CONSUMER PROTECTION ACT-1986

Dr. Jaswinder Kaur

Associate Professor
Dept. Of Commerce
Guru Nanak Khalsa College, Ynr
CONCEPT OF CONSUMER PROTECTION

Consumer protection means safeguarding the interest and rights of consumers. In

other words, it refers to the measures adopted for the protection of consumers

from unscrupulous and unethical malpractices by the business and to provide

them speedy redressal of their grievances.

NEED FOR CONSUMER PROTECTION

• Social responsibility
• Misleading advertisement
• Consumer satisfaction
• Principle of social justice
• Principle of trusteeship
• Unfair trade practices
• Physical protection
• Lengthy legal process
• Consumer awareness
• Economic development
CONSUMER PROTECTION ACT- AN INTRODUCTION

• Enacted by the Parliament in 1986, implemented in 1987,many provisions

amended in 1993 and 2002.

• To provide for better protection of interest of consumers.

• To make provisions for the establishment of Consumer Councils and other

authorities for the settlement of consumer disputes.

• Act applies to whole of India except Jammu and Kashmir and shall apply to all
goods and services.
FEATURES OF CONSUMER PROTECTION ACT

• Applies to all goods, services and unfair trade practices unless specifically
exempted by the Central Government

• Covers all sectors whether private, public or co-operative.

• Provides for establishment of consumer protection councils at the central, state

and district levels

• Aims to promote and protect the rights of consumers

• Three tier judicial machinery to deal with consumer grievances and disputes.

• Based on the principle of compensation

SCOPE OF THE CONSUMER PROTECTION ACT

• Protection of the rights of consumers

• Redressal of consumer disputes

• Applicable to all goods and services

• Covers all the sectors

• Compensatory in nature

• Establishment of protection councils

OBJECTIVES OF THF CONSUMER PROTECTION ACT

• To protect the consumer from unfair trade practices and exploitation

• To provide a venue for grievance redressal

• To ensure a better quality of living by improving the quality of consumer

products and services.

• To make provision for Quasi Judicial machinery

• To educate consumers and make them aware of their rights

IMPORTANCE OF CONSUMER PROTECTION ACT

• Unorganised Consumers

• Ignorance of Consumers

• Consumer Exploitation

• Social Responsibility

• Customer is the King

• Increasing Awareness

• Growth of the Business

FUNDAMENTAL DEFINITIONS

Section 2(1)(d)(i)- Consumer is a person who

– Buys any goods for a consideration and includes a hire-purchaser
– Any user of such goods for consideration but excludes one, who obtains for re-
sale or for commercial purposes
– Hires a service for consideration and includes a beneficiary of such service, if
availed of with the approval of the hirer.
Section 2 (7) -Goods means-
every kind of movable property other than actionable claims and money. Include
stock, shares, grass and things attached to, or forming part of the land which are
agreed to be separated before sale or under the contract of sale.
CONTD…..

Section 2(o)- Service means services of any description which is made available
to potential users and includes the provision of facilities in connection with
banking, financing, insurance, transport, processing, supply of electricity or other
energy board or lodging or both 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.

Section 2 (1)(f) - 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.
CONTD…

Section 2(1)(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.

Section 2(1)(r) - Unfair Trade Practice means a trade practice which, for the
purpose of promoting the sale, use or supply of any goods or for the provision of
any service, adopts any unfair method or unfair or deceptive practice including
any of the following practices, namely:
CONTD…

• Misleading or false representation

• Advertisement of bargain price

• Offering gifts/ prizes with intention of not providing them

• Contests, lotteries, games of chance or skill

• Non compliance of product safety standards

• Hoardings

• Manufacturing of spurious goods

RIGHTS OF CONSUMERS

• Right to safety

• Right to choose

• Right to be heard

• Right to be informed

• Right to seek redressal

• Right to Consumer Education

CAUSES / TYPES OF CONSUMER PROBLEMS
• Underweight and under measurement
• Substandard quality
• High Prices
• Duplicity
• Adulteration and impurities
• Lack of safety devices
• Artificial scarcity or shortage
• False or incomplete information
• Unsatisfactory after-sale service
• Rough behaviour
• Deceptive packing
• Negligence in service
CONSUMER PROTECTION COUNCILS
• THE CENTRAL CONSUMER PROTECTION COUNCIL (SEC 4) (1)
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.
The Central Council shall consist of the following members
(a) the Minister in charge of the 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 SEC (5) (1)- The Central Council shall meet as and
when necessary, but 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.
CONTD…

