The Consumer Protection Act

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The consumer protection Act, 1986 – the main objective of the act is to

provide for the better protection of consumers. The act is intended to provide simple,
speedy and inexpensive redressal to the consumers' grievances, and reliefs of a specific
nature and award of 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.

It enshrines the following rights of consumers:-


• Right to be protected against the marketing of goods and services which
are hazardous to life and property.
• 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;
• Right to be assured , wherever possible , access to a variety of goods and
services at competitive prices;
• Right to be heard and to be assured that consumers' interests will receive
due consideration at appropriate forums;
• Right to seek redressal against unfair trade practices unscrupulous
exploitation of consumers; and
• Right to consumer education
• 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.
"unfair trade practice" 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;—

(1) the practice of making any statement, whether orally or in writing or by visible
representation which,—

(i) falsely represents that the goods are of a particular standard, quality, quantity,
grade, composition, style or model;

(ii) falsely represents that the services are of a particular standard, quality or grade;

(iii) falsely represents any re-built, second-hand, renovated, reconditioned or old


goods as new goods;

(iv) represents that the goods or services have sponsorship, approval, performance,
characteristics, accessories, uses or benefits which such goods or services do not
have;

(v) represents that the seller or the supplier has a sponsorship or approval or
affiliation which such seller or supplier does not have;

(vi) makes a false or misleading representation concerning the need for, or the
usefulness of, any goods or services;
(vii) gives to the public any warranty or guarantee of the performance, efficacy or
length of life of a product or of any goods that is not based on an adequate or
proper test thereof;

Provided that where a defence is raised to the effect that such warranty or
guarantee is based on adequate or proper test, the burden of proof of such
defence shall lie on the person raising such defence;

(viii) makes to the public a representation in a form that purports to be—

(i) a warranty or guarantee of a product or of any goods or

services; or

(ii) a promise to replace, maintain or repair an article or any part thereof or to


repeat or continue a service until it has achieved a specified result,
if such purported warranty or guarantee or promise is materially misleading or if there
is no reasonable prospect that such warranty, guarantee or promise will be carried out;

(ix) materially misleads the public concerning the price at which a product or like
products or goods or services, have been or are, ordinarily sold or provided, and,
for this purpose, a representation as to price shall be deemed to refer to the price
at which the product or goods or services has or have been sold by sellers or
provided by suppliers generally in the relevant market unless it is clearly specified
to be the price at which the product has been sold or services have been provided
by the person by whom or on whose behalf the representation is made;

(x) gives false or misleading facts disparaging the goods, services or trade of another
person.

Explanation.—For the purposes of clause (1), a statement that is—

(a) expressed on an article offered or displayed for sale, or on its wrapper or


container; or

(b) expressed on anything attached to, inserted in, or accompanying, an article


offered or displayed for sale, or on anything on which the article is mounted
for display or sale; or

(c) contained in or on anything that is sold, sent, delivered, transmitted or in any


other manner whatsoever made available to a member of the public,

shall be deemed to be a statement made to the public by, and only by, the person who
had caused the statement to be so expressed, made or contained;

(2) permits the publication of any advertisement whether in any newspaper or


otherwise, for the sale or supply at a bargain price, of goods or services that
are not intended to be offered for sale or supply at the bargain price, or for a
period that is, and in quantities that are, reasonable, having regard to the
nature of the market in which the business is carried on, the nature and size of
business, and the nature of the advertisement.
Explanation .—For the purpose of clause (2), "bargaining price" means—

(a) a price that is stated in any advertisement to be a bargain price, by


reference to an ordinary price or otherwise, or
(b) a price that a person who reads, hears or sees the advertisement, would
reasonably understand to be a bargain price having regard to the prices at
which the product advertised or like products are ordinarily sold;

(3) permits—

(a) the offering of gifts, prizes or other items with the intention of not providing
them as offered or creating impression that something is being given or
offered free of charge when it is fully or partly covered by the amount
charged in the transaction as a whole;

(b) the conduct of any contest, lottery, game of chance or skill, for the purpose
of promoting, directly or indirectly, the sale, use or supply of any product or
any business interest;

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(3-A) withholding from the participants of any scheme offering gifts, prizes or
other items free of charge, on its closure the information about final results of
the scheme.

Explanation.--- For the purpose of this sub- clause, the participants of a scheme
shall be deemed to have been informed of the final result of the scheme where
such results are within a reasonable time , published, prominently in the same
news papers in which the scheme was originally advertised;

(4) permits the sale or supply of goods intended to be used, or are of a kind likely to
be used, by consumers, knowing or having reason to believe that the goods do
not comply with the standards prescribed by competent authority relating to
performance, composition, contents, design, constructions, finishing or
packaging as are necessary to prevent or reduce the risk of injury to the person
using the goods;

(5) permits the hoarding or destruction of goods, or refuses to sell the goods or to
make them available for sale or to provide any service, if such hoarding or
destruction or refusal raises or tends to raise or is intended to raise, the cost of
those or other similar goods or services.

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(6) manufacture of spurious goods or offering such goods for sale or adopting
deceptive practices in the provision of services
(2) Any reference in this Act to any other Act or provision thereof which is not in force
in any area to which this Act applies shall be construed to have a reference to the
corresponding Act or provision thereof in force in such area.

3. Act not in derogation of any other law.—The provisions of this Act shall be in
addition to and not in derogation of the provisions of any other law for the time being in
force.

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