CONSUMER PROTECTION ACT, 1986

With Amendments under …

CONSUMER PROTECTION ACT , 2019( COPRA)

Prof. (CS) Monica Suri

Fellow Member Institute of Company Secretaries of
India
 INTRODUCTION

• Industrial development in the field of manufactured

goods has led to Industrial development in the field of
manufactured goods has led to the influx of various
consumer goods into the Indian market to cater to the
needs of the consumers.

• A variety of services such as banking, financing,

insurance, transport, housing construction,
entertainment have been made available to the
consumers.
 Consumer Protection Act 1986
• The Consumer Protection Act, came into
existence and implemented in 1986,
…….provides Consumer Rights to prevent
consumers from fraud or specified unfair
practices.
• It safeguards and encourages and gives an
opportunity to consumers to speak against
insufficiency and flaws in goods and
services…….. If traders, manufacturers and
distributors follow any foul trade, this act
protects their rights as a consumer.
 BASIC OBJECTIVES OF CPA 1986
• Objectives of consumer protection act
• To Provide better and all round protection to
consumer.
• To Provide machinery for the speedy
redressal of the grievances.
• To Create framework for consumers to seek
redressal.
• To Provide rights to consumers.
• To Safeguarde rights of Consumers.
 APPLICABILITY
• This Protection Act covers entire goods and
services of all sectors that are public, private, or
cooperative sectors, except those exempted by
the central government.

• The act provides a floor for a consumer where

one can file their complaint against the product
and the forum takes an action against the
concerned supplier and compensation is granted
to the consumer for the inconvenience he/she
has encountered.
 SCOPE CPA 1986
• In order to protect the consumers from exploitation
and to save them from adulterated and substandard
goods and deficient services the Consumer Protection
Act came into force on 15th April, 1986.

• It applies to the whole of India except the State of

Jammu and Kashmir.
• he influx of various consumer goods into the Indian
market to cater to the needs of the consumers
 REASONS FOR COPRA 2019
• Due to challenges faced by consumers in the digital
age, the Indian Parliament, on 6 August 2019, passed
the landmark Consumer Protection Bill, 2019…….
which aims to provide the timely and effective
administration and settlement of consumer disputes.

• The Consumer Protection Act, 2019 (New Act) received

the assent of the President of India and was published
in the official gazette on 9 August 2019.

• The New Act will come into force on such date as the
Central Government may so notify. The New Act seeks
to replace the more than 3 (three) decades old
Consumer Protection Act, 1986 (Act).
 CPA 1986
Meaning of Consumer
Consumer means any person who- section 2(1) (d)
▪ Buys any goods for a consideration which has been
paid or promised or partly paid and partly promised
and includes any user of such goods.
▪ Hires or avails of any services for a consideration
which has been paid or promised or partly paid and
promised
▪ and includes any beneficiary of such services.
▪ But does not include a person who obtains such
goods for resale or for any commercial purpose.
• Examples:
• Getting a Samsung mobile phone and Voda
phone connection as first user or additional
number
• Going to a restaurant with family for dinner
• Person buying a car , and renting for use as taxi
• Receiving additional gifts apart from the main item
–not consumer for those additional gifts.
• Registration for a service , a makes him a
consumer like LPG Gas
 CONSUMER PROTECTION ACT
2019…..COPRA…KEY POINTS
• The Digital Age has ushered in a new era of
commerce and digital branding, as well as
a new set of customer expectations.
• Digitisation has provided easy access, a
large variety of choice, convenient payment
mechanisms, improved services and
shopping as per convenience.
• The growth path , also brought in
challenges related to consumer protection.
TRANSACTION UNDER COPRA 2019
• Covers E-Commerce Transactions: The
New Act has widened the definition of
'consumer’.

• The definition now includes any person

who buys any goods, whether through
offline or online transactions, electronic
means, teleshopping, direct selling or
multi-level marketing.
• Enhancement of Pecuniary Jurisdiction:

• District forum can now entertain consumer complaints

where the value of goods or services paid does not exceed
INR 10,000,000 (Indian Rupees Ten Million).

• The State Commission can entertain disputes where such

value exceeds INR 10,000,000 (Indian Rupees Ten Million)
• ……. INR 100,000,000 (Indian Rupees One Hundred Million),
and

• the National Commission can exercise jurisdiction where

such value exceeds INR 100,000,000
• E-Filing of Complaints: The New Act provides flexibility to
the consumer to file complaints with the jurisdictional
consumer forum located at the place of residence or work of
the consumer.

• Establishment of Central Consumer Protection Authority:

The New Act proposes the establishment of a regulatory
authority known as the Central Consumer Protection
Authority (CCPA), with wide powers of enforcement.

