A person who is a judge of the Supreme Court, to be nominated by the chief justice shall be its Chairman. •The secretary Department of Legal Affairs In the government of India shall be Hmember. •Secretary of the Department dealing with consumer affairs in the government of India shall be its other members. Term of Members :Every member of the National Commission shall hold office for a term of 5 years or upto the age of 70 years, whichever is earlier..
  • 9. Jurisdiction of the National Commission Subject to the other provisions of this Act, the National Commission shall have Jurisdiction as under to entertain complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees 1crore. •to entertain 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 the National Commission that such State Commission has exercised a jurisdiction not vested in it by Law, or has failed to exercise a jurisdiction so vested, or has acted in the exercise of its jurisdiction illegally or with material irregularity
  • 10. Statement of Objects The Consumer Protection Bill, 1986 seeks to provide better protection of interests of the consumers and for that purpose to make provision for establishment of consumer councils and other authorities for the settlement of consumer’s disputes and for matters connected therewith. It seeks to promote and protect the rights of consumers, such as: The right to be protected against marketing of goods where are hazardous to life and property. The right to be informed about the quality, quantity, potency, purity, standard and price of goods to protect the consumer against unfair trade practices. The right to be assured, wherever possible, access of variety of goods at competitive prices. The right to be heard and to be assured that consumers’ interests will receive due consideration at appropriate forums. The right to seek redressed against unfair trade practices or unscrupulous exploitation of consumers, and The right to consumer education. To provide steady and simple redressal to consumers’ disputes, a quasi-judicial machinery is sought to be set up at the district, state and central levels. The quasi-judicial bodies will observe the principles of natural justices and have been empowered to give relieves of a specific nature and to award wherever appropriate compensation to consumers. Penalties for non-compliance of the orders given by the quasi-judicial bodies have also been provided. Salient features of the Consumer Protection Act, 1986 The salient features of the Act are as follows: 1) The Act provides speedy redressal to consumer Redressal Forum in every district, a commission at the State level and the National commission at the Centre. The Forum in the District will have original jurisdiction to redress complaints up to claim of Rs. 1lakh (after amendment up to 10 lakhs). The National Commission can entertain any claim for damages above Rs. 10 lakhs (after amendment above 20 lakhs). The State Commission will be vested with appropriate Appellate and Revisional powers. 2) To promote voluntary consumer movement and to ensure involvement of consumers. The Bill provides for the establishment of Consumer Protection Councils in centre and the states. These Councils will have both non-official and official members. The objects of the Council will be to promote and protect the rights of the consumers. 3) It shall apply to all goods and classes of goods or all services or classes of services except those which are specially exempted by notification by the central government. 4) The provisions of the Bill shall be in additional to and not in derogation of any other law for the time being in force.
  • 11. 5) Necessary penal and punitive provisions have been corporate to ensure that the proposed legislation is effective in protecting consumers. 6) The complain can be filed by a consumer or an organization being a society registered under the Societies Registration Act, or a company registered under the Companies Act, representing consumers or by the central or state government. 7) The complaint can be field on account of any unfair trade practices resulting in loss or damage, defect in the goods, deficiency in the services, prices charged in excess of the prices fixed by or under any law or displayed on the goods/packets Definition's According Consumer Protection Act (a) "complainant" means (I) a consumer; or (ii) any voluntary consumer association registered under the Companies Act, 1956 (1 of 1956), or under any other law for the time being in force; or (iii) the Central Government or any State Government who or which makes a complaint; (iv) one or more consumers, where there are numerous consumers having the same interest; (b) "complaint" means any allegation made by a complainant that - (I)an unfair trade practice or a restrictive trade practice has been adopted by any trader; (ii)the goods bought by him or agreed to be bought by him suffer from one or more defects; (iii) the services hired or availed of or agreed to be hired or availed of by him suffer from deficiency in any respect; (iv)a trader has charged for the goods mentioned in the complaint price in excess of the price fixed by or under any law for the time being in force or displayed on the goods for any package containing such goods, (v) goods which will be hazardous to life and safety when used, are being offered for sale to the public in contravention of the provisions of any law for the time being in force requiring traders to display information in regard to the contents, manner and effect of use of such goods. with a view to obtaining any relief provided by or under this Act; (c) "consumer" means any person who, - (I)buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or
