Consumer Protection Act

-1986
INTRODUCTION & OBJECTS
Introduction
Caveat emptor rule ( let the buyer beware) in sale of
goods act of 1930, sprout the root of consumer
interest protection.
United nations passed resolution of consume
protection in april 1985
In India 1986 was the enactment of consumer
protection act
Aimed at providing simple, quick, and cheaper
protection of consumers interest
 The law relating to consumer protection is
contained in the consumer protection Act ,
1986.The Act applies to all goods and services
.The central government may however by
notification published in the official Gazette
exempt any goods or services(sec.1
objectives
Better protection of interests of consumers

Protection of rights of consumers

-Right to be protected against marketing of goods
or services which are hazardous to life and
property
- To be informed about the quality, quantity,
potency, purity, standard and price of goods or
services so as to protect the consumers against
unfair trade practices
-The right to be assured, where ever possible,
access to goods and services at competitive prices
- The right to be heard and to be assured that
consumers interest will receive due consideration
at appropriate forums
- The right to seek redresses against unfair trade
practices or restrictive trade practices or
unscrupulous exploitation of consumers
- Right to consumer education
Consumer protection councils
Quasi-judicial machinery for speedy redressal of consumer
disputes
-quasi-judicial machinery at the district ,State and central levels
-(To give relief’s of a specific nature )

-(To award, wherever appropriate, compensation to consumer)

Penalties for non-compliance of the orders given by
the quasi-judicial bodies have also been provided
Scope of the Act
Applies to whole of the state Exept the state of
Jammu and Kashmir
Applies to all type of goods and services, public
utilities & public sector undertakings
All types of complains relating to goods ,unfair
trade practice
Remedies under this act is same as those in other
laws.
A suit pending in civil court cannot be heard in
consumer court
Consumer forums have the power to adjudicate
disputes, but they do nat have trappings of a court
The consumer court powers are limited
Unfair trade
practices
Unfair trade practices
[sec. 2(1) (r)]

It means trade practices which a

trader, 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 practice.
The practices included are:
(1)The practice of making any statement, whether orally or in writing or by visible representation which-
Falsely represents that the goods are of particular standard, quality, quantity, grade, composition, style or model;
Falsely represents that the services are of particular standard, quality or grade;
Falsely represents any rebuilt, second hand,
renovated, or old goods as new goods;
Represents that the goods or services have
sponsorship, approval, performance,
characteristic, accessories, uses or benefits
which such goods or services do not have;
Represents that the seller or the supplier has
sponsorship or approval or affiliation which such
seller or supplier does not have;
Make a false or misleading representation
concerning the needs for , or the
usefulness of, any goods or services;
Gives to the public any warranty or
guarantee of the performance or length of
life of a product or of any goods that is
not based on an adequate or proper test
thereof.
Materially misleading the public
concerning the price at which a
product or like products or goods or
services, have been or are ordinarily
sold or provided.
Unfair trade practices -
contd…

2. False offer of bargain price [section

2(1)(r)(2):
 A price that is stated in any advertisement
to be a bargain price by reference to
ordinary price or otherwise
 A price that a person who reads, hears or
sees the advertisement would reasonably
understand to be a bargain price having
regard to the prices at which like products
are sold.
 Contd…
3. Schemes offering gifts or prizes [section 2(1)(r)(3)]
 Offering gifts or prizes or other items with the
intention of not providing them and conducting
promotional contests.
 Creating an impression that something is being
given free of charge when it is fully or partly
covered by the amount charged in the transaction.
 Conducting of any contest, lottery or game of
chances etc for the purpose of promoting-directly
or indirectly- the sale, use or supply of any product
or any business interest.
Contd…

Society for Civil Rights vs Colgate Palmolive

Eg: A scheme sponsored by Colgate Palmolive
(India) Ltd induced the contestants to buy a
minimum of 2 Trigard toothbrushes to be able to
participate in the contest. The early bird prizes to
be awarded for entries received early had nothing
to do with any skill. It was held not to be in public
interest.
Contd…
4. Withholding any schemes [sec 2(1)(r)(3A)]
Withholding from the participants of any
scheme offering gifts, prizes or other items
free of charge, on its closure the information
about final result of scheme. The participants
of a scheme shall be deemed to have been
informed of the final results of the scheme
where such results are within a reasonable time
published prominently in the same newspapers in
which the scheme was originally published.
Contd…

5. Non compliance of prescribed standards

[sec 2(1)(r)(4):
The prescribed standard may relate to
performance, composition, contents,
design, packaging etc as are necessary to
prevent or reduce the risk of injury to
the person using the goods.
CONTD…

6. Hoarding, destruction or refusal

[sec 2(1)(r)(5):
Hoarding, destruction or refusal to
sell the goods which raises or tends
to raise the cost of those or other
similar goods or services shall
amount to an unfair trade practice.
Contd…

7. Manufacturing or sale of spurious

goods [section 2(1)(r)(6):
Spurious goods and services means
such goods and services which are
claimed to be genuine but are not so.
DEFICIENCY IN SERVICE
Meaning

