CONSUMER

PROTECTION
ACT-1986
 Introduction
 Consumer movement
 Consumer Protection Act
 Objectives of Consumer Protection Act
 Consumer definition
 Rights of Consumer
 Who is not a consumer?
 Who can complaint?
 Time & place of complaint
 District forum
 State commission
 National commission
 Redressal mechanism
 Appeals
 Special provision relating to appeals
 Dismissal of complaints
 Execution of orders
 Penalties
 Unfair trade practices
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. 
The Consumer movement is a socio-economic movement that seeks to
protect the rights of the consumers in relation to the goods purchased and
services availed. Government has accorded high priority to the program
of consumer movement & consumer protection. The Department of
Consumer Affairs being a nodal Department in the field of consumer
protection has initiated a number of steps to promote a responsible and
responsive consumer movement in the country. Such measures include
the use of mass media for promoting consumer awareness and
encouraging consumers' involvement through Governmental and non-
governmental organizations etc.
 The Consumer Protection Act, 1986 (68 of 1986) is a milestone in the history of socio-
economic legislation in the country. It is one of the most progressive and
comprehensive pieces of legislation enacted for the protection of consumers. All the
provisions of the Consumer Protection Act. 1986 came into force with effect from
1.7.1987 throughout the country except in the State of Jammu & Kashmir. The State of
Jammu & Kashmir has enacted its own legislation in this field. Protection
        The Consumer Act, 1986 is a unique piece of legislation as it provides a separate
three-tier quati-judicial consumer dispute redressal machinery at the national, state and
district level. The Act is intended to provide simple, speedy and inexpensive redressal
of the consumers' grievances.  In terms of the Act, the Central Government first
constituted the Central Consumer Protection Council (CCPC) on 1.6.1987 and it has
been reconstituted from time to time. The CCPC was last constituted in May, 2003 for
three years. So far, the Council has held 23 meetings. The last meeting was held on
16.7.2003. The State Govts./UT Administrations are required to establish the
Consumer Protection Councils at the State level as well as at District levels to
strengthen consumer movement a the grass root level.
 The right to be protected against marketing of goods
which are hazardous to life and property.
 The right to be informed about the quality, quantity,
potency, purity, standard and price of goods so as to
protect the consumer against unfair trade practices .
 The right to be assured, wherever possible, access to a
variety of goods at competitive prices.
 The right to seek redressal against unfair trade practices
or unscrupulous exploitation of consumers.
 The right to consumer education
The consumer protection Act, 1986, provides for the better
protection of consumers. Unlike existing laws which are
punitive or preventive in nature, the provisions of this Act
are compensatory in nature. The act is intended to provide
simple, speedy and inexpensive redressal to the consumers'
grievances, award relief and compensation wherever
appropriate to the consumer.
 Who buys any goods for a consideration
 Hires or avails of any services for a
consideration
 Uses the goods with the approval of the
person who has bought the goods for
consideration.
 Is beneficiary of the services
 Rights of consumer under consumer protection Act 1956

1. the right to be protected against marketing of goods and

services which are hazardous to life and property
2. the 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
3. the right to be assured, wherever possible, access to
variety of goods and services at competitive prices
4. The right to be heard and be assured that
consumers' interests will receive due
consideration at appropriate forums.
5. The right to seek redressal against
unfair trade practices or restrictive trade
practices or exploitation of consumers.
6. The right to consumer education.
He who buys for resale or for
commercial purpose
Buys goods without consideration
Uses goods without the approval of
the person who has bought the goods
for consideration
Obtains services under a contract of
personal service
A consumer
Any registered voluntary
consumer association
Central or state government
One or more consumers
The consumer protection
act provides for a three-
tier consumer
disputes redressal system
encompassing the District,
State and
National levels.
 Sec. 24A: It is to be filed within two years of the date
of cause of action
 A complaint can be filed at:
▪ Where the Opposite Party resides,
carries on business or works for gain
or has a branch office
▪ The cause of action wholly or in part
arose
  Theoffice of the district forum shall be at the
Head Quarters of the respective district. The
District Forum consists of the President, who is
nominated by the Government and who is or has
been or qualified to be a District Judge and two
other members (one is a lady member) of
eminence in the field of education, trade or
commerce. They hold office for a term of 5 years
whichever is earlier and they are not eligible for
reappointment. The pecuniary jurisdiction of the
forum is less than 5 lakh rupees i.e., value of goods
of services and compensation if any claimed.
   The President of the State Commission is or had been
a Judge of a High Court. There are two other Members
who are person for ability, integrity and standing with
adequate knowledge or experience in Economic, Law,
Commerce, Accountancy, Industry, Public affairs or
administration. One Member shall be a woman.

