Consumer Protection Act, 1986

(module-VI)
Need for Consumer Protection
Meaning of Consumer
Different redressal Forums for Consumers,
Rights of Consumers,
Unfair Trade Practices, and Procedure for Filing Complaints
 Consumer Protection Act, 1986

EXTENT AND COVERAGE OF CONSUMER PROTECTION ACT

• The Act applies to all goods and services unless specifically
exempted by the Central Government.

• It covers all the sectors whether private, public or cooperative.

• The provisions of the Act are compensatory in nature.

• The provisions of this Act are in addition to and not in derogation of

the provisions of any other law for the time being in force.

• The Act envisages establishment of Consumer Protection Councils

at the Central and State levels, whose main objects will be to
promote and protect the rights of the consumers.
 Need for Consumer Protection

• The consumer protection Act, 1986, provides for the

better protection of consumers. Unlike existing laws
which are punitive or preventive in nature, the
provisions of this Act are compensatory in nature.
The Act is intended to provide simple, speedy and
inexpensive redressal to the consumers' grievances,
award relief and compensation wherever appropriate
to the consumer. The Act has been amended in 1993
both to extend its coverage and scope and to
enhance the powers of the redressal machinery.
  Meaning of Consumer
WHO IS CONSUMER?   
• All of us are consumers of goods and services. For the purpose of the
Consumer Protection Act, the word "Consumer" has been defined
separately for "goods" and "services".
(A) For the purpose of "goods", a consumer means a person belonging to
the following categories:
• 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;
• It includes any user of such goods other than the person who actualy buys
goods and such use is made with the approval of the purchaser.
• Note : A person is not a consumer if he purchases goods for commercial or
resale purposes. However, the word "commercial" does not include use by
consumer of goods bought and used by him exclusively for the purpose of
earning his livelihood, by means of self employment.
(B) For the purpose of "services", a "consumer" means a person
belonging to the following categories:
• 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.
• 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.
 RIGHTS ENJOYED BY CONSUMER

1. Right to be protected against the marketing of goods and service that is hazardous
to life and property.

2. Right to be informed about the quality, quantity, potency, purity, standard and price
of goods or services so as to protect the consumer against unfair trade practices.

3. Right to choice wherever possible , access to a variety of goods and services at

competitive prices.

4. Right to be heard and to be assured that consumers' interests will receive due
consideration at appropriate forums;

5. Right to seek redressal against unfair trade practices unscrupulous exploitation of

consumers.

6. Right to consumer education.

7. Right to clean and healthy environment.

 Different redressal Forums for Consumers
The Act envisages a three- tier quasi-judicial machinery at the National, State and District
levels.
• National Consumer Disputes Redressal Commission - known as "National
Commission" deals with complaints involving costs and compensation higher than
Rs. One Crore.
• State Consumer Disputes Redressal Commissions - known as "State
Commission, deals with complaints involving costs and compensation higher than Rs.
Twenty Lakhs and less than Rs. One Crore.
• District Consumer Disputes Redressal Forums - known as "District Forum, deals
with complaints involving costs and compensation less than Rs. Twenty Lakhs.

JURISDICTION 
. If the cost of goods or services and compensation asked for is up to rupees twenty
lakh ,then the complaint can be filed in the District Forum which has been notified by
the State Governmentfor the district where the cause of action has arisen or where
the opposite party resides. A complaint can also be filed at a place where the branch
office of the opposite party is located.
• If the cost of goods or services and compensation asked for is more than rupees
twenty lakh , but less than rupees one crore then the complaint can be filed before
the State Commission notified by the State Government or Union Territory
Concerned.
• If the cost of goods or services and compensation asked for exceed rupees one crore
then the complaint can be filed before the National Commission at New Delhi
RELIEF AVAILABLE TO CONSUMER
Depending on the facts and circumstances, the Redressal Forums may give
order for one or more of the following relief.
• Removal of defects from the goods,
• Replacement of the goods;
• Refund of the price paid;
• Award of compensation for the loss or injury suffered;
• Removal of defects or deficiencies in the services;
• Discontinuance of unfair trade practices or restrictive trade practices or
direction not
• to repeat them;
• Withdrawal of the hazardous goods from being offered to sale; or
• Award for adequate costs to parties

