consumer protection act

IMA 5001: Commercial Law
Module 6: Consumer Protection Act, 1872
Bit Mesra, Jaipur Campus Contact : Santk@live.com
Consumer Protection Act
INTRODUCTION
Consumer rights are an integral part of our lives like the consumerist way of life. We have
all made use of them at some point in our daily lives. Market resources and influences are growing
by the day and so is the awareness of ones consumer rights. These rights are well defined and there
are agencies like the Government, consumer courts and voluntary organizations that work towards
safeguarding. While we like to know about our rights and make full use of them, consumer
responsibility is an area which is still not demarcated and it is hard to spell out that all the
responsibility is that a consumer is supposed to shoulder.
Consumer Protection Act, 1986 is an important Act in the history of the consumer
movement in the country. The Act was made to provide for the better protection and promotion of
consumer rights through the establishment of consumer councils and quasi-judicial machinery. It is
mile stone in the history of socio-economic legislation and directed towards public welfare and
public benefits.
The CPA was passed by the Lok Sabha on 5th December 1986 and Rajya Sabha on 10th
December, 1986 and assented to by the president in the Gazette of India.
Extra Part II: Section 1 dated 26.12.1986.and at PP 1-12 called, “the CPA 1986 (Act No.66 of 1986)
and the preamble states that, “An Act provide for better protection of the interest of the
consumers and for that purpose to make provisions for the establishment of consumer councils
and other authorities for the settlement of consumer’s dispute and for matters connected
therewith.”
Under the Act, consumer disputes redressal agencies have been set up through out the country
with the District Forum at the District level, State Commission at the State level and National
Commission at national level to provide simple, inexpensive and speedy justice to the consumer with
complaints against defective goods, deficient services and unfair and restrictive trade practices.
The Law relating to consumer protection in India is at recent origin and is developing
slowly, day by day, with the pronouncement of orders passed by the commissions constituted under
the Act all over India and the National Commission. However the presence of some protective Laws
for the benefits of consumer in the ancient culture cannot be denied1.
On a strict reading of the provisions of the Act as a whole it would be seen that in enacting the
statute the interaction of the Parliament was to provide protection and relief to four categories of
consumers:
(i) Persons who have suffered loss or damage as a result of any unfair trade practice
adopted by any trader.
(ii) Persons who have purchased goods for which the trader has charged a price in excess
of the price fixed by or under any law for the time being in force, or displayed on the goods or
any package containing such goods.
(iii) Persons who have purchased goods for consideration which are found suffer from one or
more defects.
(iv) Persons who have hired any services for consideration when the services provided are
found to suffer from deficiency in any respect.
OBJECTIVE
The provision of the Act in the light of its preamble reads as: “An Act to provide better
protection of the interest of consumers… for the settlement of consumer dispute and for matters
connected therewith”.
The word ‘protection’ furnishes the key to the mind of the makers of the act2. Its provision has to be
interpreted in favour of the consumer, in such a manner as to provide maximum relief to him.
The primary duty of the court, while constructing provisions of the Act is to adopt a constructive
approach. It should not do violence to the provisions and should also not be contrary to attempted

objective of the Act3. This Act has not been frame to provide a loophole and excuses to well
organized traders, producers4 and big business houses and manufactures on technical grounds.
RELIEF UNDER THE CONSUMER PROTECTION ACT
Reliefs provided under the Act, 1986 are as follows:
(I) SPECIFIC RELIEFS
The Act allows consumers to file complaints on five specific grounds. The Act does not allow
complaints to frame their reliefs as they do not wish nor does it leave it to the Consumer Disputes
Redressal Agencies (CDRAs) to work out remedies according to their discretion. The reliefs possible
are indicated in Article 14 of the Act. One can find below the reliefs obtainable in the case of each of
the items of complaint listed in Article 2(1) (c).
DEFECTS IN GOODS
There are several remedies in respect of this:
-Removal of the defect pointed out by the laboratory (a);
-Removal of defect in respect of goods not sent to laboratory analysis (e);
-Replacement of goods (d);
-Return of price (c).
In respect of fungible goods the removal of defect will not be of any use to the complainant. But
however the order will be operative in future as regards the same goods and would serve the interest
of all consumers.
Clause (a) being restricted to defects pointed out by the laboratories, Clause (e) provides the relief in
respect of other goods not sent to the laboratory. It is true that the word “goods” is not found in that
Clause. The clause should normally read as “to remove the defects in the goods or deficiencies in the
services in question”. But it can be understood only as such, since one can gather from the definition
of the word “defect” in Clause 2(1)(f) that it relates only to goods. Similarly “deficiency” is only in
respect of service [Clause 2(1) (g). The complainant should, therefore, take care not to use the word
“defect’ for “deficiency” or vice-versa.
DEFICIENCY IN SERVICE
The reliefs are:
-Return of charges paid (c);
-Removal of the deficiency (e).
Removal of deficiency in not always possible once service has been rendered. Even if possible, it is
no usually desired by the consumer, who had a bad experience, to resort to the same person for
service.
OVER-PRICING OF ARTICLES
Return of the price against return of the article or reimbursement of the excess price.
UNFAIR TRADE PRACTICE AND RESTRICTIVE TRADE PRACTICE
The reliefs are:
-To discontinue them or not to repeat them (f);
Unfair trade practice and restrictive trade practice are defined in the Act with great precision. These
words should be used only in cases contemplated in the definitions of those words, not in case of
other grounds of complaint like defect in goods or overt-pricing, because the reliefs in such case are
different.
HAZARDOUS GOODS
The reliefs are:
-Not to offer the hazardous goods for sale (g);
-To withdraw the hazardous goods from being offered for sale (h);
3 Id at 110
4 id., at 110

