COMPLETE DETAILS ABOUT CONSUMER PROTECTION ACT, 1986

1. CONSUMER PROTECTION
ACT, 1986
PREPARED BY
ARAVIND M G

2. CONSUMER
The term Consumer means
• One who buys goods or hires services for a consideration.
• Any user of such goods with the approval of the buyer and the beneficiary of
services which is availed of with the approval of one who hires the services, and
• Any one who uses goods bought or services hired exclusively for earning livelihood
by self employment.

3. CONSUMERISM
Consumerism is a social movement seeking to add some value to the rights and powers of the buyers in
relation to sellers.
• It is the dedication of those activities of both public and private organisations which are designed to protect
individuals from unfair trade practices.
• It is a collective movement of the consumers to protect their interest.
• It is a social force to make the business more honest, efficient, responsible and induce the government to adopt
the necessary measures to protect consumer interests by guaranteeing their legitimate rights.
• Adulteration, false weights and measures, various types of manipulative and deceptive practices in the market
necessitates consumer protection.
• The major reason for consumer exploitation in India is that consumers have not organised themselves to have a
powerful consumer movement. Moreover there lacks alert agencies to secure redressal of their grievances.

5. CONSUMER PROTECTION ACT
• It is passed in the year 1986.
• The act recognises the consumer rights.
• The central and state level consumer protection councils are functioning in all states and union territories.
• The act aims at providing a better protection to the interests of consumers by the establishment of
consumer councils.
• The objective of this act is to provide for the better protection of the interests of consumers and for that
purpose to make provision for the establishment of consumer councils and authorities for the settlement
of consumers’ disputes and for matters collected therewith.

6. FEATURES OF THE CONSUMER PROTECTION ACT
• It applies to all goods and services unless specifically exempted by the Union Government.
• It covers all the sectors- Private, Public and Co-operative.
• Provisions of the Act are compensatory in nature. The consumers get additional remedies.
• It ensures consumer rights.
• It empowers consumers’ seeking discontinuance of certain unfair and restrictive trade practices or
deficiencies or defects in services.

7. PROVISIONS OF THE CONSUMER PROTECTION ACT
1. Complaints can be given by the consumers to the authorities under this Act.
2. Complaints can be lodged and compensations can be claimed by consumers with respect to:
• fraudulent practices of traders and manufacturers.
• defective goods.
• deficiency of services including services in connection with banking, financing, insurance,
transport, supply of electricity and gas, entertainment, house construction, medical services,
boarding and lodging, etc.
3. There is three tier judicial machinery to deal with consumer grievances and disputes. They are
District Forum, State Commission and National Commission.

8. Rights of
Consumer
Right to
Safety
Right to be
Informed
Right to be
Heard
Right to
Redressal
Right to
Consumer
Education
Rights ofConsumer

9. Redressal Agency
The aims and objectives of the Act are achieved by
District Forum
State Commission
National Commission.

10. • It shall consist of a person who is or has been or is qualified to be a District
Judge as its President,2 other members, one of whom shall be a woman
• Every member of the District Forum shall hold office for a term of 5 years or
up to the age of 65 years which ever is earlier
• It shall have jurisdiction to entertain complaints where the value of the
goods or services and the compensation, if any, claimed does not exceed
Rs.20 Lacs.
District Forum

11. A District Forum shall have the powers:
I. To remove the defect pointed out by the appropriate laboratory
from the goods in question
II. To replace the goods with new goods of similar description which shall
be free from any defect
III. To return to the complainant the price, or as the case may be, the charges
paid by the complainant
IV. To pay such amount as may be awarded by it as compensation to the consumer
for any loss or injury suffered by the consumer
due to the negligence of the opposite party

12. •It is established by SG by notification
•It shall have jurisdiction to entertain complaints where the value of the
goods or services and compensation, if any, claimed exceeds Rs. 20
Lacs but does not exceed Rs.1 Crore and appeals against the orders of
any District Forum within the State.
State Commission

13. • It shall consist of a person who is or has been a Judge of the
Supreme Court, as its President. Not less than 4 and not more than
such number of members as may be prescribed and one of whom
shall be a woman
• Every member of the National commission shall hold office for a term
of 5 years or up to the age of 70 years which ever is earlier.
• It shall have jurisdiction to entertain complaints where the value of
the goods or services and compensation, if any, the claim exceeds
Rs. 1 Crore and appeals against the orders of any State Commission.
National Commission

14. Councils
Central Council
State Council
District Council

15. The District Consumer ProtectionCouncil
• It shall consist of the following members, namely:-
(a) the Collector of the district (by whatever name called), as its
Chairman; and
(b) such number of other official and non-official members as may be
prescribed by the SG
• The District Council shall meet at least twice in an year.
• The procedure will be set by SG

16. The State Consumer ProtectionCouncil
• It shall consist of the following members, namely:
(a) the Minister in-charge of consumer affairs in the SG as its
Chairman;
(b) such number of other official or non-official members as may be
prescribed by the State Government.
• The State Council shall meet at least twice in an year.
• The procedure will be prescribed by the SG

17. The Central Consumer ProtectionCouncil
• It shall consist of the following members, namely
• (a) the Minister in charge of Consumer Affairs in the CG as its
Chairman, and
(b) such number of other official or non-official members as may be
prescribed.
• The Council shall meet at least once an year.