THE CONSUMER PROTECTION

ACT, 1986
The law relating to consumer
protection is contained in the
consumer protection act, 1986.
The Act applies to all goods and
services.

Objects Of The Act

1. Better protection of interests of
consumers The act makes
provision for the establishment of
consumer councils and other
authorities for the settlement of
consumer disputes.
2. Protection of rights of consumers.

Protection Of Rights of Consumers

a) Right to protected against marketing
of goods or services which are
hazardous to life and property.
b) Right to be informed about the
quality, quantity, potency, purity,
standard and price of the goods or
services to protect the consumers
against unfair trade practices.

Protection Of Rights of
Consumers
c. Right to be assured , wherever possible,
access to goods and services at
competitive prices.
d. Right to be heard and to be assured that
consumers interests will receive due
consideration at appropriate forums.
e. Right to seek redressal against unfair
trade practices or unscrupulous
exploitation of consumers.
f. Right to consumer education.

Objects Of The Act

3. Consumer protection councils The rights of
consumers are promoted and protected by
the consumer protection councils
established at the central and state levels.
4. Quasijudicial machinery for speedy
redressal of consumer disputes - Quasijudicial machinery has been set up at
district, state and central levels. They are
supposed to observe the principals of
natural justice and are empowered- to give
relief of specific nature and to award,
wherever appropriate, compensation to
consumers.

Definition Of Consumer
Consumer [sec. 2(1) (d)]. Consumer means
any person who
Buys any goods for any consideration; or
Hires or avails of any services for a
consideration;
uses the goods with the approval of the
person who has bought goods for
consideration;
is a beneficiary of services with the
consent of the person who has hired the
services for consideration.

Definition Of Consumer
A person is a consumer when he purchases for
private use or consumption. Nominee of a
person insured under LIC is a consumer.
There are mainly three conditions which need
to be satisfied to call a person as consumer viz.,
the service should have been rendered to him.
the service should be hired by him., and
he should have paid the consideration for hiring
the service.

Definition Of Consumer
A person who buys goods and uses them himself,
exclusively for the purpose of earning his livelihood,
by means of self employment is within the definition
of the expression consumer
A person is not a consumer if :
He obtains the goods for resale or for any
commercial purpose or buys goods without
consideration; or
hires or avails of any services without consideration;
or
purchaser of share or debenture for resale;
persons presenting documents for registration;
Government servant.

GOODS
The term goods is not defined under the act.
However, the definition as provided under
the sale of goods act, need to be adopted
for the term goods. The term goods means,
every kind of movable property other than
actionable claims and money. Goods include
stocks and shares, growing crops, grass and
things attached to or forming part of the
land which are agreed to severed before
sale or under the contract of sale.

SERVICE
The term service is defined under [sec. 2(1) (0)] of
the act. It means:
Service of any description which is made available
to potential users.
It includes, provision of facilities in connection with
banking, financing insurance transport, processing,
supply of electrical or other energy, boarding or
lodging or both, house construction entertainment,
amusement or other purveying of news or other
information.
Service does not include the rendering of any
service free of charge or under a contract of
personal service.

SERVICE
The term service has variety of
meanings. It may mean any benefit
or any act resulting in promoting
interest or happiness. It may be
contractual, professional, public,
domestic, legal, statutory, etc. The
concept of service is very wide.

SERVICE
The following are some of the activities
considered as services within the act in
different cases by the courts.
Services rendered by Housing and
Development Board;
Services rendered by an agency for
publication of news;
Services rendered by Post and Telegraph
Department;
Services rendered by Insurance company
etc.,

SERVICE
The following activities are not
considered as services under the act ;
Faulty or medical treatment offered in
the Government Hospital.
Services rendered by Municipal
corporation.
Services rendered by an advocate etc.,

PERSON [Sec. 2(1) (m)]

A person includes:
a firm whether registered or not;
a Hindu undivided family;
a Co-operative Society;
every other association or persons
whether registered under the
Societies Registration Act, 1860, or
not

PERSON [Sec. 2(1) (m)]

Any company or association or body of
individuals whether incorporated or not
would mean a person. The definition
includes juristic person. It is inclusive
definition. A person by himself has no
locus standi under the act. A person has
to be a consumer within the definition
of the word consumer under the act to
get remedies provided in the act.