It is thus seen that for each ground of complaint there is one or more reliefs available which can be
asked for alternatively or cumulatively. It is for the complainant to decide and to frame properly the
reliefs with indication of the respective clauses.
(II) GENERAL RELIEF OF COMPENSATION
Compensation may be asked in all cases,
Negligence in case of defects in goods, though not frequent, may however happen. Therefore,
compensation will be a welcome relief to the consumer in addition to the other which he possesses.
It is in respect of service that compensation will play a big role.
In this connection it is to be stated that negligence is very close to deficiency which arises in
consumer will get only return of charges, whereas if there is negligence, he will get compensation
in addition. Compensation has to be specifically asked for and the acts of negligence pointed
out. Once negligence is proved, the amount of compensation has to be determined. As per the
Act it is for loss or injury suffered. The complaint has, therefore, to give details of the loss and
estimate it in terms to be established. The correctness of the estimate has also to be established.
The complainant can start by an affidavit. If the demand appears reasonable the same have to
be adduced, failing which the CDRA concerned will determine itself the amount. Lastly how
and to what extent loss or injury is attributable to negligence is also to be shown and proved except
in cases of res ipsa loquitur, where the fact is eloquent by itself.
Whereas the extent of other reliefs is determined by the Act itself this one is left to the appreciation
of the CDRAs. Regarding the assessment of compensation by CDRAs there are two methods:
Global assessment to the best of the judgment of the adjudicating body which consists at least
of there persons or computation of damages with the help lf some yardsticks. The second course
appears to be more accurate. But the yardsticks are not easy to determine properly and may lead
some times to grace errors. The preference of the CDRAs is now for global assessment.
MEANING AND SCOPE OF CONSUMER AND C.P.A.
As the preamble of CPA 1986 reflect; this socio-economic Law was enacted to provide for the better
protection of the interest of consumers and for that purpose the CPA 1986 seeks to provide speedy
and simple redressal to consumer dispute. In Charan Singh v. Healing Touch Hospital5 the Hon’ble
Supreme Court has made important observations on the object of the act.
S.2(1)d of the act defined consumer as “Consumer” means any person who-
(i) Buys any goods for a consideration which has been paid or promised or partly paid and
party 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 person, but does not include with the
approval of self person, but does not include a person who obtains such goods for resale or for any
commercial purpose or
(ii) {Hires for avails of} any services for a consideration which has been paid promised or
partly paid or partly promised or under any system of differed payment and includes any beneficiary
of such services other than the person. [hires or avails of ] the services for consideration paid or
promised or partly paid or partly promised, under any system of differed payment, when such
services are availed or with the approval the first mentioned person.
The word ‘consumer’ as has been defined in the Act means any person who buys any goods for
consideration, but does not include a person who obtain such goods for resale or for any
commercial purpose. Thus a person who purchases goods for any commercial purpose, does
5 AIR 2000 SC 3138.

not fall within the definition of word consumer. Going by plain dictionary meaning of the
words used in the definition of consumer it is clear that this Act intends to restrict the benefits
to ordinary consumers purchasing goods either for their own consumption or even for use in
small ventures which they have embarked upon in order to make a living and to deny the
benefit of the Act to persons purchasing goods either for the purpose of resale or for the
purpose of being used in profit making activity engaged on a large scale.
Scope
The definition has two parts. The first part in clause (1) deals with buyer and user of goods. The
2nd part covers the hirers and beneficiary of services.
CONSUMER RIGHTS
Consumers in the advanced countries, obviously, are much more conscious of their rights than in
countries like India. In 1962, President John F. Kennedy, and in 1965, President Johnson
emphasized the consumer rights and gave an impetus to consumerism in the U.S.A and other
countries.
Important consumer rights include:
1. Right against exploitation by unfair trade practices.
2. Right to protection of health and safety from the goods and services the consumers buy or
are offered free.
3. Right to be informed of the quality and performance standards, ingredients of the product,
operational requirements, freshness or the product, possible adverse side effects and other
relevant facts concerning the product or service.
4. Right to be heard if there is any grievance or suggestions.
5. Right to get genuine grievances redressed.
6. Right to choose the best from a variety of offers.
7. Right to physical environment that will protect and enhance the quality of life.
Exploitation of Consumers
Consumers are, however, by and large, practically denied most of these rights. They are exploited by
a large number of restrictive and unfair trade practices. A situation has developed in science is
extensively applied to marketing to ruthlessly, exploit the consumers by stimulating the weak points
and soft corners of their mind. Misleading, false or deceptive advertisements are quite common.
Many a time the advertisements deliberately give only half truths so as to give a different impression
than is the actual fact. Thus, advertisements may, be misleading because things that should be said
have not been said, or, because advertisements are composed or purposefully presented in such a
way as to mislead.
CONSUMER PROTECTION
For effective consumer protection, a practical response on the part of three parties, for
example, the business, the government and the consumers, is essential.
Firstly, the business, comprising the producers and all the elements of the distribution channels, has
to pay due regard to consumer rights. The producer has an inescapable responsibility to ensure
efficiency in production and the quality of output. He should also resist the temptation to charge
exorbitant prices in a seller’s market. Many a time, the imperfections on the supply side, like
hoarding and black marketing, mercilessly gouge the consumer. Hence, a socially responsible
producer should see to it that whatever is produced reaches the ultimate consumer in time and at
reasonable prices.
Secondly, the Government has to come to the rescue of the helpless consumer to prevent him from
being mislead, duped, cheated and exploited. It should also take special care of the vulnerable
sections. Governments should establish or maintain legal and/or administrative measures to enable
or, as appropriate, relevant organizations to obtain redress through formal or informal procedures
that are expeditious, fair, inexpensive and accessible. Such procedures should take particular account
of the needs of low-income consumers.

