CONSUMER PROTECTION ACT, 1986

What is the Consumer Protec on Act?

The Consumer Protec on Act, implemented in 1986, gives easy and fast
compensa on to consumer grievances. It safeguards and encourages
consumers to speak against insufficiency and flaws in goods and services.
If traders and manufacturers prac ce any illegal trade, this act protects
their rights as a consumer. The primary mo va on of this forum is to
bestow aid to both the par es and eliminate lengthy lawsuits.
This Protec on Act covers all goods and services of all public, private, or
coopera ve sectors, except those exempted by the central government.
The act provides a pla orm for a consumer where they can file their
complaint, and the forum takes ac on against the concerned supplier
and compensa on is granted to the consumer for the hassle he/she has
encountered.

Meaning of the word ‘consumer’

A consumer is an individual or group of individuals who purchase goods
and services for their own personal use and not for the purpose of
manufacturing or resale. Sec on 2(7) of the Consumer Protec on Act,
2019 defines a consumer as any person who buys goods or services in
exchange for considera on and u lises such goods and services for
personal use and for the purpose of resale or commercial use. In the
explana on of the defini on of consumer, it has been dis nctly stated
that the term ‘buys any goods’ and ‘hires or avails any services’ also
includes all online transac ons conducted through electronic means or
direct selling or teleshopping or mul -level marke ng.
Consumer Rights and Responsibili es:
The Rights of the Consumer
 Right to Safety- Before buying, a consumer can insist on the quality
and guarantee of the goods. They should ideally purchase a
cer fied product like ISI or AGMARK.
 Right to Choose- Consumer should have the right to choose from a
variety of goods and in a compe ve price.
 Right to be informed- The buyers should be informed with all the
necessary details of the product, make her/him act wise, and
change the buying decision.
 Right to Consumer Educa on- Consumer should be aware of
his/her rights and avoid exploita on. Ignorance can cost them
more.
 Right to be heard- This means the consumer will get due a en on
to express their grievances at a suitable forum.
 Right to seek compensa on- The defines that the consumer has the
right to seek redress against unfair and inhumane prac ces or
exploita on of the consumer.

The Responsibili es of the Consumer

 Responsibility to be aware – A consumer has to be mindful of the
safety and quality of products and services before purchasing.
 Responsibility to think independently– Consumer should be well
concerned about what they want and need and therefore make
independent choices.
 Responsibility to speak out- Buyer should be fearless to speak out
their grievances and tell traders what they exactly want
  Responsibility to complain- It is the consumer’s responsibility to
express and file a complaint about their dissa sfac on with goods
or services in a sincere and fair manner.
 Responsibility to be an Ethical Consumer- They should be fair and
not engage themselves with any decep ve prac ce.

How to File a Complaint?

 Within two years of purchasing the product or services, the
complaint should be filled.
 In the complaint, the consumer should men on the details of the
problem. This can be an exchange or replacement of the product,
compensa on for mental or physical torture. However, the
declara on needs to be reasonable.
 All the relevant receipts and bills should be kept and a ached to
the complaint le er.
 A wri en complaint should then be sent to the consumer forum via
email, registered post, fax or hand delivered. Acknowledgement is
important and should not be forgo en to receive.
 The complaint can be in any preferred language.
 The hiring of a lawyer not required.
 All the documents sent and received should be kept.

What are unfair trade prac ces under Consumer Protec on Act, 2019

Sec on 2(47) of the Consumer Protec on Act, 2019 defines the term
‘unfair trade prac ces’ which include:
 Manufacturing spurious goods or providing defec ve services.
  Not issuing cash memos or bills for the goods purchased or services
rendered.
 Refusing to take back or withdraw the goods or services and not
refunding the considera on taken for the purchase of the goods or
services.
 Disclosing the personal informa on of the consumer.

Redressal Agencies: For the redressal of consumer grievances, the

Consumer Protec on Act, 1986 provides for se ng up of a three- er
machinery at the district, state and the na onal levels. These agencies
are:

1. District Forum or District Consumer Dispute Redressal Forum

(i) The State Governments are required to establish District Forums in
each district.
(ii) Each District Forum consists of a chairman and two members
appointed by the State Government, one of whom should be a woman.
(iii) A District Forum can receive consumer complaints, where the value
of goods or services and the compensa on claimed is not more than 20
lakhs.
(iv) The complaint can be filed by the consumer to whom goods are sold
or services rendered, or any recognized consumer associa on.
(v) On receiving the complaint, the District Forum shall refer the
complaint to the opposite party concerned and send the sample of goods
for tes ng in a laboratory. The opposite party is the seller, manufacturer
or any organiza on against whom the complaint has been filed.

2. State Commission or State Consumers Disputes Redressal

Commission

(i) State Commission is set up by the State Government and its

jurisdic on is restricted to the boundaries of the state concerned.
(ii) The State Commission shall consist of a President, who is or has been
a judge of a High Court and two other members, one of whom is a
woman. All the three shall be appointed by the State Government.

(iii) Only those complaints can be filed, where the value of goods or
services and compensa on claimed is more than Rs. 20 lakhs but not
more than Rs. 100 lakhs. The appeals against the orders of any District
Forum can also be filed before the State Commission, within 30 days of
passing of the order.

3. Na onal Commission or Na onal Consumer Disputes Redressal

Commission
(i) The Na onal Commission is set up by the Central Government.
(ii) It shall consist of a President, who is or has been a judge of the
Supreme Court and four other members appointed by the Central
Government, one of whom shall be a woman.
(ii) All complaints pertaining to those goods or services and
compensa on whose value is more than Rs. 100 lakhs can be filed.
Appeals against the order of any State Commission can also be filed
before the Na onal Commission, within 30 days of passing of the order.
(iv) An order passed by the Na onal Commission is appealable before the
Supreme Court.

Func ons and du es of the Central Authority

The func ons and responsibili es of the Central Authority are laid down
in Sec on 18 of the Act which includes;

 To protect and promote the rights of the consumers as a class and

to prevent viola on of consumer rights,
 To prevent unfair trade prac ces,
 To ensure no false or misleading adver sements regarding any
goods or services are promoted,
 To ensure no person takes part in false or misleading
adver sements,
 Inquire or inves gate cases of viola on of consumer rights or unfair
trade prac ces.
 File complaints before the Na onal, State or District Commission as
the case may be,
 To review ma ers rela ng to the factors hindering the enjoyment
of consumer rights.
 To recommend the adop on of interna onal covenants and best
interna onal prac ces concerning consumer rights
 Promote research and awareness of consumer rights.
 Lay down necessary guidelines to prevent unfair trade prac ces and
protect the interests of the consumers.
Furthermore, the Central Authority also has the power to inves gate
a er receiving any complaint or direc ons from the Central Government
or of its own mo on in cases where there is an infringement of consumer
rights or unfair trade prac ces are carried out. And if the Central
Authority is sa sfied that infringement of consumer rights or unfair trade
prac ces has occurred then it may:

 Recall the goods or services which are hazardous and detrimental

to the consumers,
 Reimburse the prices of the goods and services to the consumers,
and
 Discon nue the prac ces that are prejudicial and harmful to the
consumers.