LIMITATION
• 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 cause of action has arisen
 Unfair Trade Practices
• Unfair trade practice" the detailed definition is given in
the Consumer Protection Act, 1986 as amended by the
Consumer Protection (Amendment) Act. 1993. It means
a trade practice which, for the purpose of promoting the
sale, use or supply of any goods or for the provision of
any service, adopts any unfair method or unfair or
deceptive practice including any of the following
practices, namely :-
• (a) false or misleading representation,
• (b) bargain price
• (c) offering of gifts, prize, contest etc.
• (d) non compliance of product safety standard.
• (e) hoarding or destruction of goods.
 Procedure for Filing Complaints
• Procedures for filing complaints and seeking redressal are simple. There is
no fee for filing a complaint before the District Forum, the State Commission
or the National Commission. ( A stamp paper is also not required). Three to
five copies of the complaint on plain paper are required to be submitted by
the complainant or his authorized agent in person  or could be sent by post
to the appropriate Forum / Commission.
 
A complaint should contain the following information:-
• (a) The name, description and the address of the complainant.
• (b) The name , description and address of the opposite party or parties, as
the case may be, as far as they can be ascertained;
• (c) The facts relating to complaint and when and where it arose;
• (d) Documents, if any, in support of the allegations contained in the
complaint.
• (e) The relief which the complainant is seeking.

The complaint should be signed by the complainant or his authorized

agent.
The complaint is to be filed within two years from the date on which
cause of action has arisen.
 Intellectual Property Rights

Intellectual Property Rights is defined as information with commercial value.

Intellectual property emerges from human creativity, innovation and
engagement . It takes different forms, like ideas, inventions literary works,
designs, music, films, computer software etc.

Protection of Intellectual Property: The State sets up the mechanism

wherein it asks the inventors to get their inventions registered in their
name. The inventor is free to use the idea ,sell it off or lease the right to use
the idea. Thus the State has created the property in intellectual labour of
individuals. Property rights create ownership. Ownership is subject to
regulations, control and curtailment for the larger social good. Thus the
law dealing with intellectual property, on the one hand creates a right in the
intellectual property. On the other hand, the law, in the larger interest of
the society, regulates and curtails the ownership of this property.
 Different Laws on Intellectual
Property
1. The Patents Act, 1970
2. Indian Copyright Act, 1957
3. Trade Marks Act, 1999
4. The Designs Act, 1999
 The Patents Act, 1970
Indian Patent Act provides patent protection in India. Inventions are the
subject matter of patents.
Invention is defined as “a new product or process involving an inventive step
and capable of industrial application”
Salient features of Indian Patent Law:
The Patent law of India has the following salient features that decide whether
a patent will be granted or not:
(a) The object: The object of patent law is to encourage scientific research,
new technology and industrial progress. The price of the grant of the
monopoly is the disclosure of the invention at the Patent Office, which,
after the expiry of the fixed period of the monopoly, passes into the
public domain.
(b) Inventive step: The fundamental principle of Patent law is that a patent is
granted only for an invention which must have novelty and utility. It is
essential for the validity of a patent that it must be the inventor's own
discovery as opposed to mere verification of what was, already
known before the date of the patent.
 Contd-
(c) Useful: a patentable invention, apart from being a new manufacture, must
also be useful.

