CONSUMER

PROTECTION
1986

ACT,

Introduction of the Act

Consumer Protection Act, 1986is an act
of Parliament of Indiaenacted in 1986 to
protect interests of consumers inIndia.
It extends to the whole of India except
the State of Jammu and Kashmir.
This Act is applied to all goods and
services.
It shall come enforce through central
govt. by notifications for different
provisions of this act

Objectives of the act

1. Better protection of interests of consumers.
2. Protection of the rights of the consumers:
(a) The right to be protected against
marketing of goods which are hazardous to
life and
property;
(b) the right to be informed about the quality,
quantity, potency, purity, standard and
price of goods to protect the consumer
against unfair trade practices;

Cont.
(c) The right to be assured, wherever
possible, access to an authority of goods at
competitive prices
(d) The right to be heard and to be assured
that consumers interests will receive due
consideration at appropriate forums;
(e) The right to seek redressal against unfair
trade practices or unscrupulous exploitation
of consumers; and
(f) Right to consumer education.

3. Protection by the Consumer

Protection Council.
4. Quasi-judicial machinery for speedy
redressal of consumer disputes.

Definitions
CONSUMER:
(i)buys any goods for a consideration which has
been paid or promised or partly paid and partly
promised,
(ii) or under any system of deferred payment and
includes any user of such goods other than
(iii) the person who buys such goods for
consideration paid or promised or partly paid
or partly promised,

Cont.
(iv) or under any system of deferred
payment when such use is made with
the approval of such person,
(v) BUT does not include a person who
obtains such goods for resale or for
any commercial purpose.

Cont.
Second definition of Consumer:
(i)hires or avails of any services for a
consideration which has been paid or
promised or partly paid and partly
promised,
(ii)or under any system of deferred
payment and includes any beneficiary of
such services other than the person
(iii) who 'hires or avails of the services for
consideration paid or promised,

Cont.
(iv) or partly paid and partly
promised, or under any system of
deferred payment,
(v) when such services are availed of
with the approval of the first
mentioned person.

Cont.
Appropriate laboratory [sec.2 (1)a]
It means a laboratory or organisation1)Recognised by the central government
2)Recognised by a state government
3)Any laboratory or organisation
eshtablished by or under any law for the
time being in force ,which is maintained,
financed or aided by the central
government or state government.

Cont.
COMPLAINANT
1)A consumer
2)Any voluntary consumer association
registered under the companies
act,1956, or under any other law for
the time being in force
3)The central government or any state
government, who or which makes a
complaint

Cont.
4) One or more consumers, where
there are numerous consumers having
the same intrest.
5) In case of death of a consumer, his
legal heir or representative. (this
clause has been introduced by the CPA
amendment act, 2002)

Cont.
Complaint
It means any allegation in writing made
by a complainant with a view to
obtaining any relief provided by or
under this act. This allegation in
writing must be that1)an unfair trade practice or a restrictive
trade practice has been adopted by
any trader or service provider.

Cont.
2) the goods bought by him or agreed
to be bought by him suffer from one or
more defects
3) the services hired or availed of or
agreed to be hired or availed by him
suffer from deficiency in any respect.

Cont.
4) A trader or the service provider as the case
may be, has changed for the goods or for the
services mentioned in the complaint, a price
in excess of the pricea)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.

Cont.
5) Goods which will be hazardous to life and
safety when used are being offered for sale to
the publica) 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.

Cont.
6) 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 which
such person could have known with
due diligence to be injurious to life and
safety.

Cont.
DEFECT
It 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.

Cont.
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.
DISTRICT FORUM
It means a Consumer Disputes Redressal Forum
established under clauseof section 9(a)

Cont.
GOODS
Goods as defined in the Sale of Goods
Act, 1930every kind of movable property other
than actionable claims and money, and
includes stocks and shares, growing
crops, grass and things attached to or
forming part of land which are agreed
to be served before sale or under the
contract of sale

Cont.
NATIONAL COMMISSION
It means the National Consumer Disputes Redressal
Commission established under clause (c) of
section 9

MANUFACTURER
It means a person who
(i) makes or manufactures any goods or part thereof;
or
(ii) does not make or manufacture any goods but
assembles parts thereof made or manufactured by
others; or

Cont.
(iii) puts or causes to be put his own mark on
any goods made or manufactured by any
other manufacturer.
PERSON
It includes(i) a firm whether registered or not;
(ii) a Hindu undivided family;
(iii) a co-operative society;
(iv) every other association of persons
whether registered under the Societies
Registration act 1860.

Cont.
RESTRICTIVE TRADE PRACTICE means a
trade practice which tends to bring about
manipulation of price or conditions of
delivery or to affect flow of supplies in the
market relating to goods or services in such
a manner as to impose on the consumers
unjustified costs or restrictions and shall
include
(a) delay beyond the period agreed to by a
trader in supply of such goods or in
providing the services which has led or is
likely to lead to rise in the price;

Cont.
(b) any trade practice which requires a consumer
to buy, hire or avail of any goods or, as the case
may be, services as condition precedent to
buying, hiring or availing of other goods or
services.

