1. CONSUMER PROTECTION
ACT, 1986

2. Consumer
• A consumer is a user of goods and services
• Any person paying for goods and services has
the right to demand quality services and
products.
• Before the industrial era the producer/settler
and the buyer/customer/consumer has close
contact and understanding.
• Industrialization and mass productive systems
involving machines has undermined close
contact between seller and consumer was
almost lost.

3. Definitions
Goods means goods as defined in the Sale of goods Act, 1930.
Under the Act, goods means every kind of movable
property other than actionable claims and money and
includes stocks and shares, growing crops, grass and
things attached to or forming part of the land which are
agreed to be severed before sale or under the contract of
sale.
Service is defined to mean service of any description which is
made available to potential users and includes 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.

4. Consumer Acts
• In India, we have the Indian Contract Act, the
sale of Goods Act, the Dangerous Drug Act,
the Agricultural Produce (Grading &
Marketing) Act, The Indian Standards of
weight and Measure Act, The Trade and
Merchandise Mark Act, etc. These Acts to
some extent protect consumer interest.
• The drawback of the above said Acts is that it
requires the consumers to initiate action by
way of Civil suit which mostly lengthy legal
process which are expensive and time
consuming. There need a much more simpler
and quicker access to redressed to consumer
grievances.

5. Consumer and WTO
Regime
With the coming of WTO, goods
from different countries in the
world began to pour the markets
of the Third World and the
consumers’ interest are not
adequately protected.

6. Consumer Protection Act
The preamble to the Act states that the
Act is legislated to provide for better
protection of the interests of consumers
and for that purpose to make provision
for the establishment of consumer
councils and other authorities for the
settlement of consumer’s disputes and
for matters connected therewith.

7. UN GUIDELINES FOR THE CONSUMER
PROTECTION
• Protect from hazard to health & safety;
• Promote & protect economic interests;
• Provide adequate information for informed choice;
• Consumer education;
• Provide effective redress—formal and informal
procedures;
• Freedom to form groups & present views in decision-
making affecting consumers;

8. THE CONSUMER PROTECTION
ACT, 1986 (ACT)
• Applicability
• Amendments
– Amendments in the year 1993
– Amendments in the year 2002

9. WHO IS A CONSUMER?
• Two kinds of consumer under the Act
– Consumer of goods
• buys or agrees to buy goods
• any user of such goods
– Consumer of services
• hires or avails any services
• any beneficiary of such service

10. CONSUMERS NEED PROTECTION
AGAINST
• Unfair trade practice
• Restrictive trade practice
• Defects
• Deficiencies

11. CONSUMERS NEED PROTECTION
AGAINST
UNFAIR TRADE PRACTICE
 Adopting unfair methods or deception to promote sale, use
or supply of goods or services e.g.
 Misleading public about price (e.g. bargain price when it is
not so).
 Charging above MRP printed.
 Misleading public about another’s goods or services.
 Falsely claiming a sponsorship, approval or affiliation.
 Offering misleading warranty or guarantee.

12. CONSUMERS NEED PROTECTION
AGAINST
RESTRICTIVE TRADE PRACTICE
• Price fixing or output restraint re: delivery/flow of supplies to
impose unjustified costs/restrictions on consumers.
• Collusive tendering; market fixing territorially among
competing suppliers, depriving consumers of free choice, fair
competition.
• Supplying only to particular distributors or on condition of
sale only within a territory.
• Delaying in supplying goods/services leading to rise in price.
• Requiring a consumer to buy/hire any goods or services as a
pre-condition for buying/hiring other goods or services.

13. CONSUMERS NEED PROTECTION
AGAINST
• DEFECTS
– 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
– 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.

