NEED FOR CONSUMER PROTECTION ACT IN AN ERA OF FREE

COMPETITION WHERE CONSUMER IS A KING SO KING

NEEDS PROTECTION
 INTRODUCTION:
o In India with industrialization and economic development, the population of
consumers and the volume of consumption of goods and services increased.
o The Contract Act, 1872 and the Sale of Goods Act, 1930 provided remedies
but they were time consuming and expensive.
o Consumer issues started gaining importance.
o The interests of consumers were highlighted by media, non-government
organisations, social activists and even business concerns.
o The United Nations organized a session on the need for the protection of
consumers.
o The Government of India also realized that consumers need to be protected
by law.
o The law relating to consumer protection is contained in the Consumer
Protection Act, 1986.
o The Act extends to the whole of India except the state of Jammu and Kashmir.
SOME IMPORTANT DEFINITIONS:

1. CONSUMER
2. GOODS

Any person who buys
goods or services for a
consideration
Movable property
including shares, stocks,
Any person means growing crops
individual company,
group/ association of
people
Tangible in Nature

User of such goods and

services
 3. SERVICES

4. COMPLAINT
Service is made
available to potential
users Complaint is a
statement made in
writing by a person
Eg: Provision of
competent to file it
facilities - banking,
financing, insurance,
transport, supply of
It contains the
electrical energy, board allegations in detail
or/and lodging
Made in view to
obtain relief
COMPLAINT MUST
CONTAIN:
5. COMPLAINANT
Unfair trade practice or a
restrictive trade practice Consumer or consumers

Goods having defects Voluntary consumer

association
Service having deficiency
Government which may
be Central or State
Excess price charged

In case of death: Legal

Hazardous goods Heir, Beneficiary,
Husband, Relative can
Hazardous service file a complaint
CONCEPT OF CONSUMER
PROTECTION
Consumer protection means safeguarding the interest
and rights of consumers.

In other words, it refers to the measures adopted for the

protection of consumers from unscrupulous and
unethical malpractices by the business and to provide
them speedy redressal of their grievances
CONSUMER PROTECTION ACT
The Consumer Protection Act, 1986 was enacted for
better protection of the interests of consumers.
The provisions of the Act came into force with effect
from 15-4-87.
Consumer Protection Act imposes strict liability on a
manufacturer, in case of supply of defective goods by
him, and a service provider, in case of deficiency in
rendering of its services.

HISTORY OF CONSUMER
PROTECTION ACT

The act was passed in Lok Sabha on 9th December,1986

and it came into force from 1 July 1987. Rajya Sabha
passed on 10th December, 1986 and assented by the
President of India on 24th December, 1986 and was
published in the Gazette of India on 26th December,
1986.
FEATURES OF CONSUMER
PROTECTION ACT
It applies to all goods, services and unfair trade
practices unless specifically exempted by the Central
Government.

It covers all sectors whether private, public or co-

operative.

It provides for establishment of consumer protection

councils at the central, state and district levels to
promote and protect the rights of consumers and a three
tier quasi judicial machinery to deal with consumer
grievances and disputes.
OBJECTIVES
The objects of the act are as follows:
a) Better protection of interests of consumers: the
act seeks to provide consumer councils and
authorities for settlement of consumer disputes.
b) Protection of rights of consumers: the act seeks
to promote and protect the rights of consumers such
as:
i) The right to be protected against marketing of goods
and services which are hazardous to life and
property.
ii) The right to be informed about the quality, quantity,
potency, purity, standard and price of goods and
services so as to protect the consumers against
unfair trade practices.
.CONTD
iii. The right to be assured: wherever possible, access
to goods and services at competitive prices.
iv. The right to be heard: and to be assured that
consumers interest will receive due consideration
at appropriate forums.
v. The right to seek redressal: against unfair trade
practices or restrictive trade practices or
unscrupulous exploitation of consumers and
vi. Right to consumer education: by publishing
material and magazines for the benefit of
consumers, such as magazine like Upbhokta
Jagran.
.CONTD
c) Consumer protection councils: the above said
objects are sought to be promoted and protected by
the consumer protection councils established at the
central, state and district levels.
d) Quasi-judicial machinery for speedy
redressal of consumer disputes: the act seeks
to provide speedy and simple redressal to
consumer disputes. For this purpose the following
consumer disputes redressal agencies are
envisaged:
i) District forums: at district level.
ii) State commission: at state level.
iii) National commission: at Central or National level.
NEEDS OF CONSUMER
PROTECTION ACT

The necessity of adopting measures to protect the interest

of consumers arises mainly due to the helpless position
of the consumers.

