1. The Consumer Protection
Act, 1986

2. Presented By
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Mahesh Damani
Bharat Mohite
Prathamesh Parab
Amey Gondhali
Prasad Harwande
Rahul Abhang
Amogh Kadam
Nitin Gupta
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3. INDEX
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Introduction.
Objective of Consumer Protection Act, 1986.
Definitions.
Consumer Protection Councils.
Composition of Redressal Agencies.
Objective of Consumer Protection Councils.
Powers of Consumer Disputes Redressal Agencies.
Procedure of Complaints-Remedies-Appeal
Necessary norms required to be follow by every company.
Case Study.
Awareness for Consumers
Statistical Data
Things to Remember
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4. INTRODUCTION
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Till Lately , Consumers ,particularly in India , was Neglected Lot .
The Dominance and Obstinacy of producer ,trader or businessman
was felt like a Doctor piercing an injection in the body . Tolerance
has Limit .
Consumer movements spearheaded the attacks and slowly but
surely the lobby grew stronger and stronger day by day . Awareness
in a Consumer , that his rights were being sabotaged , grew from
day to day.
He realised that though on paper he was a KING , nevertheless he
remained a slave .
The psychology under which the consumer in India had treaded for
Decades that he had ‘no choice ‘ needed to be penetrated with an
effective dose of making him feel like a ‘KING’ and not merely think
like a ‘KING’ . Therefore the Consumer Protection Act 1986 was
enacted.

5. OBJECTIVE
The main objective of the Consumer Protection
Act, 1986 is to protect the interest and safeguard
the rights of the consumers which are as follows:
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Right to be protected against the marketing of
goods and services which are hazardous to life
and property.
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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.
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Right to be assured , wherever possible , access
to a variety of goods and services at competitive
prices
Right to be heard and to be assured that
consumers' interests will receive due
consideration at appropriate forums
Right to seek redressal against unfair trade
practices and unscrupulous exploitation of
consumers
Right to consumer education.

7. DEFINATIONA Consumer
“Consumer" means any person who
 “who buys any goods for a consideration which
has been paid or promised, or partly paid and
partly promised, or under a system of deferred
payment.
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Hires any services for a consideration which has
been paid or promised, or partly paid and partly
promised, or under a system of deferred
payment.

8. Complaint
“Complaint" means any allegation in writing made by a
complainant that—
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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;
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.
Goods / Service which will be hazardous to life and safety when used or
being offered for sale to the public.
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9. Complainant
“Complainant" means—
 A consumer; or
 Any voluntary consumer association registered
under the Companies Act,1956; or
 The Central Government or any State Government,
 One or more consumers, where there are
numerous consumers having the same interest;
 In case of death of a consumer, his legal heir or
representative; who or which makes a complaint;
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10. Not a Consumer
“Not a Consumer" means—
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A person who purchased goods for resale; or
A person who purchased goods for commercial
purpose; or
A person who obtains services without consideration; or
A person who obtains services under a contract of
personal service; or
Tax-payers to municipality: or
Contractors; or
Applicants for jobs; or
Persons who filed suits in courts.
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11. Rights of Consumers
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Right to Safety – Hazardous goods & services
Right to be Informed – About the quality, quantity,
potency, purity, standard and price of goods
Right to Choose – Access to variety of goods and
services at competitive price
Right to be heard - due consideration at appropriate
forums.
Right to seek Redressal – Right to seek redressal
against unfair trade practices or unscrupulous
exploitation of consumers
Right to Consumer Education –Right to acquire the
knowledge and skill to be an informed consumer
throughout life.

12. Consumer Protection Councils
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Central Consumer Protection Council.
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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 representing such
interests as may be prescribed.
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State Consumer Protection Council.
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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.
such number of other official or non-official members, not exceeding ten, as
may be nominated by the Central Government.
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District Consumer Protection Council.
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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.
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13. Composition of Redressal Agencies
National Commission
President
(a person who is or has been a Judge of the Supreme Court, to be appointed by the Central Govt.)
Member Member Member Member
State Commission
District Forum
President
President
(a person who is or has been a Judge of
a High Court, appointed by the State Govt.)
(a person who is, or has been, or is
qualified to be a District Judge)
Member
Member
Member
Member
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14. District Forum
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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 possessing a bachelor’s degree from a
recognized university, be a person of ability, integrity and
standing and have adequate knowledge and experience
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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.
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Subject to the other provisions of the Act a 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 Rs.20 Lakhs.

15. State Commission
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A Consumer Disputes Redressal Commission to be
known as the "State Commission" established by the
State Government in the State.
A person who is or has been a Judge of a High Court,
appointed by the State Government, who shall be its
President.
Each State Commission shall have jurisdiction to
entertain complaints where the value of the goods or
services and compensation, if any, claimed exceeds Rs.
20 Lakhs but does not exceed Rs.1 Crore and appeals
against the orders of any District Forum within the State.

