This is to certify that (Name) student

of S.Y BMS (Roll No) 16 from has done his 4th semester
project in CO-OPERATIVES & RURAL MARKETS.

The project work entitled “CONSUMER

PROTECTION ACT, 1986”. Embodies the original work done by during
the 4th semester project period.

Teacher incharge Head of Department

 ACKNOWLEDGEMENT

It’s great opportunity to acknowledge the Prof. Mishra sir.

He is the one who provided me continues source of information under
his great guidelines and support. I had tried to make the project
possible and desirable as he needed.

I am thankful to all of them for guiding me in correct way

to make my project comparitable.
 INDEX

SR.NO CONTENTS
1 INTODUCTION
2 HISTORICAL PERSPECTIVE
3 MEANING & DEFINITION
4 OBJECTIVES
5 FEATURES
6 CONSUMER RIGHTS
7 STRUCTURE OF CONSUMER PROTECTION
ACT
8 CONTENTS OF CONSUMER COMPLAINT
9 CONCLUSION
10 BIBLIOGRAPHY
INTRODUCTION
Consumer rights are an integral part of our
lives like the consumerist way of life. We have all made use of them
at some point in our daily lives. Market resources and influences
are growing by the day and so is the awareness of ones consumer
rights. These rights are well defined and there are agencies like the
Government, consumer courts and voluntary organizations that
work towards safeguarding. While we like to know about our rights
and make full use of them, consumer responsibility is an area
which is still not demarcated and it is hard to spell out that all the
responsibility is that a consumer is supposed to shoulder.

Consumer Protection Act, 1986 is an important

Act in the history of the consumer movement in the country. The
Act was made to provide for the better protection and promotion of
consumer rights through the establishment of consumer councils
and quasi-judicial machinery. It is mile stone in the history of socio-
economic legislation and directed towards public welfare and public
benefits.

The CPA was passed by the Lok Sabha on 5th

December 1986 and Rajya Sabha on 10th December, 1986 and
assented to by the president in the Gazette of India.
 Extra Part II: Section 1 dated 26.12.1986.and
at PP 1-12 called, “the CPA 1986 (Act No.66 of 1986) and the
preamble states that, “An Act provide for better protection of the
interest of the consumers and for that purpose to make
provisions for the establishment of consumer councils and
other authorities for the settlement of consumer’s dispute and
for matters connected therewith.”

Under the Act, consumer disputes redressal

agencies have been set up through out the country with the District
Forum at the District level, State Commission at the State level and
National Commission at national level to provide simple,
inexpensive and speedy justice to the consumer with complaints
against defective goods, deficient services and unfair and restrictive
trade practices1.

The Law relating to consumer protection in

India is at recent origin and is developing slowly, day by day, with
the pronouncement of orders passed by the commissions
constituted under the Act all over India and the National
Commission2. However the presence of some protective Laws for the
benefits of consumer in the ancient culture cannot be denied.

1
2
HISTORICAL PERSPECTIVES
In the early years when welfare legislatures like
the consumer protection Act did not exist, the maxim Caveat
emptor (let the buyer beware) governed the market deals. We find
the seeds of consumer protection during the Mughal times and
especially during the time of Khiljis. It is said that Sultan Ala-ud-
Din Khilji (1296 A.D. to 1316 A.D.) had introduced strict price
control measures based on production costs. He had also
established separate shopping centers in Delhi for (1) grain, (2)
cloth, sugar, dried fruits, herbs, butter, and oil, (3) horses, slaves,
and cattle, and (4) miscellaneous commodities. The supply of grain
was ensured by collecting tax in kind in the production areas and
keeping it in the royal storehouses. Hoardings of grain were
forbidden. Elsewhere the growers were ordered to sell their grains
for cash in their fields at fixed prices and were not allowed to take
any grain home for private sale. The market controller, the state
intelligence officer, and the Sultan’s secret agents, each submitted
independent reports on these shopping centers to the Sultan. Even
a minor violation of the rules was not tolerated.

The shopping center for cloth, known as the

sara-i-adl, was established near one of the royal palaces on the
inner side of the Bada-un-Gate. All goods, including foreign
imports, were first taken there and their price fixed. Every merchant
was registered with the commerce ministry and had to sign a bond
guaranteeing a regular supply to the goods in which they traded.
The Hindu Multani merchants were advanced money by the
treasury to import rare commodities for the sara-i-adl, some price
were subsidized. Costly fabrics and luxury goods could be sold only
to those who have obtained permits from the Government. The
prices of cattle were also fixed and unscrupulous merchants were
deprived of their trading rights.

The shopping center for general commodities

was under the direct control of the commerce ministry. Ala-ud-Din’s
Minister of commerce was also the Superintendent of weights and
Measure and the Controller of the Commercial transactions. He was
assisted by Superintendent for each commodity. Prices and weight
and measure were chequed by sending the children employed in the
royal pigeon-house to buy petty articles.The prices fixed for the
Delhi market were also applied in the provincial capitals and towns.

During the British regime (1765-1947), also

known as the ‘Colonial Era’, Government’s economic polices in India
were concerned more with protecting and promoting the British
interests than with advancing the welfare of the native population.
The administration’s primary per-occupation was with maintaining
law and order, tax collection and defence. Accordingly much of the
legalisation enacted during the British regime was primarily aimed
at serving the colonial rulers intend of the natives. There were,
however, some pieces of legislation which protected the overall
public interest through not necessarily the consumer
interest.Prominent among these were: the Indian Penal code, 1860,
the sale of Goods act, 1930, the dangerous drugs act, 1930 and the
drugs and cosmetics act, 1940. In a sense, the sale of good act, and
the principles of the law of torts were more for the protection of the
trader than the consumer.
MEANING
As the preamble of CPA 1986 reflect; this socio-
economic Law was enacted to provide for the better protection of the
interest of consumers and for that purpose the CPA 1986 seeks to
provide speedy and simple redressal to consumer dispute. In
Charan Singh v. Healing Touch Hospital the Hon’ble Supreme Court
has made important observations on the object of the act.

