Consumer protection act-1986

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Transcript of Consumer protection act-1986

An Presentation on Consumer Protection Act-1986

A Presentation onConsumer Protection Act-1986 Prepared by :Ankita ChaniyaraMadhuri BhattKailash NagheraMamta Zankat


Enacted to provide for the better protection of the interest of consumer.

Act applies to whole of India except Jammu and Kashmir.

The act was amended in 2002 and the amendments came into force i.e.. 15th March 2003.

Who is a consumer ?

WHO IS A CONSUMER?Two kinds of consumer under the ActConsumer of goodsbuys or agrees to buy goodsany user of such goods Consumer of services hires or avails any servicesany beneficiary of such service

OBJECTIVES OF CONSUMER PROTECTION ACTBetter protection of interest of consumer.

Protection of rights of consumers.

To settle the consumer disputes.

To make provision for the establishment of consumer council.

NEED OF CONSUMER PROTECTION ACTUnfair trade practiceRestrictive trade practiceDefectsDeficiencies


UNFAIR TRADE PRACTICEAdopting unfair methods or deception to promote sale, use or supply of goods or services e.g. misleading advertisement

Misleading public about price (e.g. bargain price when it is not so).

Charging above MRP printed.

Continue...Misleading public about anothers goods or services.Falsely claiming a sponsorship, approval or affiliation.Offering misleading warranty or guarantee.

RESTRICTIVE TRADE PRACTICEPrice fixing or output restraint re: 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.

Continue...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.




In the

Quality Quantity Purity Or StandardsWhich is required to be maintained by or under any law for the time being in force




In theQuality

Standard and

Manner of performance

Which is required to be maintained by or under any law for the time being in force

CONSUMER'S RIGHTSRight to safety against hazardous goods and services.

Right to be informed about quality, quantity, purity, standard, price.

Right to choose from a variety at competitive prices

continueRight to be heard

Right to seek redressal

Right to consumer education

Right to Healthy Environment

Responsibility of ConsumersConsumer should not make vague or general complaints and should also have supporting information and proof such as a bill.Consumer should try to understand the viewpoint of the seller.Consumers in asserting their rights should not inconvenience or hurt other sections of the public ie resort to rasta roko movements, bandh etc.Consumers should complain against a system and not attack individuals.


Who can file a complaint?Complaints can be filed by any consumer, "consumer" means any person who-(i) buys any goods for a consideration which has been paid or promised or partly paid and partly promised,hires or avails of any services for a consideration which has been paid orpromised or partly paid and partly promised

(m) "person" 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 (21 of 1860) or not;

Consumer complaint fee What is the stamp duty required

No stamp or court fee is needed.

But only a nominal fee .

ESSENTIAL INFORMATION IN THE APPLICATIONName and full address of complainantName and full address of opposite partyDescription of goods and servicesQuality and quantityPriceDate & proof of purchaseNature of deceptionType of redressal prayed for


ConsumerismConsumerism is a movement directed to protect the consumer and ensure that the consumer gets the best return in exchange for the money he spends.

Consumerism is the reaction of consumer against unfair trade practices carried out by the marketers.

Indian market is still dominated by trader





Goble market

Importance of consumerism in India

Reasons leading to failure to consumerism

Lengthy and tedious processInactive nature of Indian consumerPoverty, illiteracy, lack of informationShortage of good & servicesPoor and inefficient roe of pubic sector.Failure of govt. to implement law lack of business ethic

Consumerism in news

Problems of Indian ConsumerSome of the problems faced by Indian consumers are:

Short supply of items of essential needs.Lack of effective or workable competition.Unfamiliarity of product features results in sale of substandard, inferior or even defective goods .Due to low literacy levels and unsatisfactory information flows, Indian consumers are not conscious of their rights.Consumerism in India is not organized and developed.Laws to safeguard interests of consumers are not effectively implemented.

Consumer Disputes Redressal, Agencies Under the Consumer Protection Act, 1986 (CDRA)

A Consumer Dispute Redressal Forum at the District level.

A Consumer Dispute Redressal Commission at the State level.

A National Consumer Dispute Redressal Commission at national level.

Consumer Disputes Redressal, Agencies Under the Consumer Protection Act, 1986 (CDRA)

A Consumer Disputes Redressal Forum to be known as the "District Forum". This is to be established by the state government in each district of the state by means of a notification.

A Consumer Disputes Redressal Commission to be known as the "State Commission". This has also to be established by the state government in the state by means of a notification.

A National Consumer Disputes Redressal Commission to be established by the Central government by means of a notification.

The Act thus envisages a hierarchy of three redressal forums:

District Forum

State Forum

National Forum

District ForumA District Forum deals with cases where the value of claim is up to Rs. 20 lakhs.

A consumer dispute redressal forum to be known as district forum ,established by the state government.


District judge - President

Two other members one of whom shall be woman

Appeal 30 days

State Commission

Cases having a claim exceeding rupees 20 lacks but up to the limit of Rs. 1 core can go to the State Commission.Members :~Judge of high court presidentTwo other members

National Commission

National Commission is the highest level of consumer forums. It may entertain all matters where the value of claim exceeds Rs. 1 core. The territorial jurisdiction of the National Commission is whole of India except the state of Jammu & Kashmir.

Central council

It is established by the central government which consists of the following member.

The minister of consumer affairs chairman and

Such number of other official or non official members representing such interests as may be prescribed.

State consumer protection councilIt is established by the State Government which consists of the following members:

The Minister in charge of consumer affairs in the State Government Chairman.

Such number of other official or non-official members representing such interests as may be prescribed by the State Government.

Continuesuch number of other official or non-official members, not exceeding ten, as may be nominated by the Central Government.

The State Council is required to meet as and when necessary but not less than two meetings every year.

PenaltiesWhere a trader or a person against whom a complaint is made (or the complainant) fails or omits to comply with any order made by the District Forum, the State Commission or the National Commission, such trader or person (or complainant) shall be punishable with imprisonment for a term which shall not be less than one month but which may extend to three years or with fine which shall not be less than two thousand rupees but which may extend to ten thousand rupees, or with both.

Benefits & Reliefs BenefitDisposal within 90 days No adjournment shall ordinarily be granted - Speedy trialReliefRemoval of defects in goods or deficiency in services.Replacement of defective goods.Refund against defective goods or deficient services.Compensation.Prohibition on sale of hazardous goods.

Consumers now feel that they are in a position to declare sellers be aware,Where as previously it was buyers be aware.