Thirdly, consumers should accept consumerism as a means of asserting and enjoying their rights.
Consumerism should succeed in making the business and the government more responsive to the
rights of the consumers. Consumerism is a social force to (i) make the business more honest,
efficient, responsive and responsible, and (ii) pressurize the government to adopt the necessary
measures to protect consumer interests by guaranteeing their legitimate rights.
CONSUMER PROTECTION AND CONSUMERISM IN INDIA
Plight of the Indian Consumer
An examination of the important problems facing the Indian consumer would make clear the need
for more effective government intervention and consumer movement to safeguard consumer rights.
The following factors make the plight of the Indian consumer miserable.
1. Short supply of many goods and services, especially of essential items, is a very serious
problem afflicting the Indian consumer. The demand-supply imbalance has produced all the
associated evils of profiteering, hoarding and black-marketing, corruption, nepotism,
irresponsiveness and arrogance towards consumers. Although the situation has improved as a result
of the increase in competition due to liberalization, it is still far from satisfactory.
2. The Indian consumer is also the victim of lack of effective or workable competition.
“Competition among sellers, even though imperfect, may be regarded as effective or workable if it
offers buyers real alternatives sufficient to enable them, by shifting their purchases form one seller to
another, substantially to influence quality, service, and price. Effective competition depends also
upon the general availability of essential information; buyers cannot influence the behaviour of
sellers unless alternatives are known. It requires the presence in the market of several sellers, each of
them possessing the capacity to survive and grow, and the preservation of conditions which keep
alive the threat of potential competition among sellers is thus to be found in the availability of buyers
of genuine alternatives in policy among their sources of supply6.”
3. Many products with which consumers in advanced countries are quite familiar are still new
to a very large segment of the Indian consumers. The unfamiliarity of the consumers with product
features makes the sale of substandard, inferior or even defective products easier in India than in
advanced countries.
4. Due to low literacy levels and unsatisfactory information flows, the Indian consumers, by
and large, are not conscious of all their rights. This encourages irresponsible and unscrupulous
business attitudes and tactics.
5. It has been said that the legal process in India is comparatively time-consuming and
cumbersome. This discourages the consumers from seeking the Redressal of their grievance by
means of the judicial process.
6. Consumerism in India is not well organized and developed.
7. Though the public sector had not been developed and expanded to serve the public interest
by providing effective competition to the private sector, increasing production, improving
distribution, etc., it failed to produce benefits that were commensurate with the investment.
8. Though there are a number of laws to safeguard the interests of consumers, they are not
effectively implemented and enforced to achieve the objectives.
The above factors are effective State intervention and consumerism to ensure the rights of
consumers.
Government Measures
In India, the Government has taken a number of measures to protect consumer interests. The
various Government measures may be classified into (i) statutory regulation of private business, and
(ii) development of the public sector.
Statutory Regulation: Government of India has armed itself with a number of statutory weapons to
control the production, supply, distribution, price and quality of a large number of goods and
services. It is empowered to regulate the terms and conditions of sale, the nature of trade and
commerce, etc. There is a feeling that, “unlike in the West, the Government in India has a large
number of controls on industry and is, therefore, in a position to respond more swiftly and
6 Joel Dean. Managerial Economics, New Delhi: Prentice-Hall

effectively than western Governments. I some ways our bureaucracy has perfected the art of
assuming the guardianship of all interests of the consumers and the vulnerable sections.”
Growth of Public Sector: There had been a significant growth and expansion of the public sector in
India. One of the most important objectives of the public sector was the enhancement of consumer
welfare by increasing production, improving efficiency in production, improving efficiency in
production and supply, making available goods and services at fair prices, curbing private
monopolies and reducing market imperfections, improving the distribution system, and so on. The
public sector, in fact, is expected to implement the societal marketing concept.
There is, however, a general feeling that the public sector in India has still a long way to go to realize
these objectives. It has established monopolies or near-monopolies in public utilities, whose
performance is far from satisfactory.
LEGAL PROVISION

CONSUMER PROTECTION ACT, 1986
PREAMBLE
“An Act to provide for better protection of the interests of consumers and for that purpose to make
provision for the establishment of consumer councils and other authorities for the settlement of
consumers' disputes and for matters connected therewith” .
Be it enacted by Parliament in the Thirty-seventh Year of the Republic of India as follows:
1. SHORT TITLE, EXTENT, COMMENCEMENT AND APPLICATION
(1) This Act may be called the Consumer Protection Act, 1986.
(2) It extends to the whole of India except the State of Jammu and Kashmir7.
(3) It shall come into force on such date 1 as the Central Government may, by notification appoint
and different dates may be appointed for different States and for different provisions of this Act.
(4) Save as otherwise expressly provided by the Central Government by notification, this Act shall
apply to all goods and services.
2. Definitions.
(1) In this Act, unless the context otherwise requires,-
8[(a) "Appropriate laboratory" means a laboratory or organization-
(i) Recognized by the Central Government ;
(ii) Recognized by a State Government, subject to such guidelines as may be prescribed by the
Central Government in this behalf; or
(iii) Any such laboratory or organization established by or under any law for the time being in force,
which is maintained, financed or aided by the Central Government or a State Government for
carrying out analysis or test of any goods with a view to determining whether such goods suffer from
any defect;]
(b) "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;
9[(iv) One or more consumers where there are numerous consumers having the same interest;]
10[(v) in case of death of a consumer, his legal heir or representative.]who or which makes a
complaint;
(c) "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 5[any trader or service
provider;]]
(ii)11[The goods bought by him or agreed to be bought by him] suffer from one or more defects;
7The provisions of Chapters I, II and IV of this Act have come into force in the whole of India
except the State of Jammu and Kashmir on 15-4-1987: vide Notification No. S.O. 390 (E),
dated 15th April, 1987, published in the Gazette of India, 1987, Extra. Pt. II, Sec. (ii). The
Provisions of Chapter III of this Act have come into force in the whole of India except the State
of Jammu and Kashmir on 1-7-1987: vide Notification, No. S.O. 568 (E), dated 10th June,
1987, published in the Gazette of India, 1987, Extra. Pt. II, Sec. 3 (ii).
8 Substituted by Act 50 of 1993, sec. 2 for clause (a) w.e.f. 18-6-1993.
9Ins. by Act 62 of 2002, sec.2 (w.e.f. 15-3-2003).
10 Ins. by Act 62 of 2002, sec.2 (w.e.f. 15-3-2003).

(iii) 12[Service hired or availed of or agreed to be hired or availed of by him] suffer from deficiency
in any respect;
(iv) [a trader or the service provider, as the case may be, has charged for the goods or for the service
mentioned in the complaint, a price in excess of the 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;
13[(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 complied
with, by or under any law for the time being in force;
(B) if the trader could have known with due diligence that the goods so offered are unsafe to the
public;]
14[(vi) service which are hazardous or likely to be hazardous to life and safety of the public when
used, are being offered by the service provider which such person could have known with due
diligence to be injurious to life and safety.]
(d) "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)15[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 then 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 [but does not include a person
who avails of such services for any commercial purpose];
16[Explanation. For the purposes of this sub-clause "commercial purpose" does not include use by a
consumer of goods bought and used by him and services availed by him exclusively for the purposes
of earning his livelihood, by means of self-employment;]
(e) "Consumer dispute'' means a dispute where the person against whom a
complaint has been made, denies or disputes the allegations contained in the complaint;
(f) "Defect" means any fault, imperfection or short coming 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 17[under any contract express or implied or] as is claimed by the trader in any manner whatsoever
11 Subs. by Act 50 of 1993, sec. 2, for "the goods mentioned in the complaint" (w.e.f. 18-6-
1993).
Subs. by Act 50 of 1993, sec. 2, for "the services mentioned in the complaint" (w.e.f. 18-6-
1993).12
13 Ins. by Act 50 of 1993, sec.2 (w.r.e.f. 18-6-1993) and subs. by Act 62 of 2002, sec. for sub-
clause "(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," (w.e.f. 15-3-2003).
14 Sub-clause (vi) along with sub-clause (iv) and (v) subs. For the earlier clauses (iv) and (v) by
Act 62 of 2002, sec. 2 (w.e.f. 15-3-2003). 11. Subs. By Act 50 of 1993, sec.2, for "hires" (w.r.e.f.
18-6-1993).
15 Subs. By Act 50 of 1993, sec.2, for "hires" (w.r.e.f. 18-6-1993).
16 Added by Act 62 of 2002, sec.2, (w.e.f. 15-3-1993).
17Subs. by Act 62 of 2002, sec.2, for "Explanation.- for the purposes of sub-clause (i), "
commercial purpose" does not include use by a consumer of goods bought and used by him

