CONSUMER PROTECTION ACT 1986

Purpose

• Applicable to all types of goods and services

• Except J & K
• Better protection to interest of the customers
• Focus on the benefits of the general public
Objectives

• Better protection of interest of consumers

• Protection of right of consumer
• Consumer protection council
• Quasi judicial ,machinery for speedy redressal of disputes
Inherent rights

• Against marketing hazardous goods and services

• Protect unfair trade practices
• Put forth the grievances of consumer about unfair trade practices
• Consumer education
Complainant(Sec 2(I)(b)

• A consumer or any voluntary consumer association registered

under company act or any other law
Or
• The Central or State Govt who or which makes complaints
Or
• One or more consumers where there are number of consumers
having same interest
Complaint (Sec 2(I)(c)

• Allegation in writing
Unfair trade practices
Defective goods bought or agreed to buy
Deficiency in service hired or availed
Hazardous goods
Charging excess price on goods and services
Consumer (Sec 2(I)(d)

• Buy any goods for consideration that is paid,promised to pay or

partly paid or partly promised or under the system of deferred
payment

• Includes any user other than the buyer himself but the use of
goods must be with the approval of buyer for consideration that is
paid,promised to pay or partly paid or partly promised or under
the system of deferred payment.
• A person who hires or avail of any service for a consideration that
is paid,promised to pay or partly paid or partly promised or under
the system of deferred pyment

• Any beneficiary of such services other than the persons who hires
or avail such services.
• Consumer disputes( Sec 2(I)(e)
Dispute where the person against whom a complaint has been
made,denies or disputes the allegations contained in the complaint

• Defect(Sec 2(I)(f)
Any fault ,inadequacy of quality,shortcoming or imperfection,under
performance of goods or services come under the definition of
defect.

• Goods (Sec 2(I)(i)

Any goods
• Deficiency (Sec 2(I)(g)
Any fault,inadequacy of quality,shortcoming or
imperfection,performance which
(i) Is required to be maintained by or under any law for the time
being in force
or
(ii) Has been undertaken to be performed by a person in
performance of a contract or otherwise in relation to any service
• Manufacturer (Sec 2(I)(j)

 Those who makes or manufactures any goods or parts thereof or

doesn’t make or manufacture any goods but assembles part thereof
made or manufactured by others and claims the end product to be
goods manufactured by himself
 Those who put or cause to be put his own trade mark on any goods
made or manufactured by any other manufacturer and claims that
goods in question is made or manufactured by him
• Person(Sec 2(I)(m)
It includes a firm (registered or not),HUF,a Cooperative society or
an OPC(registered or not under societies registration act)

• Restrictive Trade Practices(Sec 2(I)(nn)

Any trade practices which requires a consumer to buy ,hire or avail
of any goods and services as a condition precedent for buying ,hiring
or availing of other goods and services.
• Trader(Sec 2(I)(q))
A person who sells or distributes any goods for sale and includes the
manufacture thereof any where such goods are sold or distributed in
package form includes the packer thereof

• Unfair trade practices(Sec 2(I)(r))

A trade practice in which a trader (for promotion of sales or supply
of goods or for provision of services)adopts any unfair method or
deceptive practices
Consumer protection council(Sec 4-8)

• Establishment (Sec 4)
• Membership
Ministers in charge of consumer affairs of Central Govt (Chairman)
and
150 members official or non official members representing the
prescribed interest .
The period of council is 3 yrs
• Procedure for meeting
Atleast 1 meeting per year
Time and place decided by Chairman
Prescribed procedure for transaction of business

• Objectives….???(Assignment)
Consumer dispute redressal agencies

• A consumer dispute redressal forum(District forum)

• A consumer dispute redressal commission(State Commission)

• A National Consumer dispute redressal commission

The District Forum(Sec 10-15)

Composition(Sec 10)
• President shall be a qualified person to be a district judge who is
or has been in service
• 2 members who should have adequate knowledge or experience
• Appointments done by State Government
• Term-5 years or upto 65 yrs
Selection committee

• President of State Commisssion-Chairman

• Secretary,law dept of State-Members
• Secretary in Charge of dept dealing with consumer affairs in state-
Member

Jurisdiction(Sec 11)
• Below 5 lacs
Manners to be followed in filing complaints

• Consumer to whom such goods are sold or services provided or

agreed to provide
• Any recognized consumer association
• One or more consumers with same interest
• Central and State government
Procedure on receipt of complaints

