Consumer protection act 1986

1. Presented by:
Syed Aasif Mujtaba
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2. CONSUMER PROTECTION ACT, 1986
In order to provide for better
protection of the interests of the
consumer the consumer protection act
was introduced in the Lok Sabha on 5th
December 1986.. The Act applies to the
whole of India except the State of Jammu
and Kashmir.
An Act to provide for the better
protection of the interest of the
consumers. Establishment of Consumer
Councils and other authorities for the
settlement of consumers’ disputes.

3. Objectives
 Right of protection to life and property
 Right to be informed
 Right to choose
 Right to be heard
 Right to redress
 Right to education

5. Definitions
Consumer
is a person
i) “who buys any goods for a
consideration which has been paid or
promised or partly paid and partly
promised, or under a system of
deferred payment.
ii) hires any services for a consideration
which has been paid or promised, or
partly paid and partly promised, or
under a system of deferred payment.

6. Consumer Disputes
“a dispute where the person
against whom a complaint has
been made denies or disputes the
allegations contained in the
complaint”.
Defect
“any fault, imperfections 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 has been
undertaken to be performed by a
person in pursuance of a contract
or otherwise in relation to any
service”.

7. 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”.
Service :
service of any description which is made available to
potential users and includes the provisions of facilities in
connection with banking, financing, insurance, transport,
processing, supply of electrical or other energy, boarding or
lodging of good, house construction, entertainment,
amusement or other information.

8. Complaint
‘Complaint’ means any allegation in writing
made by a complainant that-
i) an unfair trade practice or a restrictive trade
practice adopted by any trade or service provider
ii) the goods bought by him or agreed to be
bought by him suffers from one more defect
iii) the services hired or availed of or agreed
to be hired or availed of 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
services mentioned in the complaint, a price in
excess of the price-

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

10. Consumer Disputes Redressal Forums
The District Forum, State Commission or
the National Commission shall not admit a
complaint unless it is filed within 2 years from the
date on which the cause of action has arisen.
Where a trader or a person against whom a
complaint is made fails or omits to comply with
any order made by the District Forum, the State
Commission, the National Commission, as the case
may be, such trader or person shall be punished
with imprisonment for a term which shall not be
less than 1 month but which may extend to 3 years,
or with fine which shall be not less than 2,000/-
Rs. but which may extend to 10,000/-Rs., or with
both.

11. Consumer Disputes Redressal Forums
The aims and objectives of the Act are achieved by the
constitution and creation of
 District Forum
State Commission and
National Consumer Disputes
redressal Commission.

12. District Forum
Each District Forum shall consist of a person who
is or has been or is qualified to be a District Judge who
shall be its President two other members, one of whom
shall be a woman possessing a bachelor’s degree from a
recognized university, be a person of ability, integrity and
standing and have adequate knowledge and experience
Every member of the District Forum shall hold
office for a term of 5 years or up to the age of 65 years
which ever is earlier.
Subject to the other provisions of the Act a District
forum shall have jurisdiction to entertain complaints
where the value of the goods or services and the
compensation, if any, claimed does not exceed Rs.20
Lakhs.

13. A District Forum shall have the powers
1. to remove the defect pointed out by the appropriate
laboratory from the goods in question
2. to replace the goods with new goods of similar
description which shall be free from any defect
3. to return to the complainant the price, or as the case
may be, the charges paid by the complainant
4. 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

14. The Fee for filing the Complaint for the district forum
is as under
The Fee for filing the Complaint for the district forum is as under
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.
Sr.
No.
Value of Goods / Service and Compensation Amount
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

15. State Commission
• Each State Commission shall have jurisdiction
to entertain complaints where the value of the
goods or services and compensation, if any,
claimed exceeds Rs. 20 Lakhs but does not
exceed Rs.1 Crore and appeals against the
orders of any District Forum within the State.

16. National Commission
The ‘ National Commission’ shall consist of a
person who is or has been a Judge of the Supreme
Court, shall be its President. Not less than 4 and not
more than such number of members as may be
prescribed and one of whom shall be a woman with
similar qualifications as required in the case of
appointment as a member to a District Forum or a
State Commission.
The National Commission shall have
jurisdiction to entertain complaints where the value
of the goods or services and compensation, if any,
the claim exceeds Rs. 1 Crore and appeals against
the orders of any State Commission.

17. 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.

18. 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;
to cease manufacture of hazardous goods and to desist
from offering services which are hazardous in nature;
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.
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.

19. 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.