Objects of the Central Council Sec.(6) -The objects of the Central Council shall be to
promote and protect the rights of the consumers such as
• Right to be protected against the marketing of goods and services which are
hazardous to life and property
• Right to be informed about the quality, quantity, potency, purity, standard and
price of goods or services
• Right to be assured of access to a variety of goods and services at competitive
prices
• Right to be heard and to be assured that consumer's interests will receive due
consideration at appropriate forums
• Right to seek redressal against unfair trade practices or restrictive trade
practices or unscrupulous exploitation of consumers
• Right to Consumer Education
CONTD…

• The State Consumer Protection Councils

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 referred to as the
State Council. The State Council shall consist of the following members:
(a) the Minister in charge of consumer affairs in the State Government who shall be its Chairman
(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.
The State Council shall meet as and when necessary but not less than two meetings shall be held
every year. (4) The State 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
by the State Government.
WHO CAN FILE A COMPLAINT

• Consumer
• Any voluntary Association Registered under the Companies Act, 1956, or under
any other law for the time being in force
• The Central government or the State Government
• One or more consumers, where there are numerous Consumers having the
same interest.
• Any person who is a beneficiary of the goods/services
• Legal representatives of deceased consumers
• Legal heirs of the deceased consumer
• Husband of the consumer
• Relative of the consumer
REDRESSAL MACHINERY FOR CONSUMER DISPUTES

The three- tier quasi judicial machinery is as under:

• District Forum: Up to Rs. 20 Lakhs
• State Commission: Rs. 20 Lakhs to Rs. 1 Crore
• National Commission: Exceeding Rs. 1 Crore
Features:
• Three-tier consumer grievance redressal machinery
• State and national level bodies-Appellate Authorities
• Verdict given by the national commission can be challenged in the Supreme Court.
• Objective is to provide speedy, simple and inexpensive redressal to consumers’ grievances on
the basic rules of natural justice.
PROCEDURE TO FILE COMPLAINT
• One may send a notice to the opposite party mentioning a time limit to settle the grievance
though it is not compulsory
• Prepare a complaint with the required details
• Get the complaint affidavit notarized through a notary
• Make required number of photocopies after notarizing
• Prepare a bank draft from a nationalized Bank to pay court fee
• Submit the complaint and court fee to the receiving clerk in the consumer court who will give
the date for admission hearing and complaint reference number
• On admission hearing, the complainant would be informed whether or not his matter is
admitted. If admitted will be given the date for next hearing
• The court will send a notice with the complaint copy to the opposite party seeking reply within
30 days, and asking it to attend the hearing
• The hearings will continue till the matter is decided
• A copy of the court order will be communicated to all the parties by registered post.
TIME FRAME TO FILE COMPLAINT

• A consumer dispute can be filed within two years from the date on which the
cause of action arises.
• The point of time when cause of action arises is an important factor in
determining the time period available to file a complaint.
• Appeals are require to be filed within 30 days from the date of receipt of the
court's order.
• The time frames are not absolute limitations. If the Consumer Forum is satisfied
that there was sufficient cause for not filing the complaint within the prescribed
period, it can entertain a complaint beyond limitation time. However the Forum
must record the reasons for condensation of delay.
NATURE/ SCOPE OF REMEDIES PROVIDED UNDER THE ACT

The District Forum/the State Commission may pass one or more of the following orders as
remedies :
• To remove the defects pointed out by the appropriate laboratory from all the goods in
question
• To replace the goods of similar description which shall be free from defect.
• To discontinue the unfair trade practice or restrictive trade practice
• To withdraw the hazardous goods from being offered for sale.
• In the case of misleading advertisements the party has to pay the cost of the corrective
advertisements.
THANK YOU☺