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CONSUMER PROTECTION ACT1986

Meaning of Consumer Protection:
Consumer protection means the protection of the consumers from their exploitation by
the unfair trade practices of the producers/sellers. In fact, providing proper protection of
the fundamental rights and Interests of the consumers, freeing them from exploitation,
creating consumer awareness, consumer providing the right to clean business
environment to the consumers by means of Legal amendments Is all that protection
means,
Consumer Protection Act In India:
In India, Central and State Governments have passed various legislative enactments
regarding Consumer Protection. Among them, main Acts are:

Drug and Cosmetics Act 1940,

Industries Development and Regulation Act 1951
Indian Standards Institution (Certification Marks) Act 1952
Prevention of Food Adulteration Act 1954
Essential Commodities (Supply) Act 1955
The Trade and Merchandise Marks Act, 1958
Monopolies and Restrictive Trade Practices Act 1969
Packaged Commodities Regulation Order 1975
Standards of Weights and Measures Act 1976
Prevention of Black Marketing and Maintenance of Supplies of Essential
Commodities Act 1980
Standards of Weights and Measures (Enforcement) Act. 1985.

SCOPE AND EXTENT OF THE ACT:

1. Except Jammu and Kashmir state, this Act extends to whole of India.
2. Provisions of this Act are In addition to the provisions made previously in the context
of the consumers.
3. This Act shall apply to all goods and services that come under the scope of this Act.
Main Elements/Features of Consumer Protection Act, 1986:
Consumer Protection Act is the most progressive Act of Social well are and is referred to
as Magna Carta of consumer protection. It is a land mark event In the history of Acts In
India.
Main features of the Act are as under

It applies to all kinds of goods and services.

Provisions of this Act are in addition to the provisions of any other Act in force In
the country. Thus, this Act does not limit or reduce the scope of any other Act

Under this Act, there Is a provision for the Centre and State Governments to set
up Consumer Protection Councils composing of both official and non-official
members. The objectives of the council are:
- to promote the rights and Interests of the consumers,
- to educate and protect them.

This Act provides for the following rights to the consumer:

o Right to safety,
o Right to be heard,
o Right to consumer education,
o Right to seek redressal
o Right to Choose
o Right to be Informed

This Act is based on the principle of compensation wherein fair compensation to

the aggrieved party is provided for. To redress the grievance, there Is provision for
three-tier judicial machinery
o District level
o State level and
o National Level

This Act provides affective protection to the consumer from different types of
exploitations, such as defective goods, adulteration, under-weight, excessive
price, unsatisfactory or deficient services and unfair trade practices.
This Act redresses in a simple, cheap and dynamic manner the grievance of the
consumer in limited time.
All suppliers of goods and services belonging to private, public and co-operative
sectors come under the purview of this Act.

Right to Consumer:
In a free market economy, consumer is sovereign. He has the right to buy or not to buy a
product offered for sale, to expect the product to be safe; to expect the product sale, to be
what it is claimed to be; to be adequately informed about the most salient aspect of the
product. He has a right to receive proper and efficient service and satisfaction. Under
section 6 of Consumer Protection Act, consumer has following rights:

(I) Right to Safety: Consumer has the right to be protected against marketing of such
goods and services as are hazardous to health, life and property. There are several fake,
adulterated, inferior, defective, ineffective and dangerous goods available in market. They
are injurious to body and health. Consumer therefore, has the right to safety from all such
goods as well as are likely to cause harm to his body and health, besides causing loss of
money.
(II) Right to Choose: Under this right, consumer can choose any from among the variety
of goods and services available in the market. One finds in the market goods of different
brand, quality, shape, colour, size, design and price produced by different manufacturers.
Under this right, the consumer must be assured access to variety of goods and services at
competitive prices as far as possible. Misleading or false advertisement, wrong
information or in any other way, If any person (manufacturer, seller) influences his
preference, in an unfair or unnecessary manner, it will be treated as intervention in his
right to choose.
(III) Right to be Informed: Consumer has the right to get all necessary information on
the basis of which he may decide to buy the good or service. He has therefore the right to
be Informed about the quality, quantity, purity, potency, standard, price of goods, etc.
(IV) Right to be heard: Consumer has the right to present before the appropriate forum or
authorities all those matters which effect his interests. This right Includes the right to
make protest and file complaints. This right implies that matters of interest to the
consumer will receive due consideration at appropriate forums, so that he is encouraged
to express his problems, complaints and unjust treatment meted out to him.
(V) Right to seek redressal: Consumer has the right to get his claims and complaints
settled against the manufacturers and sellers. This right provides the consumer freedom
from unfair trade practice or unscrupulous exploitation by the trader. Besides, it helps
him secure compensation.
(VI) Right to Consumer Education: Under this right, consumer is entitled to get
Information or educated about those things which are necessary for him. Such an
education creates awareness about his rights and he comes to know when to approach for
the redressal of his grievance and exploitation. This helps a consumer protect himself
against fraudulent, deceptive and misleading advertisement and poor or negligent
services.

