Subject:-Business Environment

Topic:- Consumer Protection

Act 1986

NAME:-BALJEET KAUR
ROLL NO:-10391
M.Com 2nd sem.
 Index
S.no Topic
1 Consumer protection act 1986

2 Objective

3 Definitions

4 Rights of consumers

5 Consumer protection councils

6 Objective of consumer protection councils

7 Powers of consumer disputes agencies

8 Procedure of complaint

9 Remedies

10 Appeal
Consumer Protection Act,1986
❖ In order to provide for better protection of
the interests of the consumer the Consumer
Protection Bill, .1986 was introduced in the
Lok Sabha on 5th December, 1986.

❖ The Consumer Protection Act 1986 is a

social welfare legislation which was enacted
as a result of widespread consumer
protection movement.
 OBJECTIVE
❖ Right to consumer education :- It is a right
available to the consumer to information about
product and service.

❖ Right to safety :- It has a right to be protected

against marketing of goods which are
hazardous to life and property of the consumer.

❖ Right to seek redressal :- It means of redress

when goods fail to live up to their promise or
indeed cause injury.
❖ Right to be heard :- The consumer interest will
receive due consideration at appropriate
forms. It should be resolved in a fair and
expeditious manner.

❖ Right to choose :- Consumer must be have a

right to choose a product according to their
choice

❖ Right to information :- The consumer to be

informed by the producer about the quality,
quantity, potency, purity standard and price of
goods to protect from unfair trade.
 DEFINITION-
A Consumer
“Consumer" means any person who
♣
“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.
♣ 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.
 Complaint
❖ An unfair trade practice or a restrictive trade
practice has been adopted by any trader or
service provider.
❖ 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.
❖ The goods bought by him or agreed to be
bought by him; suffer from one or more
defects.
 Complainant
“Complainant" means—
♣ A consumer; or
♣ Any voluntary consumer association registered
under the Companies Act,1956; or
♣ The Central Government or any State Government,
♣ One or more consumers, where there are
numerous consumers having the same interest;
♣ In case of death of a consumer, his legal heir or
representative; who or which makes a complaint;

9
 Not a Consumer
“Not a Consumer" means—

♣ A person who purchased goods for resale; or

♣ A person who purchased goods for commercial
purpose; or
♣
A person who obtains services without consideration; or
♣
A person who obtains services under a contract of
personal service; or
♣
Tax-payers to municipality: or
♣
Contractors; or
♣
Applicants for jobs; or
♣
Persons who filed suits in courts.
10
 Manufacturer
❖ Who makes or manufactures any goods or parts
thereof.
❖ Does not make any goods but assembles parts
thereof made manufacture by other.

Trader
❖ A person who sells or distributes any goods for sale
and includes the manufacturer thereof and where
such good are sold distributed in package form
includes the package the packer thereof.
 Rights of Consumers
ν Right to Safety – Hazardous goods & services
ν Right to be Informed – About the quality, quantity,
potency, purity, standard and price of goods
ν Right to Choose – Access to variety of goods and
services at competitive price
ν Right to be heard - due consideration at appropriate
forums.
ν Right to seek Redressal – Right to seek redressal
against unfair trade practices or unscrupulous
exploitation of consumers
ν Right to Consumer Education –Right to acquire the
knowledge and skill to be an informed consumer
throughout life
Consumer protection councils
❖ Central council

❖ State council

❖ District council
 Central Council
♣ The ‘ National Commission’ shall consist of a person
who is or has been a Judge of the Supreme Court, shall
be its President. Not less than 4 and not more than such
number of members as may be prescribed and one of
whom shall be a woman with similar qualifications as
required in the case of appointment as a member to a
District Forum or a State Commission.
♣ Every member of the National commission shall hold
office for a term of 5 years or up to the age of 70 years
whichever is earlier.
♣ The National Commission shall have jurisdiction to
entertain complaints where the value of the goods or
services and compensation, if any, the claim exceeds
Rs. 1 Crore and appeals against the orders of any State
Commission.
 State Council
♣ A Consumer Disputes Redressal Commission to be
known as the "State Commission" established by the
State Government in the State.
♣ A person who is or has been a Judge of a High Court,
appointed by the State Government, who shall be its
President.
♣ 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 does not exceed Rs.1 Crore and appeals
against the orders of any District Forum within the State.
 District council
♣ Each District Forum shall consist of a person who is or
has been or is qualified to be a District Judge who shall
be its President two other members, one of whom shall
be a woman possessing a bachelor’s 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 up to the age of 65 years whichever
is earlier.

♣ 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 does not exceed Rs.20 Lakhs.
 Objective of Consumer
Protection Council
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 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 be informed
• the right to consumer education.

17
 Powers of Consumer
Disputes Redressal
♣ Agencies
To remove the defect,
♣
To replace the goods with new goods of similar
description,
♣
To return the complainant the price,
♣
To pay compensation to the consumer for any loss
or injury suffered,
♣
To remove the defects in the goods,
♣
To discontinue the unfair trade practices,
♣
Not to offer hazardous goods for sale,
♣
To provide adequate costs to parties,

18
 Criteria of compliant
ν
File WITHIN 2 YEARS of cause of action in the
Forum where the seller has his business or lives or
where the incident happened.
ν
Submit 3 COPIES OF COMPLAINT ON PLAIN
PAPER WITH SUPPORTING DOCUMENTS
ν (receipt, bill etc.)
ν NO LAWYER IS NEEDED.
There is no fee for filing a complaint. Even an
affidavit does not need stamp papers. A complaint
can be sent by post or presented in person by
complaint or his authorised agent.
 Procedure of Complaint
The following information must be furnished with the
complaint :-
♣ Name and complete address of complainant

♣ Name and complete address of the opposite party or

parties as the case may be.

♣
Date of purchase/service obtained.
♣
Amount paid for consideration.
♣

♣ Items of goods with quantities/nature of service.

Whether the complaint relate to unfair trade practice/
♣ defective goods' deficient service/charging excess
price.
♣
Copies of bills/vouchers/receipts and copies
 Remedies

The forums/Commissions can order the following relief:

ν Removal of defects from the goods

ν Replacement of the goods

ν Refund of the price paid.

ν Award of compensation for the loss or injury suffered.

ν
Removal of defects or deficiencies in the services.
ν
Discontinuance of unfair trade practices/restrictive
ν trade practices and directing not repeating them.
Withdrawal of the hazardous foods from being offered
ν for sale.
Award for adequate costs to practice.
 Appeal

ν Appeals against
ν District Forum ---Within 30 days -- In State
Commission
ν State Commission --- Within 30 days -- National
Commission
ν National Commission -- Within 30 days --
Supreme Court
There is no fee for filing appeals in the State and
National commissions.