Consumer Protection Act 1986

• SIX BASIC CONSUMER RIGHTS

• Right to safety – Consumers are protected against the marketing of goods and services
that are hazardous to their life and property.
• Right to be informed – Consumers have the right to be informed of the quality,
quantity, content, purity, and price of goods.
• Right to choose – Customers should be given a variety of goods and services at
different prices to choose upon.
• Right to be heard – Customers interest
• should be taken into account. No seller can influence the choice in an unfair manner.
• Right to seek redressal – Customer has the right to seek remedy against the unfair
practice.
• Right to consumer education– Consumer has the right to acquire knowledge
regarding his/her rights.
Definitions :
Consumer-
Consumer means any person who-
1) Buys any goods for a consideration that has been paid or promised or partly paid and partly promised or
under any system of deferred payment;
2) Hires or avails of any services for a consideration which has been paid or promised or partly paid and
partly promised or under any system of deferred payment and includes any beneficiary of such services
other than the person who hires or avails of the services for consideration paid or promised or partly paid
and partly promised or under any system of deferred payment, when such services are availed of with the
approval of the first mentioned person but does not include a person who avails of such services for any
commercial purpose.
Defect- Defect means any fault, imperfection or shortcoming in the quality, quantity, potency, purity, or
standard which is required to be maintained by or under any law for the time being in force.
Consumer dispute- Consumer dispute means a dispute where the person against whom a complaint has been
made, denies or disputes the allegation contained in the complaint.
Deficiency- Deficiency means any fault, imperfection or shortcoming or inadequacy in the quality, nature and
manner of performance which is required to be maintained by or under any law for the time being in force or
has been undertaken to performed by a person in pursuance of a contract or otherwise in relation to any
service.
Service- Service means service of any description which is made available to potential users and includes, but not
limited to the provision of facilities in connection with banking, financing insurance, transport, processing, supply of
electrical or other energy, board or lodging or both, housing construction, entertainment. amusement or with purveying
of news or other information but does not include the rendering of any service free of charge or under a contract of
personal service.
• Unfair Trade Practice – The Act says that, “unfair trade practice” means a trade practice which, for the purpose of promoting
the sale, use or supply of any goods or for the provison 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 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, and 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 false or misleading statement 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;
• (viii) makes to the public a representation in a form that purports to be a warranty or guarantee of a product or of any goods or
services; or 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 per ported 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
• (x) Gives false or misleading facts disparaging the goods, services or trade of another person.
• Note: A statement is said to be made to public when it 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, 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.
• Note: “Bargain 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 bargain price having regard to the prices at
which the product advertised or like products are ordinarily sold.
• (3) Permits 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; or 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;
• (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. What is a
Restrictive Trade Practice – Section 2(1)(nn) of the Act provides that, “restrictive trade practice” means “any trade practice which requires a
consumer to buy, hire or avail of any goods or, as the case may be, services as a condition prece­dent for buying, hiring or availing of other goods or
services
 Consumer Protection Councils
Consumer Protection Councils

Central Consumer Protection State Consumer Protection District Consumer

Council Council Protection Council

Section-3 The Central Consumer Protection Council-

1) The Central Government shall by notification establish with effect from such date as it may specify in
such notification, a Council to be known as the Central Consumer Protection Council.
2) The Central Council shall consist of the following members namely-
a) The Minister in charge of the consumer affairs in the Central Government, who shall be its Chairman
and
b) Such number of other official or non-official members representing such interests as may be
prescribed.
Procedure for meetings of the Central Council-
1) The Central Council shall meet as and when necessary, but at least one meeting of the Council shall be held
every year.
2) The Central Council shall meet at such time and place as the Chairman may think fit and shall observe such
procedure in regard to the transaction of its business as may be prescribed.
Objects of the Central Council- The objects of the Central Council shall be to promote and protect the rights of the
consumers such as-
1. The right to be protected against the 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, as
the case may be so as to protect the consumer against unfair trade practices;3.
3. The right to be assured, wherever possible, access to a variety of goods and services at competitive prices;
4. The right to be heard and to be assured that consumer's interests will receive due consideration at appropriate
forum;
5. The right to seek redressal against unfair trade practices or restrictive trade practices or unscrupulous
exploitation of consumers and
6. The right to consumer education.
Section -6 State Consumer Protection Councils-
1) Every State Government shall, by notification, establish with effect from such date as it may
specify in such notification, a State Consumer Protection Council for such State to be known as the
State Council.
• (2) The State Council shall be an advisory council and consist of the following members, namely:
—
• (a) the Minister-in-charge of Consumer Affairs in the State Government who shall be the
Chairperson;
• (b) such number of other official or non-official members representing such interests as may be
prescribed;
• (c) such number of other official or non-official members, not exceeding ten, as may be
nominated by the Central Government.
(3) The State Council shall meet as and when necessary but not less than two meetings shall be held
every year.
(4) The State Council shall meet at such time and place as the Chairperson may think fit and shall
observe such procedure in regard to the transaction of its business, as may be prescribed
Section 8: District Consumer Protection Councl.
(1) The State Government shall, by notification, establish for every District with effect from
such date as it may specify in such notification, a District Consumer Protection Council to be
known as the District Council.
(2) The District Council shall be an advisory council and consist of the following members,
namely:—
(a) the Collector of the district (by whatever name called), who shall be the
Chairperson; and
(b) such number of other official and non-official members representing such
interests as may be prescribed.
(3) The District Council shall meet as and when necessary but not less than two meetings shall
be held every year.
(4) The District Council shall meet at such time and place within the district as the Chairperson
may think fit and shall observe such procedure in regard to the transaction of its business as
may be prescribed.
 Consumer Disputes Redressal Agencies