SERVICE means service of any description which

is made available to potential users and includes
provisions of facilities in connections with:Banking
Financing insurance

Cont.

Transport
Processing
Supply of electrical or other energy
Board or lodging or both
Housing construction
Entertainment
Amusement or the purveying of news or other
information
but does not include the rendering of any service
free of charge or under a contract of personal
service.

Cont.
SPURIOUS GOODS AND SERVICE means
such goods and services which are claimed
to be genuine but they are actually not so.
STATE COMMISSION means a Consumer
Disputes Redressal Commission established
in a State under clause (b) of section 9

Cont.
TRADER in relation to any goods means a
person who sells or distributes any goods for
sale and includes the manufacturer thereof,
and where such goods are sold or distributed
in package form, includes the packer thereof.
CONSUMER DISPUTE means a dispute where
the person against whom a complaint has
been made, denies or disputes the
allegations contained in the complaint.

ACT NOT IN DEROGATION OF ANY

OTHER LAW

THE PROVISIONS OF THIS ACT

SHALL BE IN ADDITION TO AND
NOT IN DEROGATION OF THE
PROVISIONS OF ANY LAW FOR
BEING IN FORCE.

CONSUMER
PROTECTION
COUNCILS

CENTRAL CONSUMER PROTECTION

COUNCIL
CENTRAL CONSUMER PROTECTION
COUNCIL
(l) The Central Government shall,by
notification,
establish with effect from such date as it
may specify in such notification,
a Council to be known as the Central
Consumer Protection Council.
(2) The Central Council shall consist of the
following members, namely:

Cont.
(a) the Minister in charge of the
1[consumer affairs] in the Central
Government, who shall
be its Chairman, and
(b) such number of other official or
non-official members representing
such interests as
may be prescribed.

Procedure for meetings of the

Central Council
( I) The Central Council shall meet as and
when necessary, but 2[at least one meeting]
of the Council shall be held every year.
(2) The Central Council shall meet at such
time and place as the Chairman may think
fit and shall observe such procedure in
regard to the transaction of its business as
may be prescribed.

OBJECTIVES OF CENTRAL COUNCIL

Its main aim should be to pomote
and protect the intrests and rights of
the consumers:
Right to be protected against
hazardous goods.
Right to be informed.
Right to be assured
Right to be heard
Right to seek redressal
Right for consumer education.

STATE CONSUMER PROTECTION

COUNCIL
(1) The State Government shall, by
notification, establish with effect from such
date as it may specify in such notification, a
Council to be known as the Consumer
Protection Council.
(2)The State Council shall consist of the
following members, namely :
(a) the Minister Incharge of consumer affairs
in the State Government who shall be its
Chairman;

Cont.
b) such number of other official or non-official
members representing such interests as may
'be prescribed by the State Government.
(c) such number of other official or non-official
members, not exceeding ten, as may be
nominated by the Central Government
(3) The State Council shall meet as and when
necessary but not less than two meetings shall
be
held every year.

OBJECTIVES OF THE STATE CONSUMER

PROTECTION COUNCIL
The objects of every State Council shall be to
promote and protect within the State the rights of
the consumers laid down in clauses (a) to (f) of
section 6.
(A) The District Consumer Protection Council
(1) The State Government shall establish for
Every district, by notification, a council to be
known as the District Consumer Protection Council
with effect from such date as it may specify in
such
notification

Cont.
(2) The District Consumer Protection Council
(hereinafter referred to as the District Council)
shall consist of the following members, namely

(a) the Collector of the district (by whatever

name called), who shall be its Chairman; and
(b) such number of other official and nonofficial members representing such interests
as may be prescribed by the State
Government.

Cont.
(3) The District Council shall meet as and when
necessary but not less than two meetings shall
be held every year.
(4) The District Council shall meet as such time
and place within the district as the Chairman
may think fit and shall observe such procedure
in regard to the transaction of its business as
may
be prescribed by the State Government

Cont.
(B.) Objects of the District Council The objects of every District Council
shall be to promote and protect within
the district the rights of the consumers
laid down in clauses (a) to (f) of
section.

Consumer dispute redressal

agencies
1) Distict forum established by the state
government in each district of the state by
notification.
2) State commission established by the
state governmentin the state by
notification.
3) Nation consumer dipute redressal
commission established bycentral

Consumer dispute redressal

forum
Each consumer redressal forum shall consist
1)A person who is, or has been, or is qualified to
be a district judge, who shall be its president.
2)2 other members, one of whom shall be a
woman, who shall have the following
qualifications:
be not less than 35 years of age.
posses a bachelors degree from a recognised
university

Cont.
3) be person of abilty, integrity an standing,
and have adequate knowledge and experience
of atleast ten years dealing in problems relating
to economics, law, commerce, accountancy,
industry, public affairs or administration.
Further a person is 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

Cont.
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 corporated owned or
controlled by the govrnment; or

Cont.
e) has, in the opinion of the state
government,such financial or the 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 presribed by the government.

Jurisdiction
.

