THE CONSUMER

PROTECTION ACT, 1986

Anshul Bhargava
Bhawna Sikka
Divleen Kaur
Manu Shrivastava
Pooja Jain
Priyanki Munshi
Rohit Salesha
 THE PRE-1986 POSITION

 SPORADIC ACTS AND LAW OF TORTS

PROTECTING CONSUMER RIGHT
 REMEDY THROUGH CIVIL COURT
 ELABORATE RULE OF EVIDENCE AND
PROCEDURE
 TIME CONSUMING AND COSTLY
 WHY THE CONSUMER
PROTECTION ACT 1986?
 UNO GUIDELINES OF 1985
 Encouragement of Ethical Conduct for those
engaged in production and distribution
 Curbing abusive Trade Practices Nationally and
Internationally
 PROVIDE EASY AND USER-FRIENDLY
SOLUTION TO THE CONSUMER
 Less paperwork
 Nominal Charges only
 Less time consuming
 SEPARATE QUASI-JUDICIAL
ADJUDICATION STRUCTURE
 MAIN FEATURES OF THE ACT

 ADDITIONAL REMEDY
 COVERS BOTH GOODS AND SERVICES INCLUDING RESTRICTIVE &
UNFAIR TRADE PRACTICES
 THREE-TIER ADJUDICATING SYSTEM
 THE SUPREME COURT IS THE APPEX APPEALATE BODY
 ENGAGEMENT OF ADVOCATE IS OPTIONAL
 NO COURT-FEE IS PAYABLE EXCEPT A NOMINAL PROCESSING FEE
 A RECOGNISED CONSUMER ASSOCIATION as well as LEGAL HEIRS
CAN ALSO MAKE A COMPLAINT BESIDES THE CONSUMER
 REMOVAL OF DEFECT, REPLACEMENT, COMPENSATORY RELIEF,
ETC.
 TIME BOUND DISPOSAL OF DISPUTES
 PROVISION FOR DISMISSAL AND COST FOR VEXATIOUS AND
FRIVOLOUS COMPLAINTS
 Complain
 Complaint'' means any allegation in writing made by a complainant that-

4[(i) An unfair trade practice or a restrictive trade practice has been

adopted by 5[any trader or service provider;]]

(ii) 6[The goods bought by him or agreed to be bought by him] suffer from
one or more defects;

(iii) 7[Service hired or availed of or agreed to be hired or availed of by him]

suffer from deficiency in any respect;

8[(iv) a trader or the 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 in excess of the price-
(a) fixed by or under any law for the time being in force;
to be injurious to life and safety.]

(b) displayed on the goods or any package containing such goods;

(c) displayed on the price list exhibited by him by or under any law
for the time being in force;

(d) agreed between the parties;

 9[(v) goods which will be hazardous to life and safety when used
are being offered for sale to the public;-

(A) in contravention of any standards relating to safety of such

goods as required to be complied with, by or under any law for the
time being in force;

(B) if the trader could have known with due diligence that the goods
so offered are unsafe to the public;]

10[(vi) service which are hazardous or likely to be hazardous to life

and safety of the public when used, are being offered by the service
provider which such person could have known with due diligence to
be injurious to life and safety
 WHAT CAN BE COMPLAINED OF:
 UNFAIR OR RESTRICTIVE TRADE PRACTICE
 DEFECT IN GOODS AND DEFICIENCY IN
SERVICE
 PRICE CHARGED IN EXCESS
 FIXED BY LAW
 DISPLAYED ON PACKAGE OR BY TRADER
 AGREED BETWEEN PARTIES
 HAZARDOUS TO LIFE AND PUBLIC SAFETY
 IN CONTRAVENTION TO LAW OR
 OMISSION ON THE PART OF THE TRADER OR SERVICE
PROVIDER
 COMPALAINANT
 (i) A consumer; or

(ii) Any voluntary consumer association registered under the companies

Act, 1956 (1 of 1956), or under any other law for the time being in
force; or

(iii) The Central Government or any State Government, who or which

makes a complaint;

2[(iv) One or more consumers where there are numerous consumers

having the same interest;]

3[(v) in case of death of a consumer, his legal heir or representative.]

who or which makes a complaint;

WHO CAN MAKE A COMPLAINT
 ANY CONSUMER
 REGISTERED VOLUNTARY CONSUMER
ASSOCIATION (Regd. Under Companies
Act or any other law)
 CENTRAL OR STATE GOVERNMENT
 ONE OR MORE CONSUMERS HAVING
COMMON INTEREST
 LEGAL HEIR OR REPRESENTATIVE OF
DECEASED CONSUMER
 WHO IS A CONSUMER?
 Section 2(d) of the Act defines:
 A buyer or an user with the permission of the buyer
 Price paid or promised or partly paid and partly
promised; bought under a system of deferred
payment
 Goods for resale and for commercial purposes are
excluded (except in case of exclusively for livelihood
by means of self-employment)
 Hires or avails services on payment, promise of
payment; or any system of deferred payment and
also includes any beneficiary
WHAT ARE GOODS AND SERVICES
 Sec. 2(i): Goods as defined in Sale of
Goods Act, 1930 (movable properties)
 Sec. 2(o): Service of any description and
is available to potential users; it includes
but not limited to items enumerated in the
provision.
 It does not include gratuitous service or under a
contract of personal service
 SOME DEFINITIONS IN THE ACT

Section 2(f) & (g)

