Consumer Protection Act

INTRODUCTION
Consumer rights are an integral part of our lives like the consumerist way of life. We have all
made use of them at some point in our daily lives. Market resources and influences are growing
by the day and so is the awareness of ones consumer rights. These rights are well defined and
there are agencies like the Government, consumer courts and voluntary organizations that work
towards safeguarding.
Consumer Protection Act, 1986 is an important Act in the history of the consumer
movement in the country. The Act was made to provide for the better protection and promotion of
consumer rights through the establishment of consumer councils and quasi-judicial machinery. It
is mile stone in the history of socio-economic legislation and directed towards public welfare and
public benefits.
The CPA was passed by the Lok Sabha on 5th December 1986 and Rajya Sabha on 10th
December, 1986 and assented to by the president in the Gazette of India.
Extra Part II: Section 1 dated 26.12.1986.and at PP 1-12 called, the CPA 1986 (Act No.66
of 1986) and the preamble states that, An Act provide for better protection of the interest of
the consumers and for that purpose to make provisions for the establishment of consumer
councils and other authorities for the settlement of consumers dispute and for matters
connected therewith.
Under the Act, consumer disputes redress agencies have been set up throughout the country
with the District Forum at the District level, State Commission at the State level and National
Commission at national level to provide simple, inexpensive and speedy justice to the consumer
with complaints against defective goods, deficient services and unfair and restrictive trade
practices. It extends to the whole of India except the State of Jammu and Kashmir.

On a strict reading of the provisions of the Act as a whole it would be seen that in enacting the
statute the interaction of the Parliament was to provide protection and relief to four categories of
consumers:
(I) Persons who have suffered loss or damage as a result of any unfair trade practice adopted by
any trader.
(II) Persons who have purchased goods for which the trader has charged a price in excess of the
price fixed by or under any law for the time being in force, or displayed on the goods or any
package containing such goods.
(III) Persons who have purchased goods for consideration which are found suffer from one or
more defects.
(IV) Persons who have hired any services for consideration when the services provided are found
to suffer from deficiency in any respect.

Why Consumer Is King

A consumer is a user of goods and services. Any person paying for goods and services which he
uses is entitled to expect that the goods and services are of a nature and quality promised to him
by the seller.
The earlier principle of "Caveat Emptor" or "let the buyer beware" which was prevalent
has given way to the principle of "Consumer is King". The origins of this principle lie in the fact
that in today's mass production economy where there is little contact between the producer and
consumer, often sellers make exaggerated claims and advertisements which they do not intend to
fulfill. This leaves the consumer in a difficult position with very few avenues for redressal. The
onset on intense competition also made producers aware of the benefits of customer satisfaction
and hence by and large, the principle of consumer is king" is now accepted.

Objects of the Consumer Protection Act, 1986

The preamble to the Act states that the Act is legislated to provide for better protection of the
interests of consumers and for that purpose to make provision for the establishment of consumer
councils and other authorities for the settlement of consumer's disputes and for matters connected
therewith.

Consumer Rights

1. Right against exploitation by unfair trade practices.

2. Right to protection of health and safety from the goods and services the consumers buy or are
offered free.
3. Right to be informed of the quality and performance standards, ingredients of the product,
operational requirements, freshness or the product, possible adverse side effects and other
relevant facts concerning the product or service.
4. Right to be heard if there is any grievance or suggestions.
5. Right to get genuine grievances redressed.
6. Right to choose the best from a variety of offers.
7. Right to physical environment that will protect and enhance the quality of life.

Definitions
Consumer
All of us are consumers of goods and services. For the purpose of the Consumer Protection Act,
the word "Consumer" has been defined separately for "goods" and "services".
(A) For the purpose of "goods", a consumer means a person belonging to the following
categories:

One who buys or agrees to buy any goods for a consideration which has been paid or
promised or partly paid and partly promised or under any system of deferred payment;

It includes any user of such goods other than the person who actually buys goods and such
use is made with the approval of the purchaser.

(B) For the purpose of "services", a "consumer" means a person belonging to the following
categories:

One who hires or avails of any service or services for a consideration which has been paid
or promised or partly paid and partly promised or under any system of deferred payment.

It includes any beneficiary of such service other than the one who actually hires or avails
of the service for consideration and such services are availed with the approval of such
person.

Consumer Dispute

Consumer Dispute" means a dispute where the person against whom a complaint has been made,
denies or disputes the allegations contained in the complaint.

Defect
"Defect" means 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 under
any contract, express or implied or as is claimed by the trader in any manner whatsoever in
relation to any goods.

Deficiency
"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.

Complainant
"Complainant" means
(i)
a consumer; or
(ii)
any voluntary consumer association registered under the Companies Act, 1956
(1of 1956) or under any other law for the time being in force; or
(iii)
the Central Government or any State Government,
(iv)
one or more consumers, where there are numerous consumers having the same
interest;
(v)
in case of death of a consumer, his legal heir or representative; who or which
makes a complaint.

Complaint
"Complaint" means any allegation in writing made by a complainant that
(i)

an unfair trade practice or a restrictive trade practice has been adopted by any
trader or service provider;

(ii)

the goods bought by him or agreed to be bought by him; suffer from one or more
defects;

(iii)

the services hired or availed of or agreed to be hired or availed of by him suffer

from deficiency in any respect;

(iv)

a trader or service provider, as the case may be, has charged for the goods or for
the service mentioned in the complaint a price in excess of the price
(a) fixed by or under any law for the time being in force
(b) displayed on the goods or any package containing such goods;

(c) displayed on the price list exhibited by him by or under any law for the time
being in force;
(d) agreed between the parties;
(v)

goods which will be hazardous to life and safety when used or being offered for
the sale to the public.

Service
"Service" means service of nay description which is made available to potential users and
includes the provision of facilities in connection with banking, financing, insurance, transport,
processing, supply of electrical or other energy, board or lodging or both, housing construction,
entertainment, amusement or the purveying of news or other information, but does not include the
rendering of any service free of charge or under a contract of personal service.

Unfair Trade Practice

Unfair Trade Practice" means a trade practice which, for the purpose of promoting the sale,
use or supply of any goods or for the provision of any service, adopts any unfair method or unfair
or deceptive practice including any of the following practices, namely;
The practice of making any statement, whether orally or in writing or by visible representation
which,
(i) falsely represents that the goods are of a particular standard, quality, quantity, grade,
composition, style or model;
(ii) falsely represents that the services are of a particular standard, quality or grade;
(iii)falsely represents any re-built, second-hand, renovated, reconditioned or old goods as new
goods;
(iv) represents that the goods or services have sponsorship, approval, performance,
characteristics, accessories, uses or benefits which such goods or services do not have;
(v) represents that the seller or the supplier has a sponsorship or approval or affiliation which
such seller or supplier does not have;
(vi) makes a false or misleading representation concerning the need for, or the usefulness of,
any goods or services;
(vii)gives to the public any warranty or guarantee of the performance, or length of life of a
product or of any goods that is not based on an adequate or proper test.

Restrictive Trade Practice

Restrictive Trade Practice means a trade practice which tends to bring about manipulation of
price or 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.