Chapter 7

Consumer Protection
Act

Contents
Consumer Related Definitions
Consumer Protection Act 1986
Redressal Mechanism
District Forum, State and National

Commission
Lodging a Complaint
Remedies and Penalties
Who can file and how to file a
complaint

Who is a consumer?
Any person who buys any commodity or

service or is a user of such commodity or

service is known as consumer.
Any person must satisfy two conditions to
claim himself as a consumer :1) The service must have been rendered
to him
2)He must have paid or promised to pay
for the
same.
If any person buy capital goods to provide
services to other individuals, then he is3

Who is a consumer?
Legal heir of consumer in case death of

consumer
Does not include any person who buys
goods for resale or commercial purpose and
services for commercial purpose
However any person who buys goods for
commercial use but exclusively for his
livelihood by means of self employment is a
consumer.

Who is a consumer?
Two kinds of consumer under the Act
Consumer of goods
buys or agrees to buy goods
any user of such goods

Consumer of services
hires or avails any services
any beneficiary of such service

Service Service of any description but does

not include rendering of any service free of

charge or under a contract of personal service.
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Factors Leading To
Consumer Exploitation
Deceptive and misleading techniques
False warranties or guarantees
Non Availability of goods
Adulteration
Hoarding
Black marketing
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CONSUMERS NEED
PROTECTION AGAINST
Unfair trade practice
Restrictive trade practice
Defects
Deficiencies

Unfair Trade Practice

Adopting

unfair methods or deception to

promote sale, use or supply of goods or services.
Misleading public about price (e.g. bargain price
when it is not so)
Charging above MRP printed.
Misleading public about anothers goods or
services.
Falsely claiming a sponsorship, approval or
affiliation.
Offering misleading warranty or guarantee.
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Restrictive Trade
Practice
Price

fixing or output restraint regarding

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.
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.
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DEFECT & DEFICIENCY

DEFECTS
Any fault, imperfection 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 under any
contract express or implied or as is claimed by the trader in
any manner whatsoever in relation to any goods.
DEFICIENCY
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.

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WHAT IS A COMPLAINT?
Complaint means any allegation in writing
made by a
compliant that :
An unfair trade practice or a restrictive trade
practice has been adopted by any trader or
service provider;
The goods bought by him or agreed to be
bought by him suffer from one or more
defects ;
The services hired or availed of or agreed to
be hired or availed off by him suffer from
deficiency in any respect;
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WHAT IS A COMPLAINT?
IV. A trader or 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
fixed by or under any law for the time being in
force;
displayed on the goods or any package
containing such goods;
displayed on the price list exhibited by him by
or under any law for the time being in force;
agreed between the parties .
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WHAT IS A COMPLAINT?
V. Goods which will be hazardous to life and
safety when used are being offered for sale to
the public
In contravention of any standards relating to
safety of such goods as required to be
compiled with, by or under any law for the
time being in force;
If the trader could have known with due
diligence that the goods so offered are unsafe
to the public;
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WHO IS A COMPLAINANT?
A Complainant means any of the following and having
made a complaint:
A consumer ;
Any voluntary consumer association registered under
the companies act , 1956 or under any other law .
The Central Government or any State Government
One or more consumers, where there are numerous
having the same
In case of death of consumer , his legal heir or
representative.

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Consumer Protection
Act,1986
Consumer protection laws are designed to

ensure fair competition and the free flow of

truthful information in the marketplace.
The laws are designed to prevent
businesses that engage in fraud or
specified unfair practices from gaining an
advantage over competitors and may
provide additional protection for all types
of consumers.
Consumer protection laws are a form of
government regulation which protects the
interests of consumers.
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Consumer Protection
Act,1986
On 24 December 1986, Govt. of India enacted

the Consumer Protection Act 1986.

Act is claimed to have been designed after an
in depth study of consumer protection laws
and arrangements in UK,USA, Australia and
New Zealand.
Act applies to whole of India except Jammu
and Kashmir.
Chapter I, II and IV came into force on 15 April
1987. Chapter III came into force on 1 July
1987.
The act was amended in 2002 and the
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Objectives
To provide better protection of interests of

consumers.
To provide establishment of consumer
councils and other authorities.
To empower the consumer councils and other
authorities to settle consumers disputes and
matters.
Ensure rights of consumers and
provide
remedies for deceived consumers.

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Salient Features of the

Act
The act applies to all goods and services unless

specially exempted by union government.

It covers all sectors public, private or
cooperative.
It provides consumer rights- to choose, to be
heard, to be informed, to safety, education, and
redressal.
Provisions of the act are compensatory in
nature.
It
empowers
consumers
seeking
discontinuance
of
traders
malpractices,
defective goods, services deficiencies or
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Consumer's Rights under

Section 6
Right 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.
Right to be HEARD.
Right to seek REDRESSAL.
Right to CONSUMER EDUCATION.
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Responsibilities of
Consumer

Advertisements often exagge

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Quality Marks
AGMARK

FPO

ISI

BIS

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Consumer Dispute
Sec 2(1) (e) A dispute where the person

against whom a complaint has been made,

denies or disputes the allegation contained in
the complaint.

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Redressal Mechanism
The aims and objectives of the Act are

achieved by the constitution and creation

of 3-tier judicial machinery depending
upon the amount of loss involved
District Forum
State Commission and
National Consumer Disputes Redressal
Commission.