1. Complaints in connection with goods

a. Denial of allegation if azny by the accused

• Defective goods
• Deposit of fee
• Remittance of fee and report
• Obligation by both parties
• Opportunity to hear and issue of order
2. Complaint about services provided

a. Denial of allegation if any by the accused

Settlement of dispute

a. On basis of evidence produced by the complainant and opposite

party

b. On basis of evidence produced by the complainant if the

opposite party failed to take any action to represent his case
within the given time
Powers of District Forum

• Summoning and enforcing attendance of any defendant or witness

and examine the witness on oath
• Discovering and producing any material evidence
• Receiving evidence on affidavit
• Issuing of any commission or order for the examination of any
witness and any other matter which may be prescribed
Findings of district forum

• Remove defects of goods

• Replace the goods free of cost with the new one
• Refund the price or charge paid by the complainant
• Pay compensation if any for the injury suffered by the complainant
• Remove the deficiency in the services provided
• Stop the unfair trade practices

APPEAL –Within 30 days

State commission:consumer Dispute
Redressal

• Sec 16-19
Composition
• President(judge of HC) appointed by State Govt with Chief justice
(HC)
• 2 other members
-adequate knowledge
-one women
Selection committee

• President -Chairman
• Secretary,law dept of State -Member
• Secretary-in charge of the department dealing with consumer
affairs in state -Member
Jurisdiction of the State Commission(Sec 17)

A.
• Any complaints where the value of goods or services and
compensation if any claimed is >5 lacs but <20 lacs
• Appeal against an order of any district forum within the state
B.
• To call for the records and pass appropriate orders on any
consumer dispute which is pending before or has been decided by
district forum within the state
Power
• Bench formed by president with one or more members as the
president may deem fit
• If members differ in opinion on any issue ,decided in favour of the
majorities opinion
• President will take active role in dispute settlement when
members are equally divided over any point

APPEAL
• Appeal to National Commission against order of Stae Commission
• Within 30 days
• Case disposed within 90 days from date of admission
National Consumer Dispute Redressal
Commission(Sec 20 -23)

COMPOSITION
• President(Judge of SC,appointed by Central Govt in
consultation with Chief Justice (SC)
• 4 other members
-adequate knowledge/experience
-one women
Selection Committee

• A person who is /has been a judge of SC

-Chairman
• Secretary in the department of Legal Affairs in
Govt of India
-Member
• Secretary-in charge of the department dealing
with consumer affairs in Govt of India
-Member
Jurisdiction of National Commission(Sec 21)

A.
• Any complaints where the value of the goods or services and
compensation if any claimed is> 20 lacs
• An appeal against an order of any State Commission

B.
• To call for the records and pass appropriate orders on any consumer
dispute which is pending before or has been decided by State
Commission
Powers and procedures(Sec 22)

a. Power of a civil court

b. Power to issue an order to the opposite party
c. Follow the procedure prescribed by the Central Government

LIMITATION PERIOD

The complainant should file his complaint within 2 years from the
date on which the cause of action has arisen
Administrative Control

National commission shall have control over State Commission on

matters:
• Ask for periodic return about the institution,disposal and pendency
of cases
• Instruct all to adopt a uniform pattern in hearing of matters
• Ensure that the objects and purpose of the act is served,national
commission supervises the functioning of DISTRITC FORUM and
STATE COMMISSION
Dismissal of frivolous or vexatious complaints

• After recording the reason

• Shall also make an order that the complainant
shall pay to the opposite party such cost,not
exceeding 10,000 as may be specified in the
order.
Penalties (Sec 27)

• Where the complainant/ the opposie party disobeys the

order of District Forum or State Commission /National
Commission on any complaint,defaulter shall be
punishable with imprisonment or fine or both.
• Fine upto 10,000 but less than 20,000
• Period of imprisonment -3 years but shall not be < 1
month
 Filling complaints
• No specific format for complaints
• A full scape paper, typed in double space wherein the aggrieved
should narrate his grievances
• Consumer should always have a receipt while making any purchase
• Attach true copies of all the documents to the complaint in
question
• One should file an affidavit in support of the complainant to verify
the complaint.
• For urgent settlement , a separate applicationmay be
filed.similarly,if someone want some kind of stay order it should
be prayer for ina separate application along with supportive
affidavit in a paper paper duly attested by an Oath