in relation to any goods; (g) "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 ;
9. Establishment of Consumer Disputes Redressal Agencies.
There shall be established for the purpose of this Act, the following agencies, namely:
(a) A Consumer Disputes Redressal Forum to be known as the "District Forum" establishment
by the State Government 18[* * *] in each district of the State by notification:
19[Provided that the State Government may if it deems fit, establish more then one District Forum in
a district.]
(b) A Consumer Disputes Redressal Commission to be known as the "State Commission"
established by the State Government 1[***] in the State by notification; and
(c) A National Consumer Disputes redressal Commission established by the Central Government
by notification.
10. Composition of the district forum
20[(1) Each District Forum shall consist of -
(a) A person who is, or who has been or is qualified to be , a
District Judge, who shall be its President;
21[(b) two other members, one of whom shall be a woman, who shall have the following
qualifications, namely:
(i) be not less than thirty-five years of age,
(ii) posses a bachelor's degree from a recognized university,
(iii) be persons of ability, integrity and standing, and have adequate knowledge and experience of at
least ten years in dealing with problems relating to economics, law, commerce, accountancy,
industry, public affairs or administration:
Provided that a person shall be disqualified for appointment as member if he-
(a) has been convicted and sentencedto imprisonment for an offence which, in the opinion of the
State Government, involves moral turpitude; or
(b) is an undischarged insolvent; or
(c) is of unsound mind and stands so declared by a competent court; or
(d) has been removed or dismissed from the service of the Govt. or a body corporate owned or
controlled by the Government; or
(e) has, in the opinion of the State Government, such financial or other interest as is likely to
affect prejudicially the discharge by him of his functions as a member; or
(f) has such other disqualifications as may be prescribed by the State Government.]
22[(1-A) Every appointment under sub-section (1) shall be made by the State Government on
the recommendation of selection Committee consisting of the following namely:
(i) The President of the State Commission- Chairman,
(ii) Secretary, Law Department of the State- Member,
(iii) Secretary, incharge, of the Department dealing with Consumer affairs in the State- Member.]
exclusively for the purpose of earning his livelihood, by means of self-employment:" (w.e.f. 15-
3-2003).
18 The words 'with prior approval of the Central Government" Omittedby Act 50 of 1993. Sec. 7
(w. r. e. f. 18th June 1993).
19 Ins. by Act 50 of 1993. Sec. 7 (w. r. e. f. 18th June 1993).
20 Subs. by Act No. 50 of 1993 sec. 8, for sub-section (1) (w. r. e. f. 18-6-1993)
21 Subs. by Act 62 of 2002, sec. 6, for clause "(b) two other members, who shall be persons of
ability, integrity andstanding, and have adequate knowledge or experience of , or have shown
capacity in dealing with, problems relating to economics, law, commerce, accountancy,
industry, public affairs or administration, one of whom shall be a woman" (w. e. f. 15-3-2002).
22 Insertedby Act 50 of 1993, sec.8 (w.e.f. 18-6-1993).

23[Provided that where the President of the State Commission is, by reason of absence or otherwise,
unable to act as Chairman of the Selection Committee, the State Government may refer the matter to
the Chief Justice of the High Court for nominating a sitting Judge of that High Court to act as
Chairman.]
24[(2) Every member of the District Forum shall hold office for a term of five years or up to the age
of sixty-five years/ whichever is earlier:
Provided that a member shall be eligible for re-appointment for another term of five years or up
to the age of sixty-five years, whichever is earlier, subject to the condition that he fulfils the
qualifications and other conditions for appointment mentioned in clause (b) of sub-section (1) and
such reappointment is also made on the basis of the recommendation of the Selection Committee
:
Provided Further that a member may resign his office in writing under his hand addressed to the
State Government and on such resignation being accepted, his office shall become vacant and may
be filled by appointment of a person possessing any of the qualifications mentioned in sub-section
(1) in relation to the category of the member who is required to be appointed under the provisions of
sub-section (1A) in place of the person who has resigned :
Provided Also that a person appointed as the President or as a member, before the commencement of
the Consumer Protection (Amendment) Act, 2002, shall continue to hold such office as President or
member, as the case may be, till the completion of his term. ]
(3) The salary or honorarium and other allowances payable to, and the other terms and conditions
of service of the members of the District Forum shall be such as may be prescribed by the State
Government:
[Provided that the appointment of a member on whole-time basis shall be made by the State
Government on the recommendation of the President of the State Commission taking into
consideration such factors as may be prescribed including the work load of the District Forum.]
11. 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
25[does not exceed rupees twenty lakhs] .
(2) A complaint shall be instituted in a District Forum within the local limits of whose jurisdiction, -
23Insertedby Act 62 of 2002, sec.6 (w. e. f. 15-3-2003).
24Subs. by Act 62 of 2002, sec.6, for sub-section "(2) Every member of the District Forum shall
hold office for a term of five years or up to the age of 65 years, whichever is earlier, and shall
not be eligble for re-appointment:
Provided that a member may resign his office in writing under his hand addressed to the State
Government and on such resignation being accepted, his office shall become vacant and may
be filled by the appointment of a person possessing any of the qualification mentioned in sub-
section (1) in relation to the category of the member who has resigned." (w. e. f. 15-3-2003).
25 Substituted by Act 50 of 1993, sec.9 for "is less than rupees one lakh"(w. e. f. 18-6-1993) and
again subs. by Act 62 of 2002, sec. 7, for "does not exceedrupees five lakhs" (w. e. f. 15-3-
2003)