DEFINITION
S.2(1)d of the act defined consumer as “Consumer” means any
person who-

(i) Buys any goods for a consideration which has been paid or
promised or partly paid and party promised or under any system of
deferred 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 when person, but does not include with the approval of
self person, but does not include a person who obtains such goods
for resale or for any commercial purpose or

(ii) {Hires for avails of} any services for a consideration which has
been paid promised or partly paid or partly promised or under any
system of differed payment and includes any beneficiary of such
services other than the person. [hires or avails of ] the services for
consideration paid or promised or partly paid or partly promised,
under any system of differed payment, when such services are
availed or with the approval the first mentioned person.
OBJECTIVES

(a) To assist countries in achieving or maintaining adequate

protection for their population as consumers;

(b) To facilitate production and distribution patterns responsive to

the needs and desires of consumers;

(c) To encourage high levels of ethical conduct for those engaged in

the production and distribution of goods and services to consumers;

(d) To assist countries in curbing abusive business practices by all

enterprises at the national and international levels which adversely
affect consumers;

(e) To facilitate the development of independent consumer groups;

(f) To further international cooperation in the field of consumer

protection;

(g) To encourage the development of market conditions which

provide consumers with greater choice at lower prices.

FEATURES
Following are the features of the Act are:
1) The Act aims to provide better and all-round protection to
consumers.
2) In terms of geographical application, it applies to the whole of
India except the State of Jammu and Kashmir.
3) It applies to all goods and services unless otherwise expressly
notified by the Central Government.
4) It is indeed a very unique and highly progressive piece of social
welfare legislation and is acclaimed as the magna carta of Indian
consumers. The Act has made the consumer movement really going
and more powerful, broad-based and effective and people oriented.
In fact, the Act and its Amendment in 1993 have brought fresh
hopes to the beleaguered Indian consumer. This is the only law
which directly pertains to market place and seeks to redress
complaints arising from it. Even prior to 1986, there were in force a
number of laws which could be interpreted in favour of the
consumers. But, this Act is most powerful piece of legislation the
consumer has had before 1986. Its provisions are very
comprehensive and highly efficacious.

In fact, it provides more effective protection to consumers than any

corresponding
legislation in force even in countries which are considered to be
much more advanced.

5) It provides effective safeguards to the consumers against different

types of exploitation such as defective goods, unsatisfactory (or
deficient) services and unfair trade practices.

CONSUMER RIGHTS
 Consumers in the advanced countries, obviously,
are much more conscious of their rights than in countries like
India.

1. Right against exploitation by unfair trade practices.

2. Right to protection of health and safety from the goods and

services the consumers buy or are offered free.

3. Right to be informed of the quality and performance standards,

ingredients of the product, operational requirements, freshness
or the product, possible adverse side effects and other relevant
facts concerning the product or service.

4. Right to be heard if there is any grievance or suggestions.

5. Right to get genuine grievances redressed.

6. Right to choose the best from a variety of offers.

7. Right to physical environment that will protect and enhance the

quality of life.

STRUCTURE OF CONSUMER PROTECTION ACT

The Act envisages a three- tier quasi-judicial machinery at the
National, State and District levels.

 National Consumer Disputes Redressal Commission - known as

"National Commission" deals with complaints involving costs and
compensation higher than Rs. One Crore.

 State Consumer Disputes Redressal Commissions - known as

"State Commission, deals with complaints involving costs and
compensation higher than Rs. Twenty Lakhs and less than Rs.
One Crore.

 District Consumer Disputes Redressal Forums - known as

"District Forum, deals with complaints involving costs and
compensation less than Rs. Twenty Lakhs.

CONTENTS OF CONSUMER COMPLAINT

 
Procedures for filing complaints and seeking redressal are simple.
There is no fee for filing a complaint before the District Forum, the
State Commission or the National Commission. ( A stamp paper is
also not required). Three to five copies of the complaint on plain
paper are required to be submitted by the complainant or his
authorized agent in person  or could be sent by post to the
appropriate Forum / Commission.
 
A complaint should contain the following information:-

(a) The name, description and the address of the complainant.

(b) The name , description and address of the opposite party or
parties, as the case may be, as far as they can be ascertained;
(c) The facts relating to complaint and when and where it arose;
(d) Documents, if any, in support of the allegations contained in the
complaint.
(e) The relief which the complainant is seeking.
 
The complaint should be signed by the complainant or his
authorized agent.
The complaint is to be filed within two years from the date on which
cause of action has arisen.

CONCLUSION:-
 I can conclude that very few consumers
Are fully aware about the rights, responsibilities and Consumer
Protection Act. Hence, it isnecessary to educate them on their rights
and responsibilities as consumers, to make them vigilant, rational
and aware buyers. The government has been fruitful in providing
protection to the consumers in the real sense of the term and
served the purpose of the Act. It is hoped that further improvement
in the act would aim at even more efficiency and render the position
of the consumers much stronger in this era of globalization and
privatization where the sudden unchecked advent of Multi National
Companies has to be balanced with the protection of the rights of
the consumers by the legislature and the judiciary.

BIBLIOGRAPHY
 www.google.com
 www.wikipedia.com

 Co-operative & rural markets S.Y

BMS text book