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Redressal Mechanism
The Central Council is headed by Minister,

In-charge of the Department of Consumer

Affairs in the Central Government and the
State Councils by the Minister In-charge of
the Consumer Affairs in the State
Governments.
At present, there are 629 District Forums
and 35 State Commissions with the
National Consumer Disputes Redressal
Commission (NCDRC)at the apex.
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Jurisdiction
Forum /
Commission

Where the value of the goods

or services and the
compensation, if any claimed,

District Forum

Does not exceed Rs. 20 lakhs

State Commission

Rs. 20 lakhs and above but not

exceeding One Crore

National Commission

Above One Crore

Besides, State and National Commission have appellate

jurisdiction also.

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

been or is qualified to be a district judge as

its president, 2 other members one of
whom shall be a women possessing a
bachelors 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 upto the
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age of 65 years whichever is earlier.

Powers of District
Forum

The district forum shall have the powers of civil

court
while trying a suit in respect of the following
matters:
The summoning and enforcing attendance of
any defendant or witness and examining the
witness on oath
The reception of evidence on affidavit.
Any other matter which may be prescribed.
The requisition of the report of concerned
analysis or test from the appropriate laboratory
of from any other relevant resource.
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State Commission
It shall consist of a person who is or has been

or is qualified to be a high court judge as its

president.
2 other members one of whom shall be a
women possessing a bachelors degree from a
recognized university
Be a person of ability, integrity and standing
and
have
adequate
knowledge
and
experience.
Every member of the state forum shall hold
office for a term of 5 years or upto the age of
67 years whichever is earlier
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National Commission
The National Commission was constituted in

the year 1988.It is headed by a sitting or

retiredJudge of the Supreme Court of India.
It is presently headed by honble Justice D K
Jain, former Judge of the Supreme Court of
India as President and has ten Members.
The National Commission has been conferred
with the powers of administrative control over
all the State Commissions by calling for
periodical returns regarding the institution,
disposal and pendency of cases.
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Power of National
Commission
Adoption

of uniform procedure in the

hearing of the matters.
Prior service of copies of documents
produced by one party to the opposite
parties.
Speedy grant of copies of documents, and
Generally over-seeing the functioning of
the State Commissions and the District
Forums.
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Procedures to be followed by
the Parties to Complain
A complaint may be made w.r.t. to goods or

services.
Categorization is done (goods or services).
Whether laboratory test is required or not.
Whether laboratory test is not required for

complaints related to services.

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Procedures to be followed by
the Parties to Complain
Copies

of complaint including supporting

documents and compensation demanded must
be submitted.
After such complaint receipt, District Forum
refers to opposite party to put in front their point.
Time limit of 30 days (can be extended to 45
days) is given to put their perspective.

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Lodging a Complaint
in NC
Complaint containing particulars can be submitted

in-person, or by his agent, or by registered post

addressed to National Commission.
On the date of hearing, it is obligatory on the
parties or their agents to appear before National
Commission.
Complaint shall be decided within 3-5months from
the date of notice received by opposite party.
After the proceedings, the National Forum shall
issue the orders accordingly.

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How to file a
complaint?

On
plain
paper,
contents
of
a
complaint:The name, description and the address of
the complainant and of the opposite
party/parties
The facts relating to complaint and when
and where it arose
Documents in support of the allegations
contained in the complaint
The relief, which the complainant claims
The complaint should be signed by the

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 A complaint can be filed in person,

through agent/lawyer, or by registered

post.
Nominal court fees:

Seria
l No.

Value of goods or services and the

compensation claimed

Amount of
fee
payable

Upto Rs. 1 Lakh

Rs. 100

Greater than or equal to Rs. 1 Lakh,

But less than Rs. 5 Lakhs
Greater than or equal to Rs. 5
Lakhs,
But less than Rs. 10 Lakhs
Greater than or equal to Rs. 10
Lakhs,

Rs. 200

1
2
3
4

Rs. 400

Rs. 50036

Limitation period for

complaints / appeals
The consumer case has to be filed within 2

years of the date of cause of action.

Delay in filing appeal may be condoned if
there is sufficient cause.
If an appeal is made after the specific
period, then the forum shall record in
writing reasons for the delay.
Revision petition - 90 days.
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Remedies Under CPA

To replace the goods.
To remove the defects in the product.
To return to the complainant the price paid

by the complainant .
To remove the defects or deficiencies in
the services in question.
Compensation for loss or harassment or
mental agony.

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Remedies Under CPA

To discontinue the unfair trade practices
or restrictive trade practices
Disposal within 90 days
No adjournment shall ordinarily be granted -

Speedy trial
Prohibition on sale of hazardous goods.
To issue corrective advertisements to
neutralize
the
effect
of
misleading
advertisement
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Appeals against order

of the forums
Appellate powers of the State Commission

appeal can be made to the SC against an order of

the district forum within a period of 30 days.
Appellate powers of the National Commission
appeal can be made to the NC against an order of
the SC within 30 days from the date of the order
Appeal shall be heard within 90 days from the
date of its admission
Appeal to the Supreme Court Appeal can be
filed against the order of the NC within 30 days
from the date of the order
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Penalties
Failure to comply with an order of DF, SC, NC

shall be punishable with an imprisonment for

a term which shall not be less than one month
but which may extend to three years, or with
fines ranging between 2000 and Rs 10,000 or
both.

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Jago Grahak Jago

Campaign
The

government has been implementing

this innovative and intensive multimedia
campaign to create consumer awareness
in the country.
Realising the need for empowering
consumers, the government has approved
a scheme of Rs 409 crore during the 11th
five-year Plan on the awareness campaign.
It aimed at helping the emergence of
consumers who irrespective of age, socioeconomic class or gender.

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Consumer Awareness
The government celebrates December 24 -

"National Consumer Rights Day

Online Media - website and social
networking sites
University - e.g. Delhi University
TV and FM radio
Poster and banners at public places
Newspaper and magazines

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