CONSUMER PROTECTION ACT,1986

Prof V.S.Gopal
Introduction
 The consumer protection act came into effect on
April 15th,1987.
 The consumer protection Act provides for the
better protection of consumers
 The act is intended to provide simple, speedy and
inexpensive redressal to the consumers' grievances,
award relief and compensation wherever appropriate
to the consumer
Objects of the act
 To provide better protection – against marketing of goods
which are hazardous to life & property
 The right to be informed – about quality, quantity,
potency, purity, standard & price of the goods to protect
the consumer from unfair trade practices.
 The right to be assured where ever possible to access
to an authority of goods at competitive price.
 The right to be heard – and assured that consumer
interest will receive due consideration at appropriate
forums
 The right to seek redressal against unfair trade practice
or unscrupulous exploitation of consumers
 The right to consumer education
Central consumer protection council
 It was established to promote & protect consumer rights.
 the aim is protection of consumers .
 The term of the council was three years .a minimum of three
meetings a year
 They are established at three levels.

a. District forum
b. State commission
c. National commission
Reasons of the consumer protection
act,1986

 To provide protection of the interest of the

consumer
 To make provision for the establishment of
consumer council
 For the settlement of consumer disputes
QUASI -JUDICIAL MACHINERY FOR SPEEDY
REDRESSAL OF CONSUMER DISPUTES
 The act seeks to provide speedy and simple redressal to
consumer disputes
 For this purpose there has been set up quasi- judicial
machinery at the district, state, & central levels
 These quasi- judicial bodies are supposed to observe the
principles of natural justice and are empowered:-
a) To give relief of a specific nature
b) To award, wherever appropriate, compensation to
consumers
PROCESS
5. 6.
Council Penalties

4. 1.
Complaints Manufacturer

3. 2.
Defects Consumer
STRUCTURE OF CONSUMER PROTECTION
ACT

 National Consumer Disputes Redressal Commission

 State Consumer Disputes Redressal Commissions
 District Consumer Disputes Redressal Forums
EXTENT AND COVERAGE OF CONSUMER
PROTECTION ACT
 The Act applies to all goods and services unless specifically
exempted by the Central Government.
 It covers all the sectors whether private, public or
cooperative.
 The provisions of the Act are compensatory in nature.
 The provisions of this Act are in addition to and not in
derogation of the provisions of any other law for the time
being in force.
 The Act envisages establishment of Consumer Protection
Councils at the Central and State levels, whose main
objects will be to promote and protect the rights of the
consumers
WHO IS CONSUMER?
 All of us are consumers of goods and services. For
the purpose of the Consumer Protection Act, the
word "Consumer" has been defined separately for
"goods" and "services".
For the purpose of "goods – who buys goods for
consideration or hires or avails of service &
Includes any user of goods & services.
It does not include a person who avails of such
services for commercial purpose.
WHAT IS CONSUMER COMPLAINT?
 Under the Consumer Protection Act, a complaint
means any allegation in writing made by a
complainant in regard to one or more of the
following:-
 unfair trade practice.
 defects in goods.
 Deficiencies in services.
 A trader charging excess of price.
JURISDICTION
 If the cost of goods or services and compensation
asked for is:
a) Up to rupees twenty lakh, then the complaint can
be filed in the District Forum.
b) More than rupees twenty lakh , but less than
rupees one crore then the complaint can be filed
before the State Commission.
c) Exceeding rupees one crore then the complaint
can be filed before the National Commission at New
Delhi.
 limitation
RELIEF AVAILABLE TO CONSUMER
The Redressal Forums may give order for one or more of the following
relief.
a) Removal of defects from the goods,
b) Replacement of the goods;
c) Refund of the price paid;
d) Award of compensation for the loss or injury suffered;
e) Removal of defects or deficiencies in the services;
f) Discontinuance of unfair trade practices or restrictive trade
practices or direction not to repeat them;
g) Withdrawal of the hazardous goods from being offered to sale;
or
h) Award for adequate costs to parties
CONTENTS OF CONSUMER COMPLAINT
 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.
ELIGIBILITY TO FILE A CLAIM
Any person who

 Has bought goods for a consideration and finds any defect in

the quality, quantity, potency, purity or standard of the
goods
OR
 Has hired or availed any service for consideration and finds
any fault, imperfection, shortcoming, or inadequacy in the
quality, nature and manner of performance in relation to the
service can approach the courts
WHO CAN FILE A COMPLAINT
A complaint may be filed by the following:
 A consumer
 Any voluntary consumer association registered under the
Companies Act 1956
 The Central Government or any State Government
 One or more consumers where there are numerous
consumers
How to file a complaint
 A complaint should contain the following:
 An allegation in writing made by the complainant.
 The name description and address of the opposite party
 The name description and address of the complainant.
 Documents in support of the allegation :
 Copy of the invoice
 Copy of the receipt
 Copy of the warranty card
 Copy of the complaint in writing if any an all other
correspondences
How to file a complaint cont’d
 The relief (compensation) asked for by the Complainant
 The complaint should be signed by the complainant or by his
authorized agent.
 No Court fee required
 Complaint can be presented before the Consumer Redressal
Forum by the complainant/authorized agent in person.
 A complaint can be sent by registered post to be filed
before the Consumer Redressal Forum.
REMEDIES
 To remove the defect pointed out by the appropriate
laboratory from the goods in question
Or
 Replace the goods with new goods of similar description,
which shall be free from any defect.
Or
 Return to the complainant the price of the goods or the
charges for the services rendered.
Or
 Pay such amount as compensation for any loss or injury
suffered by the Consumer.
LIMITATION & APPEALS
 The duration within which the complaint can be filed.
 A complaint should be filed at the earliest but not later than
TWO YEARS
 An Appeal from the order of the District Forum lies to the
State Commission, against the order of the State
Commission to the National Commission and against the
order of the National Commission to the Supreme Court,
they are supposed to be filed within 30 days.
CONSUMER GUIDANCE AND QUALITY
LABELS
 ISI is the short form of Indian standards institution. It is a
quality mark stamped on such articles as milk products,
biscuits, coffee powder, etc..
 ISI mark certifications are adopted on voluntary basis by
manufacturers.
 Licenses can also be withdrawn on complaints and after
these are investigated and verified
AGMARK
 AGMARK tells the consumer that the quality of food item
they are buying is good, its quantity and packing are
correct and it is not adulterated.
 AGMARK can be seen on most agricultural and farm
products
ROLE OF CONSUMER ASSOCIATIONS
 CGSI ( Consumer guidance society of India)
-The CGSI is one of the most vocal and active supporters of
the cause of consumerism.
-CGSI was the first consumer organization to demand a
comprehensive consumer protection, special consumer
courts and the a directorate for the implementation of the
act.
 CERC (consumer education & research centre)
-CERC is a leading consumer organization located in
Ahemdabad. It was established in 1978 that aims at
education and protection .
Loot - mall
 Multiplexes across the city are charging more than
the MRP for eatables.

 The legal metrology department has filed cases

against INOX & Fun Republic under The standard
weights and measures act, which is violation of
consumer protection rights.
A HAIR RAISING STORY
 Usha pithawala, a chembur resident walked in
wanting to complain about a hair-job gone wrong at
VLCC.
 And now this 39 year old house wife insist that they
at least accompany her to ensure that she got her
money back.