(a) 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 26[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 39[carries on business or has a branch office], or
personally works for gain, provided that in such case either the permission of the District Forum is
given, or the opposite parties who do not reside, or 39[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.
12. Manner in which complaint shall be made .
(1) A complaint in relation to any goods sold or delivered or agreed to be sold or delivered or any
service provided or agreed to be provided, may be filed with a District Forum, by-
(a) the consumer to whom such goods are sold or delivered or agreed to be sold or delivered or
such service provided or agreed to be provided;
(b) any recognized consumer association whether the consumer to whom the goods sold or
delivered or agreed to be sold or delivered or service provided or agreed to be provided is a member
of such association or not; or
(c) one or more consumers, where there are numerous consumers having the same interest, with
the permission of the District Forum, on behalf of, or for the benefit of, all consumers so interested;
or
(d) the Central Government or the State Government, as the case may be, either in its individual
capacity or as a representative of interests of the consumers in general.
(2) Every complaint filed under sub-section (1) shall be accompanied with such amount of fee and
payable in such manner as may be prescribed.
(3) On receipt of a complaint made under sub-section (1), the District Forum may, by order, allow
the complaint to be proceeded with or rejected:
Provided that a complaint shall not be rejected under this sub-section unless an opportunity of
being heard has been given to the complainant:
Provided Further that the admissibility of the complaint shall ordinarily be decided within twenty-
one days from the date on which the complaint was received .
(4) Where a complaint is allowed to be proceeded with under sub-section (3) the District
Forum may proceed with the complaint in the manner provided under this Act
:
Provided that where a complaint has been admitted by the District Forum, it shall not be transferred
to any other court or tribunal or any authority set up by or under any other law for the time being in
force.
Explanation: For the purposes of this section, "recognized consumer association" means any
voluntary consumer association registered under the Companies Act, 1956 (1 of 1956), or any other
law for the time being in force.]
2713. PROCEDURE ON RECEIPT OF COMPLAINT
28(1) The District Forum shall, on receipt of a complaint, if it relates to any goods,
-
26 Subs. by Act 50 of 1993, sec.9 for "carries on business or" (w. r. e. f. 18-6-1993).
27 Subs. by Act 62 of 2002, sec. 9, for "Procedure on receipt of a complaint" (w. e. f. 15-3-2003).
28 Subs. by Act 62 of 2002, sec. 9, for "on receipt of a complaint" (w. e. f. 15-3-2003).

(a) refer a copy of the complaint to the opposite party mentioned in the complaint directing him to
give his version of the case within a period of thirty days or such extended period not exceeding
fifteen days as may be granted by the District Forum ;
(b) where the opposite party on receipt of a complaint referred to him under clause (a) denies or
disputes the allegations contained in the complaint, or omits or fails to take any action to represent
his case within the time given by the District Forum, the District Forum shall proceed to settle the
consumer dispute in the manner specified in clauses (c) to (g)
;
(c) where the complaint alleges a defect in the goods which cannot be determined without proper
analysis or test of the goods, the District Forum shall obtain a sample of the goods from the
complainant, seal it and authenticate it in the manner prescribed and refer the sample so sealed to
the appropriate laboratory along with a direction that such laboratory make an analysis or test
whichever may be necessary, with a view to finding out whether such goods suffer from any defect
alleged in the complaint or from any other defect and to report its findings thereon to the District
Forum within a period of forty-five days of the receipt of the reference or within such extended
period as may be granted by the District Forum ;
(d) before any sample of the goods is referred to any appropriate laboratory under clause (c), the
District Forum may require the complainant to deposit to the credit of the Forum such fees as
may be specified, for payment to the appropriate laboratory for carrying out the necessary
analysis or test in relation to the goods in question;
(e) the District Forum shall remit the amount deposited to its credit under clause (d) to the
appropriate laboratory to enable it to carry out the analysis or test mentioned in clause (c) and on
receipt of the report from the appropriate laboratory, the District Forum shall forward a copy of the
report along with such remarks as the District Forum may feel appropriate to the opposite party
;
(f) if any of the parties disputes the correctness of the findings of the appropriate laboratory, or
disputes the correctness of the methods of analysis or test adopted by the appropriate laboratory, the
District Forum shall require the opposite party or the complainant to submit in writing his
objections in regard to the report made by the appropriate laboratory ;
(g) the District Forum shall thereafter give a reasonable opportunity to the complainant as well as the
opposite party of being heard as to the correctness or otherwise of the report made by the appropriate
laboratory and also as to the objection made in relation thereto under clause (f) and issue an
appropriate order under section 14. .
29(2) The District Forum shall, if the complaint received by it under section 12 relates to goods
in respect of which the procedure specified in sub-section (1) cannot be followed, or if the
complaint relates to any services, -
(a) refer a copy of such complaint to the opposite party directing him to give his version of the case
within a period of thirty days or such extended period not exceeding fifteen days as may be
granted by the District Forum ;
(b) where the opposite party, on receipt of a copy of the complaint, referred to him under clause (a)
denies or disputes the allegations contained in the complaint, or omits or fails to take any action to
represent his case within the time given by the District Forum, the
District Forum shall proceed to settle the consumer dispute, -
(i) on the basis of evidence brought to its notice by the complainant and the opposite party,
where the opposite party denies or disputes the allegations contained in the complaint, or
(ii) on the basis of evidence brought to its notice by the complainant where the opposite party
omits or falls to take any action to represent his case within the time given by the Forum.
29 Subs. by Act 62 of 2002, sec. 9, for clause "(a) refer a copy of the complaint to the opposite
party mentionedin the complaint directing him to give his version of the case within a period of
thirty days or such extended period not exceeding fifteen days as may be granted by the
District Forum;"(w. e. f. 15-3-2003).

