Consumer Protection

Act 1986

Consumer Protection
Act,1986
The Consumer Protection Act, 1986 is a

benevolent social legislation.

Consumer Protection Act, 1986is an act of
Parliament of Indiaenacted in 1986 to
protect interests of consumers inIndia.
The act was amended in 2002 and the
amendments came into force w.e.f. 15th
March 2003.
Act applies to whole of India except Jammu
and Kashmir.
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Consumer Protection
Act,1986
By spelling out the rights and remedies of

the consumers in a market so far

dominated by organized manufacturers
and traders of goods and providers of
various types of services, the Act makes
buyer beware a thing of the past.
The first and the only Act of its kind in
India, it has enabled ordinary consumers to
secure less expensive and often speedy
redressal of their grievances.
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Objectives of the act

1. Better protection of interests of
consumers.
2. Protection of the rights of the consumers:
(a) The right to be protected against marketing of
goods which are hazardous to life and property;
(b) The right to be informed about the quality,
quantity, potency, purity, standard and price of
goods to protect the consumer against unfair
trade practices;
(c) The right to be assured, wherever possible,
access to an authority of goods at competitive
prices;

Cont.
(d) The right to be heard and to be assured that
consumers interests will receive due consideration at
appropriate forums;
(e) The right to seek redressal against unfair trade
practices or unscrupulous exploitation of consumers; and
(f) Right to consumer education.
3. Protection by the Consumer Protection Council.
4. Quasi-judicial machinery for speedy redressal of
consumer disputes.

AIM OF CONSUMER PROTECTION

ACT, 1986
A person may be consumer of goods, or services. When I purchase

a fan, a gas stove or a refrigerator, I could be the consumer of

goods.
When I open a bank account, take an insurance policy, get my car

repaired, I could be the consumer of services.

The consumer protection Act, 1986 tries to help a consumer when

for example, the goods purchased are defective or the services

rendered to him are subject to so deficiency.
Prior to the consumer Protection Act, 1986 for any consumer

complaint one had to go to an ordinary Civil Court. He had to

engage a lawyer, pay the necessary fee, and be harassed for years
or decades before any outcome, positive or negative, was there in
that litigation.
Under the Consumer Protection Act, no Court fee has to be paid

Definitions
Consumer is a person
i) 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.
ii) 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.

Who are not consumers?

1.
2.
3.
4.
5.
6.
7.
8.

A person who purchased goods for resale

A person who purchased goods for commercial
purpose
A person who obtains services without
consideration
A person who obtains services under a contract
of personal service
Tax-payers to municipality
Contractors
Applicants for jobs
Persons who filed suits in courts

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Rights of Consumers

Right
Right
Right
Right
Right
Right

of protection to life and property

to be informed
to choose
to be heard
to redress
to education

Redressal mechanism
The Central Council is headed by Minister,

In-charge of the Department of Consumer

Affairs in the Central Government and the
State Councils by the Minister In-charge of
the Consumer Affairs in the State
Governments
At present, there are 629 District Forums
and 35 State Commissions with the
National Consumer Disputes Redressal
Commission (NCDRC)at the apex.
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The act envisages a three tier quasi judicial

machinery at the national, state and district level.

District Consumer Disputes Redressal

Forums District Forum(< Rs. 20 Lacks)

State Consumer Disputes Redressal

commission State commission (>= Rs. 20

Lacks < Rs. 1 crore )
National Consumer Disputes Redressal

commission National commission

(exceeding 1 crore )
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District forum
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 Lakhs (section 11)
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
women possessing a bachelors degree from a
recognized university .
Be a person of ability, integrity and standing and
have adequate knowledge and experience.
Every member of the district forum shall hold
office for a term of 5 years or upto the age of

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Power of civil court to

district forum

The district forum shall have the powers of civil

court while trying a suit in respect of the following

matters:
The summoning and enforcing attendance of any
defendant or witness and examining the witness
on oath
The reception of evidence on affidavit
Any other matter which may be prescribed
The requisition of the report of concerned analysis
or test from the appropriate laboratory of from
any other relevant resource
The discovery and production of any document or 15

State commission
It shall have jurisdiction to entertain complaints

where the value of the goods or services and the

compensation, if any, claimed exceed Rs. 20
Lakhs but less than 1 crore (section 17 )
It shall consist of a person who is or has been or is
qualified to be a high court judge as its
president 2 other members one of whom shall
be a women possessing a bachelors degree from
a recognized university .
Be a person of ability, integrity and standing and
have adequate knowledge and experience.
Every member of the state forum shall hold office
for a term of 5 years or upto the age of 67
16
years whichever is earlier.

