CONSUMER PROTECTION ACT,1986

OBJECTIVE OF THE ACT

• The main objective of the Act is to provide for the
better protection of consumers. Unlike the
existing laws which are punitive or preventive in
nature the provisions of this Act are
compensatory in nature .
• The Act is intended to provide simple , speedy
and inexpensive redressal to the consumers’
grievances and reliefs of a specific nature and
award of compensation wherever appropriate to
the consumer.
 EXTENT AND COVERAGE OF THE ACT

• The Act applies to all goods and services unless specifically

exempted by the central govt.
• It covers all sectors whether private, public or cooperative.
• The provision of the Act are compensatory in nature.
• It enshrines right s of consumers.
• The Act envisages the establishment of the Consumer Protection
Council at the Central and state levels, whose main objects will be
to promote and protect the rights of the consumers.
• The Act applies to the whole India except the state of Jammu and
Kashmir and applies to all goods and services.
• The provision of the Act are in addition to and not in derogation of
the provisions of any other law for the time being in force.
 Rights of consumer

• The right to be protected against the marketing of the goods and services
which are hazardous to life and property.
• The right to be informed about the quality , quantity ,potency , purity,
standard and the price of goods or services so as to protect the consumer
against unfair trade practices.
• The right to be assured wherever possible the access to a variety of goods
and services at competitive prices.
• The right to be heard and to be assured that the consumers’ interests will
receive due consideration at appropriate forums.
• The right to seek redressal against unfair trade practices and
unscrupulous exploitation of the consumers.
• The right to consumer education.
 DEFINATION
• APPROPRIATE LABORATORY
An appropriate laboratory means a laboratory or
organisation recognised by the central govt. or
by a State govt. for carrying out the analysis or
test of any goods with a view to determining
whether such goods suffer from any defect.
 COMPLAINANT
• A consumer;or
• Any voluntary organisation registered under
the Companies Act or any other law for the
time being inforce;or
• The central govt.or any state govt.;or
• One or more consumers where there are
numerous consumers having the same
interest.
 COMPLAINT
A complaint means any allegation in writing made by a complainant that
1.An unfair trade practice and restricted trade practice has been adopted by any
trader
2. Any goods bought by him or agreed to be bought by him suffer from one or
more defects.
3. The services hired or availed of or agreed to be hired or availed of by him suffer
from deficiency in any respect.
4. The trader has charged for the goods mentioned in the complaint a price in
excess of the price fixed by or under any law for the time being in force or
displayed on the goods ,or any package containing such goods.
5.The goods which will be hazardous to life and safety when used as per
information displayed in regard to content, manner and effect of use of such
goods and traders make a contravention to that effect.
 cosumer
• Means any person who buys or agrees to buy any
goods or one who hires or avails any service for a
consideration which has been paid or promised
or partly paid or partly promised under any
system of deferred payment.
• It also includes
1.User of the goods
2.Beneficiary of such services
A person is not a consumer if he purchases the
goods for commercial or resale purposes.
 SERVICE
• It means a service of any description. It includes actual
and potential user(the person who are likely to use
those services in future)
• It includes the provisions of facilities in connection with
banking,insurance,financing,transport,processing,elctri
city,telephone,entertainment, amusement, the
purveying of news or information, housing
construction etc.
• The services which are rendered free of charge, and
personal services e.g. master and servant has been
excluded.
 GOODS

• Goods means goods defined under Sale of

goods Act,1930. Goods means every kind of
movable property and money includes stock,
share etc.
 RESTRICTIVE TRADE PRACTICE

• Trade practice which tends to bring about

manipulation of price or its conditions of delivery
• To affect the flow of supplies in the market
relating to goods and services in such a manner
to impose on the consumers, unjustified the costs
or restriction.
• Any trade practices which requires a consumer to
buy or hire goods or services as a condition
precedent for buying or hiring of any other goods
or services.
 UNFAIR TRADE PRACTICE
• An unfair trade practice means a trade
practice which 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 method.
 defect
• Any fault, imperfection or shortcoming in the
quality, quantity, potency, purity, standard
which is required to be maintained by or
under the law or under any contract.
• The defect is with regard to goods.
 DEFICIENCY
• The deficiency is with regard to services.
• Any fault or negligence in setting the claim by
the insurance company is deficiency in service.
 WHO CAN FILE A COMPLLAINT
• A consumer
• Any voluntary consumer organisation
• The central govt.
• The state govt.
• One or more consumer having same interests.
 REDRESSAL MACHINARY UNDER THE
ACT
• To provide simple, speedy and inexpensive
redressal of consumer grivances, the Act
envisages three tire machinery
1. National Consumer Disputes Redressal
Commission(national commission)
2.Consumer Disputes Redressal
Commissions(state commission)
3.Consumer Disputes Redressal Forums.(district
forum)
 DISTRICT FORUM
• State govt. is to set up D.F. in each district of
the State.
• The D.F. can entertain complaints where the
value of the goods or services and the
compensation, if any claimed is less than Rs.
20 lakhs.
 STATE COMMISSION
• The state govt. is to established by notification
in the state.
• It can hear appeal against the order of the D.F.
• It can entertain complaints where the value of
goods or services and if the compensation
claimed exceeds 20 lakhs but does not exceed
Rs.1 crore.
 NATIONAL COMMISSION
• Any person, aggrieved by an order made by
the S.C. may prefer an appeal to the N.C.
within 30 days of the date of the order.
• Any person, aggrieved by an order made by
the N.C. may prefer an appeal to the Supreme
Court within 30 days of the date of the order.
 HOW TO FILE A COMPLAINT
1. No fee for filing a complaint.
2. There should be three to five copies of
complaint on plain paper.
3. The complaint can be sent by the post to the
appropriate forum.
4. The complaint is to be filed within 2 years
from the date on which cause of action has
arisen.
RELIEF AVAILABLE TO THE CONSUMER
• Removal of defects or deficiencies from the goods or
services
• Replacement of the goods
• Refund of the price paid
• Award of compensation for the loss or injury suffered
• Discontinuance of UTP and RTP or direction not to
repeat them
• Withdrawal of hazardous goods from being offered to
sale or award adequate costs to parties.