The Consumer Protection Act 1986

Contents

 Introduction to CPA
 Objective of CPA
 Rights of Consumer
 Redressal Agency
 Councils
Background

 Consumer neglected with dominance of

Producer,Trader or businessman

 “Consumer is the King” got statutory recognition in

India.

 However redressal through Court was time

consuming & Costly process
Consumer Protection Act,1986

 In order to provide for better protection of the

interests of the consumer the Consumer
Protection Bill,1986 was introduced in the
Lok Sabha on 5th December, 1986

 The Consumer Protection Act 1986 is a

social welfare legislation which was enacted
as a result of widespread consumer
protection movement
Objective

 Better protection of interests of consumers

 Protection of rights of consumers.
 Consumer protection councils
 Speedy redressal of consumer disputes.
Who is Consumer?

 Consumer is a Person who

 Buys any “goods” for a consideration
 Hires or avails of any “Services” for
consideration
 “uses the goods” with the approval of the
person who has bought the goods for
consideration
 “is beneficiary of services” with the approval of
the person who has hired the services for
consideration.
Who is not a Consumer?

 He obtains the goods for resale or for any commercial

purpose
 Buys goods without consideration
 Hires or avails of any services without the approval of
the person who has bought the goods for consideration
 Is beneficiary of services without the consent of the
person who has hired the services for considerations.
Rights of Consumers

 To be protected against marketing of goods which are

hazardous to life & property
 Right to be informed about the quality, quantity, purity,
standard etc.
 Right to assure access to variety of goods at competitive
prices.
 Right to be heard & to assured to get good
consideration at appropriate forums.
 Right to seek redressal against unfair trade practices
 Right to consumer Education
Consumer Dispute

 A dispute where the person against whom a

complaint has been made, denies or
disputes the allegations contained in the
complaint.
 Separate allegtions may form separate
finding on each dispute.
Who can do Complainant

 A Consumer
 A Registered Consumer Organization
 Central Government or State Government
 One or more consumer for and on behalf of
other consumers similarly affected.
What is a Complaint?

 Any allegation in writing made by a

complainant that
1. An unfair or restrictive trade practice adopted by trader or
service provider
2. The goods bought by him suffers from defects
3. Services hired or availed or agreed to be do so suffer from
Deficiency
4. A trader or Service provider has charged for the goods “A
price in excess”.
5. Goods & services which will be hazardous to life & safety.
Scope of Different Complaints

1. Unfair Trade Practice

2. Restrictive Trade Practice
3. Deficiency
4. Excessive Price
5. Hazardous Goods
1.Unfair Trade Practice

 A Trade practice which,

 For the purpose promoting sale ,use or
supply of goods or for the provision of any
service,
 Adopts unfair method or unfair or deceptive
practice
 Including any of the following practices,
UTP(cont.)

Making Statements:
 Falsely represent goods are of a particular quality
 Falsely represent any second hand or old goods as new
 Makes a false or misleading representation of goods
 Gives adequacy of the performance that is not based on test.
 Materially misleads the public concerning the piece.

Publication
Gifts and Prizes
Sale Or Supply of Goods
2.Restrictive Trade Practices

 It tends to bring about manipulation of price

or its conditions of delivery
 It Shall Include delay beyond the period
agreed to by a trader in supply of goods or
services which has led to increase in price.
3. Deficiency

 Any fault,imperfaction,ShortComing or
inadequacy
 In the quality, nature and manner of
performance
 Which is required to be maintained by or under
any law
 Has been undertaken by a person to be
performed
 Otherwise in relation to any service:
4.Excessive Price

 A price in excess of the price displayed on the

goods or any package containing such goods
5.Hazardous Goods

 Goods which are hazardous to life & safety,

 Traders shall display information regarding

the content, manner and effect of such goods
Consumer Protection Councils

Central Consumer
Protection Council

State Consumer
Protection Council

District Consumer
Protection Council
Central Consumer Protection Council
Constitution :

