.

CONSUMER PROTECTION ACT 1986

An Act to provide for better protection of the interests of consumers and for that purpose to make provision for the establishment of consumer councils and other authorities for the settlement of consumers' disputes and for matters connected therewith.

INTRODUCTION
The Consumer Protection Act 1986 is a social welfare legislation which was enacted as a result of widespread consumer protection movement. The main object of the legislature in the enactment of this act is to provide for the better protection of the interests of the consumer and to make provisions for establishment of consumer councils and other authorities for settlement of consumer disputes and matter therewith connected.

CONSUMER
The "consumer" is the one who consumes the goods and services produced Consumer means any person who (i) buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose; or

(ii)

hires or avails of any services for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such services other than the person who hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person but does not include a person who avails of such services for any commercial purposes

CONSUMER DISPUTE
It means a dispute where the person against whom a complaint has been made , denies or disputes the allegations contained in the complaint. There should be two or more persons involoved in a dispute.

DEFECT
Means any fault , imperfection or shortcoming in the quality , quantity , potency , purity or standard which is required to be maintained by or under any law for the time being in force or under any contract ,express or implied or as is claimed by the trader in any manner whatsoever in relation to any goods

DEFICIENCY
Means any fault, imperfection shortcoming or inadequacy in the quality , nature and manner of performance which is required to be maintained by or under any law for the time being in force or has been undertaken to be performed by a person in pursuance of a contract of otherwise in relation to any service. Defects has been used in relation to any goods while the deficiency is relevant in case of service.

GOODS
Goods are simply any physical or tangible products that can be seen and touched. Some goods are quickly consumed and must be replaced by like or similar products on a regular basis. Food is one example of goods that are quickly consumed and must be acquired repeatedly. Other forms of goods are more long-term in nature, and may last for years or even decades. Furniture, cutlery, and houses are examples of DURABLE GOODS that are intended to satisfy consumers for extended periods of time.

SERVICES
Services are intangible support that is provided to the consumer in some manner. A physician provides healthcare support or services. Telephone companies provide communications services such as local calling ability, long distance calling, and other features that enhance the electronic communication process. ` Banks provide a range of financial services to customers, ranging from basic and checking accounts to investment opportunities.

OBJECTIVES OF CONSUMER PROTECTION ACT

Physical protection of consumers. Protection against deceptive and unfair trade practices. Protection against all types of pollution. Protection of enjoying the rights The business and consumerism both aim at the protection of consumers interest, business through self regulation and consumerism through self help

RIGHTS OF CONSUMERS
Right to safety. Right to be informed. Right to choose. Right to be heard. Right to seek redressal. Right to consumer education.

ACT 1986 The Consumer Protection Bill, 1986 was passed by both the houses of parliament and it received the assent of the President on 24 th december, 1986. it came on the statutes book as the Consumer Protection Act,1986. LIST OF AMENDING ACTS i. The Consumer Protection (Amendment)Act,1991 ii. The Consumer Protection (Amendment) Act,1993 iii. The Consumer Protection (Amendment) Act, 2002

APPROPRIATE LABORATORY
Defined in section 2 (1)(a). It means a laboratory or organisationRecognised by the central government Recognised by the state government, subject to such guidelines as may be prescribed by the central government in this behalf. This concept is important because it has been provided in the act that when a district forum recieves some complaint about a defect in some commodity, it will send the sample for analysis to the appropriate laboratory

COMPLAINT
Complaint means An unfair trade practice or a restrictive trade practice has been adopted by any trader, or service provider. The goods brought by him suffer from one or more defect; The services availed by him suffer from deficiency in any respect;

ESSENTIALS OF COMPLAINTS
Should be filed as per section 2(1)(b). Should contain allegations in writing. Should state the facts, when and where they arose. Must specify the relief which the compainant is seeking. Contains addresses of compainant and the opposite party.

WHO CAN FILE A COMPLAINT?

The following can file a complaint under the act: A consumer: Any voluntary consumer organisation registered under the Societies Registrations Act 1860 or under the companies act 1956 or under any other law for the time being in force. The Central Government: The State Government or Union Territory Administration One or more consumer on behalf of numerous consumers who are having the same interest.

WHAT CONSTITUTES A COMPLAINT?

Under the act a complaint means any allegation in writing made by a complainant in regard to one or more of the following: Any unfair trade practice as defined in the act or restrictive trade practices like tieup sales adopted by any trader. One or more defect in goods. Deficiencies in services. A trader charging excess of price that is fixed by or under any law for the time being in force.

