Consumer Protection Act,
1986
Introduction
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.
Extent and coverage of consumer protection act
• The CPA, Which has been amended in 2002 extends coverage over the following:
1. The act covers all the sectors whether private, public or co-operative.
2. The law is applicable to all kinds of goods and services except those, which are specifically
exempted by the central government.
3. The provisions of the act are compensatory in nature.
4. The act envisages establishment of consumer protection councils at the central and state levels;
whose main objects and protect the rights of the consumers.
5. The provisions of this act are in addition to and not in oppose of the provisions of any other law
currently in force.
Objectives:
1. Right to safety right to be protected against the marketing of goods and services which are hazardous to life and
property.
2. Right to be informed the right to be informed about the quality, quantity, potency, purity, standard and price of goods
or services, as the case may be, so as to protect the consumer unfair trade practices.
3. Right to choose. It means right to assured, whenever possible access to a variety of goods and services at competitive
prices. In case of monopolies, say railways etc. it means right to be assured of satisfactory quality and services at a fair
price.
4. Right to be heard Right to heard that is consumers’ interest will receive due consideration at appropriate forums. It
also includes right to be represented in various forums formed to consider the consumers’ welfare.
5. Right to seek redressal It means the right to seek redressal against unfair trade practices or restrictive trade practices or
exploitation of consumers. It also includes right to fair settlement of the grievances of the consumers.
• Appropriate laboratory
“appropriate laboratory” means a laboratory or organisation—
(i) recognized by the Central Government;
(ii) recognized by a State Government, subject to such guidelines as may be prescribed by the Central Government
in this behalf; or
(iii) any such laboratory or organisation established by or under any law for the time being in force, which is
maintained, financed or aided by the Central Government or a State Government for carrying out analysis or test
of any goods with a view to determining whether such goods suffer from any defect or not.
• Complainant
“complainant” means—
(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; or
(iv) one or more consumers, where there are numerous consumers having the same interest;]
(v) in case of death of a consumer, his legal heir or representative;] who or which makes a complaint
“Complaint” means any allegation in writing made by a complainant that—
(i) an unfair trade practice or a restrictive trade practice has been adopted by [any trader or service
provider];
(ii) the goods bought by him or agreed to be bought by him suffer from one or more defects;
(iii) the services hired or availed of or agreed to be hired or availed of by him] suffer from deficiency
in any respect;
(iv) a trader or the service provider, as the case may be, has charged for the goods or for the services
mentioned in the complaint, a price in excess of the price—
(vi) services 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;
Consumer
“consumer” means any person who, buys any goods for a consideration which has been paid or
promised or partly paid and partly promised, or under any system of deferred (delayed) payment and
includes any user of such goods other than the person who buys such goods for consideration paid
or promised or partly paid or partly promised, or under any system of deferred payment, but does not
include a person who obtains such goods for resale or for any commercial purpose; or
(ii) hires or avails of any services for a consideration which has been paid or promised or partly paid
and partly promised, or under any system of deferred payment and includes any beneficiary of such
services other than the person who hires or avails of the services for consideration paid or promised,
or partly paid and partly promised, or under any system of deferred payment
Consumer Dispute
“consumer dispute” means a dispute where the person against whom a complaint has been made,
denies or disputes the allegations contained in the complaint;
• Goods “Goods” means goods as defined in the Sale of Goods Act, as “every kind of movable
property other than actionable claims and money.
• Service “Service” 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;
• Restrictive Trade Practice
“Restrictive trade practice” means a trade practice which tends to bring about manipulation of price
or its conditions of delivery or to affect flow of supplies in the market relating to goods or services in
such a manner as to impose on the consumers unjustified costs or restrictions and shall include—
(a) delay beyond the period agreed to by a trader in supply of such goods or in providing the
services which has led or is likely to lead to rise in the price;
(b) any trade practice which requires a consumer to buy, hire or avail of any goods or, as the case
may be, services as condition precedent to buying, hiring or availing of other goods or services;
Unfair Trade Practices
• It means trade practices which a trader, for the purpose of promoting the sale, use or supply of any goods or for the provision
of any service, adopts any unfair method or unfair or deceptive practice.
