The document summarizes the key reasons for enacting the Consumer Protection Act in India in 1986. It notes that previously, consumer rights were not well protected under the doctrine of caveat emptor. It also cites issues like collective bargaining by sellers, multiple existing consumer laws, and barriers to litigation that necessitated stronger consumer protection. The act aims to provide better protection of consumer interests through consumer councils and other authorities to enable easier redressal of consumer disputes.

1. Presented By,
Rohan Negi – B035
Arveen Shaheel –
B050
Pranav Pathak – B060

2. Why protect the consumers?
Reason for Enacting the Act
• Doctrine of Caveat Emptor
This implies that the responsibility of identifying goods and finding defects with them
lies with buyer.

3. Why protect the consumers?
Reasons for Enacting the Act
• Collective Bargaining
Sellers Lobby; Forming cartels; Artificially keeping prices high!!!!
• Multiple Laws
India Contract Act; Sale of Goods Act; Essential Commodities Act
• Hurdles in the Litigation
Going to regular court; Expensive & Time Consuming
• Remedy
Punishment in the form of Punitive & Deterrent measure

4. Hence… There was
An Act to provide for the better protection of the interests of consumers and
for that purpose to make provisions for the establishment of consumer
councils and other authorities for the settlement of consumers' disputes and
for matters connected therewith.
Short title, extent and application:
(1). This Act may be called the Consumer Protection Act, 1986.
(2). It extends to the whole of India except the State of Jammu and
Kashmir.
(3). Save as otherwise expressly provided by the Central Government by
notification, this Act shall apply to all goods and services.

5. CPA Impact
„Consumer is the king of the market‟
“Sellers market” is now “Buyers market”
&
• With industrial development leading to the influx of various
goods and services in the market; Consumers have to
protected!

6. The act was passed in:
Lok Sabha on 9th December,1986 and
Rajya Sabha on 10th December, 1986 and
Assented by the President of India on 24th December, 1986 and was
Published in the Gazette of India on 26th December, 1986.
This act was enacted in the 37th year of the Republic of India and was amended
from time to time in the following years i.e. 1991, 1993 and 2002.

7. Objectives of CPA, 1986
Education Heard
Safety Consumer Rights Redressal
Choose Information

8. DEFINITIONS
Section 2 of The Consumer Protection Act, 1986, defines certain words
which are used in various sections.
Appropriate Laboratory : S. 2(1)(a) :
“Appropriate laboratory” means a laboratory or organisation :
I. Recognised by the Central Government
II. Recognised by a state government, subject to such guidelines as
may be prescribed by the Central Government in this behalf; or
III. Any such laboratory or organisation established by or under any
law for the time being in force, which is maintained, financed or
aided by the Central Government or a State Government for
carrying out analysis or test of any goods with a view to
determining whether such goods suffer form any defect.

9. Complainant S.2(1)(b) :
i. A consumer, or
ii. Any voluntary consumer association registered under the
Companies Act, 1956, or under any other law for the time being in
force; or
iii. The Central Government or any State Government, who or which
makes a complaint;
iv. One or more consumers, where there are numerous consumers
having the same interest,
v. In case of death of a consumer, his legal heir or representative
who or which make a complaint.

10. Complaint S.2(1)(c) :
i. An unfair trade practice or a restrictive trade practice has been
adopted by any trader or service provide;
ii. The goods, bought by him, or agreed to be bought by him, suffer
one or more defects;
iii. The services hired or availed of, agreed to be hired or availed of by
him, suffer from deficiency in any respect;
iv. A 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, with a view to obtaining any relief provided
by or under this act;
v. Goods which will be hazardous to life and safety when used, are
being offered for sale to the public in contravention of the
provisions of any law for the time being in force requiring traders to
display information in regard to the contents, manner and effect of
use of such goods;
vi. Services which hazardous or likely to be hazardous to life and
safety of the public when used; are being offered by the service
provider, which such person could have known with due diligence
to be injurious to life and safety: with a view to obtaining any relief
provided by or under this act.

11. Consumer S.2(1)(d) :
Consumer means any person who;
i. Buys any goods for a consideration which has been paid or
promised or partly paid and partly promised, or under any system
of deferred payment, when such use is made with the approval of
such person who buys such goods for consideration paid or
promised or partly paid or partly promised, or under any system of
deferred payment, when such use is made with the approval of
such person, but does not include a person who obtains such
goods for resale or for any commercial purpose or;

12. (Hires or avails of) any services for a consideration which has been
paid or promised or partly paid and partly promised, or under any
system of deferred payment and includes any beneficiary of such
services other than the person who (hires or avails of) the services for
consideration paid or promised, or partly paid and partly promised, or
under any system of deferred payment when such services are availed
of with the approval of the first mentioned person (but does not include
a person who avails of such services for any commercial purpose)
Consumer Dispute S.2(1)(c) :
“A dispute, where the person, against whom, a compliant has been
made, denies or disputes the allegations contained in the complaint.”

13. Defect : S.2(1) (f)
Fault
Imperfection
Shortcoming
In the
Quality
Quantity
Potency
Purity Or
Standard

14. Deficiency: S.2(1) (g)
Fault In the
Imperfection Quality
Shortcoming Or Standard and
Manner of
Inadequacy
performance

15. Manufacturer: S.2(1) (j)
• “Manufacturer” means a person;
i. Makes or manufactures any goods or parts
thereof; or
ii. Does not make or manufacture any goods but
assembles parts there from made or
manufactured by others and claims the end
product to be goods manufactured by himself;
or
iii. Puts or causes to be put his own marks on any
goods made or manufactured by any other
manufacturer

16. Person: S.2 (m)
• Includes :
i. A firm, registered or not;
ii. A Hindu undivided family
iii. A co-operative society;
iv. Every other association registered as person
under the Societies Registration Act,1860.

17. Service: S.2(1) (r)
“Service” means service of any description, which is
made available to potential users and includes, but not
limited to the provisions of the facilities in connection
with
1) banking 2) financing 3) insurance 4) transport
5) processing 6) supply of electrical or other energy
7) boarding or lodging or both 8) house construction
9) entertainment 10) amusement or
11) the purveying or new or other information
But does not include the rendering of any service free of
charge or under a contract of personal service

18. Presentation………
Adjourned.
-Arveen Shaheel(B050)
-Rohan Negi(B035)
-Pranav Pathak(B060)