Consumer Protection

Act:1986
UNIT 5
Objectives of Consumer Protection Bill, 1986
To provide for better protection of the interests of consumers and for the purpose, to make
provision for the establishment of Consumer councils and other authorities for the settlement of
consumer disputes and for matter connected therewith.

1. It seeks, to promote and protect the rights of consumers such as-

 (a) the right to be protected against marketing of goods which are hazardous to life and property;
(b) the right to be informed about the quality, quantity, purity, standard and price of goods;
(c) the right to be assured goods at competitive prices;
(d) the right to be heard
(e) the right to seek redressal against unfair trade practices or exploitation of consumers; and
(f ) right to consumer education.
 
2. To provide speedy and simple redressal to consumer disputes, a quasi-judicial machinery setup
at the district, State and Central levels.
The Rights of the Consumer
• Right to Safety
• Right to Choose
• Right to be informed
• Right to Consumer Education
• Right to be heard
• Right to seek compensation
SOME IMPORTANT DEFINITIONS 
· Complaint - any allegation in writing made by a complainant with a view to obtaining any relief provided by or under this Act.
Nature of complaint
(i) an unfair trade practice or a restrictive trade practice has been adopted by any trader or service provider
(ii) the goods bought by complainant suffer from one or more defects;
(iii) the services hired or availed of suffer from deficiency in any respect;
(iv) a trader or the service provider, has charged for the goods or for the services a price in excess of the price­.
(v) goods or services which will be hazardous to life and safety are being offered for sale to the public,­

· Consumer - any person who­

(i) buys any goods for a consideration, or (ii) hires or avails of any services for a consideration;
q It must be noted that a person who buys goods or avails services for commercial purposes is not a consumer.

· Defect - any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard,
q which is required under any law or
q under any contract, express or implied or
q as is claimed by the trader in any manner whatsoever in relation to any goods;

· Goods - goods as defined in the Sale of Goods Act, 1930.

 CONSUMER DISPUTES REDRESSAL
AGENCIES
• District Forum: It shall consist of a person who is or has been or is qualified to be a
District Judge as its President,2 other members, one of whom shall be a woman and is
appointed by the State Government. 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. It 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 Lacs.
• A District Forum shall have the powers
• I. To remove the defect pointed out by the appropriate laboratory from the goods in
question
• II. To replace the goods with new goods of similar description which shall be free from
any defect
• III. To return to the complainant the price, paid by the complainant
• IV. To pay such amount as may be awarded as compensation to the consumer for any
loss or injury suffered by the consumer due to the negligence of the opposite party
• State Commission:  It is established by SG by notification. This is set
up in each state. It consists of President and 2 members. Complains
should be at least 20 lacs and exceed not more than 1 crore. The
goods are sent for testing and if found defective are asked for
replacement or compensation. If not satisfied can make an appeal
within 30 days in front of the National Commission.

• National Commission: It shall consist of a person who is or has been a

Judge of the Supreme Court, as its President and 4 members. The
complaint must exceed an amount of 1 crore.
 PROCEDURE OF FILLING COMPLAINT

· Who can file a complaint?

(i) A Consumer.
(ii) Any registered Voluntary Consumer Organization.
(iii) The Central or State Government.
(iv) One or more consumers on behalf of numerous consumers who are having the same interest.
· When a complaint can be filed?
A complaint can be filed in writing if: -
a. Consumer has suffered loss or damage as a result of any unfair Trade Practice.
b. The goods purchased suffer from any defect;
c. The trader has charged a price in excess of the price displayed or fixed by any law for the time being in force;
d. The goods hazardous to life and safety are being offered for sale to public.
e. The services hired or availed of, suffer from any deficiency.
· Where a complaint can be filed?
q Ifthe cost of goods or service and compensation asked for is:
up to Rs. 20.00 lakhs - District Forum.
more than Rs. 20.00 lakhs and up to Rs. 1 crore - State Commission.
more than Rs. 1 crore - National Commission.

APPEAL/REVISION
· Any party aggrieved form the final order of District Forum may appeal to State Commission within 30 days. Similarly, any party aggrieved from the final
order passed in original complaint decided by the State Commission may appeal to National Commission within 30 days.
· Order passed by National Commission in complaint filed before it is appeal able in Supreme Court within 30 days.