Presented by: Syed Aasif Mujtaba

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CONSUMER PROTECTION ACT, 1986

In order to provide for better protection of the interests of the consumer the consumer protection act was introduced in the Lok Sabha on 5th December 1986.. The Act applies to the whole of India except the State of Jammu and Kashmir.An Act to provide for the better protection of the interest of the consumers. Establishment of Consumer Councils and other authorities for the settlement of consumers’ disputes.

Objectives

Right of protection to life and property Right to be informed Right to choose Right to be heard Right to redress Right to education

DefinitionsConsumeris a person

i) “who buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under a system of deferred payment.

ii) hires any services for a consideration which has been paid or promised, or partly paid and partly promised, or under a system of deferred payment.

Consumer Disputes “a dispute where the person against whom a complaint has been made denies or disputes the allegations contained in the complaint”.

Defect “any fault, imperfections 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 or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service”.

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”.

Service : service of any description which is made available to

potential users and includes the provisions of facilities in connection with banking, financing, insurance, transport, processing, supply of electrical or other energy, boarding or lodging of good, house construction, entertainment, amusement or other information.

Complaint ‘Complaint’ means any allegation in writing made by a complainant that-i) an unfair trade practice or a restrictive trade practice adopted by any trade or service providerii) the goods bought by him or agreed to be bought by him suffers from one more defectiii) the services hired or availed of or agreed to be hired or availed of suffer from deficiency in any respect iv) a trader or the service provider, as the case may be, has charged for the goods or for the services mentioned in the complaint, a price in excess of the price-

FILING OF COMPLAINTS A complaint may be filed by

a) The consumer to whom the goods are sold or

services are provided

b) Any recognized consumer association

c) One or more consumers with same interest

d) The central government or state government

Consumer Disputes Redressal Forums The District Forum, State Commission or the

National Commission shall not admit a complaint unless it is filed within 2 years from the date on which the cause of action has arisen.

Where a trader or a person against whom a complaint is made fails or omits to comply with any order made by the District Forum, the State Commission, the National Commission, as the case may be, such trader or person shall be punished with imprisonment for a term which shall not be less than 1 month but which may extend to 3 years, or with fine which shall be not less than 2,000/- Rs. but which may extend to 10,000/-Rs., or with both.

Consumer Disputes Redressal Forums

The aims and objectives of the Act are achieved by the constitution and creation of

District ForumState Commission and National Consumer Disputes

redressal Commission.

District Forum Each District Forum shall consist of a person who is or has

been or is qualified to be a District Judge who shall be its President two other members, one of whom shall be a woman possessing a bachelor’s degree from a recognized university, be a person of ability, integrity and standing and have adequate knowledge and experience

Every member of the District Forum shall hold office for a term of 5 years or up to the age of 65 years which ever is earlier.

Subject to the other provisions of the Act a District forum shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed does not exceed Rs.20 Lakhs.

A District Forum shall have the powers

1. to remove the defect pointed out by the appropriate laboratory from the goods in question

2. to replace the goods with new goods of similar description which shall be free from any defect

3. to return to the complainant the price, or as the case may be, the charges paid by the complainant

4. to pay such amount as may be awarded by it as compensation to the consumer for any loss or injury suffered by the consumer due to the negligence of the opposite party

The Fee for filing the Complaint for the district forum is as under

The Fee for filing the Complaint for the district forum is as under

The fees shall be paid by Cross demand Draft drawn on a nationalized bank or through crossed Indian postal order drawn in favour of the Registrar of the Sate Commission and payable at the place of the State Commission.

Sr. No.

Value of Goods / Service and Compensation Amount of Fees

1) Upto Rs. 1 lakh rupees Rs. 100

2) Rs. 1 Lakh and above but less than Rs.5 lakhs Rs. 2003) Rs. 5 Lakhs and above but less than Rs. 10 lakhs Rs. 400

State Commission

• Each State Commission shall have jurisdiction to entertain complaints where the value of the goods or services and compensation, if any, claimed exceeds Rs. 20 Lakhs but does not exceed Rs.1 Crore and appeals against the orders of any District Forum within the State.

National CommissionThe ‘ National Commission’ shall consist of a

person who is or has been a Judge of the Supreme Court, shall be its President. Not less than 4 and not more than such number of members as may be prescribed and one of whom shall be a woman with similar qualifications as required in the case of appointment as a member to a District Forum or a State Commission.

The National Commission shall have jurisdiction to entertain complaints where the value of the goods or services and compensation, if any, the claim exceeds Rs. 1 Crore and appeals against the orders of any State Commission.

RELIEF TO THE COMPLAINANT ?IF THE COMPLAINT IS PROVED THE FORUM SHALL

ORDERa) to remove defect pointed out by the appropriate

laboratory from the goods in question;b) to replace the goods with new goods of similar

description which shall be free from any defect; c) to return to the complainant the price, or , as the case

may be, the charges paid by the complainant;d) to pay such amount as may be awarded by it as

compensation to the consumer for any loss or injury suffered by the consumer due to negligence of the opposite party;

e) To remove the defect in goods or deficiency in the services in question.

f) to discontinue the unfair trade practice or the restrictive trade practice or not to repeat them;

g) not to offer hazardous goods for sale;h) to withdraw the hazardous goods from being offered for

sale; to cease manufacture of hazardous goods and to desist from offering services which are hazardous in nature;to pay such sum as may be determined by it, if it is of the opinion that loss or injury has been suffered by a large number of consumers who are not identifiable conveniently.to issue corrective advertisements to neutralize the effect of misleading advertisement at the cost of the opposite party responsible for issuing such misleading advertisement;

i) To provide for adequate cost to parties.

PENALTIES

Where 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.