CONSUMER PROTECTION ACT 1986

OBJECTIVES

• Better protection of interests of consumers

• Protection of rights of consumers

• To provide simple, speedy & inexpensive redressal to the consumers disputes

EXTENT & COVERAGE OF THE ACT

• The act applies to all goods & services

• Covers all the sectors: private, public or cooperative

• The provisions of the Act are compensatory in nature

RIGHTS OF CONSUMER• Rights to be PROTECTED against the marketing of the good & services which are

hazardous to life & property• To be INFORMED about the quality, quantity, potency, purity, standard & the price

of good or services so as to protect the consumer against unfair trade practices• The right to be ASSURED wherever possible the access to a variety of good &

services at competitive prices• The right to be HEARD & to be assured that the consumers’ interests will receive

due consideration at appropriate forums• The right to seek REDRESSAL against unfair trade practices or exploitation of the

consumer• The right to consumer EDUCATION

DEFINITION

Appropriate laboratory:

• It means a laboratory or organisation…Recognised by the Central Government or by a State Government or any laboratory or organisation, established by or under any law for the time being in force which is maintained, financed or aided by the Central Government or State Government• For carrying out the analysis or the test of any goods with a view to

determined whether such goods suffer from any defect

Complainant means:

1. A consumer; or2. Any voluntary consumer association registered under the

Companies act,1956 or under any other law for the time being in force; or

3. The Central Government or any State Government who or which makes a complaint; or

4. One or more consumers where there are numerous consumers having the same interest.

Complaint:

• It means any allegation in writing made by a complainant that:1. An unfair trade practice or a restrictive trade practice has been

adopted by any trader.2. The goods bought by him or agreed to be bought by him suffer from

one or more defects3. The services hired or availed of or agreed to be hired or availed by

him suffer from deficiency in any respect.

Consumer: section 2(d)

• Any person who buys or agrees to buy any good or one who hires or avails any services for a consideration which has been paid or promised or partly paid and partly promised or under any system of deferred payment• It includes any beneficiary of such services other than the one who

actually hires or avails of the services for consideration & such services are availed with the approval of such a person

Cont.

• The trader has changed for the goods mentioned in the complaint a price in excess of the price fixed by or under any law for the time being in force or displayed on the goods or any package, containing such goods• The goods which will be hazardous to life and safety when used are

being offered for sale to the public in contravention of the provisions any law for the time being in force

Service:

• Means service of any description which is made available to potential users and includes provisions of facilities in connections with:

BankingFinancing insuranceTransportProcessingSupply of electrical or other energyBoard or lodging or bothHousing constructionEntertainmentAmusement 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.

Goods: section 2(7)

• Goods as defined in the Sale of Goods Act, 1930.

• Under the Act goods meansEvery 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”

Consumer Dispute:

• Means a dispute where the person against whom a complaint has been made, denies or disputes the allegations contained in the complaint.

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.• Any trade practice which makes delay beyond the period agreed to be

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.• 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 any other goods or services.

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.

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.

Spurious goods and service

• Means such goods and services which are claimed to be genuine but they are actually not so.

Who can file a complaint?

1. A consumer.2. Any voluntary consumer organization under the Societies

Registration Act, 1860 or under the Companies Act, 1956 or under any other law for the time being in force.

3. The Central Government.4. The State Government or Union Territory Administrations.5. One or more consumers on behalf of the numerous consumers who

are having the same interest.

Case of

Upbhokta Sanrakshan Samiti versus Winsard Foods Ltd.

• The consumer association found that,The biscuit packet sold by a food company were less in weight.A complaint, demanding a compensation for the public of the State of Rajasthan was not maintainable.

The Act contemplates an identified consumer in order to make the application of its provision or any consumer association to represent it.When there are numerous consumers having the same interest one or more consumers must file the complaint on behalf of others.

REDRESSAL MACHINERY UNDER THE ACT1. National Commission

Claim less than or equal to Rs.20 lakhs

2. State CommissionClaim exceeds Rs.20 lakhs but does not exceed Rs.1 Crore

3. District ForumClaim exceeds Rs.1 Crore

HOW TO FILE A COMPLAINT?

• There is no fee for filing a complaint before the District Forum, the State Commission or the National Commission.

• There should be three to five copies of the complaint on plane paper.• The complaint can be sent by post to the appropriate Forum.• The complaint should be sign by the complainant.• The complaint is to be filled within 2 years from the date on which the

cause of action has arisen.

A Complaint should contain the following:1. The name, description & the address of the complainant.2. The name, description & the address of the opposite party or

parties as the case may be, as far as they can be ascertained.3. The facts relating to the complaint & when and where it arose.4. The documents, if any in support of the allegation contained in the

complaint.5. The relief which the complaint is seeking.

RELIEF AVAILABLE TO THE CONSUMERS1. Removal of defects from the goods.2. Replacement of the goods.3. Refund of the price paid.4. Award of compensation for the loss or injury suffered.5. Removal of defects or deficiencies in the services.6. Discontinuance of unfair trade practices or restrictive trade

practices or direction not to repeat them.7. Withdrawal of the hazardous goods from offered to sale or award

for adequate costs to parties.

PROCEDURE FOR FILING THE APPEAL• Period of 30 days• Procedure is same as the complaint except,

The application should be accompanied by the orders of the District/State Commission as the case may be & the grounds for filing the appeal should be specified.

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