Section 2(1) (g) of the Act provides that,

“deficiency” means 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.
“Deficiency” means any fault, imperfection, shortcoming
or inadequacy in the quality, nature and manner of
performance.
Such quality and manner of performance of service should
have been required to be maintained by or under any law
for the time being in force or undertaken to be performed
by a person in pursuance of a contract or otherwise.
The deficiency must be in relation to a service.
 Meaning Of Service
[u/s 2(1)(o)]

‘Service of any description which is

made available its potential users and
includes but not limited to the
provisions of facilities in connection
with banking, financing, insurance,……..
But does not include the rendering of
any service free of charge or under a
contract of personal service’.
Examples
Bank of Maharashtra v/s Mrs Jyothi Satya
When the locker facility is provided by the
bank, the relationship b/w the bank and hirer
of a locker is not that of a landlord and tenant.
In event of loss of contents of lockers as a
result of robbery, the bank will be liable for
deficiency of service.
Failure of the housing board to give
possession of the flat after receiving the
price and registering it in favour of the
allottee.
Non-delivery of consignment by the
courier.
Failure of railways to provide cushioned
seats in the first class compartment as per
specifications laid down by the board.
The removal of ladder of an aircraft while
the passenger was disembarking and
thereby causing 10% permanent disability.
The fall of the passenger from a running
train while passing through the vestibule
passage.
Examples

Delay caused in returning of baggage

or tampering with baggage.
Failure in informing the unavailability
of a connecting flight.
RESTRICTIVE TRADE
PRACTICE
DEFINITION Sec. 2 (1) (nn)

“A trade practice which tends to bring

about manipulation of price, or its
conditions of delivery or to affect
flow of supplies in the market
relating to goods or services in such a
manner as to impose on the consumers
unjustified costs or restrictions”
CONSUMERS NEED PROTECTION
AGAINST

Price fixing or output restraint i.e 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.
DEFECT Sec 2 (1) (f)

“Any fault, imperfection or shortcoming

in the quality, quantity, potency, 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”
CONSUMER PROTECTION
COUNCILS

•Central Level
•State Level
Central Consumer Protection
Council

The Central Government may, by

notification, establish with effect
from such date as it may specify in
such notification, a council to be
known as the Central Consumer
Protection Council
Consists of…..

the Minister in charge of consumer

affairs in the Central Government,
who shall be its Chairman
such number of other official or non-
official members representing such
interests as may be prescribed
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
State and district Consumer
Protection Councils
Objects of the central
council(Sec.6)

a) The right to be protected against the

marketing of goods and services which are
hazardous to life and property.

b) The right to be assured ,where ever

possible ,access to a variety of goods and
services at competitive price
c) The right to consumer education.

d) The right to be heard and to be assured

that consumer interests will receive due
consideration at appropriate forums.

e) 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.
The state consumer protection
councils(Sec.7and 8)

Members :-
Chairman:-The minister in charge of
consumer affairs of the state
government.
Such number of other official or non-
official members representing such
interests as may be prescribed by the
state government.
 Meetings:-
Number of meetings:-Not less then 2 meetings
every year
Time and place:- Depends on the chairman
Objective:-
To promote and protect within the states
The rights of the consumer as laid down in
Sec(6)
The district consumer
protection council

Members:-
District collector is the Chairman
Other official and non-official members
are appointed by the state government
 Meetings:-
Number of meetings:- not less then 2 meetings
Time and place:- as decided by the chairman
Objective:-
To protect and preserve the right of the
consumer within the district laid down under the
Sec(6).
Nature and scope of remedies
& State commission
Nature and scope of remedies
Under the Act (sec. 14)

In case the goods complained against

suffer from any of the allegations
contained in the complaint about the
services are proved, the district
forum/the state commission may pass
one or more of the following orders;
To remove the defects pointed out by the appropriate
laboratory from all the goods in question.
To replace the goods of similar description which
shall be free from defect.
To discontinue the unfair trade practice or
restrictive trade practice or not to remove them.
To withdraw the hazardous goods from being offered
for sale.
In the case of misleading advertisements the other
party has to pay the cost of the corrective
advertisements.
State commission ( secs
16,17,17A and 17B)
Composition (sec. 16)
The state commission should consist the
following;
A. President; He shall be a person who is or was a
judge of the high court. His appointment can be
made only after consultation with the chief
justice of high court
B. Members; there shall not be less than two or
not more than the number specified, one of them
should be a woman.
The members should have the
following qualifications;
1.Not less than the age of 35.
2.the person should possess a
bachelor degree from any recognized
university.
The consumer to whom the goods are
sold or delivered, or agreed to be sold
or delivered , or the service has been
provided, or agreed to be provided’
Any recognized consumer association,
regardless of whether the consumer
is a member of such association or not.
One or more consumer , where there
are numerous consumer having the same
interest with permission of the district
forum on behalf of or for the benefit
of all consumer so interested.
The state or central govt. either its
individual capacity or as a
representative of the interest of the
consumer in general.
PROCEDURE ON RECEIPT OF
COMPLAINTS

COMPLAINT WHERE LABORATORY

TESTING IS POSSIBLE OR
REQUIRED.