16. National Commission
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The ‘ National Commission’ shall consist of a person
who is or has been a Judge of the Supreme Court, shall
be 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 with similar qualifications as
required in the case of appointment as a member to a
District Forum or a State Commission.
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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.
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The National Commission 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.

17. Objective of Consumer Protection
Council
To promote and protect the rights of the
consumers such as,—
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the right to be protected against the marketing of goods and services
which are hazardous to life and property;
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;
the right to be informed
the right to consumer education.
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18. Powers of Consumer Disputes
Redressal Agencies
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To remove the defect,
To replace the goods with new goods of similar
description,
To return the complainant the price,
To pay compensation to the consumer for any loss
or injury suffered,
To remove the defects in the goods,
To discontinue the unfair trade practices,
Not to offer hazardous goods for sale,
To provide adequate costs to parties,
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19. Procedure of Complaint
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File WITHIN 2 YEARS of cause of action in the
Forum where the seller has his business or lives or
where the incident happened.
Submit 3 COPIES OF COMPLAINT ON PLAIN
PAPER WITH SUPPORTING DOCUMENTS
(receipt, bill etc.)
NO LAWYER IS NEEDED.
There is no fee for filing a complaint. Even an
affidavit does not need stamp papers. A complaint
can be sent by post or presented in person by
complaint or his authorised agent.

20. Procedure of Complaint
The following information must be furnished with the
complaint : Name and complete address of complainant
 Name and complete address of the opposite party or
parties as the case may be.
 Date of purchase/service obtained.
 Amount paid for consideration.
 Items of goods with quantities/nature of service.
 Whether the complaint relate to unfair trade practice/
defective goods' deficient service/charging excess price.
 Copies of bills/vouchers/receipts and copies of
correspondence made, if any.
 The relief sought-Under the Act.

21. Remedies
The forums/Commissions can order the following relief:
 Removal of defects from the goods
 Replacement of the goods
 Refund of the price paid.
 Award of compensation for the loss or injury suffered.
 Removal of defects or deficiencies in the services.
 Discontinuance of unfair trade practices/restrictive
trade practices and directing not repeating them.
 Withdrawal of the hazardous foods from being offered
for sale.
 Award for adequate costs to practice.

22. Appeal
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Appeals against
District Forum ---Within 30 days -- In State
Commission
State Commission --- Within 30 days -- National
Commission
National Commission -- Within 30 days -Supreme Court
There is no fee for filing appeals in the State and
National commissions.

23. Case Study
R630-crore fine on realty major DLF for abusing
Recent decision of the Competition Commission of India (CCI) to slap a
R630-crore fine on realty major DLF for abusing its dominant position is
only a tip of the iceberg. If the records of the Delhi consumer court are
taken into account, the maximum number of cases registered are against
real estate companies.
Out of every 10 complaints which get registered at the Consumer Disputes
Redressal Commission (consumer court) in Delhi, eight are against real
estate players.
Currently, there are around 400 complaints pending before the consumer
court with claims amounting to upward of R20 lakh. An official of the
consumer court said: “Roughly, more than 60% of the complaints received
by the court are against real estate players and the number is rising with
each passing day. Till date from January 2011 we have received almost
120 complaints.”

24. City store to pay Rs 10,000 for delay in
payment of Rs 186
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A delay in paying out Rs 186 in prize money has cost a
cellphone retail chain Rs 10,000 after the aggrieved
winner approached a consumer forum, citing mental
agony over the 14-month wait. Malad resident Rohit
Somani bought a cellphone from the Kandivli outlet of
The Mobile Store on
October 30, 2009, and received a scratch card with the
instrument, as part of an ongoing scheme by the chain.
The card entitled him to a return of Rs 186 from the sum
he had paid for the cellphone, but Somani — despite
repeated follow-up visits — never received the money.
In December 2010, Somani approached the Mumbai
Suburban District Consumer Disputes Redressal Forum,
which ordered the chain to pay Rs 10,000 in
compensation.

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Store representatives did not appear before the
Forum, despite a notice being served to them.
Instead, they offered Somani a cheque for Rs
186. Somani told the forum he wished to pursue
the case to seek recompense for the mental
stress he suffered while pursuing the matter for
over a year. The forum ruled in favour of
Somani.

26. ICICI bank to pay a compensation of
Rs 1.46 lakh to an Air Force personnel
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Back-tracking from releasing the sanctioned loan to consumer by
a bank amounts to unfair trade practice, a consumer court has
said while directing ICICI bank to pay a compensation of Rs 1.46
lakh to an Air Force personnel for resorting to such act.
“The conduct of the bank makes out a case of unfair trade
practice, mal-practice, arbitrariness and gross deficiency in
service on its part who even during inquiry proceedings failed to
place on record the decision of the competent authority that the
loan sanctioned to the complainant was not to be released,” the
West Delhi District Consumer Forum said.
The Forum passed the order on a petition by Air Force Wing
Commander Brij Mohan Tyagi seeking refund of Rs 1.46 lakh
which he had to pay to the housing society for delay in payment
due to bank’s failure to release the sanctioned loan.