  • 12. partly paid or partly promised, or under any system of deferred payment when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose; or (ii) hires or avails of any services for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such services other than the person who hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person; Explanation : For the purposes of sub-clause (I), "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; (d) "consumer dispute" means a dispute where the person against whom a complaint has been made, denies or disputes the allegations contained in the complaint; (e) "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; (f) "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; (g)"District Forum" means a Consumer Disputes Redressed Forum established under clause (a) of section 9; (h) "goods" means goods as defined in the Sale of Goods Act, 1930 (3 of 1930); (I) "manufacturer" means a person who - (I)makes or manufactures any goods or parts thereof; or (ii)does not make or manufacture any goods but assembles parts thereof made or manufactured by others and claims the end-product to be goods manufactured by himself; or (iii) puts or causes to be put his own mark on any goods made or manufactured by any
  • 13. other manufacturer and claims such goods to be goods made or manufactured by himself. Explanation : Where a manufacturer dispatches any goods or part thereof to any branch office maintained by him, such branch office shall not be deemed to be the manufacturer even though the parts so dispatched to it are assembled at such branch office and are sold or distributed from such branch office; (j) "National Commission" means the National Consumer Disputes Redressed Commission established under clause (c) of section 9; (k) "State Commission" means a Consumer Disputes Redressed Commission established in a State under clause (b) of section 9; (l) "service" means service of any description which is made available to potential users and includes the provision of facilities in connection with banking, financing, insurance, 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; (m)"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; (n) "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. AMENDMENTS a) The Government has introduced Consumer Protection (Amendment) Bill, 2011, in Lok Sabha on December 16, 2011, to facilitate quicker disposal of cases and to widen and amplify the scope of some of the provisions of the Act.The enactment of the Consumer Protection Act, 1986, was an important milestone in the field of consumer protection. In terms of the Act, consumer disputes redressal agencies have been set up at the 629 District, 35 State and National levels to render simple, inexpensive and speedy justice to consumers in respect of complaints against defective goods, deficient services and unfair/restrictive trade practices. With a view to faster redressal of complaints and to
  • 14. rationalize procedure of appointments in consumer disputes redressal agencies, it has been felt necessary to amend the Ac Amendments proposed provide for the following- On line filing of consumer complaints Making provision for registering complaint by electronic form (on line filing complaint)- Since the Consumer Forums are being computerized it is proposed to make provision in the law to permit consumers to file complaints as well as pay fee online, which would make the consumer for a move towards e-governance/ time bound redressal. Enforcement of orders as a Decree of Civil Court Making provision that an order of the District Forum / State Commission/ National Commission will be enforced as a Decree of a Civil Court- This modification is considered essential in view of the experiences gained during implementation of the amended Act and is intended to deter willful offenders and also to ensure speedy and proper execution of the order of the consumer forums, so that justice to the aggrieved consumers is not frustrated. Payment to be made for non-compliance of the order Making provision for payment by every person for not complying of the order of District Forum / State Commission / National Commission of an amount of not less than Rs.500 or 1½ per cent of the value of the amount awarded- whichever is higher, for each day of delay of such non-compliance of the order. This modification is considered essential in view of the experiences gained during implementation of the amended Act and is intended to deter willful offenders and also to ensure speedy and proper execution of the orders of the consumer forums, so that justice to the aggrieved consumers is not frustrated. Powers to District Forum Empowering District Forum to function in any other place apart from District HQrs, in consultation with State Government / State Commission - This provision is considered necessary to allow State Governments the flexibility to club neighboring Districts Forum as also give additional charge to President/Members to hear cases in more than one District Forum so as to effectively deal with the non-functionality of Districts Forum caused due to vacancy of President/Member. Conferring powers to District Forum to issue order to the opposite party to pay reasonable rate of interest on such price or charges as may be decided by the District Forum- This provision is