14. Basic Rights under Consumer
Protection Act, 1986
1. The Right to be protected against marketing of goods
and services which are hazardous to life and property
2. The right to be informed about the quality, quantity,
potency, purity, standard and price of goods, or services
so as to protect the consumer against unfair trade
practices.
3. The right to be assured, wherever possible,access to
variety of goods and services at competitive prices
4. The right to be heard and be assured that consumers’
interests will receive due consideration at appropriate
forums
5. The right to seek redressal against unfair trade practices
or restrictive trade practices or unscrupulous
exploitation of consumers
6. The right to consumer education

15. FORUM & JURISDICTION
• Consumer Disputes Redressal Forums (District
Forum)
– Claims less than or equal Rs.20 lacs.
• Consumer Disputes Redressal Commissions (State
Commission)
–Claim more than Rs.20 lacs & less than Rs.1 crore & appeals.
• National Consumer Disputes Redressal Commission
(National Commission)
–Claim equal to Rs.1 crore & appeals

16. REQUISTIES OF A COMPLAINT
• Who can file a complaint
• Where to file a complaint
• How to file a complaint
• What constitutes a complaint?
• Procedure for filing the appeal

17. ESSENTIAL INFORMATION IN THE
APPLICATION
– Name and full address of complainant
– Name and full address of opposite party
– Description of goods and services
– Quality and quantity
– Price
– Date & proof of purchase
– Nature of deception
– Type of redressal prayed for

18. BENEFITS & RELIEFS
• Benefit
– Disposal within 90 days
– No adjournment shall ordinarily be granted - Speedy trial
• Relief
– Removal of defects in goods or deficiency in services.
– Replacement of defective goods.
– Refund against defective goods or deficient services.
– Compensation.
– Prohibition on sale of hazardous goods.

19. Major Provisions of
CONSUMER PROTECTION
ACT 1986

20. Objective
An Act to provide for better protection of
the interests of consumers and for that
purpose to make provision for the
establishment of consumer councils and
other authorities for the settlement of
consum-ers' disputes and for matters
connected therewith.

21. Definitions.
"consumer" means any person who—
• buys any goods for a consideration,
• hires or avails of any services for a
consideration,
• “uses such goods” with the approval of
person who has bought such goods for
consideration.
• “is beneficiary of services” with the
approval of person who has hired the
services for consideration.

22. Continued…
"person" includes,—
• a firm whether registered or not;
• a Hindu undivided family;
• a co-operative society;
• every other association of persons
whether registered under the Societies
Registration Act, 1860 (21 of 1860) or not;

23. Continued…
"service" means service of any description
which is made available to potential users and
includes, the provision of facilities in
connection with banking, financing insurance,
transport, processing, supply of electrical or
other energy…

24. Continued…
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;

25. Continued…
Manufacturer is a person who-
• Makes or manufactures any goods or
parts thereof.or
• Assembles parts of the goods made or
manufactured by others and claims the
end product to be goods manufactured
by himself,or

26. Continued…
• Puts his own mark on any goods made or
manufactured by any other manufacturer
and claims such goods to be goods made
by him.

27. Continued…
Trader is a person who –
• Sells goods or,
• Distributes any goods for sale,
• Manufacturer of goods for sale,
• Packer of goods who sells or distributes
goods in package form.

28. Continued…
"complaint" means any allegation in
writing made by a complainant that—
• an unfair trade practice or a restrictive
trade practice has been adopted by any
trader or service provider;
• the goods bought by him or agreed to be
bought by him; suffer from one or more
defects;

29. Continued…
• the services hired or availed of or agreed
to be hired or availed of by him suffer from
deficiency in any respect;
• a trader or service provider, as the case
may be, has charged for the goods or for
the service mentioned in the complaint a
price in excess of the price.

30. Continued…
• goods which will be hazardous to life and
safety when used or being offered for sale
to the public.
• services which are hazardous or likely to
be hazardous to life and safety of the
public when used.

31. Continued…
"consumer dispute" means a dispute
where the person against whom a
complaint has been made, denies or
disputes the allega-tions contained in the
complaint.

32. CONSUMER PROTECTION
COUNCILS
Central Consumer Protection Council.
The Central Council shall consist of the following
members,
• the Minister in charge of the consumer affairs in
the Central Government, who shall be its
Chairman, and
• such number of other official or non-official
members represent-ing such interests as may
be prescribed.

