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THE CONSUMER PROTECTION ACT

1986
Presented By
Shriram (73)
Salman(59)
Aniket(41)
Kishan(56)
Anuta(43)
Sonal(72)
Kanishka(54)

OBJECT OF THE ACT


The act is basically passed to protect the interest of
the consumers.
In order to protect the interest of the consumers, to
make provision for establishing necessary consumer
councils and other authorities.
It intend to seek speed and simple redressal to
consumer disputes through quasi-judicial machinery
set-up at distract, state and central levels.
It awards compensation to consumer on the basis of
merit of each case.

CONSUMER [sec2(1)(d)]
CONSUMER IS ANY PERSON WHO
Buys any goods for a consideration or heirs/avails of
any services for a consideration is a consumer.
Any user of the goods with the approval of the person
who has purchased the goods for consideration is also
a consumer.
A person hiring or availing of any services for
consideration is no doubt a consumer, but any person
who is beneficiary of such services with the consent or
approval of the original consumer is also a consumer.

Cont
To become a consumer, there must be a
consideration when he buys goods. Such
consideration must have actually been paid
or promised or partly paid and partly
promised.
Any person claiming himself/ as a consumer
must satisfy two important consideration
besides the others which are as follows:
The service or services must have been render to
him and
He must paid or promised to pay the consideration
for the same.

Cont
The intention of a person purchasing the
goods or hiring the services must be
consumption not for sale.

PERSON [sec2(1)(m)]
A PERSON INCLUDE
1.

A firm whether registered or not

2.

A Hindu undivided family.

3.

A co-operative society.

4.

Every other association of person whether register


under the societies Reg. Act 1960
Consumer need not be an individual to get protection
under this act it includes the above person also.

GOODS [sec 2(1)(i)]


Goods as defined in the sale of GOODS ACT
1930.
The subject matter of the contract of sale must
be available property or goods. The
transactions which involve buying and selling
of immovable property are regulated by the
transfer of property Act.

SERVICES [sec 2(1)(o)]


Means
Service of any description which is made
available to potential users. The services related
to banking, financing, insurance, transport,
processing, supply of electricity, lodging and
boarding etc but it does not include rendering of
any service free of charge or under a contract of
personal services.

Cont
It implies that services must be of commercial
nature i.e. they must be rendered on payment
Even the professional services are included.
Even the beneficiaries of the services are
included though they are not directly hirers
provided they use the service with the
approval of the concerned consumers.

TRADER [sec2(1)(q)]
MEANS
Sells goods or distribute any goods for sale.
Any manufacture of goods selling the same.
Any packer either sells or distribute goods in
package form.

MANUFACTURER [sec 2(1)(f)]


MEANS
Makes or manufacturer any goods or part thereof.
Or
Does not make or manufacture any goods but
assembles part thereof made or manufactured by
others.
Or
Put or causes to be put his own mark on goods
made or manufactured by any other manufacture.

CONSUMER DISPUTE [sec 2(1)(e)]


If there is any dispute between the consumer
and manufacturer or trader, as the case may be
the consumer gets the right to seek remedy or
filing the complaint under the act. The
consumer redressal forum is a statutory body
under the consumer protection act.

RESTRICTIVE TRADE PRACTICE sec


2(1)(n)
MEANS
Delay beyond the period agreed to by a
trader in supply of such goods or in providing
the service which has led or is likely to lead
to rise into price.
Regarding the condition precedent to buying,
hire or availing of other goods or service.

UNFAIR TRADE PRACTICE [sec


2(1)(r)]
A trade practice which for the purpose of
promoting the sale, use or supply of any goods or
for the provisions of any service, adopt any unfair
namely.
Falsely represent that the goods are of a
particular standard quality, quantity, grade,
compensation, style or model.
Makes the false or misleading representation
concerning the need for, or the usefulness of any
goods or services.

Cont
Gives false warranty or guarantee about the
performance, length of life of a product with
any proper test.
Publication of any advertisement for the sale
or supply at a bargaining price.
Sale or supply of goods which do not comply
any of the standard prescribed by the
competitive authorities.

Cont
Hoarding or destruction the goods or refusing
to sell goods with a view to raise the price.
Represents that the seller or the supplier has
a sponsorship or approval which such seller
does not have.
Materially misleads the public concerning the
price at which a products has been sold
Gives false or misleading facts disparaging the
goods, services or trade of another person.

Cont
Publication of any advertisement whether in
any newspaper or otherwise,for the sale or
supply at a bargaining price.
Bargaining price means
A price that is stated in any advertisement to be a
bargain price reference to ordinary price.
A price which the person hears/sees the
advertisement, would reasonably understand to be
bargain price.

PROTECTION COUNCILS
Chapter 2 sec(4 to 8)

Councils

Sec 4 to 8
Sec 4 Establishment of central council
by Central government & membership.
Sec 5- Meeting of central council
Sec 6 Objects of central council
Sec7 Establishment of state council by
central govt. & its membership
Sec 8 Objects of state council
Sec 8(A) Establishment of district
Council by State government
Sec 8(B) Objects of District Council

CONSUMER DISPUTES REDRESSAL


AGENCIES
Chapter III Sec 9 to27
District forum ---established by the state
govt.in each district of the state.
State Commission --- established by the state
govt. in the state
National Commission --- established by the
central govt.

Sec 9 Establishment of consumer


Dispute Redressal Agencies
There are 3 such agencies
District forum Sec 10 to 15
State commission Sec 16 to 19
National Commisssion Sec 20 to 23

District Forum
It shall consist of a person who is or has been or
is qualified to be a District Judge as its
President,2 other members, one of whom shall
be a woman
Every member of the District Forum shall hold
office for a term of 5 years or up to the age of
65 years which ever is earlier
It shall have jurisdiction to entertain complaints
where the value of the goods or services and the
compensation, if any, claimed does not exceed
Rs.20 Lacs.

A District Forum shall have the


powers
To remove the defect pointed out by the
appropriate laboratory from the 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
To pay such amount as may be awarded by it as
compensation to the consumer for any loss or
injury suffered by the consumer due to the
negligence of the opposite party

State Commission
It shall have jurisdiction to entertain
complaints where the value of the goods or
services and compensation, if any, claimed
exceeds Rs. 20 Lacs but does not exceed Rs.1
Crore and appeals against the orders of any
District Forum within the State.

National Commission
It shall consist of a person who is or has been
a Judge of the Supreme Court, as its
President. Not less than 4 members and one
of whom shall be a woman
It shall have jurisdiction to entertain
complaints where the value of the goods or
services and compensation, if any, the claim
exceeds Rs. 1 Crore and appeals against the
orders of any State Commission.

Case
Chetan Prakash vs MET Institute of computer Science

Overview of the case


Prakash was in final year of BSc when he
sought admission in the institute for MCS
The institute had stipulated that in order to
pursue the MCS course, student has to clear
III year exams

Cont
He deposited the fees before declaration of
result
Seeing that he had failed in exams, he tried to
withdraw the admission and requested for a
refund, to which the institute did not
responded
Finally, he sent a legal notice to the institute,
and then lodged a complaint in the consumer
forum.

Judgement
The institute had to pay the complainant,
Chetan Prakash, Rs 32,000 as compensation for
harassment along with the course fee of
Rs.62,200.

Thank You

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