Social Responsibility-
It is the moral responsibility of the business to serve the
interest of consumers. Keeping in line with this
principle, it is the duty of producers and traders to
provide right quality and quantity of goods at fair prices
to the consumers.
 Increasing Awareness-
The consumers are becoming more mature and conscious of
their rights against the malpractices by the business. There
are many consumer organisations and associations who are
making efforts to build consumer awareness

Consumer Satisfaction-
Father of the Nation Mahatma Gandhi had once given a call
to manufactures and traders to treat your consumers as
god. Consumers satisfaction is the key to success of
business. Hence, the businessmen should take every step to
serve the interests of consumers by providing them quality
goods and services at reasonable price.
 Survival and Growth of Business-
The business has to serve consumer interests for their own
survival and growth. On account of globalisation and
increased competition, any business organisation which
indulges in malpractices or fails to provide improved
services to their ultimate consumer shall find it difficult to
continue.

Principle of Trusteeship-
Resources are supplied by the society. They are merely the
trustees of the resources and, therefore, they should use
such resources effectively for the benefit of the society,
which includes the consumers.
RIGHTS OF THE CONSUMERS:
1. The Right To Safety

2. The Right To Choose

3. The Right To Information

4. The Right To Be Heard

5. The Right To Redressal

6. The Right To Consumer Education

7. The Right For Basic Needs

8. The Right For Healthy Environment

 1. THE RIGHT TO SAFETY
Before purchasing, consumers should inspect on the quality of the
products as well as on the guarantee of the products and services.

They should preferably purchase quality marked products such as

ISI, AGMARK, FPO, Hallmark etc.
 2. THE RIGHT TO CHOOSE
The consumer before purchase a product needs to be made aware of:

o Variety of products and services

o Fair prices
o Quality
o Quantity
o Competition

Knowing this the consumer can make his/her choice for the product
3. THE RIGHT TO INFORMATION
The consumer has the right to be informed about the quality, quantity,
purity, standard and price of goods so as to protect themselves against
unfair trade practices.
 RTI & THE
CONSUMER
PROTECTION ACT
 4. THE RIGHT TO BE HEARD
The consumer has the right to be heard and be assured that their interests or
views or complaints will be considered at consumer forums

5. THE RIGHT TO REDRESSAL

The right to seek redressal against unfair trade practices or restrictive trade
practices or exploitation of consumers
6. THE RIGHT TO CONSUMER EDUCATION
The consumers should have access to informational programs and
materials that would enable them to make better buying decisions
7. THE RIGHT FOR BASIC NEEDS
Every consumer has the right to get the quality basic needs such as
food, clothing and shelter.

BASIC NEEDS

25%

Food
50%
Shelter
Clothing

25%
8. THE RIGHT FOR HEALTHY ENVIRONMENT
The manufacturer should aim at producing more environment friendly
and energy efficient products.

The products which can be recycled has the following symbol:

NOTE: Rights number 7 & 8 have been added by the

amendment in the act in 1993 and 2002 respectively.
PROCEDURE ON ADMISSION OF COMPLAINT

If a complaint relates to any goods, a copy of the

admitted complaint should be given to the opposite party
within 21 days for him to give his version within 30 days.
If the opposite party denies or disputes the compliant or

fails or omits to take any action within the given time,

then the complaint can be proceeded further.
If the defect in goods needs analysis or testing by a

laboratory, a sample of the goods shall be sent to the

laboratory for a report within 45 days.
The fees for the laboratory shall be payable by the

complainant.
The report of the laboratory test is given to the opposite

party.
.CONTD
If any of the parties disputes the correctness of the
laboratory test report, the objections of the test
report, the objections to such report shall be made
in writing.
A reasonable opportunity of being heard shall be
given regarding the objections made in relation to
laboratory test.
If the complaint relates to any services or in respect
of goods where laboratory report is not required,
then a copy of the complaint is referred to the
opposite party directing him to give his version
within a period of 30 days.
This can be extended by 15 days.
If the opposite party does not file any reply the
complaint shall be decided exparte.
PROCEDURE ON RECEIPT OF A
COMPLAINT

It is the same for all the 3: District Forum, State

Commission & National Commission.

