Consumer Protection Act, 1986 Objects of the Act 1. Better protection of interest of consumers 2.

Protection of rights of consumers Protected against the marketing of goods or services which is hazardous to life Right to be informed- quantity, quality, price, potency, purity and standard Assured of goods or services at competitive prices To be heard Consumer Education 3. Consumer Protection councils 4. Quassi-Judicial machinery for redressal of consumer disputes

Definitions COMPLAINANT 2(1)(b) i. ii. iii. iv. Consumer Any voluntary consumer protection council registered under companies act, 1956 Central govt., State govt., One or more consumer

v.

Death- legal representative

Complaint- 2(1)(c) An Allegation in writing made by a complainant that 1. Unfair trade practice or restrictive trade practice has been adopted 2. Goods- bought- suffer from one or more defects 3. Services hired/availed suffer from defects 4. Trader or service provider- charged price in excess of the following - fixed by or under any law for time being in force - displayed on the goods - displayed on the price list - agreed between the parties 5. Goods hazardous to life and safety when being offered to public - in contravention of standards of safety - due diligence- unsafe to the public 6. service- sab same same as above

Consumer 2(1)(d)

Means any person who i. Buys goods for a consideration (a) which has been paid or promised or partly paid and partly promised or (b) under any system of deferred payment Hires or avails of any service for a consideration which has been paid or promised or partly paid or promised or under any system of deferred payment

ii.

Restrictive Trade Practice 2 (1)(nnn) It means a trade practice which tends to bring about manipulation of price or its conditions of delivery or to affect flow of supplies in the market relating to goods or services in such a manner as to impose on the consumers unjustified costs or restrictions and shall include a. Delay beyond period agreed- likely- price rise b. Trade practice- to buy, hire avail- goods or services- as a condition-precedent to buying other goods or services

The Central Consumer Protection Council 1. Set up by Central Govt. by notification 2. Membership

- Minister in charge of consumer affairs- CG - Such other official and non official members 3. Following are 150 members notified - Minister in charge of consumer affairs CGCHAIRMAN - Minister of state VICE CHAIRMAN - Minister of food and civil supplies/minister in charge of consumer affairs state - Parliament- 8, Lok Sabha 5 and Rajya Sabha 3 - Commissioner of scheduled caste and tribes - representatives of Central Govt. max 20 - representative of consumer organisations min 35 - representatives of women min 10 - representatives of farmers, trade and industries max 20 - persons representing consumers interests- max 15 - Secretary of department of civil supplies

4. The term of council will be 3 years 5. Any member may resign in writing 6. Meeting - at least once in a year- as and when necessary

7. Objects same same

The State Consumer Protection Council 1. State government by notification 2. The state protection council shall consist of following memebrs - Minister in charge of consumer affairs in state CHAIRMAN - Official and non-official members as may be prescribed by State Government - Official and non-official members as may be prescribed by Central Govt- Max 10 3. Not less than two meetings every year 4. Time and place of meeting as may be prescribed by State Government 5. Objects Same Same

The District Consumer Protection Council 1. State Government every district 2. It shall consist of following members - The collector of district CHAIRMAN

- Such other number of official and non-official members 3. At least two meetings in a year 4. Time and place of meeting- as may be decided by CHAIRMAN

The District Forum 1. Every district forum shall consist of following members - person- qualified to be district judge- President - 2 other members one of them shall be woman and having following qualifications - not less than 35 years - bachelors degree - person of ability, integrity and standing and have adequate knowledge and experience of at least 10 years and in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or admin.

2. Further a person shall be disqualified for appointment if he- Convicted or sentenced to imprisonment State GovtMoral Turpitude - undischarged insolvent - unsound mind competent court

- removed/dismissed from govt service - financial interest- likely to affect prejudicially - such other disqualifications

- Selection Committee- State Government - President of State Commission Chairman - Secretary, law department of the state Member Secretary in charge of the department dealing with consumer affairs Member

- Term of office 5 or 65 years Whichever is earlier - Resignation In writing State Government - Salary, Terms and Conditions Prescribed by state government, - Jurisdiction value of goods or services does not exceed Rs. 20,00,000/- Opposite party resides or works personally for gain- time of institution of complaint Manner of Complaint To be made by Consumer Recognized Consumer Association One or more consumers

Central Govt. or State Govt. Legal Representative Payment of fees Receipt of complaint- proceed- reject- opportunity of being heard Admissibility 21 days Procedure on admission of complaint (Goods) Complain relating to goods forward complain to opposite party- 30+15 days Denial of allegation by opposite party Following procedure shall be adopted 1. Reference to laboratoryfindings/report 45 days defect in goods

2. Deposit of fees- laboratory charges - complainant 3. Objections by parties regarding testing of laboratory- in writing 4. Reasonable opportunity to parties of being heardthereafter issue order

Complaint relating to services 1. Copy of complain to opposite party (30+15) days 2. Denial of allegation made by opposite party

3. Three options 1. Ex parte order on the basis of evidence where opposite party denies allegation 2. Ex parte order where opposite party fails to take action within specified time 3. Ex parte order where complainant does not appear dismiss or decide on merits

Proceedings of district forum shall be final In case of death of complainant- complain shall be continued by legal representative Period every complain to be heard within 3/5 months from the date of receipt of notice by opposite party If complaint is disposed after the period specified, district forum shall record reasons in writing District Forum may pass interim orders if it is necessary

Powers of District Forum 1. Summoning and enforcing attendance of any defendant or witness and examining witness on oath 2. Discovery and production of any document 3. Receive evidence on affidavits 4. Request for report from concerned lab or analyst

5. Issuing commission to examine any witness 6. Any other matter as may be prescribed Every proceeding shall be a judicial proceeding

Findings of District Forum a. To remove the defects pointed out by lab b. To replace the goods c. To return the price or the charges paid by complainant d. To pay the compensation for any loss or injury suffered e. To remove defects in goods and deficiencies in services f. To discontinue the unfair trade practice or restrictive trade prctice g. Not to offer hazardous goods for sale h. To withdraw hazardous goods from being offered for sale i. To cease mfg of hazardous goods and providing hazardous services j. To pay such sum as may be prescribed-large number of consumers-unidentifiable- minimum 5% of value of goods or services sold k. To issue corrective advertisement-neutralize the effect l. To provide for adequate cost to the parties

m. APPEAL to STATE COMMISSION if not satisfied with the order- 30 days- deposit 50% or 25000 which ever is lower

STATE COMMISSION 1. Every state commission shall consist of following members - person- qualified to be high court judge- President - 2 other members one of them shall be woman and having following qualifications - not less than 35 years - bachelors degree - person of ability, integrity and standing and have adequate knowledge and experience of at least 10 years and in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or admin. - Not more than 50% members shall be from having judicial background 2. Further a person shall be disqualified for appointment if he- Convicted or sentenced to imprisonment State GovtMoral Turpitude - undischarged insolvent - unsound mind competent court

- removed/dismissed from govt service - financial interest- likely to affect prejudicially - such other disqualifications 3. Every appointment shall be made on recommendation of Selection committee 4. Constitution of Benches one or more as president may deem fit