Amity Business School

MBA, (M&S/ E&L) Semester 2

Business Environment and Law
Ms. Shinu Vig
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Consumer Protection Act, 1986

The objects of the Consumer Protection Act are:

i. To provide for better protection of interests of
consumers.
ii. To provide for establishment of consumer councils
and other authorities.
iii. To empower the consumer councils and other
authorities to settle consumers’ disputes and matters
connected therewith.
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Salient Features of the Act:

i. The provisions of the Act are compensatory in
nature.
ii. It intends to provide simple, speedy and inexpensive
redressal to the consumers.
iii. It applies to all goods and services unless specifically
exempted by the Central government.
iv. It covers all sectors whether private, public or co-
operative.
v. It confers certain rights on consumers.
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Complainant:
A complainant means any of the following and having
made a complaint:
i. A consumer
ii. Any voluntary consumer association registered under
the companies act or any other law
iii. The Central Government or any State Government
iv. One or more consumers, where there are numerous
consumers having the same interest.
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Complaint:
Complaint means any allegation in writing made by a
complainant with a view to obtaining relief under the Act,
that:
• Any unfair/ restrictive trade practice has been adopted by
any trader.
• The goods bought by him suffer from defect in any
respect.
• The services hired or availed by him suffer from
deficiency in any respect
• A trader has charged excess price
• Goods which are hazardous to life and safety are being
offered for sale to public in contravention of law.
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Defect:
Any fault, imperfection or short coming in the
quality, quantity, potency, purity or standard which
is required to be maintained
• By or under any law or
• Under any contract express or
implied or
• Claimed by the trader in any manner
whatsoever in relation to any goods.
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Deficiency:

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
• Has been undertaken to be performed in
pursuance of a contract or
• Otherwise in relation to any service
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Consumer:
Consumer means any of the following persons:
• A person who buys any goods for consideration which
has been paid/ promised/ partly paid and partly
promised.
• It includes any other user of such goods when such use
is made with the approval of the buyer.
• However, it does not include a person who obtains such
goods for resale or for any commercial purpose.
• ‘Commercial use’ does not include use by a consumer of
goods bought and used by him exclusively for the purpose
of earning his livelihood by self employment.
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Consumer also means:

•A person who hires or avails of any services for

consideration which has been paid/ promised/ partly
paid and partly promised.
• It includes any other beneficiary of such services with
the approval of the buyer.
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Rights of Consumers:

i. Right to safety
ii. Right to be informed
iii. Right to choose
iv. Right to be heard
v. Right to seek redressal
vi. Right to consumer education
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Consumer Disputes Redressal Agencies:

1. National Consumer Disputes Redressal

Commission: NATIONAL COMMISSION
– costs and compensation higher than Rs. 1 Crore
2. State Consumer Disputes Redressal
Commissions: STATE COMMISSION
– costs and compensation higher than Rs. 20 Lakhs & less
than Rs. 1 Crore
3. District Consumer Disputes Redressal Forums:
DISTRICT FORUM
– costs and compensation less than Rs. 20 Lakhs
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Appeals:

1. Against District Forum- To the State

Commission
2. Against State Commission- To the National
Commission.
3. Against National Commission- To the
Supreme Court
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Reliefs available to Consumers:

i. To remove defects in the goods
ii. To replace the goods with new goods
iii. To return to the complainant the price paid
iv. To remove the deficiencies in the services
v. To discontinue the unfair/ restrictive trade practice
vi. Not to offer the hazardous goods for sale
vii. To withdraw the hazardous goods from being offered
for sale.
viii. To pay compensation as may be awarded to the
consumer for any loss or injury suffered by him
ix. To provide for adequate costs to the aggrieved party