Consumer Protection Act 1986Legal Environment of Business

Prepared By

Manu Melwin Joy

Assistant ProfessorIlahia School of Management Studies

Kerala, India.

Phone – 9744551114Mail – manu_melwinjoy@yahoo.com

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Introduction

• The consumer protection Actwas enacted in 1986 toprovide better protection tothe interests of theconsumers.

• The primary object of theAct is the establishment ofConsumer Councils andother authorities for thesettlement of Consumerdisputes.

Introduction

• Consumer protection Actrecognizes that consumerhas certain special rights,that these rights areenforceable , that wherethere was default on thepart of manufacturer andtraders on the provision ofany of these right,punishment would beawarded for the default.

Objects of the Act• Better protection ofinterest of consumers.

• Protection of rights ofconsumers.

• Consumer protectioncouncils.

• Quasi judicial machineryfor speedy redressal ofconsumer disputes.

Consumer Protection Council

• Central consumer

protection council (Central

Council)

• State consumer protection

council (State Council)

Central consumer protection council

• Formation of council – The

central government may,

by notification establish a

council to be known as the

central consumer

protection council.

Central consumer protection council• Members of council – It consists of

Minister in charge of consumer Affairs

in central government, Minister of state

in charge of consumer Affairs, eight

members of parliament, secretary of

national commission for SC and ST and

representatives of central government

departments, autonomous

organizations concerned with consumer

interests.

Central consumer protection council

• Terms and conditions of

members of council – Term

of members will be five

years. Any member by

writing under his hand to the

chairman of the central

council can resign from the

council.

Central consumer protection council

• Procedure for meeting of council –

(a) meeting has to be presided by

chairman (b) 10 day notice before

the meeting (c) specify the place ,

day and hour of meeting in the

notice (d) For performing, council

form working groups and (e)

resolutions passed by the central

council shall be recommendatory

in nature.

Central consumer protection council

• Objects of central council – (a)

right to protection against making

of hazardous goods and services

(b) right to be informed about

quantity and quality of products (c)

right be assured access to variety

of products at competitive prices

(d) right be heard and (e) right to

consumer education.

State consumer protection council

• Formation of council - The

state government may, by

notification establish a

council to be known as the

state consumer protection

council.

State consumer protection council• Members of the council - It

consists of Minister in charge of

consumer Affairs in state

government will be the

chairman and such number of

other official or non official

members representing such

interests as may be prescribed

by the state government.

State consumer protection council

• Meetings of the council –

The state council shall meet

as and when necessary but

not less than two meetings

shall be held every year.

Meeting place will be

decided by chairman.

State consumer protection council

• Object of state council –

same as that of central

council.