  • 15. considered necessary to empower the consumer forum to award interest where the consumer has suffered due to protracted litigation. Powers to State Government in selection process Empowering State Government to refer back the recommendation of the Selection Committee for making fresh recommendation in order to avoid any delay in the Selection process- This is felt necessary to facilitate quicker filling up of the posts in the Consumer Forums and to avoid the consumer Forum remaining non-functional for long due to such vacancy thereby adversely affecting consumers’ interest. Increase of age in the appointment Increasing the minimum age for appointment as Member in the case of State Commissions from 35 to 45 years, and in case of National Commission from 35 to 55 years- This is proposed to improve the quality of persons applying for these posts. Experience for members Increasing the period of experience for appointment as Member in the case of State Commission from 10 years to 20 years and in the case of National Commission from 10 years to 30 years-This is proposed in order to improve the quality of persons applying for these posts. Powers to National Commission / State Commission to direct any one to assist the case Conferring powers to National Commission / State Commission to direct any individual or organization or expert to assist National Commission / State Commission in the cases of large interest of the consumers- This provision would enable the National Commission or the State Commission, in cases involving the larger interests of the consumers, an opportunity to suo moto enlist the services of an expert or an outside party, in an ongoing case, in the interest of justice. Monitoring system of pending cases Conferring powers to Central Government to call upon periodical reports of pending cases from National Commission and to State Government from State Commission or any District Forum- The provision is considered necessary to enable easy availability of data regarding filing and disposal of consumer complaints, which would help in monitoring the functioning of the consumer for a and effectiveness of the law. The above said amendments proposed in the Act will go a long way in speedy redressal of Consumer grievances and sturdy protection of Consumer rights.
  • 16. b) Consumer to soon be king: Govt mulls more power for buyers through Consumer Protection (Amendment) Bill 2010 to be Introduced in parliament very soon. Bill amplifies the provisions of the Act, facilitates quicker disposal of consumer complaints and rationalizes the qualifications and procedure of selection of President and members of the consumer fora. If a shopkeeper doesn’t give you a bill for your purchase, you may soon be able to take him to court. At the same time, anything and everything you buy can be challenged legally if it is found to be of poor quality. A product need not be “hazardous” at the beginning to be “unsafe” later. Most importantly, consumers will be able to receive extra money from consumer fora in case of protracted litigation. The central government is mulling a clutch of amendments to Consumer Protection Act, 1986, to empower consumers and to inject transparency in the three-tier consumer protection fora at the district, state and national levels. If accepted, the Act will make a shopkeeper not issuing cash memo or bills for goods sold as guilty under the law. The possession of bill makes a consumer a “bonafide” customer and its absence robs him of a stronger footing in courts if he challenges a sale. It will henceforth be dubbed an “unfair trade practice”. The most consequential change may be the widening of the definition of “defect” and “deficiency”. While the Act clubs a few shortcomings in a product to qualify as “defect”, it is proposed to keep the definition open-ended — by replacing “means” which follows the spelt- out defects with “includes” — to qualify any unspecified flaw as defect. The seller will in future have to give the buyer every bit of information about a commodity. It is proposed that withholding information about a good, which can influence the choice of a customer, should be treated as an offence. The definition of “unfair trade practice” is to be expanded to include the unforeseen modus operandi of traders as offences. It will allow the law to not specify every unfair practice in the law. A key change relates to safeguarding the consumers who are fleeced by the sellers through various contracts or conditions which place them in “unequal bargaining capacity”. The 199th report of the Law Commission had suggested the change to bring the consumers on a stronger footing to challenge any unfair practice. A contract or a condition will be “unconstitutional and
  • 17. illegal” if it is between two parties of unequal bargaining capacities, one-sided and unfair to the weaker party. Such a contract is said to be offending spirit of the Constitution. The amendments also seek to bring transparency in consumer courts with regard to selection of presiding officers, filing of cases and discharge of justice. Consumers will be able to file “cases online” in what is an attempt to empower them. A key proposal says that presidents or members in consumer fora should be barred from pleading before them. This includes those who either held office in these for a or wielded administrative control there. It is an attempt to stop any unfair clout to be pedalled in the courts. The Act seeks to empower consumer courts to award “interest” to compensate consumers who suffer from prolonged court battles. State commissions are to be given more power to be able to renew their own orders if they notice factual mistakes in the records. The powers of judicial magistrate first class will be more explicit under the Act. The quasi-judicial three-tier consumer disputes redressal machinery — national, state and district — provided by the Consumer Protection Act has led to a culture of consumer protection. The rising consciousness among people about their rights has led to consumers going to courts to seek redressal against unfair deals or cases of cheating.