CONSUMER PROTECTION ACT 1986

Consumer is the king concept brought into reality spl

consumer courts to redress the grievances for better
protection of interests of consumers
Traders and manufacturers of consumer goods exploited
consumers
Three-tier forum district forum, state commission and
national commission established
Business men should know it because they should conduct
properly
Industrial revolution, shift of rural population , increase in
population ignorance - no matching increase in supply
weak bargaining power , gave plenty of scope for
malpractices
In spite of many legislations need for more elaborate
legislation felt
Designed after studying laws in UK USA Australia NZ
Covers all goods & services unless CG exempts, covers pvt,
public, co-operative, confers certain rights to consumers
These provisions are in addition to other existing laws

OBJECTIVES, DEFINITIONS ETC
Objective:
provide better protection of interests of consumers,
Establish councils and other authorities
Empower such authorities
Some definitions:
Appropriate Laboratory: one recognized by CG, SG,
established under present law to carry out analysis as to
whether there are any defects
Complainant: any one who complains i.e.. Consumer,
voluntary association reged under acts, CG, SG, one or more
consumers having same interest, incase of death his Legal
representative
Complaint: any allegation made in writing for relief like- unfair
or restrictive trade practice, 2. goods are defective, 3. services
suffer deficiency 4. excessive price 5. goods or services
hazardous to life


CONSUMER
Person who buys the goods for consideration - paid or
promised to pay
Does not include; the person who buys goods for resale or for
commercial purpose ( activity for making profit)
Consumer dispute: where the person against whom complaint
is made disputes
Defect: means fault, imperfection or shortcoming in quality qty,
Purity or std etc as per law or contract implied or expressed
Deficiency : is relevant in case of services as stipulated in any
law or contract
District forum: estd., under act, established by state govt to
redress grievance in a particular district


Goods: same as per sale of goods act.
Restrictive trade practice; is one which brings
manipulation in prices or
conditions of delivery ,
imposing restrictions & unjustified costs
eg: 1. delaying delivery with a view to create price
increase
2. ask consumer to buy another product or service
from him

UNFAIR TRADE PRACTICE
FOLLOWING CASES
1. Misleading advertisement and false representation
orally or in writing or visible representation
2. Bargain sale: false advertisement stating that it is
bargain sale but it is actually ordinary price
3. Offering gifts, prizes or lottery : giving an
impression that it is free but actually included in
cost conducting contest for promoting sale
4. Withholding final results of prizes or gifts
5. Not conforming to prescribed standards
knowingly supplying sub-standard goods
6. Hording or destruction of goods create artificial
scarcity and raise prices
7. Manufacture of spurious ( bogus, counterfeit )
goods
RIGHTS OF CONSUMERS
1. Right to safety: protect against hazardous goods
and services
2. Right to be informed of quality, qty, purity, price of
goods & services
3. Right to choose or assure access goods & serv
ices at competitive prices
4. Right to be heard : in appropriate forums meant
fo welfare of consumers
5. Right to seek reprisal : in case of exploitation,
and restrictive practices
6. Right to consumer education and knowledge to
be informed consumer
WHERE TO FILE A COMPLAINT
Where value of goods & services :
not exceeding Rs. 25 lakhs - district forum
Between Rs. 25 lakhs & 1 Crore: state commission
Exceed Rs. 1 crore national commission
How to file: Sent by post to forum/ commission
addressed to president
Contain the following information: 1. name and
address, name & address of the opposite party ,
facts relating to the compliant , where it arose,
supporting documents if any, relief sought
Signed by the complainant
Send min 4 copies of the complaint

RELIEF AVAILABLE TO CONSUMER - AFTER
PROCEEDINGS IF GOODS ARE DEFECTIVE-
ORDERS
1. Remove defect pointed out in laboratory
2. Replace goods without defects
3. Return the price and charges to consumer
4. Pay compensation for any loss or injury suffered by
consumer
5. To remove deficiencies in the services
6. To discontinue unfair or restrictive trade practice and not
to repeat them
7. Withdraw hazardous goods kept for sale
8. Desist manufacture of hazardous goods
9. Desist from offering services which are hazardous
10. Issue corrective advertisement to neutralize misleading
advertisement
11. Provide adequate costs to parties
SOME IMPT POINTS
Forum should redress within a period of 3 months
if sent to lab : within 5 months
Aggrieved party by an order can appeal within 30
days to state commission
Any person aggrieved by order of state commission
may appeal within a period of 30 days with a
deposit of 50% of amount ot Rs. 55000 which ever
is less dispose the appeal within a period of 90
days it can review its order if there is an apparent
error
Consumer forums have no power to pass any
interim order
Any aggrieved person from the orders of national
commission can appeal to supreme court within 30
days