30(3) No proceedings complying with the procedure laid down in sub-sections (1) and (2) shall be
called in question in any court on the ground that the principles of natural justice have not been
complied with.
31(4) For purposes of this section, the District Forum shall have the same powers as are vested
in a civil court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit in
respect of the following matters, namely :-
(i) the summoning and enforcing attendance of any defendant or witness and examining the
witness on oath;
(ii) the discovery and production of any document or other material object producible as evidence;
(iii) the reception of evidence on affidavits;
(iv) the requisitioning of the report of the concerned analysis or test from the appropriate laboratory
or from any other relevant source;
(v) issuing of any commission for the examination of any witness; and
(vi) any other matter which may be prescribed.
32(5) Every proceeding before the District Forum shall be deemed to be a judicial proceeding within
the meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860), and the District Forum
shall be deemed to be a civil court for the purposes of section 195 and Chapter XXVI of the Code of
Criminal Procedure, 1973 (2 of 1974).
33(6) Where the complainant is a consumer referred to in sub-clause (iv) of clause (b) of sub-section
(1) of section 2, the provisions of rule 8 of Order I of the First Schedule to the Code of Civil
Procedure, 1908 (5 of 1908) shall apply subject to the modification that every reference therein to a
suit or decree shall be construed as a reference to a complaint or the order of the District Forum
thereon.
14. `FINDING OF THE DISTRICT FORUM .
(1) If, after the proceeding conducted under section 13, the District Forum is satisfied that the goods
complained against suffer from any of the defects specified in the complaint or that any of the
allegations contained in the complaint about the services are proved, it shall issue an order to the
opposite party directing him to 34(do) one or more of the following things, namely :
(a) to remove the 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 the negligence of the opposite party ;
35(e) to remove the defects or deficiencies in the services in question;
(f) to discontinue the unfair trade practice or the restrictive trade practice or not to repeat them
;
(g) not to offer the hazardous goods for sale ;
(h) to withdraw the hazardous goods from being offered for sale;
(i) to provide
36(2) Every proceeding referred to in sub-section (1) shall be conducted by the President of the
District Forum and at least one member thereof sitting together :
30 Subs. by Act 62 of 2002, sec. 9, for "complaint received" (w. e. f. 15-3-2003).
31 Subs. by Act 62 of 2002, sec. 9, for "on the basis of evdence" (w. e. f. 15-3-2003).
32 Ins. by Act 62 of 2002, sec. 9 (w. e. f. 15-3-2003).
33 Ins. by Act 50 of 1993, sec. 11 (w. e. f. 18-6-1993).
34 Subs. for “take” by the Consumer (Amendment ) Act, 1993 (w.e.f. 18-6-1993)
35 Ins. by the Consumer Protection (Amendment)Act of 1993, (w. e. f. 18-6-1993).
36 Subs. by Act 34 of 1991, sec.2, for sub-section (2) (w. r. e. f. 15-6-1991).

Provided that where the member, for any reason, is unable to conduct the proceeding till it is
completed, the President and the other member shall conduct such proceeding de novo.
(2A) Every order made by the District Forum under sub-section (1) shall be signed by its President
and the member or members who conducted the proceeding :
Provided that where the proceeding is conducted by the President and one member and they
differ on any point or points, they shall state the point or points on which they differ and refer the
same to the other member for hearing on such point or points and the opinion of the majority shall be
the order of the District Forum.
(3) Subject to the foregoing provisions, the procedure relating to the conduct of the meetings of the
District Forum, its sittings and other matters shall be such as may be prescribed by the State
Government.
15. APPEAL
Any person aggrieved by an order made by the District Forum may prefer an appeal against
such order to the State Commission within a period of thirty days from the date of the order,
in such form and manner as may be prescribed :
Provided that the State Commission may entertain an appeal after the expiry of the said period of
thirty days if it is satisfied that there was sufficient cause for not filing it within that period.
16. COMPOSITION OF THE STATE COMMISSION-
Each State Commission shall consist of –
(a) a person who is or has been a Judge of a High Court, appointed by the State Government, who
shall be its President :
37(Provided that no appointment under this clause shall be made except after consultation with the
Chief Justice of the High Court);
(b) two other members, who shall be persons of ability, integrity and standing and have adequate
knowledge or experience of, or have shown capacity in dealing with problems relating to economics,
law, commerce, accountancy, industry, public affairs or administration, one of whom shall be a
woman :
38(Provided that every appointment made under this clause shall be made by the State Government
on the recommendation of a selection committee consisting of the following, namely :-
(i) President of the State Commission – Chairman ,
(ii) Secretary of the Law Department of the State – Member ,
(iii) Secretary, incharge of Department dealing with consumer affairs in the State – Member)
.
(2) The salary or honorarium and other allowances payable to, and the other terms and conditions of
service 39(***) of the members of the State Commission shall be such as may be prescribed by the
State Government.
40(3) Every member of the State Commission shall hold office for a term of five years or up to
37 Ins. by the Consumer Protection (Amendment) Act of 1993, (w. e. f. 18-6-1993).
38Subs. by Act 62 of 2002, sec. 12, for clauses "(b) two other member, who shall be persons of
ability, integrity and standing and have adequate knowledge or experience of, or have shown
capacity in dealing with, problems relating to economics law, commerce, accountancy, industry,
public affairs or administration, one of whom shall be a woman:
Provided that every appointment made under this clause shall be made by the State Government
of the recommendation of a selection committee consisting of the following, namely:-
(i) President of the State Commission -Chairman
(ii) Secretary of the Law Department of the State -Member
(iii) Secretary, incharge of Department dealing with consumer affairs in the State-Member (w. e
.f. 15-3-2003).
39 The words "(including tenure of office)" omitted by Act 50 of 1993, sec. 13 (w. e. f. 18-6-1993).
40 Subs. by Act 50 of 1993, sec. 13 (w.e.f. 18-6-1993) and again subs by Act 62 of 2002, Sec.
12, for sub-section "(3) Every member of the State Commission shall hold office for a term of
five years or up to the age of sixty-seven years, whichever is earlier and shall not be eligible for
re-appointment." and sub-section "(4) notwithstanding anything contained in sub-section (3), a