(d) Improvement: In order to be patentable, an improvement on something

known before or a combination of different matters already known, should
be something more than a mere workshop improvement, and must
independently satisfy the test of invention or an inventive step. It must
produce a new result, or a new article or a better or cheaper article than
before. The new subject matter must involve "invention" over what is old.
Mere collocation of more than one, integers or things, not involving the
exercise of any inventive faculty does not qualify for the grant of a patent.
Application for Patent : Application for patent can be made by the actual
inventor of the invention or the asignee of the right to make an application
or a legal representative of the either.
Patent office: Patent head office is situated at Calcutta and branch offices at
Delhi, Bombay and Madras
 Rights of a Patentee
1. The Patentee can sell the whole or part of this property.
2. He can also grant license to others to use the patented property.
3. He can also assign such property to others.
Period of Patent:
1. In respect of patents related to drugs and food, the term is five years
2. In respect of all others the term is 14 years from the date of patent. A
patent is kept alive only by the renewal fee from time to time.
Remedy for infringement of Patent:
Any action for infringement must be instituted by way of suit in any District
Court or High Court which has the jurisdiction.
1. Interlocutory injunction
2. Damages
3. Accounts of profit
 COPYRIGHT ACT, 1957
The object of Copyright Law is to encourage authors,
composers, artists and designers to create original
works by rewarding them with exclusive right for a
limited period to exploit the work for monetary gains. It
protects the writer or the author of the original work
from unauthorised reproduction. Copyright subsists
only in material form on which ideas are expressed.
Works protected by copyright are:
• Original, Literary, dramatic, musical and artistic works;
• Cinematographic film; and
• Records.
 Contd-
• Literary work- includes novels, books, articles, in
newspapers, magazines and journals, lyrics for song,
computer programmes. etc.
• Dramatic work- includes recitation, acting out of any
literary work, choreographic works and dumb shows.
• Musical work: Any original musical work and a
particular combination of melody and harmony come
under this category.
• Artistic Work: includes paintings, sculptures,
photographs , drawing of a diagram, chart or map.
• Film: includes motion pictures, television shows,and the
television recording of events.
• Record: recording of sound.
 HOW TO OBTAIN COPYRIGHT
In order to secure copyright protection what is required is that the author must have bestowed
upon the work sufficient judgment, skill and labor or capital. In order to qualify for
copyrights the works apart from being original, should satisfy the following conditions
1. The work is first published in India.
2. Where the work is first published outside India the author, at the date of publication must
be a citizen of India. If the publication was made after the authors’ death the author must
have been at the time of his death a citizen of India.
3. In case of unpublished work the author is at the date of making the work a citizen of India
or domiciled in India.
4. In case of the architectural work of art, the work is located in India.

HOW TO OBTAIN COPYRIGHT

The steps for Registration:
1. Application in triplicate with prescribed fees.
2. Applicant to serve notice of his application to every person who has any interest in the
subject matter.
3. If the Registrar receives any objection he may after holding such inquiry as he deems fit,
enter such particulars of work in the register of copyright, which he considers proper.
4. Registrar then sends copies of the entries made in the register to the parties concerned
 TERM OF COPYRIGHT

The term of copyright varies according to the nature of the work and whether
the author is a natural person or a legal person e.g. a Corporation,
Government Institution, etc.
• In the case of literary, dramatic, musical or artistic work (other than a
photograph) when published during the lifetime of the author, copyright
subsists during the lifetime of the author plus fifty years.
• Where the work is of joint authorship the fifty years period will start after the
death of the author who dies last.
• In the case of posthumous publications the term will be fifty years from the
year of publication.
• The period of copyright for a photograph is fifty years from the year of its
publication.
• For cinematography film and record also the term is fifty years of
publication.
• Where the first owner of copyright is the government or a public undertaking
the term of copyright is fifty years from the year of publication.
• Copyright works of International Organization also have a term of fifty years
from the year of publication.
 WHO IS THE FIRST OWNER OF
COPYRIGHT

• The author of the work is the first owner.