Complaint value of goods or services and
compensation exceeds rupees five lakhs but does not
exceed Rs.10 lakhs. It also hears appeal against orders
of district forum
 The national commission shall consist of a person
who is or who has been a judge of the supreme court
,appointed by the central government and two other
member who shall be person of ability, integrity and
standing and have adequate knowledge or
experience of or have shown capacity in dealing
with problem relating to economics, law, commerce,
accounting, industry, public affairs or
administration, one of whom shall be a woman.
 A complaint where the value of the goods or
services and the compensation is more than 10 Lakh
dealt with.
In general, the rights of consumers in India can be listed as
under:-ACT1986

* The right to be protected from all types of hazardous

goods and services
* The right to be fully informed about the performance and
quality of all goods and services
* The right to free choice of goods and services
* The right to be heard in all decision-making processes
related to consumer interests
* The right to seek redressal, whenever consumer rights
have been infringed
 REDRESSAL MECHANISM
DISTRICT STATE NATIONAL SUPREME
FORUM COMMISSION COMMISSIO COURT
N
•Original •Jurisdiction •Jurisdiction •Appellate
Jurisdiction Original Original Jurisdiction
•Up to 20 •Appellate •Appellate
Lakhs •Revisional •Revisional
•Decision •From 20 Lakhs •1 Crore and
within 3 to 1 Crore above
months or 5 •Decision within
months if 90 days form the
Lab. Test date of admission
required
 Any person aggrieved by an order made by the
District Forum may prefer an appeal against such
order to the State Commission within a period of
thirty days from the date of the order, in such form
and manner as may be prescribed :
 
 Provided that the State Commission may entertain
an appeal after the expiry of the said period of thirty
days if it is satisfied that there was sufficient cause
for not filing it within that period.
 Sec. 15,19 & 23: Appeals
either to the State Commission
or the National Commission or
Supreme Court within 30days.
SPECIAL PROVISION RELATING TO
APPEALS
 An amount of:
▪ Half of the award or 25,000/- whichever is less is to
be deposited in case of appeal to the State
Commission
▪ Half of the award or 35,000/- whichever is less in
case of an appeal to the National Commission
▪ Half of the award or 50,000/- whichever is less in
case of an appeal to the Supreme Court
 Sec.26: Frivolous or Vexatious
complaints & Award of cost up to Rs.
10,000/-
 13(2)(c): Due to absence of the
Complainant
 Every order of a District Forum, State
Commission or the National Commission shall,
if no appeal has been preferred against such
order under the provisions of this Act, be final.
 

 Orders passed by the Forum or Commissions

are final, if no appeal is filed
 (a) in the case of an order against a company, the
registered office of the company is situated, or

(b) in the case of an order against any other person,
the place where the person concerned voluntarily
resides or carries on business or personally works for
gain, is situated,

and thereupon, the court to which the order is so
sent, shall execute the order as if it were a decree or
order sent to it for execution." (w.e.f. 15-3-2003).
 Where a trader or a person against whom a complaint is
made 2[or the complainant] fails or omits to comply
with any order made by the District Forum, the State
Commission or the National Commission, as the case
may be, such trader or person 2[or complainant] shall be
punishable with imprisonment for a term which shall
not be less than one month but which may extend to
three years, or with fine which shall not be less than
two thousand rupees but which may extend to ten
thousand rupees, or with both.
 Omitted by Act 62 of 2002, sec. 23 (15-3-2003).
Proviso before omission read as: "Provided that
the District Forum, the State Commission or the
National Commission, as the case may be, if it is
satisfied that the circumstances of any case so
require, impose a sentence of imprisonment or
fine, or both, for a term lesser than the
minimum term and the amount lesser than the
minimum amount, specified in this section.".
Making statements
▪ Falsely representing goods of particular
standard
▪ Old goods as new goods
▪ Goods and services have sponsorship,approval
▪ False guarantee is given
▪ Materially misleading the public about the
price of the product
THANK YOU