Consumer Disputes
Consumer disputes mainly relates to
allegation of complaint made against
a person in the Consumer Redressal
Forum. On a complaint before the
forum against a person, who denies
or disputes the allegations contained
in the complaint, a consumer dispute
arises. Separate allegations may form
separate disputes requiring separate
finding on each dispute.

Complainant
Complainant before the Consumer Redressal
Forum can be :
a consumer
any voluntary consumer association
registered under the Companies Act, 1956, or
under any other law for the time being in force
the Central Government or any State
Government who or which makes a complaint
one or more consumers, where there are
numerous consumers having the same
interest.

Complainant
The Consumer Redressal Forum being
a statutory creation under the
Consumer Protection Act, has no
jurisdiction over the matters on
which no complaint lies.

Complaint
A complaint is any allegation in writing
made by a complainant that :
an unfair trade practice or a restrictive
trade practice has been adopted by any
trader; It is for the complainant to
establish that he has suffered loss by
damage on account of unfair trade price
adopted by any trader. Unfair trade
practice relates to purchase of goods and
also rendering of services.

Complainant
The goods bought by him or agreed to be
bought by him, suffer from one or more
defects.
The service hired or availed of or agreed to be
hired or availed of by him suffer from
deficiency.
A trader has charged for the goods mentioned
in the complaint, a price in excess of the
price fixed by under the law for the being in
force, or displayed on the goods or on any
package containing such goods.

Complainant
Goods which will be hazardous to
life and safety when used are being
offered for sale in the public in
contravention of the provisions of
any law for the time being in force
requiring traders to display
information in regard to the contents,
manner and effect of use of such
goods.

Consumer Protection Councils

The consumer protection councils
constituted under the act are
Central consumer protection council.
State consumer protection councils.

Central Consumer Protection Council

(Secs. 4 to 8)
The Central Government has constituted Central Consumer
Protection Council consisting of the following members, not
exceeding 150 namely The minister in charge of consumer affairs in the central
government, who shall be its chairman ;
The minister of State or Deputy minister in the Department
of Civil Supplies who shall be the vice-chairman of Central
Council ;
The Minister of Food and Civil supplies or Minister in charge
of Consumer Affairs in states ;
8 members of Parliament, 5 from LokSabha and 3 from the
Rajya Sabha ;
The Commissioner for Schedule Castes and Schedule Tribes.

Central Consumer Protection Council

(Secs. 4 to 8)
Representatives of the Central Government
Departments, autonomous organizations concerned
with consumer interests, not exceeding 20 ;
Representatives of the Consumer Organizations or
consumers- not less than 35 ;
Representatives of women-not less than 10 ;
Representatives of farmers, trade and industries-not
exceeding 20 ;
Persons capable of representing consumer interests
not specified above-not exceeding 15 ;
The secretary in the Department of Civil Supplies
shall be the member secretary of the Central
Council.

Procedure For The Meetings Of The

Central Council
The term of the Central Council shall be
three years. The Central Council shall
meet as and when necessary, and at
least one meeting of the Council shall be
held every year. The Government may
constitute a standing working group from
the council members for the purpose of
monitoring the implementation of the
recommendations of the council.

Objects Of The Central Council

The right to be protected against the

marketing of goods and services which
are hazardous to life and property ;
The right to be informed about the
quality, quantity, potency, purity,
standard and price of goods and services
so as to protect the consumer against
unfair trade practices ;
The right to be assured , wherever
possible, access to a variety of goods and
services at competitive prices ;

Objects Of The Central Council

The right to be heard and to be
assured that consumers interests will
receive due consideration at
appropriate forums ;
The right to seek redressal against
unfair trade practices or unscrupulous
exploitation of consumers ; and
The right to consumer education.

The State Consumer Protection

Council
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
State Consumer Protection Council. It
Council shall meet at least twice a
year. The members will be same as in
the Central Council. The objects are
same as those of Central Council.

Establishment Of Consumer
Disputes Redressal Agencies
There shall be established for, the purpose of the act,
the following agencies, namely: A Consumer Disputes Redressal Forum to be known as
the District Forum established by the State
Government in each district of the State by
notification. The State Government may, if it deems fit,
establish more than one District Forum in a district.
A Consumer Disputes Redressal Commission to be
known as the State Commission established by the
State Government in the State by notification ; and
A National Consumer Disputes Redressal Commission
established by the Central Government by notification.

i.
ii.
iii.