But for the National Commission before the

procedure begins following should be kept in
mind.
A complaint containing the following particulars shall be presented
by the complainant in person or by his agent to the National
Commission or be sent by registered post, addressed to the National
Commission
1.The name,
description and the
address of the
complainant;

2. The name, description

and address of the
5. The relief which opposite party or parties,
the complainant as the case may be, so far
claims as they can be
ascertained;

4. Documents in
3. The facts relating
support of the
to the complaint and
allegations
when and where it
contained in the
arose
complaint
APPEAL
Any person aggrieved by
an order made by the
District Forum may appeal
against such order to the
State Commission within a
period of 30 days from the
date of the order.
District
Forum
State
Commission Any person, aggrieved by
Any person aggrieved by
an order made by the State
Commission may appeal
against such order to the
National Commission
within a period of 30 days
an order made by the
National Commission, may
appeal against such order
to the Supreme Court
within a period of 30 days
from the date of the order
National
Commission
TOTAL NUMBER OF CONSUMER COMPLAINTS FILED / DISPOSED/ PENDING
UNDER CONSUMER PROTECTION LAW

618
700

527
Number Of Cases (in 000)

600
333
307
500
260
400

300

200
90
84
100
72

0
10
Cases Filed
Cases Disposed
Cases Pending

National Commission State Commission District Forum

RESPONSIBILITIES OF A
CONSUMER
Be aware of various goods & services available in
the market.
Buy standardize products only (eg: ISI marked
products).
Be aware of each & every aspect of the product
while purchasing it.
Buy legal products.

Ask & take the proof of the purchase.

File a complaint in an appropriate consumer

forums.
Respect the environment.
 The Central
Consumer
Protection
Council

NEED FOR
CONSUMER The State CPC:
PROTECTION Consumer
Protection
COUNCIL Council To Promote
And Protect
The Rights
Of The
Consumers
The District
Consumer
Protection
Council
COMPOSITION OF THESE
COUNCILS

THE CENTRAL THE STATE THE DISTRICT

CONSUMER CONSUMER CONSUMER
PROTECTION PROTECTION PROTECTION
COUNCIL COUNCIL COUNCIL
Members: Chairman, Members: Chairman,
Members: other members other members
Chairman, Vice prescribed by the State prescribed by the State
Chairman, other Government, Up to 10 Government
members members nominated by
Central Government Meetings : Not less
Meetings : at least than 2 meetings in a
once in a year Meetings : At least 2 year
meetings in a year
CONSUMER DISPUTES REDRESSAL AGENCIES

At National Level

National Commission
At State Level
State Commission

At District Level
District Forums
COMPOSITION
District Forum

President : a person who is, or has been, or is qualified to be a District

Judge
Two other members : persons of ability and integrity and have
knowledge (or experience) of economics, law, commerce,
accountancy, public affairs and administration. One of the member
shall be a woman

State Commission

President: Judge of High Court

Not less than 2 members and not more than the prescribed number (one
of them shall be a woman)

National Commission

President: Judge of Supreme Court

Members not less than four and not more than the prescribed numbers
(One of whom shall be a woman)
JURISDICTIO
N

1. DISTRICT 2. STATE 3. NATIONAL

FORUM COMMISSION COMMISSION

Value of services and

Value of compensation Value of services and
services and claimed exceeds compensation
compensation rupees 5 lakhs but claimed exceeds
claimed does does not exceed rupees 20 lakhs
rupees 20 lakhs
not exceed Rs 5
Lakhs

Appeals against the

Appeals against the
orders of any District
Complaint can be orders of any State
Forum within the
Commission
filed by: Consumer, state
Consumer
Association,
Central or state
government
Complaint can be Complaint can be
filed by: Consumer, filed by: Consumer,
Consumer Consumer
Association, Central Association, Central
or state government or state government