WHERE TO FILE A COMPLAINT?

If the cost of goods or services and compensation asked for is up to rupees five lakhs, then the complaint can be filed in the District Forum. if the cost of goods or services and compensation asked for is more than rupees five lakhs, but less than rupees twenty lakhs 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 twenty lakhs then the complaint can be filed before the National Commission at New Delhi.

HOW TO FILE A COMPLAINT?

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. There should be 3 to 5 copies of the complaint on plain paper. The complainant or his authorized agent can present the complaint

A complaint should contain the following information:*The name, description and the address of the complainant. *The name, description and address of the opposite party or parties, as the case may be, as far as they can be ascertained. *The facts relating to complaint and when and where it arose. *Documents, if any, in support of the allegations contained in the complaint. *The relief, which the complainant is seeking. *The complainant or his authorized agent should sign the complaint. *The complaint is to be filed within two years from the date on which cause of action has arisen.

RELIEF AVAILABLE TO THE CONSUMERS

Depending on the nature of relief sought by the consumer and facts, the Redressal Forums may give orders for one or more of the following relieves:*Removal of defects from the good *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.

NATIONAL COMMISSION
The National Commission established in the Country under Section9(c) of the consumer Protection Act,1986. The National Commission shall ordinarily function at New Delhi. The legal provisions relating to the National Commission are :

COMPOSITION OF THE NATIONAL COMMISSION [ SECTION20(1)] The National Commission is a body of minimum five persons appointed by the Central Government. Legally the National Commssion shall consist of a president and atleast four other members. Section 20(1) makes the following provisions regarding the qualification of the president and other members. a) president: a judge of the supreme court shall be the president

b) Other members: consist of four other members one of whom shall be a woman the qualification for appointment of other members are: i. must not be less than 35 years of age. ii. Must possess a bachelors degree from a recognised university. iii. Must be a person of ability, experience of atleast ten years in dealing with problems relating to economics, law commerce, accountancy etc.

APPOINTMENT OF THE MEMBERS OF THE NATIONAL COMMISSION [ section20(1) (a) (b)]

The appointment of the President shall be made by the Central Government after consultation with the chief justice of India. [section 20 (1) (a)] The appointment of th eother four members shall be made by the Central Government on the recommendation of the selection committee consisting of a. Single judge of the supreme court, b. Secretary in department of legal affairs, Government of India. c. Secretary in department dealing with the consumer affairs in the Government of India [section 20 (1) (b)]

DISQUALIFICATION OF MEMBERS [ Section20 (1) (b)] a. If he has been convicted and sentenced the imprisonment for an offence b. If he is an insolvent c. If he is of unsound mind d. If he has been removed or dismissed from the service of the government

TENURE OF OFFICE OF THE MEMBERS OF THE NATIONAL COMMISSION [Section20(3) The president or the members of the National Commission shall hold the office for a term of 5years or upto the age of 70years whichever is earlier

JURISDICTION OF NATIONAL COMMISSION [Section21] : The provision relating to the jurisdiction of national commission are: a) PECUNIARY JURISDICTION: The national commission has the jurisdiction to entertain complaints where the value of the goods and services and compensation , if any claimed exceeds one crore. b) APPELLATE JURISDICTION: The national commission also has the appellate jurisdiction to entertain appeals against the order of any state commission [section21(a) (ii)] . Any any person aggrieved by an order may by the state commission before it may prefer an appeal to the national commission within a period of 30 days from the date of order [section19] c) REVISIONAL JURISDICTION: In those cases where it appears to the National Commission that any state commission has exercised a jurisdiction not vested in it , or has failed to exercise its jurisdiction , or has acted illegally or with material irregularity , the National commission has the power to call for the records and pass appropriate orders in any consumer dispute which is pending before or has been decided by such state commission [Section 21(b)]

DISTRICT FORUM
District forum is the short name of the Consumer District Redressal Forum Established in district under section 9(a) of the Consumer Protection Act 1986 It is established by the State Government.

