CONSUMER

PROTECTION
ACT

By – Rashmeet Singh
MBA 2 nd sem.
 Consumer Protection Act ,1986
• The Consumer Protection Act was enacted in 1986.
Amendments were made in 2002. The Act applies to
the whole of India except the State of Jammu and
Kashmir.

• An Act to provide for the better protection of the

interest of the consumers. Establishment of
Consumer Councils and other authorities for the
settlement of consumers’ disputes.
 The Consumer in CPA
[sec. 2(1) (d)]
He is a person
• “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.
 Objectives of the act
• Better protection of interest of the consumers
• Protection of rights of the consumers.
• Right to be protected
• Right to be informed
• Right to be assured
• Right to be heard
• Right to seek redressal
• Right to consumer education
• Consumer protection councils
• Quasi-judicial machinery for speedy redressal of
consumer disputes.
 Consumers need protection against
• Restrictive trade practices [sec 2(1) (nnn)]

• Defects [sec. 2(1) (f)]

• Deficiency [sec. 2(1) (g)]

• Unfair trade practices [sec. 2(1) (r)]

 Consumer Disputes Redressal Forums
[chapter III, sec- 9to 27]
The aims and objectives of the Act are achieved by the
constitution and creation of

• District Forum [sec-10to15]

• State Commission [sec-16to19]

• National Consumer Disputes Redressal Commission.

 A District Forum shall have the powers
• to remove the defect pointed out by the appropriate
laboratory from the goods in question

• to replace the goods with new goods of similar description

which shall be free from any defect

• to return to the complainant the price, or as the case may

be, the charges paid by the complainant

• to pay such amount as may be awarded by it as

compensation to the consumer for any loss or injury
suffered by the consumer due to the negligence of the
opposite party
 District Forum
• 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 which ever 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.
 State Commission
• 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.
 National Commission
• 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 which ever 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.
 [sec-12]
A complaint may be filed by
1. The consumer to whom such goods are sold
2. Any recognized consumer association, where the
consumer to whom goods are sold or delivered is a
member
3. One or more consumers, where there are numerous
consumers having same interest
4. The Central and State Government
 Procedure on admission of complaints
[sec-13]
• Complaint relating to goods
1. Reference of sample to laboratory
2. Deposit of fees
3. Remission of fees to lab and forwarding of report to
opposite party
4. Objections by any of the parties
5. Reasonable opportunity to parties
 Cont….
• Complaint relating to services
1. Reference of claim to opposite party
2. Denial of allegations by the opposite party
3. Settlement of dispute
4. Proceedings of district forum final
5. Death of complainant
6. period
 Appeals
• Appeal to the State commission [sec- 15]
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 30 days

• Appeal to the National commission [sec- 19]

any person aggrieved by an order made by the State commission in
exercise of its powers may prefer an appeal against such order to the
National commission within a period of 30 days
 Appeals
• Appeal to Supreme Court [sec- 23]
any person aggrieved by an order made by the State
commission in exercise of its powers may prefer an appeal
against such order to the Supreme court within a period of 30
days.