JURISDICTION: If the relief claimed in the

complaint is less than Rs. 20,00,000/-, then

the complaint must be filed before the District
Consumer Forum.
If the relief claimed is between Rs.
20,00,000/- and Rs. 1,00,00,000/-, then the
complaint must be filed before the State
Commission.
When the relief claim exceeds Rs.
1,00,00,000/- then the complaint must be filed

Lodging a complaint
A prescribed fee is payable for filing a
complaint before the District Forum, State
Commission or National Commission as follows:
Upto 1 lakh
- Rs.100/1 lakh to 5 lakhs
- Rs.200/5 lakhs to 10 lakhs
- Rs.400/10 lakhs to 20 lakhs
- Rs.500/You can pay this by Demand Draft in favour of
President, State Consumer Disputes Redressal
Commission, Chennai.

Cont.
The complainant can present his /
her complaint in person or by his /
her authorised representative to the
District Forum / State Commission.
There is no requirement for a
lawyer or consumer group to
represent the complainant.

CONSUMER REDRESSAL UNDER DISTRICT

FORUM
COMPLAINT RELATING TO GOODS
1-Refrences of sample to laboratory
where the complaint alleges a defect in
the goods which cannot be determined
without proper analysis or test of the
goods.
2-Deposit of fees.

Cont.
3- Remission of fees to laboratory and
forwarding of report to opposite party.
4- objections by any of the parties.
5- reasonable opportunity to parties of
being heard and issue of order.

CONT.
COMPLAINT RELATING TO SERVICES
Reference of the claim to opposite parrty.
Denial,etc. of allegation by the opposite
party.
Settlement of disputes
Proceedings of the district forum final
Death of the comlainant
Period

CONSUMER REDRESSAL UNDER STATE

COMMISSION
Jurisdication
Tranfer of cases
Circuit benches
Procedure
Appeal
Hearing of appeal

CONSUMER REDRESSAL UNDER

NATIONAL COMMISION
Place of the national commision of india
Jurisdication
Appeal
Finality of orders
Enforcement of orders of the district
forum, the state commision or the
national commission.
Dismissal of frivolous or vexatious
complaints

RIGHTS OF A CONSUMER
RIGHTS OF THE CONSUMERS ARERIGHT TO SAFETY
RIGHT TO BE INFORMED
RIGHT TO CHOOSE
RIGHT TO BE HEARD
RIGHT TO SEEK REDRESSAL
RIGHT TO CONSUMER EDUCATION

 RIGHT TO SAFETY
Right to be protected against marketing of
goods and services which are hazardous to
life and property.
applicable to specific areas like healthcare,
pharmaceuticals and food processing.

RIGHT TO BE INFORMED
The right to be informed about the quality,
quantity, purity, standard and price of
goods or services, so as to protect the
consumer against unfair trade practices.

 RIGHT TO CHOOSE
the right to be assured, wherever
possible, to have access to a variety of
goods and services at competitive
prices.

RIGHT TO BE HEARD
the right to be heard and to be assured
that consumer's interests will receive
due consideration at appropriate forums.

 RIGHT TO SEEK REDRESSAL

The right to seek redressal against unfair
trade practices or restrictive trade
practices or exploitation of consumers is
referred to as the right to redressal.

RIGHT TO CONSUMER EDUCATION

The right of every Indian citizen to have
education on matters regarding consumer
protection as well as about her/his right is
regarded as the last right provided by the
Consumer Protection Act 1986.

RESPONSIBILITIES OF
CONSUMERS
CRITICAL AWARENESS

(ask questions on quality, price,and use of goods and

services)

ACTION
(know your consumer rights)
SOCIAL CONCERN

(care for senior citizens and persons with disablities)

ENVIRONMENTAL AWARENESS

( help and maintain a clean environment)

SOLIDARITY

(join consumer organisations and be heard as a

consumer)

APPROACH FOR REDRESSALS

Consumers can approach the commissions
at the:
1.) District commission
2.) State commission
3.) National commission
There is no court fee charged to the
consumers and they does not have to go
to through lawyers.

REGARDS TO COMPLAINT
The consumer can file a case under consumer
protection act 1986 only if:
1.) he has suffered a loss or damage as a result
of any unfair trade practice adopted by any
trader.
2.) the goods and services mentioned in the
complaint suffer one or more defects.
3.) a trader has charged for the goods
mentioned in the complaint a price in excess of
the price which is fixed by law, displaced on the
goods or displaced on any packet containig such
goods.

CONSUMER GROUP
Consumer organizations are advocacy
groups that seek to protect people from
corporate abuse like unsafe products,
predatory lending, false advertising and
pollution.
Consumer organizations may operate via
protests, campaigning or lobbying.

Establishment of consumer
groups
Some of functions of consumer groups are:
Educating consumers rights.
Creating awareness through publishing
laboratory tests of goods and services in
newspapers.
Filing a complaint on behalf of the
consumers or the group of consumers.
Providing guidance to consumers against
hazardous goods and services.

Prominent consumer groups in

INDIA
CGSI Consumer Group Society of India.
MGP Mumbai Grahak Pnchayat
CUTS Consumer Unity and Trust Society
VOICE Voluntary Organisation in the
Intrests of Consumer Education.