CONSUMER PROTECTION ACT

1986
Consumer is the king of the market

Sellers market is now Buyers market

&
With industrial development leading to the influx of
various goods and services in the market; Consumers
have to protected!
The act was passed in:

Lok Sabha on 9th December,1986 and

Rajya Sabha 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.

This act was enacted in the 37th year of the Republic of India and
was amended from time to time in the following years i.e. 1991,
1993 and 2002.
 INTRODUCTION
Consumer Protection Act(
), 1986 is an Act of the Parliament of
India enacted in 1986 to protect the interests of
consumers in India.

Itmakes provision for the establishment

Of consumer councils ( )
and other authorities for the settlement of
consumers' disputes and for matters
connected therewith.
 CONSUMER()
According to Section 2(1)(d) of the Act
consumer means any person who:

buys any goods for a consideration which has been

paid or will be paid.
hires or avails of any services for a consideration
which has been paid or will be paid.
does not include a person who obtains such goods
for resale or for any commercial purpose.
 Objective
To promote and to protect the rights of
consumers
To provide speedy and simple redressal to
consumer disputes Quasi-Judicial(-)
machinery is sought to be set up at District,
State and Central Levels.
Rights of Consumers
Right to
safety

Right to Right to
choice be
informed

Rights of
consumer

Right to
Right to
consumer
be heard
education

Right to
redressal
RIGHT TO SAFETY
Right to be protected against marketing of goods
and services which are hazardous to life and
property.
applicable to specific areas like healthcare,
pharmaceuticals and food processing.
RIGHT TO BE INFORMED
The right to be informed about the quality, quantity,
purity, standard and price of goods or services, so as
to protect the consumer against unfair trade practices.
RIGHT TO CHOOSE
the right to be assured, wherever possible,
to have access to a variety of goods and
services at competitive prices.
RIGHT TO BE HEARD
the right to be heard and to be assured
that consumer's interests will receive due
consideration at appropriate forums.
RIGHT TO SEEK REDRESSAL
The right to seek redressal against unfair trade
practices or restrictive trade practices or exploitation
of consumers is referred to as the right to redressal.

RIGHT TO CONSUMER EDUCATION

The right of every Indian citizen to have education
on matters regarding consumer protection as well as
about her/his right is regarded as the last right
provided by the Consumer Protection Act 1986.
 RESPONSIBILITIES OF
CONSUMERS
CRITICAL AWARENESS
(ask questions on quality, price,and use of goods and services)
ACTION
(know your consumer rights)
SOCIAL CONCERN
(care for senior citizens and persons with disablities)
ENVIRONMENTAL AWARENESS
( help and maintain a clean environment)
SOLIDARITY
(join consumer organisations and be heard as a consumer)
Categorise the following cases under different heads
and mark against each in brackets.

Lata got an electric shock from a newly purchased

iron. She complained to the shopkeeper
immediately.

John is dissatisfied with the services provided by

MTNL for the past few months. He files a case in
the District Consumer Forum.

Your friend has been sold a medicine that has

crossed the expiry date and you are advising her
to lodge a complaint.
Iqbal makes it a point to scan through all the
particulars given on the pack of any items that
he buys.

You are not satisfied with the services of the

cable operator catering to your locality but you
are unable to switch over to anybody else.

You realise that you have received a defective

camera from a dealer. You are complaining to
the head office persistently.
Court orders Johnson & Johnson to pay
$72M in talcum powder ovarian cancer case
Johnson & Johnson faces several hundred lawsuits claiming that it, in an effort to
boost sales, failed for decades to warn consumers that its talc-based products
could cause cancer.

Fox, who lived in Birmingham, Alabama, claimed she used Baby Powder and
Shower to Shower for feminine hygiene for more than 35 years before being
diagnosed three years ago with ovarian cancer. She died in October at age 62.

Jurors found Johnson & Johnson liable for fraud, negligence and conspiracy, the
family's lawyers said. Deliberations lasted four hours, following a three-week trial.

