CONSUMER PROTECTION

ACT (1986)
CONSUMER

“Consumer” means an individual

acting for personal, family or
household purposes and does not
include a person who is acting for
business purposes.
 For the purpose of "goods", a consumer
means a person belonging to the
following categories:
(i) One who buys or agrees to buy any goods
for a consideration which has been paid or
promised or partly paid and partly promised or
under any system of deferred payment
(ii) It includes any user of such goods other
than the person who actually buys goods and
such use is made with the approval of the
purchaser.
 For the purpose of "services", 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) It includes any beneficiary of such service other
than the one who actually hires or avails of the
service for consideration and such services are
availed with the approval of such person.
MANUFACTURER
The term “manufacturer” means a person who—
 makes or manufactures any goods or part
thereof; or
 does not make or manufacture any goods but
assembles parts thereof made or manufactured
by others; or
 puts or causes to be put his own mark on any
goods made or manufactured by any other
manufacturer.
 Explanation. — Where a manufacturer dispatches any
goods or part thereof to any branch office maintained
by him, such branch office shall not be deemed to be
the manufacturer even though the parts so dispatched
to it are assembled at such branch office and are sold
or distributed from such branch office;
Rights of the consumers:
 Protection against hazardous goods.
 Right to consumer information.
 Right of access to variety and
competitive prices.
 Right to due attention at
appropriate forums.
 Right to seek redress.
 Right to consumer education.
1.Protection against hazardous goods.

 The Act says in the first place that the

consumer has a right to be protected
against the marketing of goods which are
hazardous to life and property.
 The consumer is assured that if he has
been victimized into purchasing goods
which have injured his person or
property, he will have speedy and effecive
remedy under the redressal hierarchy.
 It also imposes a duty on the
supplier, not to supply any
consumer goods which fail to
comply with the general safety
requirement.
 In this regard, the approved
standards are published from time
to time by the relevant authorities.
2.RIGHT TO CONSUMER
INFORMATION

 The consumer has been given the right to

be informed by the producer about the
quality, quantity, potency, purity,
standard and prices of goods he buys.

 This is intended to save the consumer

from unfair trade practices like false and
misleading descriptions about the nature
and quality of the goods.
Right to Consumer Information
 For example: a misrepresentation as to price
may occur in a concealed way in throwing
grand-clearance or reduction sales when, in
fact, the prices are less than the original
ones.

 In all cases of unfair trade practices, the

consumer would have the option of either
applying to the Monopolies Commission under
MRTP Act,1969 or to the forums under the
Consumer Act,1986.
3. RIGHT OF ACCESS TO VARIETY AND
COMPETITIVE PRICES

 The Central Council as constituted under the Act has

been charged with the responsibility of bringing about
the organisation of markets and market practices in
such a way that all dealers are supplied with a variety
of goods for the benefit of the consumer and that the
goods with a variety are being offered at competitive
prices.
 This is based upon the belief that the best way to
improve quality and value for money is to give the
citizen wider choice through the mechanism of free
competition. It is only then that the consumer will have
access to variety and will be able to enjoy the benefit
of competitive prices. This would require a certain
degree of liberty of shopkeepers in selecting and
stocking goods of choice.
 Shopkeepers’ freedom in this respect is often curtailed
by the abuse of monopoly power in the shape of
monopolistic or restrictive trade practices.if a
shopkeeper is making his customers helpless and is
thereby leaving them with no choice but to buy goods
of one kind only, the matter may be brought to the
notice of the Monopolies Commission and the latter can
examine whether the shopkeeper is himself tied up by
the producer and, if so, the Commission may liberate
him from the burden of his ties and restore him his
choice as to stock-in-trade. Now by virtue of Section
6(c) this power will be exercisable by the Central
Council also. This is a part of the belief that the best
way to improve quality and value of money is to give
the citizen wider choice through the mechanism of free
competition.
4. RIGHT TO DUE ATTENTION AT
APPROPRIATE FORUMS

 The Central Council is, in the fourth place,

charged with the responsibility of assuring
consumers that they would be heard as of
right by the appropriate forums and the
consumer will receive due attention and
consideration from such forums. Thus, it
is the duty of the council so to organise
and compose the different forums under
the Act that an aggrieved consumer is
heard as of right and receives due
consideration at the hands of an
appropriate redressal forums.
5.Right To Seek Redressal
 This right gives the consumers the right to seek redressal
against unfair trade practices or restrictive trade practices
or unscrupulous exploitation of consumers.

 The consumers have been given the right to seek redress

against restrictive/unfair trade practices or unscrupulous
exploitation. The right can be explained clearly by
following example - where money was deposited in
advance for the supply of a car within two months and the
car was actually supplied some time after two months, in
such situation retention of money beyond the period of
two months is an unfair trade practice and the consumers
can claim proper interest on the deposit for the period
CONSUMERS NEED PROTECTION
AGAINST

UNFAIR TRADE PRACTICE

 Adopting unfair methods or deception to promote sale, use
or supply of goods or services e.g.
 Misleading public about price (e.g. bargain price when it is
not so).
 Charging above MRP printed.
 Misleading public about another’s goods or services.
 Falsely claiming a sponsorship, approval or affiliation.
 Offering misleading warranty or guarantee.
RESTRICTIVE TRADE PRACTICE

 Price fixing or output restraint re: 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. This is also termed as TIE UP
SALES. Eg: selling stabilizers alongwith air
conditioners
6.Right to Consumer Education
Need for consumer education

 By increased information as to rights and

remedies,the consumer will be better empowered to
pursue his remedies.
 A consumer complaint which gives the impression
that the consumer is fully conscious of and alive to
his rights would bring about more positive response
from his supplier.
 Once the people are rendered conscious of their
power they may perhaps feel energised to struggle
against exploitation by manufacturers and traders
 People’s awareness is likely to prove a better tool
for putting the trade on sum level of discipline than
tons of government controls.
 This right spells out the duty of fair conduct
of trade towards the consumer.The
enforcement of this duty is primarily the task
of the administrative authorities constituted
under the Act and other trading standards
organisations.Independently of the
departmental proceedings`individual
consumers would have a right of action for
damages,specific performance,a
declaration,injunction and possibly an order
that the goods be repaired or replaced.
Thank you