 Establishment – by the Central Govt. by

notification
 The term of 3 years
 A Standing working Group of not exceeding 30
members
 Shall consist of following members not
exceeding 150 namely:
Contd.
1. Minister in charge of consumer affairs as a chairman
2. The minister of state
3. The minister in charge of consumer affairs in state
4. Eight members of parliament-Lok Sabha (5) Rajya sabha (3)
5. The secretary of National Commission of scheduled tribe & caste
6. Repesentives of central Govt. (max 20)
7. The Registrar National Consumer dispute redressal commission
8. Representatives of Consumer Organizations(not less than 35)
9. Representatives of women not less than ten
10. Representatives of Farmers, trade & industries(max 20)
11. Persons capable of representing Consumer interest not exceeding
15
12. The Secretary in charge of Consumer Affairs
Procedure of Meetings

 Council Shall Meet At least Once in a year

 Time & Place to be decided by Chairman

 Shall Observe such procedure in regard to

transaction of its business as prescribed.
Objective of Central Council

To promote & protect Rights of Consumer Such

As:
 To be protected against marketing of goods which are
hazardous to life & property
 Right to be informed about the quality, quantity,purity,standered
etc.
 Right to assure access to variety of goods at competitive prices.
 Right to be heard & to assured to get good consideration at
appropriate forums.
 Right to seek redressal against unfair trade practices
 Right to consumer Education
 State Consumer Protection Council
Constitution

 Establishment by state Government by passing a

notification

 It shall meet as and when necessary but not less than

two meetings every year

 Time & Place to be decided by Chairman

 Shall Observe such procedure in regard to transaction

of its business as prescribed.
Contd.

 The state council shall consist members

namely:
1. The minister in charge of consumer affairs acting as chairman
2. Number of other official or non official member as prescribed by
State Govt.
3. Number of other official or non official member as prescribed by
Central Govt. not exceeding 10.

Objective
To promote & protect Rights of Consumer with in state.
District Consumer Protection
Council
Constitution

 The State Govt. shall establish in every

district by notification.
 It shall meet as and when necessary but not
less than two meetings every year
 Time & Place to be decided by Chairman
within District
 Shall Observe such procedure in regard to
transaction of its business as prescribed by
state Govt.
Contd.

 It shall Consist members namely:

1. The collector of District acting as a
chairman
2. Number of other official or non official
member as prescribed by State Govt.
Objective
To promote & protect Rights of Consumer with
in state focusing on Districts
Consumer Dispute Redressal Agencies

National

State

District
Consumer Dispute Redressal Agencies

 Three Tier System

 Consumer Redressal Agencies at
1. District level
2. State Level
3. Central level (national)
 It has right of Civil Court but it is not a Civil
Court
 Objective is to provide Cheap & Speedy
Remedy
District Forum (Redressal Agency)

 Composition :
1. Person qualified to be District Judge as
President
2. Two other members(at least one should be
women)
Age 35,Bachelor’s degree, Ability & integrity
along with knowledge.
Contd.

 Appointment
By the state govt.
1. President of state commission-Chairman
2. Secretary of the law department of state
3. Secretary in charge of the department of
consumer affairs.
65 yrs or 5 yr’s term subject to re appointment.
Salary subject to State govt.
Resignation

 In written addressing state govt.

 Vacant office
 Person having same qualification can
perform in behalf of other
Disqualification

 Convicted & convinced to imprisonment

 Is an undercharged insolvent
 Is of unsound mind & declared by competent
authority
 Removed or dismissed from service of govt.
Jurisdiction

 To entertain complaint not exceeding 20

lakhs
 Complaint within local jurisdiction
Who can file a complaint

 A consumer
 The recognized consumer org.
 One or more representing the group
 Representatives of central or state govt.
Procedure on Admission of goods