Jere Beasley, a lawyer for Fox's family, said Johnson & Johnson "knew as far back
as the 1980s of the risk," and yet resorted to "lying to the public, lying to the
regulatory agencies." He spoke on a conference call with journalists.
 CONSUMER GRIEVANCES : SUCCESS CASES


Kanta Bhakta, Mumbai V/s A Jeweller in Dadar, Mumbai

On March 18, 2011, Kanta Bhakta purchased a pair of bangles and a single
bangle from a jeweller in Dadar. They were declared to be of 22 carat gold
purity and accordingly she was charged for gold of 22 carat purity plus an
additional amount as making charges. After the purchase, the bangles were
keptinherlocker.BothduringDiwali2010andatthemarriageofarelative,
herdaughterusedthebangles.Bycoincidence,thecomplainantcameacross
theX-raygoldtestingfacilityofTanishqJewellerswhowereofferingtocheck
the purity of gold through an X-ray test which was non-destructive. Out of
sheer curiosity, she had the bangles tested and to her utter disbelief, found
outthattheywereoflessthan17caratpurityandnot22carat,ashadbeen
represented at the time of the sale. Shaken by this discovery, she
immediatelyvisitedthejewellerfromwhomshehadboughtthebanglesalong
withthecashmemo.Herefusedtoacceptherclaimandhereffortstoreason
with him were in vain. So she came to the CFBP who, with the help of its
LegalCell,draftedacomplaintforhertofileintheConsumerCourt.Anotice
was sent to the jeweller giving him a lastchance to settle thematterbefore
theConsumerCourtwasmoved.
"The jeweller rushed to settle the matter with me and the complaint was
resolved to my satisfaction."
-Kanta Bhakta
Kailash Vasdev, New Delhi V/s Bajaj
Electricals Ltd., Mumbai
Kailash Vasdev purchased a 30 ltr. Morphy Richards
Microwave Oven on September 12, 2010. During February
2011, one of the safety locks on the door snapped. It was
sent to the Delhi service centre for repairs. After continuous
follow up, the door was not replaced as the service centre
said that it was not available and nothing could be done
until the part was received from the company. Frustrated by
this casual approach to the resolution of his grievance, he
complained to the CFBP during April 2011.

"The damaged Microwave Oven has been replaced by the

company. This would not have happened without your
intervention. Thank you for your response and interest
taken in the matter.

- Kailesh Vasudev
 WHO CAN MAKE A COMPLAINT ?

According to clause (b) of Section 2(1) of the

Consumer Protection Act,

a consumer or
any voluntary consumer association registered under the
Companies Act, 1956 (1 of 1956), or under any other law for
the time being in force; or
the Central Government or any State Government, who or
which makes a complaint; or
one or more consumers, where there are numerous consumers
having the same interest;
In case of death of a consumer, his legal heir or representative.
Section 2 (b) defines complainant as a consumer, a
voluntary consumer association formed under
companies act, 1957, central or state government, one
or more consumer having common interest or legal
heir or representative in case death of consumer who
files the complaint.
Section 2 (c) defines complaint as allegation in writing made
by the complainant. This allegation may include:
I. Unfair or restrictive trade practice that is quality of the good is below standard
prescribed for the same.

II. Goods bought suffer from defects and these may include spurious goods that are
these goods are not genuine or are fake or imitated copies.

III. Services that are hired or to be availed suffer from some deficiency.

IV. In case price charged for the goods are in excess to the price displayed on the cover
or price fixed for the same by virtue of law in force or price agreed by the parties.

V. In case the goods offered are in contravention to the prescribed safety standards or
are risk to safety of consumer or the trader could have known after exercising due
diligence that goods offered are unsafe.

VI. A compliant can be filed by a consumer against manufacturer or a dealer of goods

or service provider for any defective goods or deficiency of services provided or
rendered by them to the consumer.
Councils

CENTRAL COUNCIL

STATE COUNCIL

DISTRICT COUNCILS
 The Central Consumer Protection Council.
(1) The Central Government shall, by notification,
establish with effect from such date as it may specify in
such notification, a Council to be known as the Central
Consumer Protection Council (hereinafter referred to as
the Central Council).

(2) The Central Council shall consist of the following

members, namely:
(a) the Minister in charge of the consumer affairs in
the Central Government, who shall be its Chairman,
and (b) such number of other official or non-official
members representing such interests as may be
prescribed.
The State Consumer Protection Councils.-
(1) The State Government shall, by notification, establish with effect from such date
as it may specify in such notification, a Council to be known as the Consumer
Protection Council for..................... (hereinafter referred to as the State Council).