National commission
The National Commission was constituted in the

year 1988.It is headed by a sitting or

retiredJudge of the Supreme Court of India.
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.

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.

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Power of national
commission
Adoption of uniform procedure in the hearing of

the matters
Prior service of copies of documents produced by
one party to the opposite parties
Speedy grant of copies of documents, and
Generally over-seeing the functioning of the State
Commissions and the District Forums

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CONSUMER DISPUTES
REDRESSAL AGENCIES
Following agencies are established by
government for consumer dispute redressal
process :
1) District Forum
2) State Commission
3) National Consumer Disputes Redressal
Commission

Composition of the District Forum

1)a person who is, or has been, or is qualified to be a
District Judge, who shall be its President
2)two other members, one of whom shall be a woman,
who shall have the following qualifications, namely :(i) be not less than thirty-five years of age,
(ii) possess a bachelors degree from a recognized
university,
(iii) be persons of ability, integrity and standing, and
have adequate problems relating to economics, law,
commerce, accountancy, industry public affairs or
administration.

Every member of the District Forum shall hold

office for a term of five years or up to the age

of 65 years, whichever is earlier.
Jurisdiction of the District Forum.--( I)
Subject to the other provisions of this
Act, 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.

Manner in which complaint shall be made

A complaint in may be filed with a District
Forum by(a) the consumer
(b) any recognised consumer association
(c) one or more consumers
(d) Central or the State Government
The complaint should be given with required
amount of fee. Once the compliant is
received it should proceed with it with in 21
days .

District forum will sent a copy of complaint to

the counter parties. If the counter party is not
taking appropriate action with in 30 days
forum will proceed the action. If opposition
reply by denying the complaint forum will fix
date to here the parties and will take decision
after hearing both parties.

Finding of the District

Forum
District forum will have following dicisions:
(a) to remove the defect pointed but by the
appropriate laboratory from the goods in question;
(b) to replace the goods with new goods of similar
description which shall be free from any defect;
(c) to return to the complainant the price, or, as the
case may be, the charges paid by the complainant;
(d) 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

e)to remove the defects in goods or deficiencies

in the services
(f) to discontinue the unfair trade practice
(g) to withdraw the hazardous goods from being
offered for sale;
(h)to cease manufacture of hazardous goods
and to desist from offering services which are
hazardous in nature
(i) to provide for adequate costs to parties

Appeal.-Any person aggrieved by an order

made by the District Forum may prefer an

appeal against such order to the State
Commission within a period of thirty days from
the date of the order, in such form and
manner as may be prescribed.

Composition of the State

Commission
State Commission shall consist of(a) a person who is or has been a Judge of a
High Court, appointed by the State
Government, who shall be its President:
(b) not less than two, and not more than such
number of members, as may be prescribed,
and one of who shall be a woman.

Jurisdiction of the State Commission

(i) complaints where the value of the goods or
services and compensation, if any, claimed
exceeds rupees exceeds rupees twenty lakhs
but does not exceed rupees one crore
(ii) appeals against the orders of any District
Forum within the State.

Appeals.--Any person aggrieved by an order

made by the State Commission in exercise of

its powers conferred by sub-clause (i) of
clause (a) of section 17 may prefer an appeal
against such order to the National
Commission within a period of thirty days from
the date of the order in such form and manner
as may be prescribed.

