1) The Consumer Protection Act, 1986 was enacted to provide better protection of consumer interests in India. It applies to the whole country except Jammu and Kashmir. 2) The Act establishes Consumer Dispute Redressal forums at the district, state, and national levels to hear complaints from consumers regarding defective goods or deficient services. 3) A consumer is defined as any person who buys goods or avails services for personal use and not for resale. The Act provides consumers various rights such as safety, information, choice, and redressal.

1. CONSUMER PROTECTION
ACT, 1986
- Chapter 7
1

2. CONSUMER PROTECTION
ACT, 1986
 Enacted to provide for the better protection of the
interest of consumer
 Act applies to whole of India except Jammu and
Kashmir
 The act was amended in 2002 and the
amendments came into force w.e.f. 15th March
2003.
2

3. The Consumer Protection Act, 1986
An Act to provide for the better protection of the
interests of consumers and for that purpose to
make provisions for the establishment of the
consumer councils and other authorities for the
settlement of consumers disputes and for
matters connected therewith.

4. Consumer : (Sec2(1)d) 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 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

5. (ii) hires or avails any services for consideration which
has been paid or 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 or consideration paid or
promised, or partly paid and partly promised, or
under any system of deferred payments, when such
services are availed of with the approval of the first-
mentioned person but does not include a person
who avails of such services of any commercial
purpose

6.  Legal heir of consumer in case death of
consumer
 Does not include any person who buys goods
for resale or commercial purpose and services
for commercial purpose
 However any person who buys goods for
commercial use but exclusively for his
livelihood by means of self employment is a
consumer.
6

7. Who are not consumers….?
1. Persons not identified as consumers.
2. Person purchasing goods for commercial
purpose is not a consumer.
3. An association not registered under any law is
not a consumer.

8. WHAT IS A COMPLAINT?
“Complaint” means any allegation in writing made by
a complainant that :
I. An unfair trade practice or a restrictive trade
practice has been adopted by any trader or
service provider;
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 off by him suffer from deficiency
in any respect; 8

9. IV. A trader or service provider as the case may
be has charged for the goods or for the
services mentioned in the complaint, a price
in excess of the price
a) fixed by or under any law for the time
being in force;
b) displayed on the goods or any package
containing such goods;
c) displayed on the price list exhibited by
him by or under any law for the time
being in force;
d) agreed between the parties .
9

10. V. Goods which will be hazardous to life and
safety when used are being offered for sale to
the public –
a) In contravention of any standards
relating to safety of such goods as
required to be compiled 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;
10

11. VI. Service which are hazardous or likely t be
hazardous to the 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.
11

12. Meaning of Defect
 Section 2(1) (g) of the Act provides that, “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.

13. What is a service?
“Service” means service of any description, which is
made available to potential users and includes, but not
limited to the provisions of the facilities in connection
with
1) banking 2) financing 3) insurance 4) transport
5) processing 6) supply of electrical or other energy
7) boarding or lodging or both 8) house construction
9) entertainment 10) amusement or
11) the purveying or new or other information
But does not include the rendering of any service free of
charge or under a contract of personal service
13

14. Examples
 Bank of Maharashtra v/s Mrs. Jyothi
Satya
 When the locker facility is provided by the
bank, the relationship b/w the bank and
hirer of a locker is not that of a landlord and
tenant.
 In event of loss of contents of lockers as a
result of robbery, the bank will be liable for
deficiency of service.

15.  Failure of the housing board to give possession
of the flat after receiving the price and
registering it in favour of the allottee.
 Non-delivery of consignment by the courier.
 Failure of railways to provide cushioned seats
in the first class compartment as per
specifications laid down by the board.

16.  The removal of ladder of an aircraft while the
passenger was disembarking and thereby
causing 10% permanent disability.
 The fall of the passenger from a running train
while passing through the vestibule passage.

17. Examples
 Delay caused in returning of baggage or
tampering with baggage.
 Failure in informing the unavailability of a
connecting flight.

18. Goods
(sec 2(i)) means goods as defined in the sale of
goods Act, 1930. In the sale of goods Act, the
term “goods” has been defined as follows:
-”goods” means every kind of movable property
and money; and includes stock and shares,
growing crops, grass and things attached to or
forming part of land which are agreed to be
served before sale and under the contract of
sale.
18

19. Rights of consumers under CPA,1986
1.Right to safety: - A consumer is entitled to get protected from
the products and commodities which are dangerous to life or
health.
2.Right to choose:- consumers are entitled to free access to
goods in order to choose and pick for themselves which they
deem best for their use.