LEGAL PROVISIONS REGARDING DISTRICT FORUM The legal provisions regarding district forum are :

Composition of the district forum [Section 10(1)] The District forum is a body of three persons appointed by the State Government. Legally each district forum shall consist of a President and two other members. a. President: a person who is,or has been qualified to be, a District Judge shall be the President of District forum. b. Other member: consist of two other members one of whom shall be a woman. The qualification for appointment of other members are: i. he/she must not be less than 35 years of age. ii. He/she must possess a bachelors degree. iii. Must have atlkeast 10 years of experience in dealing with problems relating to economics,law, commerce,accountancy etc.

APPOINTMENT OF MEMBERS OF DISTRICT FORUM[Section 10 (1A) The appointment of the President and of the members shall be made by the State Government on the recommendation of the selection committee consisting of a) The president of the state commission, b) Secretary, law department of the state, c) Secretary ,incharge of the department dealing with consumer afairs in the State [section10(1A)

TENURE OF OFFICE OF THE MEMBERS President or a member of the District Forum for 5 years or upto the age of 65years whichever is rearlier.

DISQUALIFICATIONS OF MEMBERS[ section10(1) (b)

a.

If he has been convicted and sentenced the imprisonment for an offence. b. If he is an insolvent. c. If he is of unsound mind. If he has been removed or dismissed from the service of the government. VACANCY IN THE OFFICE OF THE DISTRICT FORUM[Section10(2)] The office of the President or of any member of the forum may become vacant on his attaining the age of sixty-five years. A member may resign his office by resignation in writing to State Government. On the resignation being accepted by the government ,his office shall become vacant.

JURISDICTION OF THE DISTRICT FORUM[Section11] a) Primary jurisdiction: it has the jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any,claimed does not exceed rupees twenty lakhs. b) Territorial jurisdiction: the opposite party at the time of institutionof the complaint Actually and voluntarily resides or Carries on business or has a branch office, or Personally works for gain SALARY The salary or honorarium and other allowances payable to and the other terms and conditions of the services of, the members of the district forum shall be prescribed by the state.

Powers of the district forum: i. Enforcing the attendance of any witness and examining the witness on oath. ii. Production of any document , producable as evidence. iii. Reception of evidence on affidavits. iv. Issuing of any commission for the examination of any witness. v. Any other matter which may be prescribed.

RELIEFS GRANTED BY THE DISTRICT FORUM: i. That the goods complained against suffer from any of the defects specified in the complaint, or ii. That any of the allegations contained in the complaint about the services are proved. On being satisfied about the above allegations the district forum shall issue an order to the opposite party directing him to do one or more of the following things: i. To remove the defect pointed out by the appropriate laboratory from the goods in question; ii. To replace the goods with new goods of similar discription which shall be free from any defect; iii. To return to the complainant the price , or, as the charges paid by the complainant.

iv. 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; v. To remove the defects in goods or deficiencies in the services in question; vi. To discontinue the unfair trade practice or the restrictive trade practice or not to repeat them; vii. Not to offer the hazardous goods for sale; viii. To withdraw the hazardous goods from being offered from sale; ix. To cease manufacture of hazardous goods and to desist from offering services which are hazardous in nature. x. To provide for adequate costs to the parties.

STATE COMMISSION
The State Commission is established in the State under Section 9(b). The State Commission is established by the State Government. The State Government shall ordinarily function in the state capital.

LEGAL PROVISIONS RELATING TO STATE COMMISSION The legal provisions stating to state commission are as follows: COMPOSITION OF THE STATE COMMISSION[Section 16(1)] a) President: A person who is or has been a judge of the high court b) Other members: apart from the president , the State Commission shall consist of two other membersone of whom shall be a woman. The qualifications for appointment of other members are: i. he/she must not be less than 35 years of age. ii. He/she must possess a bachelors degree. iii. Must have atlkeast 10 years of experience in dealing with problems relating to economics,law, commerce,accountancy etc.

APPOINTMENT OF THE MEMBERS OF THE STATE COMMISSION [Section16(1)(a)(1A)] The appointment of the President shall be made by the State Government after consultation with the chief justice of the high court of the State [section(1)(a)] and the appointment of theother members shall be made by the State Government on the recommendation of the selection committee of a) President of the state commission, b) Secretary of the law department c) Secretary ,incharge of department dealing with consumer affairs in the state[section16(1A)]

DISQUALIFICATIONS OF MEMBERS[ section16(1) (b) PROVISION] a. If he has been convicted and sentenced the imprisonment for an offence. b. If he is an insolvent. c. If he is of unsound mind. d. If he has been removed or dismissed from the service of the government. TENURE OF THE OFFICE OF THE MEMBERS OF THE STATE COMMISSION[Section 16 (3)] The President or the member of the State Commission shall hold the office for a term of 5years or upto the age of 67 years