• Consumer can get compensation for any harm , done , after

the use of any product or service.

• Mediation Centres are established for Dispute Resolution.

• JUDICIAL DECISIONS ON DEFICIENCY OF
SERVICES
• Ref.

Skypack Couriers Pvt. Ltd. Vs Anupama Bagla

Airpack Couriers ( India ) Pvt Ltd Vs. V. Suresh

• LET US TEST OUR UNDERSTANDING
 ARE THEY CONSUMER
• Q1. Taking Electricity Connection in own name
• Q2. Buying toys for a children. Parent and
Children both consumer?
• Q3. Family going out for dinner, and finds a
worm in meal , all are consumers?
• Q4. Mobile phone connection as an add on
number ? Is add on also consumer ?
 RIGHTS OF CONSUMERS

• RIGHT TO SAFETY AGAINST HAZARDOUS GOODS

• The Consumer Protection Act defines this right as a protection
against GOODS AND SERVICES that are ‘hazardous to life and property’.
This particularly applies to medicines, pharma, foodstuffs, and
automobiles

• RIGHT TO BE INFORMED ABOUT QUALITY, QUANTITY

• This right mentions the need for consumers to be informed about the
quality and quantity of goods being sold.

RIGHT TO CHOOSE AMONG COMPETITIVE RATES

• The consumer must have the right to choose between different products
at competitive prices.
• RIGHT TO BE HEARD FOR CONSUMER
WELFARE

• RIGHT TO SEEK REDRESSAL

AGAINST UNFAIR TRADE PRACTICES.

• RIGHT TO CONSUMER EDUCATION

AND INFORMATION
 CONSUMER RESPONSIBILITIES
• Responsibility to be aware – A consumer has to be careful of the safety and quality of
products and services before purchasing.

• Responsibility to think independently– Consumer should be well bothered about what they
want and need and hence make independent choices.

• Responsibility to speak out- The buyer should be fearless to speak out their problems and
tell to traders what they exactly want

• Responsibility to complain- It becomes the consumer’s responsibility to express and file a

complaint about their dissatisfaction with goods or services in a sincere and fair manner.

• Responsibility to be an Ethical Consumer- Consumer must be fair and not engage

themselves with any deceptive practice.
 Restrictive Trade Practice…
Section 2nn CPA 1986
• 2(nnn) of the Consumer Protection Act,
1986,
• 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
market relating to goods or services in
such a manner as to impose on the
consumers unjustified costs or restrictions
• EG OF RTP….

• BUY ACCESSORIES ALONG WITH MICROWAVE

• PURCAHSE OF BOOK SHELF WITH BULK

BOOK SALE
 UNFAIR TRADE PRACTICE…. Section
2(1)r
• Implies a trade practice

• which for the purpose of promoting the sale ,

use or supply of any goods or for the provision
of any services

• adopt any unfair method or unfair trade

practice.
• Unfair trade practices include:
1. Misleading advertisement and false
representation:
Claiming false affiliation .eg Foreign
Collaboration
Non-fulfillment of Guartantee/ not
rendering after sale service.
2. Bargain Sales : indulging in substandard
goods
• Offering gifts and prizes etc. and considering
contents or lottery

• 4. Not confirming to prescribed standards

• 5. Hoarding or destruction of goods

CPA , 1986
 • CONSUMER PROTECTION COUNCILS

• CENTRAL CONSUMER PROTECTION

COUNCIL
• ( Sec4)
• It is established by the Central
CONSUMER Government.
COMMISSIONS • Membership: Representations consists
of 150 members term of whom as
..UNDER 1986 prescribed by the consumer prtection
ACT Rules, 1987.
• Term of the council is 3 years
• Atleast one meeting must be held in a
year
• Objects are to protect all the rights
envisaged in the Act
• STATE CONSUMER PROTECTION
COUNCIL ( SEC 7)
• The State Government shall by
notification establish state council
• Memberships are as prescibed by
provisions
• Meetings shall be atleast two in a year
• Object is to protect consumers for all
rights entrusted
DISTRICT CONSUMER PROTECTION
COUNCIL ( SEC8A)
• The State Government is entrusted to
pass a notification for making a district
council
• Members will be from district, State
Governement as per te rules.
• Meetings shall be not less than two in a
year
• LET US TEST OUR UNDERSTANDING
 Lets do a Recap
• Q1. Who is a consumer ?

• Q2. Any 2 changes under COPRA 2019?

• Q3. Meaning of RTP

• Q4. Meaning of UTP.
• Q5. Any two rights of Consumers?