20. 3.Right to informed: - consumers are entitled to be
informed about the goods and products and
adulteration therein.
4. Right to be heard: - the consumers are entitled
to be heard by an appropriate authority or court
if they are defrauded or bluffed by some trader
they are entitled to make a complaint and to be
heard thereon
20

21. 5.Right to redress or relief:- consumers are entitled
to get relief from the appropriate authority or
courts after hearing and disposal of their
complaints.
6.To obtain goods and services of good quality: - the
consumers are entitled to get goods and services
of good quality for which they pay or promise to
pay, or partly pay and partly promise to pay in
future.

22. 7. Truthfulness of the advertisement :- the
consumers are entitled to get true information
from the advertisements as to the goods and
services.
22

23. CONSUMER DISPUTE REDRESSAL
AGENCIES
1) A Consumer Dispute Redressal Forum at the
District level.
2) A Consumer Dispute Redressal Commission at
the State level.
3) A National Consumer Dispute Redressal
Commission at national level.
23

24. JURISDICTION
Forum / Commission Where the value of the goods or
services and the compensation, if
any claimed,
District Forum Does not exceed Rs. 20 lakhs
State Commission Rs. 20 lakhs and above but not
exceeding One Crore
National Commission Above One Crore
Besides, State and National Commission have appellate
jurisdiction also.
24

25. FILING OF COMPLAINTS
A complaint may be filed by
a) The consumer to whom the goods are sold
or services are provided
b) Any recognised consumer association
c) One or more consumers with same interest
d) The central government or state government
25

26. FILING OF COMPLAINTS
The Fee for filing the Complaint for the district forum is as under
Sl. Value of Goods / Service and Compensation Amount
No. of Fees
1) Upto Rs. 1 lakh rupees Rs. 100
2) Rs. 1 Lakh and above but less than Rs.5 lakhs Rs. 200
3) Rs. 5 Lakhs and above but less than Rs. 10 lakhs Rs. 400
4) Rs. 10 lakhs and above but less than Rs. 20 Rs.500
lakhs
The fees shall be paid by Cross demand Draft drawn on a nationalized
bank or through crossed Indian postal order drawn in favour of the
Registrar of the Sate Commission and payable at the place of the State
Commission (w.e.f. 5.3.2004.)
26

27. Central Consumer Protection Council
 The Central Government may, 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

28. Consists of…..
 the Minister in charge of consumer affairs in the
Central Government, who shall be its Chairman
 such number of other official or non-official
members representing such interests as may be
prescribed

29. Procedure for meetings of the Central
Council
 The Central Council shall meet as and when
necessary, but at least one meeting of the
council shall be held every year
 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

30. Objects of the central council
 a) The right to be protected against the
marketing of goods and services which are
hazardous to life and property.
 b) The right to be assured ,where ever possible
,access to a variety of goods and services at
competitive price

31.  c) The right to consumer education.
 d) The right to be heard and to be assured that
consumer interests will receive due
consideration at appropriate forums.
 e) The right to be informed about the quality
,quantity,potency,purity,standard and price of
goods or services so as to protect the
consumer against unfair trade practices.

32. The state consumer protection
councils
 Members :-
 Chairman:-The minister in charge of consumer
affairs of the state government.
 Such number of other official or non-official
members representing such interests as may be
prescribed by the state government.

33.  Meetings:-
Number of meetings:-Not less then 2 meetings
every year
Time and place:- Depends on the chairman
 Objective:-
To promote and protect within the states
The rights of the consumer as laid down in
Sec(6)

34. The district consumer protection
council
 Members:-
District collector is the Chairman
Other official and non-official members are
appointed by the state government

35.  Meetings:-
Number of meetings:- not less then 2 meetings
Time and place:- as decided by the chairman
Objective:-
To protect and preserve the right of the
consumer within the district.

36. Nature and scope of remedies Under
the Act
 In case the goods complained against suffer
from any of the allegations contained in the
complaint about the services are proved, the
district forum/the state commission may pass
one or more of the following orders;

37.  To remove the defects pointed out by the
appropriate laboratory from all the goods in
question.
 To replace the goods of similar description which
shall be free from defect.
 To discontinue the unfair trade practice or
restrictive trade practice or not to remove them.
 To withdraw the hazardous goods from being
offered for sale.
 In the case of misleading advertisements the
other party has to pay the cost of the corrective
advertisements.

38. State commission
 Composition
 The state commission should consist the
following;
 A. President; He shall be a person who is or was
a judge of the high court. His appointment can
be made only after consultation with the chief
justice of high court
 B. Members; there shall not be less than two or
not more than the number specified, one of
them should be a woman.

39.  The members should have the following
qualifications;
 1.Not less than the age of 35.
 2.the person should possess a bachelor degree
from any recognized university.

40. The consumer to whom the goods are sold or
delivered, or agreed to be sold or delivered , or
the service has been provided, or agreed to be
provided’
Any recognized consumer association,
regardless of whether the consumer is a
member of such association or not.