the age of sixty-seven years, whichever is earlier and shall not be eligible for re-appointment.
(4) Notwithstanding anything contained in sub-section (3), a person appointed as a President or as a
member before the commencement of the Consumer Protection (Amendment) Act, 1993, shall
continue to hold such office as President or member, as the case may be, till the completion ] of his
term.
4117. JURISDICTION OF THE STATE COMMISSION .
Subject to the other provisions 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 42(twenty lakhs but does not exceed rupees ONE CRORE and
:
(ii) appeals against the orders of any District Forum within the State; and
(b) to call for the records and pass appropriate orders in any consumer dispute which is
pending before or has been decided by any District Forum within the State where it appears to
the State Commission 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 of its jurisdiction illegally or
with material irregularity.
19. Appeals
Any person aggrieved by an order made by the State Commission in exercise of its powers
conferred by sub-clause (i) of clause (a) of section 17 may prefer an appeal against such order
to the National Commission within a period of thirty days from the date of the order in such
form and manner as may be prescribed :
Provided that the National Commission may entertain an appeal after the expiry of the said period of
thirty days if it is satisfied that there was sufficient cause for not filing it within that period:
43[ Provided Further that no appeal by a person, who is required to pay any amount in terms of
an order of the State Commission, shall be entertained by the National Commission unless the
appellant has deposited in the prescribed manner fifty per cent, of the amount or rupees
thirty-five thousand, whichever is less.]
19A. Hearing of appeal
44[19A. Hearing of appeal.-
An appeal filed before the State Commission or the National Commission shall be heard as
expeditiously as possible and an endeavor shall be made to finally dispose of the appeal within a
period of ninety days from the date of its admission :
Provided that no adjournment shall be ordinarily granted by the State Commission or the National
Commission, as the case may be, unless sufficient cause is shown and the reasons for grant of
adjournment have been recorded in writing by such Commission:
Provided Further that the State Commission or the National Commission, as the case may be, shall
make such orders as to the costs occasioned by the adjournment as maybe provided in the
regulations made under this Act:
Provided Also that in the event of an appeal being disposed of after the period so specified, the State
person appointed as a President or as a member before the Commencement of the Consumer
Protection (Amendment) Act, 1993 (50 of 1993), shall continue to hold such office as President
or member, as the case me be, till the completion of his term." (w.e.f. 15-3-2003).
41 Section 17 re-numbered as sub-section (1) thereof by Act 62 of 2002, sec.13 (w.e.f. 15-3-
2003).
42Subs. by Act 62 of 2002, sec. 13, for "exceeds rupees five lakhs but does not exceedrupees
twenty lakhs" (w.e.f. 15-3-2003).
43 Ins. by Act 62 of 2002, Sec. 16 (w.e.f. 15-3-2003).

Commission or, the National Commission, as the case may be, shall record in writing the reasons for
the same at the time of disposing of the said appeal.]
20. Composition of the National Commission
(1) The National Commission shall consist of-
(a) a person who is or has been a Judge of the Supreme Court, to be appointed by the Central
Government, who shall be its President:
1[Provided that no appointment under this clause shall be made except after consultation with the
Chief Justice of India ;]
2[(b) not less than four, and not more than such number of members, as may be prescribed,
and one of whom shall be a woman, who shall have the following qualifications, namely:-
(i) be not less than thirty-five years of age ;
(ii) possess a bachelor's degree from a recognized university; and
(iii) be persons of ability, integrity and standing and have adequate knowledge and experience of at
least ten years in dealing with problems relating to economics, law, commerce, accountancy,
industry, public affairs or administration:
Provided that not more than fifty per cent, of the members shall be from amongst the persons
having a judicial background .
Explanation.--For the purposes of this clause, the expression "persons having judicial background"
shall mean persons having knowledge and experience for at least a period of ten years as a presiding
officer at the district level court or any tribunal at equivalent level:
Provided further that a person shall be disqualified for appointment, if he-
(a) has been convicted and sentenced to imprisonment for an offence which, in the opinion of the
Central Government, involves moral turpitude; or
(b) is an undischarged insolvent; or
(c) is of unsound mind and stands so declared by a competent court; or
(d) has been removed or dismissed from the service of the Government or a body corporate owned
or controlled by the Government; or
(e) has, in the opinion of the Central Government, such financial or other interest as is likely to affect
prejudicially the discharge by him of his functions as a member; or
(f) has such other disqualifications as may be prescribed by the Central Government:
Provided also that every appointment under this clause shall be made by I. Central Government on
the recommendation of a Selection Committee consisting the following, namely :-
21. JURISDICTION OF THE NATIONAL COMMISSION
Subject to the other provisions of this Act, the National Commission shall have jurisdiction -
(a) to entertain -
(i) complaints where the value of the goods or services and compensation, if any, claimed exceeds
rupees 45(one crore); and
(ii) appeals against the orders of any State Commission; and
(b) 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.
4622. POWER OF AND PROCEDURE APPLICABLE TO THE NATIONAL COMMISSION
The National Commission shall, in the disposal of any complaints or any proceedings before it, have
45 Subs. by Act 62 of 2002, Sec. 19 for "rupees twenty lakhs" (w. e. f. 15-3-2003).
46 Ins. by Act 50 of 1993, Sec. 18 (w.e.f. 18-6- 1993) and subs. by Act 62 of 2002, Sec 20 for
section "22. Power of and procedure applicable to the National Commission.- The National
Commission shall, in the disposal of any complaints or any proceedings before it, have -
(a) the powers of a civil court as specified in sub-section (4), (5) and (6) of section 13;

-
(a) the powers of a civil court as specified in sub-sections (4), (5) and (6) of section 13
;
(b) the power to issue an order to the opposite party directing, him to do any one or more of the
things referred to in clauses (a) to (i) of sub-section (1) of section14, and follow such procedure as
may be prescribed by the Central Government).
23. APPEAL
Any person aggrieved by an order made by the National Commission in exercise of its power
conferred by sub-clause (i) of clause (a) of section 21, may prefer an appeal against such order to
the Supreme Court within a period of thirty days from the date of the order:
Provided that the Supreme Court may entertain an appeal after the expiry of the said period of thirty
days if it is satisfied that there was sufficient cause for not filing it within that period.
47[Provided further that no appeal by a person who is required to pay any amount in terms of an
order of the National Commission shall be entertained by the Supreme Court unless that person had
deposited in the prescribed manner fifty per cent. of that amount or rupees fifty thousand, whichever
is less.]
24. FINALITY OF ORDERS
Every order of a District Forum, State Commission or the National Commission shall, if no appeal
has been preferred against such order under the provisions of this Act, be final
48(24A. LIMITATION PERIOD
(1) The District Forum, the State Commission or the National Commission shall not admit a
complaint unless it is filed within two years from the date on which the cause of action has
arisen.
(2) Notwithstanding anything contained in sub-section (1), a complaint may be entertained after the
period specified in sub-section (1), if the complainant satisfies the District Forum, the State
Commission or the National Commission, as the case may be, that he had sufficient cause for not
filing the complaint within such period:
Provided that no such complaint shall be entertained unless the National Commission, the State
Commission or the District Forum, as the case may be, records its reasons for condoning such delay.
CHANGING SCENARIO OF CONSUMER MOVEMENT IN INDIA: PROBLEMS AND
PROSPECTS
The Consumer Protection Act, 1986, a milestone in the history of socio-economic legislation in
India, has considerably consolidated the process of consumer protection and has given rise, during
the past few years, to new consumer jurisprudence. The Act introduced a three-tier quasi-judicial
consumer disputes redressal mechanisms at the district, State and national levels for
dispensing inexpensive and time-bound consumer justice. Though passed in 1986, its effective
implementation started only in 1990 when the institutions envisaged under the Act were established
by and large throughout the country, thereby enabling a large number of consumers and
organizations to approach these Forums for the redressal of their grievances. This has contributed to
the growth of consumer organizations, the emergence of specialized consumer law reporters and a
much higher profile for consumer protection in India than ever before.
(b) the power to issue an order to the opposite party directing him to do any one or more of the
things referred to in clauses (a) to (i) of sub-section (1) of section 14,
and follow such procedure as may be prescribed by the Central Government." (w.e.f. 15-3-
2003)..
48 Ins. by Act 50 of 1993, Sec. 19 (w. r. e. f. 18-6-1993).

