The document provides an overview of consumer protection laws in India. It discusses the historical background, UN guidelines, key aspects of the Consumer Protection Act of 1986 such as definitions, product liability, redressal process, and jurisdiction. The act was passed in 1986 to better protect consumer interests and established authorities to handle consumer disputes.

1. Dr. Tabrez Ahmad
Professor of Law
Dr. Tabrez Ahmad,
Blog: http://technolexindia.blogspot.com, 1

2. Dr. Tabrez Ahmad, corpolexindia.blogspot.com, 2

3. Agenda
 Historical Background
 Un Guidelines For The Consumer Protection
 Consumerism
 The Consumer Protection Act, 1986 (Act)
 Definitions
 Defects In Service
 Product Liability
 Benefits & Relief
 Jurisdiction

Dr. Tabrez Ahmad http://corpolexindia.blogspot.in 3

4. BRIEF HISTORICAL BACKGROUND
Scenario in early 70s & 80s
Existing laws providing consumer protection
Shortcomings of such Laws
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5. Why protect the consumers?
Reasons for Enacting the Act
 Collective Bargaining
Sellers Lobby; Forming cartels; Artificially keeping prices high!!!!
 Multiple Laws
India Contract Act; Sale of Goods Act; Essential Commodities Act
 Hurdles in the Litigation
Going to regular court; Expensive & Time Consuming
 Remedy
Punishment in the form of Punitive & Deterrent measure
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6. CONSUMERS NEED PROTECTION AGAINST
 Unfair trade practice
 Restrictive trade practice
 Defects
 Deficiencies
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7. UN GUIDELINES FOR THE CONSUMER PROTECTION
Protect from hazard to health & safety;
Promote & protect economic interests;
Provide adequate information for informed choice;
Consumer education;
Provide effective redress—formal and informal procedures;
Freedom to form groups & present views in decision-making
affecting consumers;
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8. Consumer Protection Act 1986
The act was passed in:
Lok Sabha on 9th December,1986 and
Rajya Sabha on 10th December, 1986 and
Assented by the President of India on 24th December, 1986
and was
Published in the Gazette of India on 26th December, 1986.
This act was enacted in the 37th year of the Republic of
India and was amended from time to time in the following
years i.e. 1991, 1993 and 2002.
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9. THE CONSUMER PROTECTION ACT Cont….
An Act to provide for the better protection of the interests
of consumers and for that purpose to make provisions for
the establishment of consumer councils and other
authorities for the settlement of consumers' disputes and
for matters connected therewith.
Short title, extent 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
Kashmir.
(3). Save as otherwise expressly provided by the Central Government by
notification, this Act shall apply to all goods and services.
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10. THE CONSUMER PROTECTION ACT Cont….
 Applicability
 Amendments
 Amendments in the year 1993
 Amendments in the year 2002
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11. „Whether Consumer is the king of the market‟
“Sellers market” is now “Buyers market”
&
 With industrial development leading to the influx of
various goods and services in the market; Consumers have
to be protected!
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12. Objectives of CPA, 1986
Education Heard
Safety Consumer Rights Redressal
Choose Information
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13. Definitions
 Who is a Consumer?
 Two kinds of consumer under the Act
 Consumer of goods
 buys or agrees to buy goods
 any user of such goods
 Consumer of services
 hires or avails any services
 any beneficiary of such service
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14. Definitions
Section 2 of The Consumer Protection Act, 1986, defines certain words
which are used in various sections.
Appropriate Laboratory : S. 2(1)(a) :
“Appropriate laboratory” means a laboratory or organisation :
I. Recognised by the Central Government
II. Recognised 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 organisation 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 form any defect.
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15. Complainant S.2(1)(b) :
i. A consumer, or
ii. Any voluntary consumer association registered under the Companies
Act, 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,
v. In case of death of a consumer, his legal heir or representative who or
which make a complaint.
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16. Complaint S.2(1)(c) :
i. An unfair trade practice or a restrictive trade practice has been
adopted by any trader or service provide;
ii. The goods, bought by him, or agreed to be bought by him, suffer one
or more defects;
iii. The services hired or availed of, 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, 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, with a view to obtaining any relief provided by or under
this act;
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;
vi. Services which 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: with a view to obtaining any relief
provided by or under this act. 16

