A PROJECT REPORT ON

Critically examine the Role of Consumer Protection

Councils

Submitted to:
Dr. Aneesh V. Pillai
(Assistant Lecturer)
Submitted by:
Pranav Vaidya
Roll no:-117
Semester-III

Date of Submission: 2nd of September 2014

Hidayatullah National Law University
 Table of contents:

 Acknowledgements.
 Objectives.
 Research Methodology.
 Introduction.
 Consumer Protection Act: An Introduction.
 Consumer Protection Councils
 Critical Analysis on Consumer Protection councils.
 Conclusion.
 CERTIFICATE OF DECLARATION

The researcher hereby declares that the project work entitled “Critically
examine the role of Consumer Protection Council, submitted to Hidayatullah
National Law University, Raipur, is a record of an original work done by the
researcher under the guidance of Dr. Aneesh.V.Pillai, Assistant Professor, Law of
Torts, Hidayatullah National Law University Raipur.

The research done by the researcher is his own original work and wherever
excerpts from the works of different authors have been taken, they have been duly
acknowledged.

Declared By:

Pranav Vaidya
Roll No. 117
Section-C
Semester- III(Batch-13)
B.A., L.L.B (Hons.)
 ACKNOWLEDGEMENTS

First & foremost, I take this opportunity to thank Dr. Aneesh V. Pillai, Assistant
Professor, HNLU for allotting me this challenging topic to work on. He has been
very kind in providing inputs for this work, by way of suggestions and by giving
his very precious time for some discussion and providing me resource of his vast
knowledge of the subject which helped me to look at the topic in its very broad
sense also to look at some of the very narrow concepts by expertise view.
Therefore he proved to be a database in making this project. Hence I would like to
thank him for all his cooperation and support.

I would also like to thank my dear colleagues and friends in the University, who
have helped me with ideas about this work and also a source for constant
motivation and hence they were a guiding force to me in making of this project.
Last, but not the least I thank the University Administration for equipping the
University with such good library and IT lab.

Pranav Vaidya

Roll No.-117, Sec-C

Semester- III
Objectives:
The objective of the project is to study and understand the working & roles played
by the Consumer Protection Councils towards the people, and hence critically
examine the negative aspects of the same.

Methodology:
This project work is descriptive in approach. It is largely based on the analysis of
various circumstances and cases that appeared before the Hon’ble courts and the
approach taken by them in pursuit of justice. Various principles are also taken into
account that deals with the subject matter of this project.
 Introduction
When we discuss about the people of a country in terms of the economy, we can

categorize them as producers and consumers. While both have to work

simultaneously in dependence to each other, none of them can exist without the

other. As it’s because of the needs of the consumer, the production is necessary,

but even though he is equally vulnerable against the forces of production in terms

of the market policies which are generally against his comfort zone.

So in order to protect the interests of the consumer, various attempts have been

made till 1986, when Government of India enacted a comprehensive legislation-

Consumer Protection Act, to safe guard the interest of the consumer. The Act

enshrines the rights of the consumer such as right to safety, right to be informed,

right to be heard, and right to choose, right to seek compensation and right to

consumer education. This Consumer Protection Act guards the interests of the

individuals by keeping a system of checks over the policies of the producers, and

even acts accordingly if the rights of a consumer are violated.

 Consumer Protection Act: An Introduction

Due to the various Consumer protection movements in the late 1980’s, the
Government of India decided to enact The Consumer Protection Act in 1986.
According to a report given by UNESCO (United Nations Educational, Scientific
and Cultural Organization), it was recommended to all the countries of the world to
have Consumer protection policies in accordance to the guidelines provided. Even
the Sale of Goods Act in India also provides protection to the buyer of the goods,
whether they are consumer or not, though it doesn’t provide any separate forum for
the redressal of the grievances of the buyers. Unlike the Sale of Goods which also
provides some sort of protection to the buyers, The Consumer Protection Act
provides protection to the persons other than buyers, who use the goods with the
permission of the buyer or who use the services with the permission of the hirer of
the services.

The necessity of the Act can be understood from the fact that it had furnished the
long felt necessity of protecting the common man from such wrongs for which the
remedy under ordinary law becomes impossible. This act has also helped in
promoting welfare in the society by enabling the consumer to participate directly in
the market economy. Or in other way, it helps the middle class people by removing
their helplessness against the business class people who rule the market economy
and also take the benefit of the financial weakness as well as the lack of awareness.
The act has been constructed in accordance with the existing laws, while its base
lies with the protection of the interests of the individuals1 and to adopt a
constructive approach without doing violence to the language of the provisions2.

According to the act, for the settlement of the disputes related to a consumer, the
act postulates various sections for the establishment of Consumer Councils. These
councils have been settled up at the District, State as well as Central level. For any
kind of problems in relation to the deficiency of service, the consumer can
approach the courts. The objects of the Councils, as per the Act, shall be to
promote and protect the rights of the consumers such as:

 The right to be protected against the marketing of goods and services which
are hazardous to life and property
 The right to be informed about the quality, quantity, potency, purity,
standard and price of goods or services, as the case may be so as to protect
the consumer against unfair trade practices;
 The right to be assured, wherever possible, access to a variety of goods and
services at competitive prices;
 The right to be heard and to be assured that consumer's interests will receive
due consideration at appropriate forums
 The right to seek redressal against unfair trade practices or restrictive trade
practices or unscrupulous exploitation of consumers and
 The right to consumer education.