27. Club Mahindra told to refund Rs 2.08
lakh
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The Pune District Consumer Disputes Redressal
Forum has directed Chennai-based Mahindra
Holidays and Resorts India Ltd., also known as Club
Mahindra, to pay Rs 2.08 lakh with 9% annual
interest rate to a complainant who was not able avail
of its services even after becoming a member.
The forum has also directed the club to pay Rs
10,000 as compensation and `1,000 as litigation
cost to the complainant within six weeks.

28. Harassment by loan agents:Bank told
to pay damages
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A District Consumer Forum has ordered Standard
Chartered Bank to pay Rs 6,000 to a man for
harassment by loan recovery agents. In December 2007,
Nerul-based Subhashish Mitra took a loan of Rs
1,20,000 from Standard Chartered Bank. Mitra claims to
have repaid the money within a year and the loan
account opened with the bank was closed. In 2009,
however, he was served a legal notice stating that a
case was pending against him before the Lok Adalat. In
his complaint before the forum, Mitra said that even after
he had repaid the amount, the bank’s recovery
department in Delhi kept calling him for money.

29. Insurance Co told to pay for 26/7 loss due to
Mumbai flood
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Five years after the 26/7 deluge, the consumer forum has
ordered an insurance firm to pay compensation to an Andheri
shop owner, who suffered major losses in the floods. The forum
said the insurance firm repudiated the claim with “a mala fide
intention and merely on a technical ground”. The insurance
company will now pay the policy holder Rs 1.92 lakh together
with an interest of 9% from March 2006 till the realisation of the
entire amount and Rs 5,000 towards costs.
The policy holder, Nishat Enterprises, is a partnership firm that
owns GKB Eyecare, an optical shop in Andheri (W). In the
complaint filed by one of the partners, Ali Hussain Khan, the firm
said it had taken an insurance policy from Oriental Insurance
Company in respect of goods and property at the shop premises,
valid from December 2004 to December 2005. On July 26, 2005,
flood water entered the shop and all furniture and optical stock
were totally destroyed.

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The insurance company was intimated about the loss. When a
surveyor visited the shop, the complainant said that the policy had
wrongly mentioned the shop number as 18 when it was actually 10.
However, the insurance company rejected the claim, saying that as
per the survey report, the policy was taken for shop number 18,
whereas the complainant’s shop was 10. Khan then filed a
complaint with the Mumbai Suburban District Consumer Disputes
Redressal Forum.
In their defence, the insurance company contested that the alleged
loss occurred at shop 10, whereas shop 18 was insured, and it was
not liable for any loss occurred at shop number 10. The forum
presided by J L Deshpande and members D S Bidnurkar and V G
Joshi said that the firm had requested the insurance company to
make the correction. The forum observed that there were only 12
shops and there was no shop 18.
The insurance firm also argued that the policy was taken for
commercial purpose and so, the firm is not a consumer within the
meaning of the provisions of the Consumer Protection Act. The
consumer said it had wrongly applied to the provisions of the
Consumer Protection Act. “The firm had not taken the insurance
policy to acquire and sell it…it was not the subject of its commercial
activity or business.”

31. Necessary norms required to be follow
by every company
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33. Awareness for Consumers
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NATIONAL CONSUMER HELPLINE: 1800-11-4000
formed the Consumer Guidance Society of India (CGSI)
to resist consumer exploitation of all forms.
ALWAYS INSIST ON CASH MEMO
LOOK FOR THE “BEST BEFORE” OR “EXPIRY DATE”
WHEN BUYING FOOD OR MEDICAL PRODUCTS
ALWAYS LOOK FOR STANDARD MARKS LIKE ISI,
FPO, AGMARK ETC..
DO NOT PAY MORE THAN MRP.
ALWAYS FIGHT FOR YOUR RIGHTS
IN THE CONSUMER FORA, THE CONSUMER IS
ALWAYS STRONG.

34.  Standardization mark is a mark or symbol given to a
product, which meets certain standards with respect
to the quality in terms of material used, methods of
manufacturing, labeling, packaging and performance.

35. Total Number of Consumer Complaints Filed / Disposed
since inception Under Consumer Protection Law
(Update on
05.08.2011)
Sl.
N
Name of Agency
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Cases filed since
inception
Cases disposed of
since
inception
Cases Pending
% of total
Disposal
1
National Commission
70787
61484
9303
86.86%
2
State Commissions
546134
446440
99694
81.75%
3
District Forums
3010281
2755418
254863
91.53%
TOTAL
3627202
3263342
363860
89.97%

40. THINGS TO REMEMBER
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Always insist on Cash Memo.
Look for the“BEST BEFORE” or “EXPIRY DATE”
when buying goods or medical products.
Always look for STANDARD MARKS like ISI,
FPO, AGMARK, etc.
DO NOT pay more than MRP.
Always fight for YOUR RIGHTS.
In the consumer forum, THE CONSUMER IS
ALWAYS STRONG.

41. THANK YOU!!!
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