CONSUMER PROTECTION ACT 1986

Objects of the Act

1) Better protection of interest of consumers. 2) Protection of rights of consumers 3) Consumer protection council 4) Judicial machinery for speedy redressal of consumer disputes

 This Act extends to the whole of India except the state of Jammu and Kashmir

DEFINITIONS
1) Appropriate laboratory Recognized by central govt Laboratory or organization established under law for carrying out analysis or tests of any goods.

2) Complainant A consumer A voluntary consumer association registered under Companies Act 1956 One or more consumer where there are numerous consumers having same interest

Complaint
An allegation in writing by a complainant that:
An unfair or restrictive trade practice is practised by trader or service provider Goods bought or to be bought or services hired or to be hired suffered from any deficiency Trader or service provider has charged excess price Goods and services are hazardous or are likely to be hazardous to life and safety.

Consumer
Consumer is one who
Buys any goods for a consideration
Any user of such goods for consideration but excludes one, who obtains for re-sale or for commercial purposes;

Deficiency - Service
Deficiency means
a fault, imperfection, shortcoming or inadequacy in quality, nature, or manner

Service includes
service in connection with banking, financing, insurance, transport, processing, supply of electrical and other energy, boarding or lodging, housing construction, entertainment,

Consumer dispute
It means a dispute where the person against whom a complaint has been made ,denies or disputes .

Unfair trade practices

A statement which falsely represent that the goods and services are of particulate quality or standard Falsely represents any re-built ,second hand ,renovated old good as new good Represents that the goods have sponsorships and approvals .

 Making a false or misleading representation concerning the need for ,usefulness of ,any good or service imposition of unilateral charges and fees, which have not been brought to the attention of the consumer prior to their imposition or prior to the provision of service

- Goods do not comply with consumer product safety standards - Goods have been declared to be unsafe and defective yet this information is not provided to the consumer

Consumers Rights
(1) Right to Safety: A consumer has the right to safety against such goods and services as are hazardous to his health, life and property. For example, substandard drugs; appliances made of low quality

(2) Right to be Informed/Right to Representation: A consumer has also the right that he should be provided with all the information on the basis of which he decides to buy goods or services. Such information relate to quality, purity, standard, date of manufacture.

(3) Right to Choose: A consumer has the absolute right to buy any goods or services of his choice from among the different goods or services available in the market. In other words, no seller can influence his choice in an unfair manner

 (4) Right to be Heard: A consumer has the right that his complaint be heard

(5) Right to Seek Redressal: This right provides compensation to the consumers against unfair trade practice of the seller. For instance, if the quantity and quality of the product do not conform to those promised by the seller, the buyer has the right to claim compensation

(6) Right to Consumer Education: Consumer education refers to educating the consumer constantly with regard to their rights. In other words, consumers must be aware of the rights they enjoy against the loss they suffer on account of goods and services purchased by them

(8) Right to Healthy Environment: This right provides the consumers, protection against environmental pollution so that the quality of life is enhanced.

Consumer Protection Council

Central Consumer Protection Council
to be established by Central Government

State Consumer Protection Council

to be established by State Government

District Consumer Protection Council

to be established by State Government for every district

 Forum where complaints can be entertained

Depends on value of goods and service and compensation claimed

Limits are :
District Forum
not exceeding Rs.20 lakhs

State Commission
exceeds Rs.20 lakhs but does not exceed Rs.1 Crore

National Commission
exceeds Rs.1 Crore.

The Central Consumer Protection Council

The Central Council shall consist of the following members, namely, (a) the Minister in charge of 1[consumer affairs] in the Central Government, who shall be its Chairman, 8 members from parliament ,5 from lokshaba and 3 from Rajya sabha Women representatives not less than 10

 Members of consumer organization not less than 35 The commissioner of SC,ST Representatives of farmer ,trade and industries not exceeding 20

Meeting
1) The Central Council shall meet as and when necessary, but 1[at least one meeting] of the council shall be held every year. (2) The Central Council shall meet at such time and place as the Chairman may think fit

Objects The objects of the Central Council shall be to promote

and protect the rights of the consumers such as(a) The right to be protected against the 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 so as to protect the consumer against unfair trade practices; (c) The right to be assured, wherever possible, access to a variety of goods and services at competitive prices; (d) The right to be heard and to be assured that consumers interests will receive due

The State Consumer Protection Councils

The State Council shall consist of the following members, namely, (a) the Minister in-charge of consumer affairs in the State Government who shall be its Chairman; The State Council shall meet as and when necessary but not less than two meetings shall be held every year. The State 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 by the State Government.

Composition of the District Forum

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, who shall be persons of ability, integrity and standing, and have adequate knowledge or experience of, or have shown capacity in dealing with, problems relating to economics, law, commerce, accountancy, industry, public affairs or administration, one of whom shall be a woman.

 (2) 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, and shall not be eligible for re-appointment: Government and on such resignation being accepted, his office shall become vacant and may be filled by the appointment of a person possessing any of the qualifications mentioned in subsection

Composition of the State Commission

Each 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

 Jurisdiction More than 20 lakh but less than 1 crore

Composition of the National Commission

The National Commission shall consist of (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

 Four other members who shall be persons of ability, integrity and standing and have adequate knowledge or experience of, or have shown capacity in dealing with, problems relating to economics, law, commerce, accountancy, industry, public affairs or administration, 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. 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.

Appeal to the State commission

any person may prefer an appeal against such order to the State commission within a period of 30 days

Appeal to the National commission

any person aggrieved by an order made by the State commission in exercise of its powers may prefer an appeal against such order to the National commission within a period of 30 days