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CONSUMER PROTECTION ACT
         1986
OBJECT OF THE ACT
• 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 consumer’s disputes and for
  matters connected therewith.
CONSUMER
•   Any person who—
     – 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

     – Hires or avails of any services for a consideration which has been paid or
       promised or partly paid and partly prom-ised, 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 purposes;
CONSUMER DISPUTES
•   Consumer dispute means a dispute where the person against whom a complaint
    has been made, denies or disputes the allegations contained in the complaint.
•   "Complaint" means any allegation in writing made by a complainant that—
     – An unfair trade practice or a restrictive trade practice has been adopted by
        any trader or service provider
     – The goods bought by him or agreed to be bought by him; suffer from one or
        more defects;
     – The services hired or availed of or agreed to be hired or availed of by him
        suffer from deficiency in any respect;
     – A trader or service provider, as the case may be, has charged for the goods or
        for the service mentioned in the com-plaint a price in excess of the price –
          • Fixed by or under any law for the time being in force
          • Displayed on the goods or any package containing such goods ;
          • Displayed on the price list exhibited by him by or under any law for the
             time being in force;
          • Agreed between the parties;
     – Goods which will be hazardous to life and safety when used or being offered
        for sale to the public
     – Services which are hazardous or likely to be hazardous to life and safety of the
        public when used, are being offered by the service provider
CONSUMER DISPUTES
• DEFECT" MEANS
   – Any fault, imperfection or shortcoming in the
   – Quality, quantity, potency, purity or standard
   – Which is required to be maintained by or under any law for the time
     being in force under any contract, express or implied or as is claimed
     by the trader in any manner whatsoever in relation to any goods

• "DEFICIENCY" MEANS
   – Any fault, imperfection, shortcoming or inade-quacy 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.
RIGHT OF CONSUMER

•   Right To Safety.
•   Right To Be Informed.
•   Right To Choose.
•   Right To Be Heard.
•   Right To Seek Redressal
•   Right To Consumer Education
NATURE AND SCOPE OF REMEDIES AVAILABLE
             TO CONSUMER

• To provide simple, speedy and inexpensive redressal
  of consumer grievances, the act envisages a three-
  tire quasi-judicial machinery the district, state and
  national levels.
   – District forum
   – State commissions
   – National commission
RELIEFS AVAILABLE TO CONSUMERS
• To remove the defect pointed out by the appropriate
  laboratory from the goods in question;
• To replace the goods with new goods of similar description
  which shall be free from any defect;
• To return to the complainant the price, or, as the case may be,
  the charges paid by the complainant;
• 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.
RELIEFS AVAILABLE TO CONSUMERS
• To remove the defects in goods or deficiencies in the
  services in question;
• To discontinue the unfair trade practice or the
  restrictive trade practice or not to repeat it;
• Not to offer the hazardous goods for sale;
• To withdraw the hazardous goods from being offered
  for sale;
• To provide for adequate costs to parties.
REDRESSAL FORUMS AVAILABLE FOR THE
             CONSUMERS
• District Forums
   – Pecuniary limits below 20 Lakhs
• State Commission
   – Pecuniary limits from 20 lakhs to 1 crores
   – Appeals from District Forum
• National Commission
   – Pecuniary limits above 1 crores
   – Appeals from State Commission
• Supreme Court
   – Appeals from National Commission