* Consumer Disputes Redressal Forums- known as 'District

Forum.

(I) The District Consumer Protection Council :

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.
Composition of the district forum:
Each District Forum shall consist of

A person who is, or who has been or is qualified to be, a District Judge, who shall
be its President;
There will be 2 other members who shall be persons of ability, integrity and
standing and have adequate knowledge or experience or have shown capacity In
dealing with problems rebating to economics, law, commerce, accounting,
industry, public affairs or administration, one of whom shall be a women.
Every appointment shall be made by the State Government on the
recommendation of Selection Committee consisting of the following namely:

o The President of the State Commission- Chairman,

o Secretary, Law Department of the State- Member,
o Secretary, incharge, of the Department dealing with Consumer affairs in
the State- Member.

(II) The State Commission:

Regarding State Commission following provision have been made In Consumer
Protection Act 1986.
Establishment: In every state, the state government, by issuing a notification can establish
consumer Grievance Redressal Commission to be called State Commission.

Composition: Each State Commission shall consist of:

A person (member) who is or has been a judge of a High Court, appointed by the
State Government. who shall be its President. But his appointment shall be made
only after consultation with the Chief Justice of the High Court.
There will be 2 other members who shall be persons of ability, integrity and
standing and have adequate knowledge or experience or have shown capacity In
dealing with problems rebating to economics, law, commerce, accounting,
industry, public affairs or administration, one of whom shall be a women.
Every appointment shall be made by the State Government on the
recommendation of the selection committee. The Selection committee shall be
composed of:
o President of the State Commission Chairman
o Secretary of the Law Department of the State Member
o Secretary incharge of the Department dealing with Consumer Affairs in
the State Member

Terms and Age:

Every member of the State Commission shall hold office for a term 5 years, or up to the
age of 67 years, whichever is earlier, and shall not be eligible for re-appointment.
Jurisdiction of State Commission:
Subject to the other provision of this Act., the State Commission Shall have Jurisdiction:
(a) to entertain:
(i) complaints where the value of the goods or services and compensation, if any
claimed exceeds rupees 20lakhs but does not exceed rupees one crore.
(ii) appeals against the orders of any District Forum within the Stale; and
(b) to call for the records and pass appropriate and pass appropriate orders In any
consumer dispute which is pending before or has been decided by any District Forum
within the State, where It appears to the State Government that such District Forum has
exercised a jurisdiction not vested In it by law or has failed to exercise a Jurisdiction so
vested or has acted in exercise on its jurisdiction illegally or with material irregularity.
III. The National Commission:
Following are the provisions of the Consumer Protection Act in respect of the National
Commission:
Establishment:
By issuing a notification Central Government can set up a National Commission This
Commission has been established at New Delhi.
Composition:
The National Commission shall compose of:

A person (member) who is or has been a judge of the Supreme Court, shall be
appointed by the Central Government. He shall be its President. Provided that no
appointment under this clause shall be made except after consultation with the
Chief justice of India.
There shall be 4 other members including one woman. They shall be persons of
ability integrity, experience of, or have shown capacity in dealing with problems
relating to economics, law, commerce, accountancy, industry, public affairs or
Administration.

Every appointment shall be made by the Central Government on the recommendation of

a Selection Committee consisting of the following namely:

A person who is a judge of the Supreme Court, to be nominated by the chief

justice shall be its Chairman.

The secretary Department of Legal Affairs In the government of India shall be Hs

member.
Secretary of the Department dealing with consumer affairs in the government of
India shall be its other members.

Term of Members:
Every member of the National Commission shall hold office for a term of 5 years or up
to the age of 70 years, whichever is earlier.
.
Jurisdiction of the National Commission:
Subject to the other provisions of this Act, the National Commission shall have
Jurisdiction as under

to entertain complaints where the value of the goods or services and

compensation, if any, claimed exceeds rupees 1crore.
to entertain appeals against the orders of any State Commission;
to call for the records and pass appropriate orders In any consumer dispute which
is pending before or has been decided by any state commission where it appears
to the National Commission that such State Commission has exercised a
jurisdiction not vested in it by Law, or has failed to exercise a jurisdiction so
vested, or has acted in the exercise of its jurisdiction illegally or with material
irregularity.