COMPLAINT RELATED TO SERVICE,

I.E, WHERE LABORATORY TESTING
IS NOT POSSIBLE.
 STATE COMMISSION &
NATIONAL COMMISSION

BY,
MATHEW.M.C
Disqualification for appointment as
member of the state commission

It is same those for a district forum.

Selection commission for appointment is
also similar to that of district forum.
Appointment of state commission is done by
the state government on recommendation
of the president of the state commission
depending on the work load.
Continued..

Subsection (1B) of section 16, the

jurisdiction, power and authority of
the state commission may be
exercised thereof.
State commission consist of the
president and one or more members.
Decisions are taken on the basis of
majority.
Jurisdiction of state
commission
1) Monetary jurisdiction
Deals with complaints only for which the value
does not exceed 1crore.
2) Appellate jurisdiction
It can entertain appeals against any order
district forum within the state.
No appeal by anyone who has been required to
pay any amount by order of district forum shall
be entertained unless he deposited 50% of the
amount or 25000 which ever is less.
Continued..
3) Supervisory jurisdiction
Can ask for records or pass an order for
any pending dispute in the district forum
within the state.
Territorial jurisdiction of the state commission
can be invoked in the same grounds as that of
the district forum under section 11(2)
Continued..
Transfer of cases
On the application of a complainant, or of its own
motion, may at any stage of the of the proceeding
transfer any complaints pending before the district
to another district forum within the state.
Circuit benches
State commission ordinarily functions in the state
capital, but may be required to perform its
functions at any other place as the state
government may, in consultation with the state
commission, notify in the official gazette.
Continued..

Tenure
the term of office of a member is
mostly 5 years or 65 years of age.
Which ever is earlier.
National commission

Section 9 empowers the central

government to establish national
consumer disputes Redressal
Commission.
Composition
1) President
He has to be a person who is or has been the
Judge of the Supreme Court. His appointment
shall be made by the Central Government in
consultation by the Chief Justice of India.
2) Members
There shall be not less than 4 and not more
than such a number of members as may be
prescribed, processing the qualifications as
are prescribed for a member of the State
Commission.
Appointment
Appointment is done by the Central Govt. on
recommendation of selection committee
consisting of a judge of the Supreme Court
nominated by the Chief Justice of India who
shall act as chairman; the Secretary in the Dept
of Legal Affairs and Secretary in the Dept
dealing with consumer affairs, as members.
The President and every member shall give an
undertaking that he does have and will not have
any such financial or other interest as is likely to
affect prejudicially his functions as such
member.
 Tenure and

Removal of President
or Members (Rule 13)

By madesh .m
Register no.
0861087
Tenure
Every member of the national commission shall
hold the office for 5 years or up to the age of
seventy years, whichever is earlier.
A member shall be eligible for reappointment for
another term of 5 years or up to the age of
seventy years, whichever is earlier.
The reappointment is to be made on the basis of
recommendation of the selection committee.
Removal of president or members(rule 13)

Has been adjudged an insolvent.

If any conviction of an offence,
Physically or mentally incapable of acting
as a president or member, or
Has acquired such financial or other
interest as is likely to affect prejudicially
his function as the president or member,
or
Has so abused his position as to render
his continuance in office prejudicial to
public interest, or

Remains absent in three consecutive

sittings except for reasons beyond his
control.
COMPLAINTS & WHO CAN
FILE A COMPLAINT?
Complaint
A complaint is any allegation in writing
made by a complainant that, an “unfair
trade practice” or a “restrictive trade
practice” has been adopted by any trader.
Under sec2(1)c of consumer protection
act, A complaint must be made with a view
to obtaining any relief provided.
WHO CAN FILE A
COMPLAINT?

A consumer can file a complaint under the Act ,

Who is a Consumer?

A Consumer under the Act is:" One who buys any goods,
hires and service/services for a consideration which has
been paid or promised or partly paid and partly paid and
partly promised under any system of deferred payment."
A consumer means a person belonging to
the following categories:

i) one who hires or avails of any service or

services for a consideration, which has
been paid or promised or partly paid and
partly promised, or under any system of
deferred payment.
ii) Any voluntary consumer association
registered under the Companies Act or any
other law for the time being in force.
Cont…
iii) Class action complaints - one or more
consumers, where there are numerous
consumers having the same interest.

iv) The Central Government

v) The State Government or Union

Territory Administrations.
 TIME FRAME WITHIN
WHICH A COMPLAINT CAN
BE FILED
Time frame within which a
complaint can be filed

Section 24A of the Act provides that a

consumer dispute can be filed within two years
from the date on which the cause of action
arises.
The point of time when cause of action arises is
an important factor in determining the time
period available to file a complaint. There are
no set rules to decide such time. It depends on
the facts and circumstances of each case.
 
 
The complaint should be filed within 2
years from the date of cause of action.

 Appeals are require to be filed within 30

days from the date of receipt of the
court's order.
It may be noted that these time frames
are not absolute limitations. If the
Consumer Forum is satisfied that there
was sufficient cause for not filing the
complaint within the prescribed period, it
can entertain a complaint beyond
limitation time. However the Forum must
record the reasons for condensation of
delay.