Introduction

The World Economic Forum has declared that by 2030 with the GDP growth
rate of 7.6% India tends to become the 3rd largest Consumer Market.

Various aspects are to be taken into consideration while calculating these

ranks and one of them is satisfaction of the consumers, which depends upon
the existence of the laws supporting them.

In India, we have many consumer laws and one such law is the Consumer
Protection Act of 1986 (COPRA).

What is Consumer Protection Act, 1986?

The Consumer Protection Act, 1986 aims to provide simple, inexpensive and speedy redressal to
consumer grievances. The Act was passed by the Indian Parliament with this objective.

The Act covers all goods and services unless specifically exempted by the government. This
includes both private and public sector goods and services.

The key focus of the Act is to protect the rights of consumers and provide effective mechanisms
to resolve their complaints and disputes regarding defective products, deficient services,
misleading advertisements, etc.

The importance of the Consumer Protection Act lies in its goal of safeguarding consumer
interests by regulating businesses and service providers and establishing an easy redressal
system for consumers through consumer courts.

Applicability of the Consumer Protection Act

Understanding ‘Consumer Protection Act is applicable to’ which sectors, services, and individuals
is crucial. Broadly speaking, the Act applies to all types of transactions, including online and
offline, for the purchase of goods and services. Specifically, the Act applies to:

o Goods purchased for self-use or consumption.

o Services utilized which include banking, transportation, insurance, among others.
o All sales, whether online or offline, and irrespective of the monetary value involved.
o Unfair trade practices or restrictive trade practices.

This wide applicability is significant in providing a universal set of standards and legal procedures
for protecting consumer rights across India.
Features of Consumer Protection Act, 1986
The 'Consumer Protection Act, 1986' boasts several distinct features that differentiate it from
other legislation. These features cater to the different needs of consumers and the market,
making it a robust and comprehensive Act. Some of the salient features of this Act include:

o Broad Coverage: The Act applies to all goods and services and covers the private, public,
and cooperative sectors.
o Wide Definition of Consumer: The Act includes not only those who purchase goods or
services but also the users of such goods or services, provided they are used with the
approval of the actual buyer.
o Redressal Mechanism: The Act establishes a three-tier dispute redressal mechanism at
the district, state, and national levels.
o Protection against Unfair Trade Practices: The Act protects consumers from unfair and
deceptive trade practices.
o Provision for Consumer Education: The Act emphasizes consumer education, enabling
consumers to make informed decisions.

Need for Consumer Protection Act in India

Consumer rights in India were historically overlooked, leading to rampant exploitation of
consumers by businesses. This necessitated the creation of a robust legislation to protect
consumers from unfair practices, hence the 'Consumer Protection Act, 1986' was introduced. The
main needs for this Act in India include:

o To Safeguard Consumers: With an increasing array of products and services available in

the market, consumers needed protection against unsafe and substandard goods and
services.
o To Curb Unfair Trade Practices: Unfair trade practices like misleading advertisements,
hoarding, black marketing, etc., needed to be curtailed.
o To Provide Legal Recourse: Consumers needed a legal recourse to seek compensation
for damages caused by unfair trade practices or defective goods and services.
o To Promote Responsible Consumerism: The Act promotes informed consumerism by
enforcing rights such as the right to information and the right to education.
Objectives of Consumer Protection Act, 1986

When examining the 'objectives of the Consumer Protection Act, 1986', it is crucial to recognize
that the Act serves a broader purpose than merely providing legal recourse for aggrieved
consumers. The fundamental objectives of this Act are:

o Protection of Consumers: The primary objective is to protect consumers from hazardous

goods, deficient services, and unfair trade practices.
o Promoting Consumer Rights: The Act emphasizes six consumer rights, including the
right to safety, information, choice, representation, redressal, and consumer education.
o Consumer Redressal: To provide a simple, inexpensive, and fast mechanism for resolving
consumer disputes.
o Regulating Trade Practices: To curb and control restrictive and unfair trade practices.

These objectives reflect the Act's dedication to not only protect consumers but also ensure they
have adequate knowledge and understanding of their rights.