17. Consumer S.2(1)(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, when such use is made with the approval of such 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;
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18. (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 (but does not include a person who avails of
such services for any commercial purpose)
Consumer Dispute S.2(1)(c) :
“A dispute, where the person, against whom, a compliant has been
made, denies or disputes the allegations contained in the complaint.”
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19. Fault
Imperfection
Shortcoming
In the
Quality
Quantity
Potency
Purity
Standard 19

20. Deficiency: S.2(1) (g)
Fault In the
Imperfection Quality
Shortcoming Or Standard and
Manner of
Inadequacy
performance
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21. Manufacturer: S.2(1) (j)
 “Manufacturer” means a person;
i. Makes or manufactures any goods or parts thereof;
or
ii. Does not make or manufacture any goods but
assembles parts there from 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 marks on any goods
made or manufactured by any other manufacturer
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22. Person: S.2 (m)
 Includes :
i. A firm, registered or not;
ii. A Hindu undivided family
iii. A co-operative society;
iv. Every other association registered as person under
the Societies Registration Act,1860.
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23. Service: S.2(1) (r)
“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
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24. CONSUMERS NEED PROTECTION
AGAINST
UNFAIR TRADE PRACTICE
 Adopting unfair methods or deception to promote sale, use or
supply of goods or services e.g.
 Misleading public about price (e.g. bargain price when it is not so).
 Charging above MRP printed.
 Misleading public about another’s goods or services.
 Falsely claiming a sponsorship, approval or affiliation.
 Offering misleading warranty or guarantee.
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25. CONSUMERS NEED PROTECTION AGAINST
RESTRICTIVE TRADE PRACTICE
Price fixing or output restraint re: delivery/flow of supplies to
impose unjustified costs/restrictions on consumers.
Collusive tendering; market fixing territorially among competing
suppliers, depriving consumers of free choice, fair competition.
Supplying only to particular distributors or on condition of sale
only within a territory.
Delaying in supplying goods/services leading to rise in price.
Requiring a consumer to buy/hire any goods or services as a pre-
condition for buying/hiring other goods or services.
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26. CONSUMERS NEED PROTECTION AGAINST
 DEFECTS
 Any fault, imperfection or shortcoming in the quality, quantity, potency,
purity or standard which is required to be maintained by or under any law
for the time being in force or under any contract express or implied or as is
claimed by the trader in any manner whatsoever in relation to any goods.
 DEFICIENCY
 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.
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27. CONSUMER'S RIGHTS
Right to safety against hazardous goods and services
Right to be informed about quality, quantity, purity,
standard, price
Right to choose from a variety at competitive prices
Right to be heard
Right to seek redressal
Right to consumer education
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28. FORUM & JURISDICTION
 Consumer Disputes Redressal Forums (District Forum)
 Claims less than or equal Rs.20 lacs.
 Consumer Disputes Redressal Commissions (State
Commission)
Claim more than Rs.20 lacs & less than Rs.1 crore & appeals.
 National Consumer Disputes Redressal Commission
(National Commission)
Claim equal to Rs.1 crore & appeals
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29. REQUISTIES OF A COMPLAINT
 Who can file a complaint
 Where to file a complaint
 How to file a complaint
 What constitutes a complaint?
 Procedure for filing the appeal
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30. 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
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31. 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.
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32. Dr. Tabrez Ahmad http://corpolexindia.blogspot.in 32

33. Dr. Tabrez Ahmad http://corpolexindia.blogspot.in 33

34. Dr. Tabrez Ahmad http://corpolexindia.blogspot.in
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