Ever since 1990 when the consumer protection mechanisms started functioning actively, certain
remarkable changes have been witnessed in the Indian legal system. These changes were, however,
preceded by a considerable number of problems associated-first with the establishment49 and then
with the smooth functioning of these mechanisms50.
(I) PROMINENT DEVELOPMENTS IN THE ARENA OF CONSUMER
PROTECTION IN INDIA
There are at least three prominent developments in the arena of consumer protection in India. These
are:(a) Increased amount of business self-regulation;(b) Growth and development of social action
litigation vis-à-vis consumer protection; and (c) Emergence of environmental litigation before the
consumer Forums.
The increasing ambit and amplitude of the Consumer Protection Act, 1986 has compelled the
public as well as the private sector to regulate itself in the interest of consumers. The impact is
accordingly visible in case of airlines, banks, education, insurance industry, railways, roadways and
telecommunications. On the other hand, self-regulation by the private sector has primarily been
reflected in their ’Business Norms’ and ‘Codes of Ethics’51. If you go the market you will now find
that if any consumer says he will complain, the article sold is replaced, though in the cash memo it is
mentioned that goods sold will not be taken back. A sense of fright has now come. The
manufacturers do not want a bad name for their products. The moment a complaint is filed before a
state commission, they offer to replace the article. Thus there is now a greater demand for
accountability on the part of both public as well as the private sector. A significant number of
decisions by the consumer forums against the corporate sector has brought home the clear message
that consumers are not going to tolerate the unethical practices and irresponsible behaviour of the
public or private corporate sector any more.
(II) PROSPECTS OF CONSUMER MOVEMENT IN INDIA
After discussing the three prominent developments in the arena of consumer protection, I now
turn to the problems and prospects of the consumer movement in the coming years. As a matter of
fact, three major problems are confronting the consumer protagonists in India. The first problem
concerns active functioning of the Consumer Forums throughout the country. Not with
standing the fact that these Forums have now been established, by and large, throughout the country,
consumer activists and organizations have been repeatedly voicing their grievances against the
smooth functioning of these Forums. They argue that these Forums have also started behaving
like Civil Courts and are likely to have mounting arrears soon. In addition, these Forums still
lack basic infrastructural facilities. The members sit only part-time and 90 days decision-
making requirement is not strictly adhered to. There are also ego and status problems between
judicial members and the members with non-judicial background. Another significant
problem is that the stay orders from the High Courts have begun to hold up a large number of
cases filed before the Consumer Forums, thereby denying the benefits of speedy and
inexpensive redressal machinery promised under the Consumer protection Act, 1986.
The second problem concerns the applicability of the Consumer protection Act,
1986 to various services. As is evident, ever since the implementation of the 1986 Act, whereas
there has hardly been any significant case in which the ‘goods’ has been vehemently contested, there
is a voluminous amount of case law which involved determination of the meaning, definition, and
ambit of the term ‘service’. Section2(1)(o)of the 1986 Act categorizes certain specific types of
services which, inter alia, include banking, financing, insurance, transport, amusement and
entertainment. The definition of the term ‘service’ had already been kept very wide and now with
the inclusion of the two terms ‘housing and construction’ by the Consumer Protection (Amendment)
Act, 1993, it has been further widened. Only two types of services have been kept out of the
49 Common cause v.Union of India &Ors., 1991(2)CPR523(SC)
50 Gurjeet Singh(1996): The Law of Consumer Protection in India:Justic With Reach, New
Delhi: Deep & Deep Publication.
51 ‘Business Norms ’ And ‘Codes Of Ethics’ of the Advertising Standards Council of India (ASCI), Association
Chamber of Commerce and Industry of India(ASSOCHAM),Federation of Indian Chambers of Commerce and
Industry(FICCI).

ambit of the 1986 Act. They are services rendered free of charge and services rendered under a
contract of personal service52. The non-mentioning of services like education, health, housing,
posts and telegraphs and telecommunications had presumably given these services an impression of
their exclusion from the ambit of this legislation. At the initial stages, therefore, these services
contested the jurisdiction of the 1986 Act, thereby claiming complete immunity from their
governance by it. The Consumer Forums, however, have appreciably stood the test of time and have
brought all these services within the ambit of the 1986 Act.
Making consumers aware of their rights and taking consumer movement to the rural India is
the third and perhaps the most important problem and a challenge before the consumer
organizations. As is well known, most consumers are still ignorant of their rights, much less of
being assertive about them53. Though the Government appears to be serious of this issue54, much
however depends upon the consumer organizations. They have still to cover a very long distance so
far as taking the movement to rural areas is concerned.
In conclusion, it would argue that consumer protection movement has got a bright future in India.
A part from Governmental seriousness in the matter, consumer activists, organizations, and other
voluntary associations have also to play their part in the furtherance of consumer movement. Above
all, the consumers have to be aware of their rights and should assert them selves in the market place.
52 Gurjeet Singh (1994) : “ The Concept of Contract of Personal Service under The Consumer Protection Act, 1986.”
In : Consumer Protection & Trade Practices Journal, Vol. 2, No. 3 (March) pp 51-56
53 Pushpa Girimaji (1993): “Most Consumers Ignorant of Rights.” In : The Tribune (22 Oct.) ; p 12
54 “Government Aim Protection of Consumers.” In The Tribune (14th Dec.) p 7

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