Consumer Disputes Redressal

Forum
(The District Forum- Secs. 10 to
Each District Forum 15)
shall consists ofA person who is or has been or is qualified to be
a District Judge, who shall be its President ;
Two other members, one of whom shall be a
woman, who shall have the following
qualifications, namely :Be not less than 35 years of age,
Possess a bachelors degree from a recognized
university,
Be person of ability, integrity and standing and
have adequate knowledge and experience of at
least 10 years in dealing with problems relating
to economics, law, commerce, accountancy,
industry, public affairs or administration.

Jurisdiction Of The District Forum

(sec. 11)

a)

The District Forum shall have jurisdiction to

entertain complaints where the value of the goods
or services and the compensation, if any, claimed
does not exceed Rs. 20,00,00. This is however
subject to other provisions of this Act.
A complaint shall be instituted in a District Forum
within the local limits of whose jurisdiction
The opposite party or each of the opposite parties
where there are more than one, at the time of the
institution of the complaint, actually and
voluntarily resides or carries on business or has a
branch office, or personally works for gain, or

Jurisdiction Of The District Forum

(sec. 11)
b) Any of the opposite parties, where there are
more than one, at the time of the institution
of the complaint, actually and voluntarily
resides or carries on the business or has a
branch office, or personally works for gain.
But in such case either the permission of
the District Forum is given, or the opposite
parties who do not reside, or carry on
business or have a branch office, or
personally work for gain, as the case may
be, must acquiesce in such institutions ; or
c) The cause of action, wholly or in part,
arises.

Manner In Which Complaint Shall

Be Made
A complaint may be filed with a District Forum by
The consumer to whom such goods are sold or agreed
to sold or services provided or agreed to be provided ;
Any recognized consumer association, whether the
consumer is a member of such association or not ;
One or more consumers, where there are numerous
consumers having the same interest, with the
permission of the District Forum, on behalf of, or for
the benefit of, all consumers so interested ;
The Central Government or the State Government, as
the case may be, either in its individual capacity or as
a representative of interests of the consumers in
general.

Procedure On Receipt Of
Complaint
The District Forum shall on receipt of
a complaint:
a) Refer a copy of such complaint to
the opposite party directing him to
give his version of the case within a
period of 30 days or such extended
period not exceeding 15 days as
may be granted by the district
forum.

Procedure On Receipt Of
Complaint
b) Where the opposite party , on
receipt of a copy of the complaint ,
denies or disputes the allegations
contained in the complaint , or
omits or fails to take any action to
represent his case within the time
given by the district forum, the
district forum shall proceed to settle
the consumer dispute.

Procedure On Receipt Of
Complaint
i.

On the basis of evidence brought to its

notice by the complaint and the opposite
party, where the opposite party denies
or disputes the allegations contained in
the complaint; or
ii. On the basis of evidence brought to its
notice by the complaint where the
opposition party omits or fails to take
any action to represent his case within
the time given by the forum;

Procedure On Receipt Of
Complaint
In addition to procedure prescribed
under section.13 (2) of the act ,
further procedure has been provided
for under the respective state rules,
which are almost identical in each
state .Such further procedure as
provided in consumer protection
rules is as under;

Procedure On Receipt Of
Complaint
1. Where the opposite party admits the
allegation made by the complaint , the
district forum shall decide the complaint on
the basis of the case and documents
present before it.
2. If during the proceeding conducted under
section 13 of the act , the district forum
fixes a date for hearing of the parties , it
shall be obligatory on the complaint and
opposite party or its authorized agent to
appear before the district forum in such
date of hearing or any other date to which
hearing could be adjourned.

Procedure On Receipt Of
Complaint
3. Where the complaint or his authorized
agent fails to appear before the district
forum on such day ,the district forum
may in its discretion either dismiss the
complaint in default or if a substantial
portion of the evidence of the
complaint has already been recorded
,decide it on merits. Where the
opposite party or its decide the
complaint ex-party.

Procedure On Receipt Of
Complaint
4. Where any party to a complaint to
whom time has been granted fails
to produce his evidence or to cause
the attendance of his witness , or
to perform any other act necessary
to the further progress of the
complaint , for which time has
been allowed the district forum
may not withstanding such default;

Procedure On Receipt Of
Complaint
a) If the parties are present , proceed
to decide the complaint forthwith;
or
b) If the parties or any of them is
absent proceed as mentioned
above in sub-rule.