• In case the author is employed by newspaper, magazine etc under a
contract of service, the proprietor will be the first owner in the absence of
an agreement to the contrary in the case of a literary, dramatic or artistic
work.
• Where a photograph is taken, or a painting or portrait drawn for a valuable
consideration at the instance of person, such person is the first owner.
• Where any address or speech is delivered in public, the person delivering is
the first owner and where it is delivered on behalf of another person such
other person is the first owner.
• In case of Government work, Government shall be the first owner.
• In case of work made or published by or under any public undertaking, it
shall be the first owner.
 INFRINGEMENT of COPYRIGHT
Copyright in a work is deemed to be infringed:
• When any person without a license from the owner of the copyright, or the
Registrar of Copyright or in contravention of the conditions of a license, does
anything the exclusive right to do which belongs to the copyright owner
• In general it is the commercial exploitation of the work in any form by a
person without authority that constitutes infringement.
REMEDIES
 There are three kinds of remedies against infringement of copyright, namely:
1. Civil remedies Injunction damages or account of profit, delivery of infringing
copy and damages for conversion.
2. Criminal remedies Imprisonment of the accused or imposition of fine or both.
Seizure of infringing copies.
3. Administrative remedies Administrative remedies consist of moving the
Registrar of copyrights to ban the import of infringing copies into India when
the infringement is by way of such importation and the delivery of the
confiscated infringing copies to the owner of the copyright and seeking the
delivery.
LIMITATION The period of limitation for filing the suit is three years from the
date of infringement.
 TRADEMARK ACT,1999
WHAT IS A TRADEMARK?
• A trademark is a mark used in relation to goods for the purpose of indicating
a connection between the goods and some person having the right as
proprietor to use the mark
• It is a visual symbol in the form of a word, device or a label applied to
articles of commerce with a view to indicate to the purchasing public that
they are goods manufactured or otherwise dealt in by a particular person or
a particular organisation as distinguished from similar goods manufactured
or dealt in by others
FUNCTIONS OF A TRADEMARK
A trademark serves the purpose of identifying the source or the origin of goods.
Trademark performs the following four functions.
• It identifies the product and it’s origin.
• It proposes to guarantee its quality.
• It advertises the product. The trademark represents the product.
• It creates an image of the product in the minds of the public particularly the
consumers or the prospective consumers of such goods.
 REGISTRATION
WHO CAN APPLY
• Any person who claims to be a proprietor of a trademark and is desirous of registration
of the mark can apply. The application may be made in the name of an individual,
partners of a firm, a Corporation, any Government Department, a trust or joint
applicants.
APPLICATION
• After completing all specifications on the prescribed application form, an application
shall be filed in the office of the trademark Registrar "within whose territorial limits
the principle place of business in India of the applicant or in the case of the joint
applicants the principal place of business in India of the applicant whose name is the
first mentioned in the application, as having the place of business is situated.
• Every application for registration of a trademark shall contain a representation of the
mark in the place provided in the form for the purpose. Ten additional representations
of the mark have to be supplied with the application.
• Upon submission of an application for registration of a trademark, there can be four
outcomes:
a. The application is accepted as it is.
b. The application is accepted subject to certain amendment.
c. The application is accepted but latter it is found to have been accepted in error.
d. The application stands rejected.
The application is thus either accepted completely or is accepted subject to amendments.
 Contd-
ADVERTISEMENT
• Soon after acceptance of the application, the application is
advertised in the Trademarks Journal.
• Any person may, within three months from the date of the
advertisement or readvertisement of the application for
registration or within such further period not exceeding one
month, give notice in writing to the Registrar of opposition to
the registration. If such an opposition does not arise then the
mark is deemed to be registered.
TIME PERIOD
• The registration of a trademark shall be for a period of seven
years, but it may be renewed from time to time
 INFRINGEMENT OF TRADEMARK
Infringement of a trademark occurs if a person other than the registered
proprietor in the course of trade, in relation to the same goods or services
for which the mark is registered, uses the same mark or deceptively similar
mark.
REMEDIES
The proprietor of a trademark has a right to file a suit for infringement of
his right District Court having jurisdiction or in a High Court having
original jurisdiction to entertain such suits and obtain
• Injunction- an injunction restrains the defendant from using the offending
mark pending the trial of the suit or until further orders.
• Damages- The loss must be the natural and direct consequence of the
defendant’s acts. The object of damages is to compensate for loss or injury.
• Accounts of profits- Where a plaintiff claims the profits made by the un
authorised use of his trademark, it is important to ascertain to what extent
he trademark was used, in order to determine what proportion of the net
profits realised by the infringer was attributable to its use.
LIMITATION
• The period of limitation for filing the suit is three years from the date of
infringement.