• The unfair trade practice means a trade practice which, adopts any unfair method or deceptive practice. Unfair trade practice
is not only related to goods but also to services rendered.
• Example: Collecting service charges during free guarantee period or collecting repair and service charges but not repairing
the goods sold is unfair trade practice and deficiency of service.
The practices included are:
• 1) The practice of making any statement,
Falsely represents that the goods are of particular standard, quality, quantity, grade, composition, style or model.
Falsely represents that the services are of particular standard, quality or grade.
Falsely represents any rebuilt, second hand, renovated, or old goods as new goods.
Represents that the goods or services have sponsorship, approval, performance, characteristic, accessories, uses or benefits
which such goods or services do not have Represents that the seller or the supplier has sponsorship or approval or affiliation
which such seller or supplier does not have.
Make a false or misleading representation concerning the needs for , or the usefulness of, any goods or services.
Gives to the public any warranty or guarantee of the performance or length of life of a product or of any goods that is not
based on an adequate or proper test thereof.
Materially misleading the public concerning the price at which a product or like products or goods or services, have been or
are ordinarily sold or provided.
• Defect “defect” means any fault, imperfection or shortcoming in the quality, quantity, potency,
purity or standard which is required to be maintained by or under any law for the time being in
force or under any contract, express or implied, or as is claimed by the trader in any manner
whatsoever in relation to any goods;
• Deficiency “deficiency” means 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 for the
time being in force or has been undertaken to be performed by a person in pursuance of a contract
or otherwise in relation to any service;
• Spurious goods and services “Spurious goods and services" mean such goods and services which
are claimed to be genuine but they are actually not so
Who can file a complaint?
• A complaint may be filed with a District Forum by –
1. the consumer to whom such service is provided or is agreed to be provided;
2. any recognized consumer association, whether the consumer to whom the service is provided or
is agreed to be provided is a member of such association or not ;
3. one or more consumers, where there are numerous consumers having the same interest, with the
permission of the district forum, on behalf of or for the benefit of all consumers so interested
Consumer Disputes Redressal Forums
The aims and objectives of the Act are achieved by the constitution and creation of
District Forum
State Commission and
National Consumer Disputes Redressal Commission.
A District Forum shall have the powers
1. to remove the defect pointed out by the appropriate laboratory from the goods
in question
2. to replace the goods with new goods of similar description which shall be free
from any defect
3. to return to the complainant the price, or as the case may be, the charges paid
by the complainant
4. 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.
Consumer Disputes Redressal Forums
The District Forum, State Commission or the National
Commission shall not admit a complaint unless it is filed
within 2 years from the date on which the cause of action
has arisen.
Where a trader or a person against whom a complaint is
made fails or omits to comply with any order made by the
District Forum, the State Commission, the National
Commission, as the case may be, such trader or person
shall be punished with imprisonment for a term which
shall not be less than 1 month but which may extend to 3
years, or with fine which shall be not less than 2,000/- Rs.
but which may extend to 10,000/-Rs., or with both.
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 of Complaint
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
5. Reasonable opportunity to parties
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
Findings and Verdicts
a) To remove the defect
b) To replace the goods with new goods of similar description.
c) To return the complainant the price
d) To pay compensation to the consumer for any loss or injury suffered
e) To remove the defects in the goods
f) To discontinue the unfair trade practices
g) Not to offer hazardous goods for sale
h) To provide adequate costs to parties
Appeals
▒ Appeal to the 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 30 days
▒ Appeal to the National commission
▒ 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
Hearing of appeal Sec 19(a)
▀ No adjournment shall be ordinarily granted by the state commission or the National comission as
the case may by unless sufficient cause is shown and the reasons for grant of adjournment have
been recorded.
▀ The State commission and the National commission ads the case may be shall make such orders
as to the costs occasioned by the adjournment.
Miscellaneous
╬ Protection of action taken in good faith
╬ Power to remove difficulties
╬ Power to make rules
╬ Laying of rules