(2) The State Council shall consist of the following members, namely:
(a) the Minister incharge of consumer affairs in the State Government who
shall be its Chairman;
(b) such number of other official or non-official members representing such
interests as may be prescribed by the State Government.
(csuch number of other official or non-official members, not exceeding ten, as
may be nominated by the Central Government.

(3) The State Council shall meet as and when necessary but not less than two
meetings shall be held every year.

(4) The State Council shall meet at such time and place as the Chairman may think
fit and shall observe such procedure in regard to the transaction of its business as
may be prescribed by the State Government.
The State Government shall establish for every district, by notification, a
council to be known as the District Consumer Protection Council with effect
from such date as it may specify in such notification.

(2) The District Consumer Protection Council (hereinafter referred to as the District
Council) shall consist of the following members, namely:

The Collector of the district (by whatever name called), who shall be its Chairman;
and Such number of other official and non-official members representing such
interests as may be prescribed by the State Government.

(3) The District Council shall meet as and when necessary but not less than two
meetings shall be held every year.

(4) The District Council shall meet at such time and place within the district as the
Chairman may think fit and shall observe such procedure in regard to the
transaction of its business as may be prescribed by the State Government.
Redressal agency

District forum

State commission

National commission
Original Complaint in Consumer Dispute Redressal Forum

The original complaint can be filed at Consumer Dispute Redressal Forum at

district level of a state known at District Forum on the basis of territorial
jurisdiction i.e. complaints can be filed in the district forum within whose limits
either cause of action arose or complainant or opposite party resides or carries
business.

The complainant on the basis of territorial jurisdiction can file compliant within 2
years from the date of cause of action when arose.

Original complaints where value of goods or services and compensation claimed

is not exceeding Rs 20 lakhs can be filed in District Forums. The complaints
exceeding this value can be filed in State Commission and National commission
only on the basis of pecuniary jurisdiction i.e. value of goods or services and
compensation claimed.
Consumer dispute redressal
agencies
1) Distict forum established by the state government
in each district of the state by notification.

2) State commission established by the state

governmentin the state by notification.

3) Nation consumer dipute redressal commission

established bycentral government by notification.
Consumer dispute redressal
forum
Each consumer redressal forum shall consist

1) A person who is, or has been, or is qualified to

be a district judge, who shall be its president.
2) 2 other members, one of whom shall be a
woman, who shall have the following
qualifications:
be not less than 35 years of age.
posses a bachelors degree from a recognised
university
Cont.
3) be person of abilty, integrity an standing, and
have adequate knowledge and experience of atleast
ten years dealing in problems relating to economics,
law, commerce, accountancy, industry, public affairs
or administration.
Further a person is disqualified for appointment as a
member, if he..

a)Has been convicted and sentenced to

imprisonment for an offence which, in the opinion of
the state government, involves moral turpitude; or
 Cont.
b)Is an undischarged insolvent; or
c)Is of unsound mind and stands so
declared by a competent court; or
d)Has been removed or dismissed from
the service of the government or a body
corporated owned or controlled by the
govrnment; or
Cont.
e) has, in the opinion of the state
government, such financial or the other
interest as is likely to affect prejudicially the
discharge by him of his functions as a
member; or

f) Has such other disqualifications as may

be prescribed by the government.
Jurisdiction
JURISDICTION: If the relief claimed in the
complaint .is less than Rs. 20,00,000/-, then the complaint
must be filed before the District Consumer Forum.

If the relief claimed is between Rs. 20,00,000/- and Rs.

1,00,00,000/-, then the complaint must be filed before the
State Commission.

When the relief claim exceeds Rs. 1,00,00,000/- then the

complaint must be filed before the National Commission at
New Delhi.
Lodging a complaint
A prescribed fee is payable for filing a complaint
before the District Forum, State Commission or
National Commission as follows:
Upto 1 lakh - Rs.100/-
1 lakh to 5 lakhs - Rs.200/-
5 lakhs to 10 lakhs - Rs.400/-
10 lakhs to 20 lakhs - Rs.500/-

You can pay this by Demand Draft in favour of

President, State Consumer Disputes Redressal
Commission, Chennai.