 Against Goods
1. Copy of complaint to opp. Party(21 days) & reply
(30 days) extension of 15 days
2. Failure of party to present than District forum shall
proceed
3. Obtain sample of goods , seal it & have report (45
days)
4. Complainant should pay fees for proceedings
Contd.s

 Against Services
1. Refer copy to party & reply within 30 days(extension
of 15 days)
2. On no reply settlement on the basis of evidence
3. Party fails to appear complaint may be dismissed or
decision on merit takes place
4. Analysis of commodities if needed (5 months)
Power of District Forum

 Shall have same power as are vested in civil

court namely:
1. Summoning attendance of any defendant
2. The discovery & production of documents.
3. Reception of evidences
4. Requisitioning of the report of evidence analysis
5. Issuing of any commission for witness examination.
6. Any other matter which may be prescribed.
 Every proceeding shall be deemed to be a judicial
proceedings & forum to be treated as civil court
Relief to the Complainant
 If forum is satisfied i.e. goods complained suffer from
defects, following Directions to be suggested:
1. Remove defects from goods
2. Replace goods with new goods of similar description
3. Return complainant the price or charges bare by him
4. Compensation for any loss or injury due to opposite party’s action
5. To discontinue the unfair trade practices
6. To withdraw hazardous goods & services for sale
Contd.

 Every proceeding shall be conducted by president

accompanied by 1 member
 Every order made shall be sign by its president &
member
 In case of Conflict , matter should be judge on majority
of votes.
Appeal

 If any person aggravated on order made by

forum may prefer an appeal to state forum
within 30 days.
State Forum (Redressal Agency)

Composition:
State Commission shall Consist:
1. Person who has been Judge of High court as President
2. Two other members(at least one should be women)
not less than Age 35,Bachelor’s degree, Ability &
integrity along with knowledge.
3. Not more than 50 % of the members shall be from judicial
background.
Appointment

By the state govt.

1. President of state commission
2. Secretary of the law department of state
3. Secretary in charge of the department of
consumer affairs.
65 yrs or 5 yr’s term subject to re appointment.
Salary subject to State govt.
Resignation

 In written addressing state govt.

 Vacant office
 Person having same qualification can
perform in behalf of other
Disqualification

 Convicted & convinced to imprisonment

 Is an undercharged insolvent
 Is of unsound mind & declared by competent
authority
 Removed or dismissed from service of govt.
 Other is qualification as described by the
state government.
Powers of State Forum

1. State commission may exercised by benches

( one or more members with president or majority)
2. The salary & another allowances set by state Govt.
3. Hold 5 yrs or 67 yrs whichever is earlier.
Jurisdiction

 Complaint claimed more than 20 lakhs & less

than 1 cr.
 Complaint should be within limits of
jurisdiction.
How State forum Controls
District?

 Transfer of cases
 Appeals:
Appeal to national commission within 30 days.
No appeal without deposition of 25 % of amount
or 35000 which ever is less.
 Hearing Of Appeal:
Within 90 days from admission.
No adjournment without sufficient cause.
National Forum( Redressal
Agency)

 Composition :
1. Person qualified to be Supreme court judge as
President
2. Not less than four members(at least one should be
woman)
Age 35,Bachelor’s degree, Ability & integrity along with
knowledge.

No more than 50 % of the members shall have

judicial background.
Appointment

 By Central Govt . On recommendation of

Selection Committee

1. Supreme court judge nominated by chief justice of

India
2. The secretary in the department of legal affair
3. Secretary of department dealing with consumer
affairs.
Disqualifications:
 Same as State & district forum

Resignation :
 Same as State & district forum
Powers of National Commission

1. National commission may exercised by

benches
( one or more members with president or
majority)
2. The salary & other allowances set by Central
Govt.
3. Hold 5 yrs or 70 yrs whichever is earlier.
Jurisdiction

 Complaint claimed more than 1 cr.

 Appeals against the order of state commission.
 To call for records and pass appropriate orders
in any consumer dispute which is pending
before…..