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Consumer

  • 2. OBJECT OF THE ACT • 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 consumer’s disputes and for matters connected therewith.
  • 3. CONSUMER • Any person who— – 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 – Hires or avails of any services for a consideration which has been paid or promised or partly paid and partly prom-ised, 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 purposes;
  • 4. CONSUMER DISPUTES • Consumer dispute means a dispute where the person against whom a complaint has been made, denies or disputes the allegations contained in the complaint. • "Complaint" means any allegation in writing made by a complainant that— – An unfair trade practice or a restrictive trade practice has been adopted by any trader or service provider – The goods bought by him or agreed to be bought by him; suffer from one or more defects; – The services hired or availed of or agreed to be hired or availed of by him suffer from deficiency in any respect; – A trader or service provider, as the case may be, has charged for the goods or for the service mentioned in the com-plaint a price in excess of the price – • Fixed by or under any law for the time being in force • Displayed on the goods or any package containing such goods ; • Displayed on the price list exhibited by him by or under any law for the time being in force; • Agreed between the parties; – Goods which will be hazardous to life and safety when used or being offered for sale to the public – Services which are hazardous or likely to be hazardous to life and safety of the public when used, are being offered by the service provider
  • 5. CONSUMER DISPUTES • DEFECT" MEANS – Any fault, imperfection or shortcoming in the – Quality, quantity, potency, purity or standard – Which is required to be maintained by or under any law for the time being in force under any contract, express or implied or as is claimed by the trader in any manner whatsoever in relation to any goods • "DEFICIENCY" MEANS – Any fault, imperfection, shortcoming or inade-quacy 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.
  • 6. RIGHT OF CONSUMER • Right To Safety. • Right To Be Informed. • Right To Choose. • Right To Be Heard. • Right To Seek Redressal • Right To Consumer Education
  • 7. NATURE AND SCOPE OF REMEDIES AVAILABLE TO CONSUMER • To provide simple, speedy and inexpensive redressal of consumer grievances, the act envisages a three- tire quasi-judicial machinery the district, state and national levels. – District forum – State commissions – National commission
  • 8. RELIEFS AVAILABLE TO CONSUMERS • To remove the defect pointed out by the appropriate laboratory from the goods in question; • To replace the goods with new goods of similar description which shall be free from any defect; • To return to the complainant the price, or, as the case may be, the charges paid by the complainant; • 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.
  • 9. RELIEFS AVAILABLE TO CONSUMERS • To remove the defects in goods or deficiencies in the services in question; • To discontinue the unfair trade practice or the restrictive trade practice or not to repeat it; • Not to offer the hazardous goods for sale; • To withdraw the hazardous goods from being offered for sale; • To provide for adequate costs to parties.
  • 10. REDRESSAL FORUMS AVAILABLE FOR THE CONSUMERS • District Forums – Pecuniary limits below 20 Lakhs • State Commission – Pecuniary limits from 20 lakhs to 1 crores – Appeals from District Forum • National Commission – Pecuniary limits above 1 crores – Appeals from State Commission • Supreme Court – Appeals from National Commission

Editor's Notes

  1. NATURE AND SCOPE OF REMEDIES AVAILABLE TO CONSUMER To provide simple, speedy and inexpensive redressal of consumer grievances, the act envisages a three-tier quasi-judicial machinery at the district, state and national levels. DISTRICT FORUM The District Forum is a consumer court at the district level. Any consumer who has a consumer dispute, whose value is not more than Rupees Twenty Lakh, can file a complaint before the District Forum in his district. Each District Forum shall consist of,— (a) A person who is, or  has been, or is qualified to be a District Judge, who shall be its President;(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) Possess a bachelor's degree from a recognised 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 a member if he—(a) Has been convicted and sentenced to 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 Government 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; Jurisdiction of the District Forum.— Subject to the other provisions of this Act, the District Forum shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed 'does not exceed rupees Twenty Lakhs. A complaint shall be instituted in a District Forum within the local limits of whose jurisdiction,— The opposite party or each of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides or carries on business or has a branch office or personally works for gain, or Any of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides, or carries on business or has a branch office, or personally works for gain, provided that in such case either the permission of the District Forum is given, or the opposite parties who do not reside, or carry on business or have a branch office, or personally work for gain, as the case may be, acquiesce in such institution; or (c)  The cause of action, wholly or in part, arises.   STATE COMMISSIONS The State Commission is also a consumer court, which has original as well as appellate jurisdiction. The State Commission has original jurisdiction to receive and decide on complaints wherein the value of the subject-matter of the dispute is more than Rupees Twenty Lakh but not more than Rupees One Crore. The State Commission also has appellate jurisdiction against orders passed by the District Forum. 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: Provided that no appointment under this clause shall be made except after consultation with the Chief Justice of the High Court;(b) Not less than two, 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 recognised 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 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 as a member if he—(a) Has been convicted and sentenced to 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 Government 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.  Jurisdiction of the State Commission. — (1) 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 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.(2)A complaint shall be instituted in a State Commission within the limits of whose jurisdiction,—(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 carries on business or has a branch office or personally works for gain; or (b) Any of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides, or carries on business or has a branch office or personally works for gain, provided that in such case either the permission of the State Commission is given or the opposite parties who do not reside or carry on business or have a branch office or personally work for gain, as the case may be, acquiesce in such institution; or(c) The cause of action, wholly or in part, arises.  National commission  The National Commission is the highest quasi judicial body under the Consumer Protection Act and it has original as well as appellate jurisdiction. (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;Provided that no appointment under this clause shall be made except after consultation with the Chief Justice of India;(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 recognised 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  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 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.    Study material Page No. 312-330