Procedure On Receipt Of
Complaint
5. The district forum may , on such terms as
it may think fit at any stage ,adjourn the
hearing of the complaint but more than
one adjournment shall ordinarily be given
and the complaint should be decided
within 90 days from the date of notice
received by the opposite where complaint
does not require analysis or testing of the
foods and within 150 days if it requires
analysis or testing of the goods.

Powers Of Civil Court To District

Forum
The district Forum is also vested , under
section. 13(4), with the following
powers as are vested in a civil under
the code of civil procedure 1908 ,while
trying a civil suit in the following
matters.
1. The summoning and enforcing
attendance of any defendant or witness
and examining the witness on oath;

Powers Of Civil Court To District

Forum
2. The discovery and production of any
document or other material object
producible as evidence;
3. The reception of evidence on affidavits;
4. The requisitioning of the report of the
concerned analysis or test from the
appropriate laboratory or from any other
relevant source;
5. Issuing of any commission for the
examination of any witness.

Powers Of Civil Court To District

Forum
Additional powers requiring
production of documents ,etc. The
national commission , state
commission and district forums are
also vested with additional powers
under rule 10 of the consumer
protection rules 1987 to require any
person ;

Powers Of Civil Court To District

Forum
1. (a) to produce before , and allow to be
examined and kept by an officer of the
national commission , the state commission
or the district forum, as the case may be
specified in this behalf , such books ,
accounts , documents or commodities or
described in the requisitions , if the
examination of such books , accounts ,
documents or commodities are required for
the purpose of this act ;
(b) to furnish to an officer so specified ,such
information as may be required for the
purpose of this act.

Powers Of Civil Court To District

Forum
2. (a) where during any proceedings under
this act the national commission, the state
commission or the district forum as the
case may be has any ground to believe
that any book , any paper , commodity, or
document which may be required to be
produced in such proceeding are being , or
may be destroyed , mutilated , altered
,falsified or secreted , it may , by writing
order authorized any officer to exercise the
power of entry and search of any premises.

Powers Of Civil Court To District

Forum
Such authorized officer may also seize
such books , papers , documents or
commodities as are required for the
purpose of this act ; provided that such
seizure shall be communicated to the
national commission or the district
forum , as the case may be as soon as it
made or within a period not exceeding
72 hours of making such seizure;

Powers Of Civil Court To District

Forum
b) The national commission , the state
commission or the district forum as
the case may be , on examination
of such seized documents or
commodities , as the case may
be ,may order the retention there of
or may return it to the party
concerned.

Finding Of the District Forum

If, after the proceeding conducted
under section13, the district forum is
satisfied that the goods complained
against suffers from any of the defects
specified in the complaint about the
services or allegations contained in
the complaint about the services are
proved , it shall issue an order to the
opposite party directing him to do one
or more of the following things names;

Finding Of the District Forum

1. To remove the defect pointed out by
the appropriate laboratory from the
goods in questions;
2. To replace the goods with new
goods of similar descriptions which
shall be free from defect;
3. To return to the complaint the
price , or as the case may be , the
charges paid by the complaint;

Finding Of the District Forum

4. To pay such amount as may 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;
5. To remove the defects or deficiencies, in
the services in question;
6. To discontinue the unfair trade practice or
the restrictive trade practice or not to
repeat them;

Finding Of the District Forum

7. Not to offer the hazardous goods for
sale;
8. To withdraw the hazardous goods
from being offered for sale;
9. To provide for adequate costs to
parties.

Appeal Against Orders Of The

District Forum
Any person aggrieved by an order made
by the district forum may appeal against
such order to the State commission
within a period of 30 days from the date
of the order. The state commission within
that period. The expression date of
order should be constructed as date of
knowledge of the order , i.e., when copies
of the order are received by the party.

State Commission
It shall consists of ;
1. A person who is or has been judge of a
high court, appointed by the state
government who shall be its president;
2. Two other members with qualifications
and experience within the state;
3. Revision petitions against the district
forum.

State Commission
Procedure to be followed by state
commission:
Procedure of the state commission
for entertaining original complaints is
the same as for district forum.

State Commission
Procedure of hearing appeal by state
commission;
The procedure for hearing of appeals
by the state commission has been
prescribed by the state rules framed
by the states which are almost
identical for each state. Reference
may be made to the relevant state
rules by the readers of that state.