Consumer Disputes Redressal Agencies

State National
District Forum
Commission Commissiom
District Forrum:
• Composition : This shall consist of:
1. A person who is, or has been, or is qualified to be a District Judge, its President
2. Two other members shall be persons of ability, integrity and standing and have adequate knowledge or
experience or have shown capacity, in dealing with problems relating to economics, law, commerce,
accountancy, industry, public affairs or administration, one of whom shall be a woman.
• Appeal :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 may
entertain an appeal after 30 days if it is satisfied that there was sufficient cause for not filing it within that
period.
• Sitting of the District Forum – For conducting any proceedings to resolve a consumer dispute, at least
two members of the Forum must be there one of whom should be the president.
Where the member, for any reason, is unable to conduct the pro­ceeding till it is completed, the President and
the other member shall conduct such proceeding de novo i.e. from the beginning.
• Jurisdiction: Subject to the other provisions of this Act the District forum shall have jurisdiction to
entertain complaints where the value of goods and services and the compensation, if any claimed does not
exceed Rs.2000000
• Procedure To Be Followed By The District Forum [Section 13] –
The following procedure is equally applicable to the District Forum, State Commission with required
modifications and National Commission with additional procedures required by the rules.
I. Where Laboratory test is required to determine the defect in goods – A consumer is supposed to file as
many copies of the complaint as there are number of judges, with all essential information, supporting papers
like correspondence, and specify­ing the compensation demanded.
On receipt of such complaint—
(a) The District Forum should refer a copy of the complaint to the opposite party directing him to give his version
of the case within a period of thirty days which can be extended to forty five days.
Where the opposite party on receipt of a complaint referred to him 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 would take the following steps to settle the dispute:
(b) The District Forum may require the complainant to deposit specified fees for payment to the appropriate
laboratory for carrying out the necessary analysis or test in relation to the goods in question.
(c) The District Forum will obtain a sample of the goods, seal it, authenticate it and refer the sample so sealed to
the appropriate laboratory for an analysis or test, whichever may be necessary, with a view to finding out whether
such goods suffer from any defect.
The District Forum will remit the fees to the appropriate labora­tory to enable it to carry out required
analysis or test. The laboratories supposed to report its findings to the District Forum within a period of
fifty-five days. This period is extendi­ble by the District Forum.
(d) Upon receiving laboratory’s report, its copy will be forwarded by the District Forum to the opposite
party alongwith its own remarks.
(e) In the event of any party disputing the correctness of the findings, or the methods of analysis or test
adopted by the appropriate laboratory, the District Forum shall require the objecting party to submit his
objections in writing.
(f) The District Forum will give an opportunity of hearing to the objecting party.
(g) The District Forum shall issue appropriate order after hearing the parties.
II. Where no laboratory test is required to determine the defect in goods or the complaint relates to
services
(a) On receiving the complaint, the District Forum should refer a copy of the complaint to the opposite
party directing him to give his version of the case within a period of thirty days which can be extended to
forty five days.
(b) The opposite party on receipt of a complaint referred to him may—
(i) Admit the complaint
(ii) Deny or dispute the allegations contained in the com­plaint, or
(iii) Omits or fails to respond within the time given by the District Forum.
(c) Where the opposite party admits the allegation, the District Forum should decide the matter on the
basis of the merits of the case and the documents before it.
Where the opposite party denies or disputes the allega­tions made in the complaint, the District Forum will
proceed to settle the dispute on the basis of evidence brought to its notice by both the parties.
Where the opposite party omits or fails to respond within the time given by the Forum, the District Forum
will proceed to settle the dispute on the basis of evidence brought to its notice by the complainant.
(d) The District Forum shall issue an appropriate order after hearing the parties and taking into account
available evidence.
• Relief available against complaint [Sections 14 and 22] – A complainant can seek any one or more of the
following relief under the Act:
(a) To remove the defect pointed out by the appropriate laboratory from the goods in question;
(b) To replace the goods with new goods of similar descrip­tion which shall be free from any defect?
(c) To return to the complainant the price, or, as the case may be, the charges paid by the complainant;
(d) To pay such amount as may be 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;
(e) To remove the defects or deficiencies in the services in question;
(f) To discontinue the unfair trade practice or the re­strictive trade practice or not to repeat it;
(g) Not to offer the hazardous goods for sale;
(h) To withdraw the hazardous goods from being offered for sale;
(i) To provide from adequate costs to complainant.
• Powers of the Consumer Forums [Sections 13(4), 14(1) and Rule 10]
For the purpose of adjudicating a consumer dispute, section 13(4) has vested the Consumer Forums with
certain powers of a civil court. Powers akin to those of civil court [Section 13(4)] – The Forums are
vested with the Civil Court powers with respect to the following:
(a) Summoning and enforcing the attendance of any defendant or witness and examining the witness on
oath;
(b) Discovery and production of any document or other mate­rial object producible as evidence;
(c) Receiving of evidence on affidavits;
(d) requisitioning of the report of the concerned analysis or test from the appropriate laboratory or from
any other rele­vant source;
(e) Issuing of any commission for the examination of any witness; and
(f) Any other matter which may be prescribed.
Additional powers of the consumer forums [Rule 10] – The National Commission, the State Commission
and the District Forum have following additional powers:
(a) Requiring production of any books, accounts, documents, or commodities from any person,
examining and retaining them.
(b) Obtaining information required for the purpose of the proceedings from any person.
(c) Enter and search any premises and seize from such premises books, papers, documents, commodities
• Power to issue order [Section 14(1)] – If, after the pro­ceedings, the Forum is satisfied that the
complainant suffer from any defect in goods or deficiency in service, it may issue an order to the
opposite party directing him to do one or more of the following things, namely :—
(a) To remove the defect pointed out by the appropriate laboratory from the goods in question;
(b) To replace the goods with new goods of similar descrip­tion which shall be free from any defect?
(c) To return to the complainant the price, or, as the case may be, the charges paid by the complainant
(d) To pay such amount as may be 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;
(e) To remove the defects or deficiencies in the services in question;
(f) To discontinue the unfair trade practice or the re­strictive trade practice or not to repeat it;
(g) Not to offer the hazardous goods for sale;
(h) To withdraw the hazardous goods from being offered for sale;
(i) To provide for adequate costs to complainant.
State Commission:
• Composition : It shall consist of –
1. A person who is or has been a Judge of a High Court , who shall be its President ;
2. Two other members ( as for District Forum).
• Appeal : Any person aggrieved by an order made by the State Commission may appeal against
such order to the National Commission within a period of 30 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
• Sitting of the State Commission – Every proceeding is required to be conducted by the president
of the State Commission and at least one member thereof sitting together.
• Jurisdiction: Subject to the other provisions of this Act the District forum shall have jurisdiction
to entertain complaints where the value of goods and services and the compensation, if any
claimed does not exceed Rs.10000000
• National Commission:
• Composition : This shall consist of –
1. A person who is or has been a Judge of the Supreme Court, who shall be its President. (No
appointment under this clause shall be made except after consultation with the Chief Justice of India) .
2. 4 other members (qualifications: As for District Forum /State Commission).
• Sitting of the National CommissionT:he disputes must be disposed of by at least three members of
the National Commission, one of whom must be the president (or the senior most member authorised
to work as president).
Where the member(s) for any reason are unable to conduct the proceeding till it is completed, the
president (or the senior most member acting as president) shall conduct the proceeding afresh
• Appeal: An appeal against the order of the National Commission can be filed in the Supreme Court
within one month from the date of order passed by the National Commission.
• Jurisdiction: Subject to the other provisions of this Act the District forum shall have jurisdiction to
entertain complaints where the value of goods and services and the compensation, if any claimed
exceeds Rs.10000000