 Defect in Goods means –
Fault, Imperfection or Shortcoming in:
 Quality, Quantity, Potency, Purity or Standard
 Deficiency in service means -
Fault, Imperfection, shortcoming or
Inadequacy in:
 Quality, Nature and Manner of Performance
 PERSON
 "Person" includes, -

 (i) A firm whether registered or not;

(ii) A Hindu undivided family;
(iii) A Co-operative society;
(iv) Every other association of persons whether registered under the
societies Registration Act, 1860 (21of 1860), or not;
 Sec. 2(j): Manufacturer:
 Makes any goods or part thereof
 Assembles parts manufactured by others
 Puts the seal on products manufactured by others
 Sec. 2(q): Trader:
 Who sales or distributes including the
manufacturer
 If it is packed then the packer
 Sec 2 (nnn) Restrictive Trade Practice :
 Manipulation of price or conditions of delivery or to
affect flow of goods to cause unjustified cost or
restriction to the consumers
 Delay beyond period agreed by the trader which
has led or likely to lead rise in prices
 Trade Practice requiring purchase, hiring or
availing of a separate good or services as a pre-
condition
 Sec 2 (oo) Spurious Goods and Services
 Those are claimed to be genuine but actually not
 "Services" means service of any description which is made available
to potential [users and includes, but not limited to, the provision of]
facilities in connection with banking, Financing insurance, transport,
processing, supply of electrical or other energy, board or lodging or
both,[housing construction] entertainment, amusement or the
purveying of news or other information, but does not include the
rendering of any service free of charge or under a contract of
personal service;
 Sec 2 (r): Unfair Trade Practices:
• Unfair or deceptive practices for promotion of sale, use or supply
of goods or provision of any services. It includes False
Representation:
 Regarding quality, quantity, grade, composition, style or
model or service of particular standard, quality or grade
 Relating to sponsorship, usefulness or need of certain goods
or services
 Warranty, guarantee of product, replacement or
maintenance
 Misleading facts relating to the product or price, offer of
prize, gift but not providing them
 Withholding of information from participants in any lottery or
chance gain after completion of time
 Permits hording, destruction of goods or restriction of
services with an intention to cause price hike
 Manufacture of spurious goods
 REDRESSAL MECHANISM
DISTRICT STATE NATIONAL SUPREME
FORUM COMMISSION COMMISSION COURT

•Original •Jurisdiction •Jurisdiction •Appellate

Jurisdiction Original Original Jurisdiction
•Up to 20 •Appellate •Appellate
Lakhs •Revisional •Revisional
•Decision •From 20 Lakhs •1 Crore and
within 3 to 1 Crore above
months or 5 •Decision within
months if
90 days form
Lab. Test
the date of
required
admission
 Appeal in state commission
 Any person aggrieved by an order made
by the District Forum may prefer an
appeal against such order to the State
Commission within a period of thirty days
from the date of the order, in such form
and manner as may be prescribed .
Appeal to National Commission
 Any person aggrieved by an order made
by the State Commission in exercise of its
powers conferred by sub-clause (i) of
clause (a) of section 17 may prefer an
appeal against such order to the National
Commission within a period of thirty days
from the date of the order in such form
and manner as may be prescribed
 Hearing of Appeal
 An appeal filed before the State
Commission or the National Commission
shall be heard as expeditiously as possible
and an endeavor shall be made to finally
dispose of the appeal within a period of
ninety days from the date of its admission:
 WHAT RELIEFS COULD BE
ORDERED
 REMOVAL OF DEFECTS/ REPLACEMENT OF GOODS/
REFUND OF PRICES
 REMOVAL OF DEFECTS OR DEFICIENCIES IN SERVICE
 STOPPAGE OF UNFAIR OR RESTRICTIVE TRADE
PRACTICE
 WITHDRAWAL OF HAZARDOUS GOODS
 PAY COST FOR ISSUE OF ADVERTISEMENT TO
CORRECT MISLEADING ADVERTISEMENT
 AWARD OF COMPENSATION FOR LOSS OR DAMAGE AS
WELL AS MENTAL AGONY
 AWARD OF COSTS
 TIME & PLACE OF COMPLAINT &
APPEALS
 Sec. 24A: It is to be filed within two years of the
date of cause of action
 A complaint can be filed at:
 Where the Opposite Party resides, carries on
business or works for gain or has a branch office
 The cause of action wholly or in part arose

 Sec. 15,19 & 23: Appeals either to the State

Commission or the National Commission or
Supreme Court within 30days from date of the
order
SPECIAL PROVISION RELATING TO APPEALS

 An amount of:
 Half of the award or 25,000/- whichever is less is
to be deposited in case of appeal to the State
Commission
 Half of the award or 35,000/- whichever is less in
case of an appeal to the National Commission
 Half of the award or 50,000/- whichever is less in
case of an appeal to the Supreme Court
 Dismissal of Complaints

 Sec. 26: Frivolous or Vexatious complaints

& Award of cost up to Rs. 10,000/-
 13(2)(c): Due to absence of the
Complainant
 EXECUTION OF ORDER AND
PENALTY
 Orders passed by the Forum or Commissions are final, if no
appeal is filed
 In case of Interim Order
 Attachment and sale after 3 months
 In case of Final Order
 Recovery by District Collector upon issue of certificate
as arrear of Land Revenue
 Penalties for non-compliance (applicable to complainant/OP)
 Not less than 1 Month up to 3 Years imprisonment
 Fine not less than 2,000 up to 10,000
 Or both
THANK YOU