State Commission
Appeal may be decided ex-party in
case the opposite party fails to file a
reply to the appeal and /or fails to
appear himself or through his
agent /advocate on the date fixed . It
may be decided on merit . In case
the appellant fails to appear on the
date fixed for hearing .

State Commission
Appeals against orders of state commission :
Any person aggrieved by an order made by
the state commission may appeal against
such order to the national commission
within a period of 3 days . The national
commission may entertain an appeal after
30 days if it is satisfied that there was
sufficient cause for not filing it within that
period.

National Commission
This shall consists of ;
1. A person who is or has been a judge
of the supreme court to be
appointed by the central
government who shall be its
president.
2. Four other members , one of whom
shall be a woman.

National Commission
Jurisdiction of the National Commission:
The National Commission shall have
jurisdiction:
1. To entertain
complaints where the value of goods
services and compensation if nay ,
claimed exceeds rupees 20 lakhs; and
Appeals against the orders of any
state commission.

National Commission
2. To entertain revision petitions against the
state commission.
procedure to be followed by the national
commission:
A complaint containing the following
particulars shall be presented by the
complaint in person or by his agent to the
national commission or be sent by
registered post, addressed to the national
commission:

National Commission
1. The name, description and the
address of the complaint;
2. The name , description and address
of the opposite party or parties , as
the case may be , so far as they can
be ascertained;
3. The facts relating to the complaint
and when and where it arose;

National Commission
4. Documents in support of allegations
contained in the complaint;
5. The relief which the complaint claims.
The remaining procedure is similar to
that for state commission , procedure
for filing and hearing of appeals has
been prescribed in Rule 15 of the
consumer protection Rules ,1987.

National Commission
Appeal against orders of the National
commission:
Any person aggrieved by an order made
by the national commission , may appeal
against such order to the supreme court
within 30 days from the date of the order .
The supreme court may entertain an
appeal after 30 days if it is satisfied that
there was sufficient cause for not filing
the appeal within that period.

National Commission
Penalities
Where a person against whom a complaint is
made or the complaint fails or omits to comply
with any order made by the District Forum, the
state commission ,as the case may be ,such person
or complainant shall be punished with
imprisonment for a term which shall not be less
than one month but which may extend to 3
years ,or with fine which shall not less than 2000/rupees but which may extend to 10000 rupees , or
with both . In exceptional circumstances the
penalties may be reduced further.

Miscellaneous
Protection of action taken in good faith.
No suit , prosecution or other legal
proceedings shall lie against the members of
the district forum , the state commission or
the national commission or any officer or
person action under the direction of the
district forum, the state commission or the
national commission for executing any order
made by it or in respect of anything which is
good faith done or intended to be done by
such member , officer or person under this
Act or under any rule or order made there
under.

Power To Remove Difficulties

1. If any difficulty arises in giving effect to
the provisions of this act , the central
government may , by order in the official
gazette, make such provisions not
inconsistent with the provisions of this act
as appear to it to be necessary or
expedient for removing the difficulty;
Provided that no such order shall be made
after the expiry of a period of two years
from the commencement of this act.

Power To Remove Difficulties

2. Every order made under this section shall ,
as soon as may be after it is made be laid
before each house of parliament.
vacancies or defects in appointment not
to invalidate orders . No act or proceeding
of the district forum , the state commission
or the national commission shall be invalid
by reason only of the existence of any
vacancy amongst its members or any
defect in the constitution thereof.

Power To Make Rules

Sec.30 empowers the central
government and state governments
by notification to make necessary
rules for carrying out the provisions
of this act.

Laying Of Rules
1. Every rule made by the central government
under this act shall be laid as soon as may
after it is made, before each house of
parliament , while it is in session, for a total
period of thirty days which may be
comprised in one session or in two or more
successive session , and if before the ,
expiry of the session immediately following
the session or the successive session
aforesaid, both Houses agree in making any
modification in the rule or both Houses
agree that the rule should not be made,

Laying Of Rules
The rule shall there after have
effect only in such modified form or
be of no effect , as the case may be
; so , however, that any such
modification or annulment shall be
without , prejudice to the validity of
anything previously done under that
rule.

Laying Of Rules
2. Every rule made by a state
government under this act shall be
laid as soon as may be after it is
made , before the state legislature.