Consumer Protection Act

As the remedies provided to the consumers under various statutory laws are beset with a number of difficulties, there was demand for the enactment of suitable legislation for the protection of consumers. Consequently, Parliament enacted the Consumer Protection Act, 1986. The Act provides for setting up separate courts for deciding consumer disputes. It gives speedy and inexpensive justice to the litigants, known as consumers. Who is a consumer? According to S.2 (1) (d) the following persons are consumers 1. A person who buys goods for a consideration which has been paid or promised or partly paid or partly promised 2. A person who uses such goods with permission of the buyer other than who buys such goods for a consideration 3. A person who, hires or avails of any services for consideration which has been paid or promised or partly paid or partly promised 4. A person who is a beneficiary of such services with the approval of the buyer. But does not include a person who avails of such services for any commercial purpose. Explanation to S.2 (1) (d) makes it clear that for the purpose of this clause commercial purpose does not include use by a consumer of goods bought and used by him exclusively for the purpose of earning his livelihood, by means of self employment. (Added by an amendment in 2002) Who can make complaint? 1. A consumer 2. Any voluntary consumer association 3. Central government or any state government 4. One or more consumers, where there are numerous consumers having the same interest 5. In case of death of a consumer, his legal heir or representative What is a complaint? Goods bought suffer defects or services hired suffer deficiency in any respect Limitation Period The right to file complaint is time bound. The maximum period within which a complaint can be filed is two years from the date on which the cause of action arose.

Consumer Disputes Redressal Agencies

1. District Forum 2. State Commission 3. National Commission Limitation Period The right to file complaint is time bound. The maximum period within which a complaint can be filed is two years from the date on which the cause of action arose. Jurisdiction of courts 1. Pecuniary jurisdiction - Consumer forums shall have jurisdiction to entertain complaints where the value of goods or services does not exceed Rs. 20 lakhs, State commission shall have jurisdiction where the value of goods or services exceeds Rs. 20 lakhs but does not exceed 1 Crore, National Commission shall have jurisdiction where the value of goods or services exceeds Rs. 1 Crore. 2. Territorial jurisdiction A complaint shall be instituted within the local limits of whose jurisdiction the opposite party resides or carries on business or the cause of action arises. Kinds of relief to consumers 1. Removal of defects or deficiencies in service 2. Replacement of goods 3. Refund of price or charges 4. Compensation for loss or injury due to negligence 5. Provide adequate costs to parties Appeals Within a period of 30 days from the date of order. District forum->State Commission->National Commission->Supreme Court Dismissal of frivolous or vexatious complaints Dismissal of complaint and order the complainant to pay costs to the opposite party to the extent upto Rs. 10,000. Penalties for non- compliance of court order Imprisonment for a term of at least one month but which may extend to 3 years or with fine not less than Rs. 2,000 which may extend up to Rs. 10,000 or with both.