Consumer Protection Act 1986

Consumer Protection Act 1986

Introduction

Objectives/ Rights

Definitions

Consumer

Forms

Introduction
The Consumer Protection Act was enacted in 1986.

Amendments were made in 2002. 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.

*March 15th - World Consumer Day

Objectives
Objectives: 1.Better protection of interests of consumers
2.To provide for establishment of consumer councils and other authorities 3.To empower the consumer councils and other authorities to settle consumers disputes 2.Protection of consumer rights

Definition
who is a consumer? 2(d) Consumer he is 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 when such use is made with approval of such person but does not include a person who obtains such goods for sale or for any commercial purpose. 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. Note: consumer does not include a person who obtains such goods for sale or for any commercial purpose. commercial purpose does not include goods brought and used for the purposes of earning his livelihood , by means of self-employment

Illustration-1 Abhijit bought a television set from an electronics store for using it at home. Illustration-2 service like banking, insurance, health care etc Cases 1. Byford Motors Company case: Byford Motors inserted an advertisement in newspaper stating that a person booking a premier padmini car could enter in to a context in a lottery .under it a person who was successful in the draw could be entitled to two free tickets from Delhi to New York. 1. Mahindra Gas Enterprises 2. Dr. D.C Guptas Case

Consumer Disputes : sec 2(1)e means, a dispute where the person against whom, the complaint has been made about defective goods or services etc Defect: means any fault/imperfection/short coming in the quality/quantity/purity/standard/potency required to be maintained by law in force.

Deficiency : 2(1) g means any fault/imperfection/short coming in the quality/quantity/purity/standard/potency required to be maintained by law in force. Section 18: Unfair Trade Practice means a trade practice, which for the purposes of promoting the sale, use or supply of any goods or for provision of any service, adopts any unfair method or unfair or deceptive practices

Complaint Complaint means any allegation in writing made by a complainant that-

i) an unfair trade practice ii) the goods bought by him suffers from one more defect iii) the services hired suffer from deficiency in any respect iv) a trader or the service provider, charged excess of the price
Back to consumer Rights

Consumer Disputes Redressal Forums

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

District Forum State Commission and National Consumer Disputes Redressal Commission.

District Forum
Section 9: The

State Government shall by notification establish in every district, which is known, as DISTRICT CONSUMER FORUM Composition: qualified to be a district judge and two other members where one of whom shall be a women who shall have following qualifications Not less than 35 yrs of age Possess a bachelor's degree & 10 years of experience in law, commerce, accountancy industry, public affairs and administration
Tenure of Office: 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.

Appointment: every

appointment shall be made by the state government on the recommendation of the selection committee which consists of President of the state commission, Secretary law department of the state and secretary in charge of consumer affairs.

 Jurisdiction: 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 up to Rs.20 Lakhs Finding of the District forum: To remove the defect, To replace the goods, pay compensation for any loss or injury suffered by the consumer. To discontinue the unfair trade practices To restrain from selling hazardous goods

State Commission
Section 16: The State Government shall by notification establish in

every state, which is known, as State commission Composition: qualified to be a judge of High court (in consultation with the chief justice of India) and two other members where one of whom shall be a women who shall have following qualifications Not less than 35 yrs of age Possess a bachelor's degree & 10 years of experience in law, commerce, accountancy industry, public affairs and administration However 50% of members should be from judicial background

 Tenure of Office: 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.
government on the recommendation of the selection committee which consists of President of the state commission, Secretary law department of the state and secretary in charge of consumer affairs.

Appointment: every appointment shall be made by the state

Jurisdiction: 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 up to Rs.1 Crore and appeals against the orders of any District Forum within the State.

National Commission
Section 9: The Central Government shall by notification establishes

National commission Sec 20 Composition: qualified to be a judge of supreme Court ( in consultation with the chief justice of India) and two other members where one of whom shall be a women who shall have following qualifications Not less than 35 yrs of age Possess a bachelor's degree & 10 years of experience in law, commerce, accountancy industry, public affairs and administration However 50% of members should be from judicial background

 Tenure of Office: Every member of the District Forum shall hold

office for a term of 5 years or up to the age of 70 years which ever is earlier.
appointment shall be made by the central government on the recommendation of the selection committee which consists of President of the National commission ( Chief justice of India) , Secretary law department of India and secretary in charge of consumer affairs in the government of India.

Appointment: every

Jurisdiction: Each Central Commission shall have jurisdiction to

entertain complaints where the value of the goods or services and compensation, if any, claimed exceeds Rs.1 Crore and appeals against the orders of any state commission .

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.

Who can file a complaint?

A complaint may be filed by
1. 2.

3.

4.

The consumer to whom such goods are sold Any recognized voluntary consumer association, where the consumer to whom goods are sold or delivered is a member One or more consumers, where there are numerous consumers having same interest The Central and State Government

Procedure of Complaint
Complaint relating to goods
1. 2. 3.

4. 5.

Reference of sample to laboratory-45 days Deposit of fees The forum after Remission of fees to lab and forwards the report to opposite party Objections Reasonable opportunity to parties

Complaint relating to services

1. 2. 3. 4.

Reference of claim to opposite party Denial of allegations by the opposite party Settlement of dispute Proceedings of district/ state/central forum final

Appeals
Appeal to the State commission any person aggrieved by an order made by the district forum may prefer an appeal against such order to the State commission within a period of 30 days Appeal to the National commission any person aggrieved by an order made by the State commission in exercise of its powers may prefer an appeal against such order to the National commission within a period of 30 days

Dismissal of frivolous and vexatious compliant

where a complaint instituted before the district

forum, state commission or national commission as the case may be is found frivolous or vexatious court shall dismiss the complaint and makes an order that the complainant shall pay cost incurred to the opposite party not exceeding 10 thousand rupees

Consumer Protection Councils

Consumer Protection councils make the law for the

protection of consumer for products made by companies so that standards will be followed. Consumer Protection councils is established at the state, central and district and these are advisory bodies Objectives of these councils are to protect all the consumer rights