41. One or more consumer , where there are
numerous consumer having the same interest
with permission of the district forum on behalf of
or for the benefit of all consumer so interested.
The state or central govt. either its individual
capacity or as a representative of the interest of
the consumer in general.

42. PROCEDURE ON RECEIPT OF
COMPLAINTS
Complaint where laboratory testing is possible
or required.
Complaint related to service, i.e, where
laboratory testing is not possible.

43. ESSENTIAL INFORMATION IN THE
APPLICATION
 Name and full address of complainant
 Name and full address of opposite party
 Description of goods and services
 Quality and quantity
 Price
 Date & proof of purchase
 Nature of deception
 Type of redressal prayed for

44. BENEFITS & RELIEFS
 Benefit
 Disposal within 90 days
 No adjournment shall ordinarily be granted - Speedy
trial
 Relief
 Removal of defects in goods or deficiency in services.
 Replacement of defective goods.
 Refund against defective goods or deficient services.
 Compensation.
 Prohibition on sale of hazardous goods.

45. POWER OF CIVIL COURT TO
DISTRICT FORUM
The District Forum shall have the powers of Civil Court
while trying a suit in respect of the following matters ;
a) The summoning and enforcing attendance of any
defendant or witness and examining the witness on oath.
b) The discovery and production of any document or other
material object producible as evidence.
c) The reception of evidence on affidavit
d) The requisition of the report of the concerned analysis or
test from the appropriate laboratory of from any other
relevant source.
e) Any other matter which may be prescribed.
45

46. RELIEF TO THE COMPLAINANT ?
IF THE COMPLAINT IS PROVED THE FORUM SHALL
ORDER
a) to remove defect pointed out by the appropriate laboratory
from the goods in question;
b) to replace the goods with new goods of similar description
which shall be free from any defect;
c) to return to the complainant the price, or , as the case may
be, the charges paid by the complainant;
d) to pay such amount as may be awarded by it as
compensation to the consumer for any loss or injury
suffered by the consumer due to negligence of the opposite
party;
e) To remove the defect in goods or deficiency in the services
in question.
46

47. RELIEF TO THE COMPLAINANT ?
f) to discontinue the unfair trade practice or the restrictive
trade practice or not to repeat them;
g) not to offer hazardous goods for sale;
h) to withdraw the hazardous goods from being offered for
sale;
ha) to cease manufacture of hazardous goods and to desist from
offering services which are hazardous in nature;
hb) to pay such sum as may be determined by it, if it is of the
opinion that loss or injury has been suffered by a large
number of consumers who are not identifiable conveniently.
hc) to issue corrective advertisements to neutralize the effect of
misleading advertisement at the cost of the opposite party
responsible for issuing such misleading advertisement;
i) To provide for adequate cost to parties.
47

48. APPEAL
 shall be filed within thirty days.
 Delay in filing appeal may be
condoned if there is sufficient cause.
48

49. LIMITATION PERIOD
Within two years from the date on
which the cause of action has arisen.
49

50. DISMISSAL OF FRIVOLOUS OR
VEXATIOUS COMPLAINTS
 Where a complaint instituted before the
District Forum, the State Commission or
the National Commission, is found to be
frivolous or vexatious, it shall, for reasons
to be recorded in writing, dismiss the
complaint and make an order that the
complainant shall pay to the opposite
party such Cost, not exceeding ten
thousand rupees, as may specified in the
order.
50

51. PENALTIES
Where a trader or a person against whom a
complaint is made (or the complainant) fails or
omits to comply with any order made by the
District Forum, the State Commission or the
National Commission, such trader or person (or
complainant) shall be punishable with
imprisonment for a term which shall not be less
than one month but which may extend to
three years or with fine which shall not be
less than two thousand rupees but which may
extend to ten thousand rupees, or with both.
51

52. NOTE ON CONSUMER
PROTECTION ACT, 1986
• A person may be consumer of goods, or services. When I
purchase a fan, a gas stove or a refrigerator, I could be
the consumer of goods.
• When I open a bank account, take an insurance policy, get
my car repaired, I could be the consumer of services.
• The consumer protection Act, 1986 tries to help a
consumer when for example, the goods purchased are
defective or the services rendered to him are subject to so
deficiency.
52

53. • Prior to the consumer Protection Act, 1986 for
any consumer complaint one had to go to an
ordinary Civil Court. He had to engage a
lawyer, pay the necessary fee, and be harassed
for years or decades before any outcome,
positive or negative, was there in that
litigation.
• Under the Consumer Protection Act, no Court
fee has to be paid and the decision on the
complaint is much quicker, as the Court can
evolve a summary procedure in disposing off
the complaint