The Consumer

Protection Act,
1986
 INTRODUCTION
What is consumerism
 “Gone are the days when the consumers

were treated as slaves.”

 Shift from “Sellers market” to “buyers

market”.
 Industrial development has led to the
influx of various goods and services in the
market.
CONSUMER PROTECTION ACT 1986

 The act was passed in LokSabha on 9th

December,1986 and RajyaSabha 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.
Objects and Applicability of
the Act
1.To Provide for better protection of
interest of consumers.
2.To establish the Consumer Councils
3.To empower the Consumer Councils
and
other authorities to settle disputes and
matters connected.
“The Act in terms of geographical
application
extends to the whole of India except
 Basic Definitions &
Concepts
1.Appropriate Laboratory {Sec 2(1)a}.

2.Complainant {Sec 2(1)b}.

.(A Consumer
.An association of consumer registered
under Companies Act of 1956.
.The Central or State Govt.
.One or more consumers having same
interest.
.The legal Heir or representative in case of
death of the consumer.”)
 Def of Complaint {Sec
2(1)b}
 Complaint means any allegation in writing made by a
complainant that-
1)An unfair trade practice or a restrictive trade practice has been
adopted by any trader or service provider.
2)Goods bought by him or agreed to be bought by him suffer
from defects.
3)Services hired or availed or agreed to be hired suffer from
deficiency in any respect.
4)A trader or the service provider as the case may be has charged
for the goods or for the services mentioned in the complaint, a
price in excess of the price.
5)Goods and Services which are hazardous to life and safety
when used are being offered for sale to the public.
 Define Consumer
{Sec2(1)d}
 A person who buys any goods for a
consideration which has been paid or
promised or partly paid and partly
promised or any other user of such
goods when such user is made with
the approval of the buyer.
OR
 A person who hires or avails of any
services for consideration which has
been paid or promised or partly
promised or under any system of
deferred payment.
(Imp Consumer does not include a person
who obtains goods or avails services for
commercial purpose or re-sale.)
 Are the following
consumers
 Winner of a lottery (Byford v/s
Shrivastava.
 Warranty of free service.
 Passenger traveling by train.
 A person registering for gas
connection.
 Subscriber of telephones.
 User of electricity.
 User of sewerage system laid down
by Municipal Corporation.
 Are the following
consumers
 Parents of the infant person.

 Subscriber to a provident fund.

 Person buying goods for resale

use in large scale profit making
activity.

 Insurance Company.
 CASE STUDY

 STANDARD CHARTERED BANK

V/S

 BHAKRU (Delhi based resident)

 Consumer
dispute
 COVERED UNDER SECTION 2(1)(c).

THE PERSON AGAINST WHOM A COMPLAINT IS MADE DENIES

THE ALLEGATIONS CONTAINED IN THE COMPLAINT.
 DEFECT
 COVERED UNDER SECTION 2(1)(f).

 ANY FAULT, IMPERFECTION OR SHORTCOMING IN THE

QUALITY, QUANTITY, POTENCY, PURITY OR STANDARD
WHICH IS TO BE MAINTAINED IN RELATION TO ANY GOODS.
 DEFICIENCY
 COVERED UNDER SECTION 2(1)(g).

 ANY FAULT, IMPERFECTION, SHORTCOMING OR

INADEQUACY IN THE QUALITY, NATURE AND MANNER OF
PERFORMANCE TO BE MAINTAINED IN RELATION TO ANY
SERVICES.
 DISTRICT FORUM
 COVERED UNDER SECTION 2(1)(h).

 A CONSUMER DISPUTES REDRESSAL FORUM ESTABLISHED

UNDER CLAUSE (a) OF SECTION 9.

 ESTABLISHED BY THE STATE GOVERNMENT IN EACH

DISTRICT OF THE STATE BY NOTIFICAION.
 goods
 COVERED UNDER SECTION 2(1)(i).

 ANY KIND OF MOVABLE PROPERTY OTHER THAN

ACTIONABLE CLAIMS AND MONEY.
 NATIONAL
COMMISSION

 COVERED UNDER SECTION 2(1)(k).

 NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION

ESTABLISHED UNDER CLAUSE (c) OF SECTION 9.

 ESTABLISHED BY THE CENTRAL GOVERNMENT BY

NOTIFICATION.
 State
commission
 COVERES UNDER SECTION 2(1)(p).

 A CONSUMER DISPUTES REDRESSAL COMMISSION

ESTABLISHED UNDER CLAUSE (b) OF SECTION 9.

 ESTABLISHED BY THE STATE GOVERNMENT IN THE STATE

BY NOTIFICATION IN THE OFFICIAL GAZETTE.
 TRADER

 COVERED UNDER SECTION 2(1)(q).

 A PERSON WHO SELLS OR DISTRIBUTES ANY GOODS FOR

SALE.

 TRADER SHALL INCLUDE THE PACKER OF THOSE GOODS.

 UNFAIR TRADE
PRACTICE
 COVERED UNDER SECTION 2(1)(r).

 UNFAIR METHOD OR UNFAIR OR DECEPTIVE PRACTICE

ADOPTED FOR PROMOTING THE SALE, USE OR SUPPLY OF
ANY GOODS OR FOR THE PROVISION OF ANY SERVICES.
 RESTRICTIVE TRADE
PRACTICE

 COVERED UNDER SECTION 2(1)(nn).

 A TRADE PRACTICE WHICH REQUIRES A CONSUMER TO BUY,

HIRE OR AVAIL OF ANY GOODS OR SERVICES AS A
CONDITION PRECEEDENT FOR BUYING OR HIRING OF OTHER
GOODS AND SERVICES.
 Right to Safety.
 Right to be informed.

 Right to Choose.

 Right to be heard.

 Right of Seek Redress.

 Right to Consumer
Education.

 Consumer
Complaint
Any allegation made by the
complainant in writing

Unfair trade practice

Defect in goods

Deficiency in service

Excess price
 Content of Consumer
Complaint
 Details of the complainant.

 Details of the opposite party or parties.

 The facts relating to complaint and when and

where it arose.

 Documents, if any, in support of the allegations

contained in the complaint.

 Relief which the complainant is seeking.

 Who can file a
complaint ???
 A consumer; or
 Any voluntary consumer association
registered under the Companies Act, 1956
or under any other law for the time being
in force, or
 The Central Government or any State
Government,
 One or more consumers, where there are
numerous consumers having the same
interest.
 Where do I file my
complaint???
 Pecuniary Jurisdiction
 Territorial Jurisdiction
 Consumer Forum

Time period for filing

complaint

Within 2 years
 Fees for filing a
complaint
 Up to 1 Lakh – Rs.100.
 1 Lakh & above but less that 5 Lakhs – Rs.200.
 5 Lakhs & above but less that 10 Lakhs – Rs.400.
 10 Lakhs & above but less that 20 Lakhs – Rs. 500

Do I have to be there myself to file a complaint?

Ans : No

How to inform the opposite party about the complaint?

 Remedies Under Consumer
Protection Act
 To remove the defects pointed out by the
appropriate laboratory from goods in question.
 To replace the goods with new goods of similar
description which shall be free from any defect
 To return to the complainant the price, or, as
the case may be, the charges paid by the
complainant.
 Compensation for loss of negligence on part of
consumer
 To remove the defects or deficiencies in the
services in question.
 To discontinue the unfair trade practice or the
restrictive trade practice or not to repeat them.
 Not to offer the hazardous goods for sale.
 Continued
 To withdraw the hazardous goods from
being offered for sale

 To cease from manufacturing of hazardous

goods

 Loss of injury of consumer

 Issue of corrective advertisement

 Provision of adequate costs to parties

 CONCLUSION
 Benevolent Piece Social Legislation

 Issue of Consumer Welfare

 Special feature of this act

 Role of Three Tier Quasi judiciary

 Concept of Consumers Sovereignty ”

 Overall Effect of Consumer Protection