1 .Frances B Martins V. Mafalda Maria Teresa Rodriguez.

2 Lucknow Development Authority V. MK Gupta, (1999) 6SCC 627.
 Consumer Protection Councils

1. Central Consumer Protection Council

The Consumer Protection Act empowers the Central Government to establish a

Central Consumer Protection Council consisting of the Minister in charge of
consumer affairs in the Central Government as its Chairman and such number of
other official and non-official members representing such interests as may be
prescribed. Under the Consumer Protection Council Rules 1987, the membership
of the Council is restricted to 150 members including the Central Minister in
charge of Consumer Affairs as the Chairman. The term of the Council is three
years. To monitor the implementation of the recommendations of the Council, the
Central Government may constitute a standing working group from amongst the
members of the council under the Chairmanship of the Member Secretary of the
Council. The Council shall meet as and when necessary, but at least one meeting of
the Council shall be held at such time and place as the Chairman may think fit.

The objects of the Central Council shall be to promote and protect the rights of the
consumers such as3,—
(a) the right to be protected against the marketing of goods and services which are
hazardous to life and property;
(b) the right to be informed about the quality, quantity, potency, purity, standard
and price of goods or services, as the case may be so as to protect the consumer
against unfair trade practices;

3 . AVTAR SINGH, Law of Consumer Protection Principles and Practice : Being a Study of the
Consumer Protection Act, 1986 , Eastern Book Company.
(c) the right to be assured, wherever possible, access to a variety of goods and
service at competitive prices;
(d) the right to be heard and to be assured that consumer's interests will receive due
consideration at appropriate forums;
(e) the right to seek redressal against unfair trade practices or restrictive trade
practices or unscrupulous exploitation of consumers; and
(f) the right to consumer education.

2. State Consumer Protection Council

The Consumer Protection Act provides for the establishment of State Consumer
Protection Councils by the State Governments. The State Council shall consist of a
Minister in charge of consumer affairs in the State Government as its Chairman
and such number of other official or non-official members representing such
interests as may be prescribed by the State Government and ten nominees of the
Central Government. The State Council shall meet as and when necessary but not
less than two meetings shall be held every year at such time and place as the
Chairman may think fit. While the Central Council has to take care of the rights of
the consumers at the Central level, the State Councils has the duty to take care of
the rights of the consumers at the State level.

3. District Consumer Protection Council

In order to promote and protect the rights of consumers, within the district, the
Consumer Protection Act, provides for the establishment of a District Consumer
Protection Council in every district. It shall consist of the Collector of the district
as its Chairman and such number of other official and non-official members
representing such interests as may be prescribed by the State Government. It shall
meet as and when necessary but not less than two meetings shall be held every
year. The Chairman shall decide the time and place of the meeting. And just like
the State Council, the District Council has the duty to take care of the rights of the
consumers at the District level.

Under Sections-4, 5, 6, 7, 8 & 9 of the act, it had been clearly elaborated the
establishment as well as the working procedures of the councils at different levels
in accordance to the claims that they can grant.
 Consumer Protection Councils: Critical Analysis

When we talk about Consumer protection and these councils, the basic reason for
its establishment is that these councils give the government certain powers to
legislate, protect, promote and guarantee rights in the dealings between consumer
and business community. This concept was popularly known as Consumerism.
Consumerism plays an important role in increasing the standard of living of the
individuals of the people as they start to understand the market policies, as well as
the differences and qualities of a good product.

But even if these councils provide the base to the consumers for redressel from the
market policies, it becomes vague due to the lack of interests & knowledge about
the product a consumer purchases. The working of the consumerism is based on
the active participation of the consumers. But due to the laissez faire approach of
the government, that is to say putting normal restrictions on the market policies,
and the added effect of the non- interested and less aware consumers, the
consumers have been the ultimate suffers. Just like the role of the parents is to
guide their children about the right and wrong, so that when time comes, they can
do it on their own. Similarly these councils have also provided a platform to the
consumers, which must be extensively availed. But the negligence of the
consumers had become a poison for themselves. According to a study conducted
on the guidelines given by the United Nations Guidelines on Consumer Protection,
even after 25 years of the Consumer Protection Act (CoPRA) in India, only 20
percent of consumers know about it and only 42 percent have heard about
consumer rights. Fifty-three percent of consumers are unaware of the country’s
redressel system, the objective of which is to give consumers access to simple,
speedy and inexpensive redress of their grievances.

Though the consumers had been a major role in its lack of success, but if we see
the other way round, these councils have become a problem for themselves. Earlier
before the establishment of these Consumer Protection Councils, the Judiciary had
the sole authority as well as responsibility of dealing all types of cases. But with
the addition of these councils, the consumers have to follow even longer process
for their grievances. Like, a case filed in a district consumer council, has to go up
to the state council if required, followed by the Central council. And even if the
case hasn’t been decided, then it will be forwarded to the high court, eventually
increasing the time & making it lengthier for the consumers.
 Conclusion

So, in a nutshell it can be said that the Consumer Protection Act is

evolving with the passage of time. But due to the negligence and lack of
interest of the consumers in taking this matter seriously has gave the
advantage to the market group. Even at this rate, if the councils keep on
helping the consumers without any significant amount of responses from
their side, then it can be concluded that there is no gain of establishing
these councils, just a waste of time.
 Bibliography

 Consumer Protection Act by Avtar singh.

Webliography

 Articles on Consumer Protection Act.

 Articles on Consumer Movement in India.