JURISDICTION OF THE STATE COMMISSION[Section 17] The provisions relating to the jurisdiction of State Commission are as follows: a) Precuniary jurisdiction: the state commission has the jurisdiction to entertain complaints where the value of the goods or services or the compensation , if any, claimed exceeds rupees twenty lakhs but not exceeds rupees one crore. [section 17 (1) (a)] b) Appellate jurisdiction: it entertains appeals against the orders of any District forum within the state . Any person aggrieved may prefer an appeal to the state commission within a period of 30 days from the date of order [section15] c) Revisional jurisdiction: when district forum has failed to exercise its jurisdiction, or has acted illegally or with material irregularity , or the state commission has the power to call for the records in any consumer disputes d) Territorial jurisdiction[section17 (2)]: As regard the territorial jurisdiction , section17(2) provides that a complaint shall be instituted in state commission within the local limits of whose jurisdiction:

Territorial jurisdiction[section17 (2)]: As regard the territorial jurisdiction , section17(2) provides that a complaint shall be instituted in state commission within the local limits of whose jurisdiction: a) the opposite party at the time of institution of the complaint (i)actually and voluntarily resides , or (ii) carries on business or has a branch office , or (iii) personally works for gain, or b) where there are more than one opposite parties , any of the opposite parties (i) actually or voluntarily resides, or (ii) carries on business or has a branch office , or (iii) personally works for gain. However , in such a case , the requirement is that either the permission of the state commission is given or the opposite parties who do not reside or carry on business, or have a branch office or personally works for gain , as the case may be , give their consent for the filing of the complaint, or c) the causes of action, wholly or in part, arises.

APPEALS AGAINST ORDERS OF REDRESSAL AGENCIES

Appeal against the order of district forum[section15]. Appeal against the order of state commission [section19,19A] Appeal against the order of national commission[section23].

CONSUMER PROTECTION COUNCILS

1. Central consumer protection council[section4] 2. State consumer protection council[scetion7] 3. District consumer protection council[section8A]

CENTRAL CONSUMER PROTECTION COUNCIL

Established by the central council [section4 (2)] Membership of the central council[section4(1)] Minister incharge of the consumer affairs in the central government , who shall be the chairman of the council; Such other official or non official members representing the prescribed interest.

Constitution of the central council: The minister in-charge of consumer affairs in the central govt. The minister of state or deputy minister incharge of consumer affairs in the central government. The minister in-charge of consumer affairs in states; Eight members of parliament five from lok sabha and three from rajya sabha. The secretary of the national commission for scheduled castes and scheduled tribes. Representatives of the customers- not less than thirty five. Representatives of woman not less than ten.

OBJECTS OF THE CENTRAL COUNCIL

To promote and protect the rights of the consumers.

STATE CONSUMER PROTECTION COUNCIL

Established by the state government at the state level. Legal provisions are contained in sections 7 and 8. MEMBERSHIP : Minister incharge of the consumer affairs who shall be the chairman. Number of other official and non official members as may be prescribed by the state government. Number of other official and non official members as may be nominated by the central government.

OBJECTS OF THE STATE COUNCIL: To promote and protect the rights of the customers within the state.

DISTRICT CONSUMER PROTECTION COUNCIL

Established by the state government at the district
level. Legal provisions are contained in section 8A and 8B MEMBERSHIP: The collector of the district Number of other official and unofficial members .

OBJECTS : To promote and protect the right of the consumer within the district.

POWERS OF THE DISTRICT FORUM

Discovery and production of any document producible as evidence. Requestioning of the report of the concerned analysis or test from the appropriate laboratory or from any other relevant sources. Issuing of any commission for the examination of any witness.

RELIEFS GRANTED BY THE DISTRICT FORUM

To remove the defects pointed out by the appropriate laboratory from the goods in question. To replace the goods with the 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 remove the defects in goods. To withdraw the hazardous goods from being offered for sale.

PROCEDURE APPLICABLE TO THE STATE COMMISSION

The procedure applicable to the state commission is same as the powers granted and reliefs granted to the district forum.

PROCEDURE APPLICABLE TO NATIONAL COMMISSION

Same as district forum. Following are some other important powers of the national commission: Power to review order. Power to set aside ex parte order. Power to transfer cases.