Consumer Protection Act -1986

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Consumer Protection Act -1986. Introduction. Caveat emptor rule ( let the buyer beware) in sale of goods act of 1930, sprout the root of consumer interest protection. United nations passed resolution of consume protection in april 1985 In India 1986 was the enactment of consumer protection act - PowerPoint PPT Presentation

Transcript of Consumer Protection Act -1986

  • Consumer Protection Act -1986

  • Introduction Caveat emptor rule ( let the buyer beware) in sale of goods act of 1930, sprout the root of consumer interest protection.United nations passed resolution of consume protection in april 1985In India 1986 was the enactment of consumer protection actAimed at providing simple, quick, and cheaper protection of consumers interest

  • The law relating to consumer protection is contained in the consumer protection Act ,1986.The Act applies to all goods and services .The central government may however by notification published in the official Gazette exempt any goods or services(sec.1

  • objectivesBetter protection of interests of consumers Protection of rights of consumers -Right to be protected against marketing of goods or services which are hazardous to life and property - To be informed about the quality, quantity, potency, purity, standard and price of goods or services so as to protect the consumers against unfair trade practices

  • -The right to be assured, where ever possible, access to goods and services at competitive prices - The right to be heard and to be assured that consumers interest will receive due consideration at appropriate forums - The right to seek redresses against unfair trade practices or restrictive trade practices or unscrupulous exploitation of consumers

  • - Right to consumer education Consumer protection councils Quasi-judicial machinery for speedy redressal of consumer disputes -quasi-judicial machinery at the district ,State and central levels -(To give reliefs of a specific nature ) -(To award, wherever appropriate, compensation to consumer) Penalties for non-compliance of the orders given by the quasi-judicial bodies have also been provided

  • Scope of the ActApplies to whole of the state Exept the state of Jammu and KashmirApplies to all type of goods and services, public utilities & public sector undertakingsAll types of complains relating to goods ,unfair trade practice Remedies under this act is same as those in other laws.A suit pending in civil court cannot be heard in consumer court

  • Consumer forums have the power to adjudicate disputes, but they do nat have trappings of a courtThe consumer court powers are limited

  • Unfair trade practices

  • Unfair trade practices [sec. 2(1) (r)] It means trade practices which a trader, 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.

  • The practices included are:(1)The practice of making any statement, whether orally or in writing or by visible representation which- Falsely represents that the goods are of particular standard, quality, quantity, grade, composition, style or model;Falsely represents that the services are of particular standard, quality or grade;

  • Falsely represents any rebuilt, second hand, renovated, or old goods as new goods;Represents that the goods or services have sponsorship, approval, performance, characteristic, accessories, uses or benefits which such goods or services do not have;Represents that the seller or the supplier has sponsorship or approval or affiliation which such seller or supplier does not have;

  • Make a false or misleading representation concerning the needs for , or the usefulness of, any goods or services;Gives to the public any warranty or guarantee of the performance or length of life of a product or of any goods that is not based on an adequate or proper test thereof.

  • Materially misleading the public concerning the price at which a product or like products or goods or services, have been or are ordinarily sold or provided.

  • Unfair trade practices - contd2. False offer of bargain price [section 2(1)(r)(2): A price that is stated in any advertisement to be a bargain price by reference to ordinary price or otherwise A price that a person who reads, hears or sees the advertisement would reasonably understand to be a bargain price having regard to the prices at which like products are sold.

  • Contd3. Schemes offering gifts or prizes [section 2(1)(r)(3)] Offering gifts or prizes or other items with the intention of not providing them and conducting promotional contests. Creating an impression that something is being given free of charge when it is fully or partly covered by the amount charged in the transaction. Conducting of any contest, lottery or game of chances etc for the purpose of promoting-directly or indirectly- the sale, use or supply of any product or any business interest.

  • ContdSociety for Civil Rights vs Colgate Palmolive Eg: A scheme sponsored by Colgate Palmolive (India) Ltd induced the contestants to buy a minimum of 2 Trigard toothbrushes to be able to participate in the contest. The early bird prizes to be awarded for entries received early had nothing to do with any skill. It was held not to be in public interest.

  • Contd4. Withholding any schemes [sec 2(1)(r)(3A)] Withholding from the participants of any scheme offering gifts, prizes or other items free of charge, on its closure the information about final result of scheme. The participants of a scheme shall be deemed to have been informed of the final results of the scheme where such results are within a reasonable time published prominently in the same newspapers in which the scheme was originally published.

  • ContdNon compliance of prescribed standards [sec 2(1)(r)(4): The prescribed standard may relate to performance, composition, contents, design, packaging etc as are necessary to prevent or reduce the risk of injury to the person using the goods.

  • CONTDHoarding, destruction or refusal [sec 2(1)(r)(5): Hoarding, destruction or refusal to sell the goods which raises or tends to raise the cost of those or other similar goods or services shall amount to an unfair trade practice.

  • Contd7. Manufacturing or sale of spurious goods [section 2(1)(r)(6): Spurious goods and services means such goods and services which are claimed to be genuine but are not so.


  • DEFINITION Sec. 2 (1) (nn)A trade practice which tends to bring about manipulation of price, or its 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

  • CONSUMERS NEED PROTECTION AGAINSTPrice fixing or output restraint i.e delivery/flow of supplies to impose unjustified costs/restrictions on consumers.Collusive tendering; market fixing territorially among competing suppliers, depriving consumers of free choice, fair competition.Supplying only to particular distributors or on condition of sale only within a territory.

  • Delaying in supplying goods/services leading to rise in price.Requiring a consumer to buy/hire any goods or services as a pre-condition for buying/hiring other goods or services.

  • DEFECT Sec 2 (1) (f)Any fault, imperfection or shortcoming in the quality, quantity, potency, or standard which is required to be maintained by or under any law for the time being in force, or under any contract, express or implied or as is claimed by the trader in any manner whatsoever in relation to any goods


  • Central Consumer Protection CouncilThe Central Government may, 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

  • Consists of..the Minister in charge of consumer affairs in the Central Government, who shall be its Chairmansuch number of other official or non-official members representing such interests as may be prescribed

  • Procedure for meetings of the Central Council The Central Council shall meet as and when necessary, but at least one meeting of the council shall be held every year 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

  • State and district Consumer Protection Councils

  • Objects of the central council(Sec.6) a) The right to be protected against the marketing of goods and services which are hazardous to life and property.

    b) The right to be assured ,where ever possible ,access to a variety of goods and services at competitive price

  • c) The right to consumer education.

    d) The right to be heard and to be assured that consumer interests will receive due consideration at appropriate forums.

    e) The right to be informed about the quality ,quantity,potency,purity,standard and price of goods or services so as to protect the consumer against unfair trade practices.

  • The state consumer protection councils(Sec.7and 8)Members :-Chairman:-The minister in charge of consumer affairs of the state government. Such number of other official or non-official members representing such interests as may be prescribed by the state government.

  • Meetings:-Number of meetings:-Not less then 2 meetings every yearTime and place:- Depends on the chairman Objective:-To promote and protect within the statesThe rights of the consumer as laid down inSec(6)

  • The district consumer protection councilMembers:- District collector is the ChairmanOther official and non-official members are appointed by the state government

  • Meetings:-Number of meetings:- not less then 2 meetingsTime and place:- as decided by the chairmanObjective:- To protect