33. Continued…
Objects of the Central Council.—
The objects of the Central Council shall be
to promote and protect the rights of the
consumers such as,—
• the right to be protected against the
marketing of goods and services which are
hazardous to life and property;

34. Continued…
• the right to be assured, wherever possible,
access to a variety of goods and services
at competitive prices;
• the right to be heard and to be assured
that consumer's interests will receive due
consideration at appropriate forums;

35. Continued…
• the right to be informed about the quality,
quantity, potency, purity, standard and price
of goods or servicesthe right to seek
redressal against unfair trade practices or
restrictive trade practices or unscrupulous
exploitation of con-sumers; and
• the right to consumer education.

36. Procedure for meetings of
the Central Council.
• The Central Council shall meet as and when
necessary, but at least one meeting of the
Council shall be held every year.
• The Central Council shall meet at such time
and place as the Chairman may think fit and
shall observe such procedure in regard to
the transaction of its business as may be
prescribed.

37. State Consumer Protection
Councils.
The State Council shall consist of the
following members, namely:—
• the Minister incharge of consumer affairs in
the State Government who shall be its
Chairman;
• such number of other official or non-official
members representing such interests as
may be prescribed by the State
Government.

38. Continued…
• such number of other official or non-official
members, not exceeding ten, as may be
nominated by the Central Government.

39. Procedure for meetings of the
State Council.
The State Council shall meet as and when
necessary but not less than two meetings
shall be held every year.
The State Council shall meet at such time
and place as the Chairman may think fit and
shall observe such procedure in regard to
the transaction of its business as may be
prescribed by the State Government.

40. Continued…
Objects of the State Council. —
The objects of every State Council shall
be to promote and protect within the
State the rights of the consumers.

41. District Consumer Protection
Council
It consist of the following members, namely
—
• the Collector of the district (by whatever
name called), who shall be its Chairman;
• such number of other official and non-
official members representing such
interests as may be prescribed by the State
Government.

42. Procedure for meetings of the
District Council.
The District Council shall meet as and when
necessary but not less than two meetings
shall be held every year.
The District Council shall meet at such time
and place within the district as the Chairman
may think fit and shall observe such
procedure in regard to the transaction of its
business as may be prescribed by the State
Government.

43. Continued…
The objects of every District Council shall
be to promote and protect within the
district the rights of the consumers

44. CONSUMER DISPUTES
REDRESSAL AGENCIES
Redressal Forums.
• District Forums - a Consumer Disputes
Redressal Forum to be known as the
"District Forum" established by the State
Government in each district of the State
by notification:

45. Continued…
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, who shall have the following
qualifications, namely —

46. Continued…
– be not less than thirty-five years of age,
– possess a bachelor's degree from a
recognised university,
– be persons of ability, integrity and standing,
and have adequate knowledge and
experience of at least ten years in dealing
with problems relating to economics, law,
commerce, accountancy, industry, public
affairs or administration:

47. Jurisdiction of the District
Forum.
The 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 rupees
twenty lakhs.

48. Continued…
• State Commission - A Consumer
Disputes Redressal Commission to be
known as the "State Commission"
established by the State Government in
the State.

49. Continued…
 Each State Commission shall consist of
—
• A person who is or has been a Judge of a
High Court, appointed by the State
Government, who shall be its President.

50. Continued…
• not less than two, and not more than such number of
members, and one of whom shall be a woman, who
shall have the following qualifications, namely:—
- be not less than thirty-five years of age;
- possess a bachelor's degree from a recognised
university;
- be persons of ability, integrity and standing, and have
adequate knowledge and experience of at least ten
years in dealing with problems relating to economics,
law, commerce, accountancy, industry, public affairs
or administration:

51. Jurisdiction of the SC
The State Commission shall have
jurisdiction to entertain complaints where
the value of the goods or services and the
compensation, if any, claimed ''exceeding
rupees twenty lakhs but less than one
crore”.

52. Continued…
• National Commission - A National
Consumer Disputes Redressal known as
the " National Commission” is established
by the Central Government .

53. Jurisdiction of the National
Commission.
The National Commission. shall have
jurisdiction to entertain complaints where
the value of the goods or services and the
compensation, if any, claimed ''exceeding
rupees one crore”.