National Commission
(a) a person who is or has been a Judge of the Supreme
Court, to be appointed by the Central Government, who
shall be its President; (b) not less than four, and not more than such number of
members, as may be prescribed, and one of whom shall
be a woman.
Jurisdiction of the National Commission
(i) complaints where the value of the goods or services and
compensation, if any(i) complaints where the value of
the goods or services and compensation, if any exceed
one crore
(ii) (ii) appeals against the orders of any State Commission

Appeal.-Any person, aggrieved by an order

made by the National Commission in exercise
of its powers may prefer an appeal against
such order of the Supreme Court within a
period of thirty days from the date of the
order:
Limitation period. The District Forum, the
State Commission or the National Commission
shall not admit a complaint unless it is filed
within two years from the date on which the
cause of action has arisen

Procedures to be followed by
the Parties to Complain
When a lab-test is required
Copies of complaint including supporting

documents and compensation demanded must be

submitted.
After such complaint receipt, District Forum refers

to opposite party to put in front their point.

Time limit of 30 days (can be extended to 45 days)

is given to put their perspective.

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Lodging a complaint in
national commission
Complaint containing particulars can be submitted in-person,

or by his agent, or by registered post addressed to National

Commission.
On the date of hearing, it is obligatory on the parties or their
agents to appear before National Commission.
Complaint shall be decided within 3-5months from the date of
notice received by opposite party.
After the proceedings, the National Forum shall issue the
orders accordingly.

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complaint?
A consumer or Any voluntary consumer

association registered under the companies act

1956 or under any other law for the time being in
force or
The central government or any state government
or
One or more consumers, where there are
numerous consumers having the same interest
or,
In case of death of a consumer, his legal heir or
representative.
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How to file a
complaint?
On plain paper, contents of a complaint:The name, description and the address of the
complainant and of the opposite party/parties
The facts relating to complaint and when and
where it arose
Documents in support of the allegations contained
in the complaint
The relief, which the complainant claims
The complaint should be signed by the
complainants or his authorized agent

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 A complaint can be filed in person,

through agent/lawyer, or by registered

post.
Nominal court fees..

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FEES STRUCTURE TO FILE COMPLAINT

S.N
O.
(1)
1.

TOTAL VALUE OF GOODS OR

AMOUNT OF FEE PAYABLE
SERVICES AND THE COMPENSATION
CLAIMED
(2)
(3)
DISTRICT FORUM
UPTO ONE LAKH RUPEES FOR
NIL
COMPLAINANTS WHO ARE UNDER THE
BELOW POVERTY LINE HOLDING
ANTYODAYA ANNA YOJNA CARDS

2.

UPTO ONE LAKH RUPEES FOR

COMPLAINANTS OTHER THAN
ANTYODAYA ANNA YOJNA CARD
HOLDERS

RS.100

3.

ABOVE ONE LAKH AND UPTO FIVE

LAKH RUPEES

RS.200

4.

ABOVE FIVE LAKHS AND UPTO TEN

LAKH RUPEES

RS.400

5.

ABOVE TEN LAKHS AND UPTO

TWENTY LAKH RUPEES

RS.500

6.
7.

8.

STATE COMMISSION
ABOVE TWENTY LAKH AND UPTO
FIFTY LAKH RUPEES
ABOVE FIFTY LAKH AND UPTO ONE
CRORE RUPEES
NATIONAL COMMISSION
ABOVE ONE CRORE RUPEES

RS.2000
RS.4000

RS.5000

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Limitation period for

complaints/appeals
The consumer case has to be filed within 2 years

of the date of cause of action

Delay in filing appeal may be condoned if there is
sufficient cause
If an appeal is made after the specific period, then
the forum shall record in writing reasons for the
delay
Revision petition - 90 days

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Remedies Under Consumer

Protection Act
To replace the goods
Loss of injury of consumer
To remove the defects in the product
To return to the complainant the price paid by the

complainant
To remove the defects or deficiencies in the
services in question

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Remedies Under Consumer

Protection Act
To discontinue the unfair trade practices
or restrictive trade practices
Not to offer the hazardous goods for sale
To cease from manufacturing to hazardous

goods
Issue of corrective advertisement

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PENALTIES

Where a trader or a person against whom a

complaint is made (or the complainant) fails or
omits to comply with any order made by the
District Forum, the State Commission or the
National Commission, such trader or person (or
complainant)
shall
be
punishable
with
imprisonment for a term which shall not be less
than one month but which may extend to
three years or with fine which shall not be
less than two thousand rupees but which
may extend to ten thousand rupees, or with
both.
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