CONSUMER PROTECTION

ACT, 1986

 PURPOSE:

 to provide for better protection of the interests of

consumers, and for that purpose,

 to make provision to make provision for the

establishment of consumer councils and other
authorities for the settlement of consumer’s disputes
and for connected therewith.
 BASIC RIGHTS OF
CONSUMERS [SECTION 6]

a) The right to be protected against marketing of goods

and services which are hazardous to life and property

b) The right to be informed about the quality, quantity,

purity, standard and price of goods, or services so as to
protect the consumer against unfair trade practices;

c) The right to be assured, wherever possible, access to

variety of goods and services at competitive prices;
 CONTD….

d) The right to be heard and to be assured that

consumers’ interest will receive due consideration at
appropriate forums;

e) The right to seek redressal against unfair trade

practices or restrictive trade practices or
unscrupulous exploitation of consumers; and

f) The right to consumer education.

 CONSUMER PROTECTION
COUNCILS

The interest of consumers are sought to promoted

and protected under the act inter – alia by
establishment of Consumer Protection Councils at
the Central, State and District levels.
 Central Consumer Protection
Council
 Section 4 provides that the Central Government shall, by notification,
establish a Council to be known as Central Consumer Protection Council,
which shall consist of the following members:

(i) The Minister – in – charge of Consumer affairs in the Central

Government, shall be its Chairman; and

(ii) Such number of other official or non – official members representing such
interest as may be prescribed.

The Central Council shall consist of 150 members and the term of the Council
shall be 3 years. The Central council shall meet as and when necessary, but at
least one meeting shall be held every year.
 State Consumer Protection
Council

Section 7 provides that the State Government shall,

by notification establish a Council to be known as
Consumer Protection council for (name of the state),
which shall consist of the following members:

(i) The Minister – in – Charge of consumer affairs in

the state government, who shall be its Chairman;
 CONTD…

(ii) Such number of other or non – official members representing

such interest as may be prescribed by the State Government; and

(iii) Such number of other official or non – official members, not

exceeding ten, as may be nominated by the Central Government.

The State Council shall meet as and when necessary but not less
than two meetings shall be held every year. The procedure to be
observed in regard to the transaction of its business at such
meeting shall be prescribed by the State Government.
 District Consumer Protection
Council
Section 8A provides that the State Govt. shall establish for every district,
by notification, a Council to be known as the District Consumer Protection
council, which shall consist of the following members;

(i) The Collector of the district (by whatever name called), who shall be its
Chairman; and

(ii) Such number of other official and non –official members representing
such interests as may be prescribed by the State Govt.

The District Council shall meet as and when necessary but not less than two
meetings shall be held every year.
 REDRESSAL MACHINERY
UNDER THE ACT

The Consumer Protection Act, 1986 provides for a

three–tier quasi–judicial redressal machinery at the
District, State and National levels for redressal of
consumer disputes and grievances. They are known
as Consumer Disputes Redressal Agencies.
 District Consumer Disputes
Redressal Forum

The Act provides for the establishment of a District

Forum by the State Government in each district of
the State by notification. The State Government may
establish more than one District Forum in a District
if it thinks fit to do so.
 CONTD…

Section 10 provides that each District Forum shall

consist of :

(i) a person who is, or who has been, or is qualified to

be, a District Judge, who shall be its President; and

(ii) two other members, one of whom shall be a

woman.
 CONTD…

The members of District Forum should be persons of

ability, integrity and standing and should have
experience relating to economics, law, commerce,
accountancy, industry, public affairs or administration.

They must be graduates and over 35 years of age.

Every member of the District Forum shall hold office for

a term of 5 years or up to the age of 65 years, whichever
is earlier, and shall be eligible for re – appointment.
 Jurisdiction [Sec. 11]

Section 11 provides for the jurisdiction of the District Forum under

the following two criteria:

1. Pecuniary limits: The District Forum can entertain complaints

where the value of goods or services and the compensation, if any,
claimed is up to Rs.20 lakhs.

2. Territorial limits: The District Forum can entertain complaints if

any of the opposite party ordinary resides or carries on business
or personally works for gain or has a branch office; or the cause
of action arises within the local limits of its jurisdiction.
 State Consumer Disputes
Redressal Commission

The Act provides for the establishment of the State

Consumer Disputes Redressal Commission by the
State Government in the State by notification.
 CONTD…
 Section 16 provides that each State Commission shall
consist of :

(i) a person who is, or has been a judge of a High Court

appointed by the State Government (in consultation with the
Chief Justice of the High Court), who shall be its President;
and

(ii) not less than two, and not more than such number of
members, as may be prescribed, and one of whom shall be a
woman.
 CONTD…

The members of State Commission should be persons of

ability, integrity and standing; and should have experience
relating to economics, law, commerce, accountancy,
industry, public affairs or administration. They must be
graduates and over 35 years of age.

Every member of the State Commission shall hold office

for a term of 5 years or up to the age of 67 years,
whichever is earlier, and shall be eligible for re –
appointment.
 Jurisdiction [Sec. 17]

 The jurisdiction of the State Commission is as follows:

1. Original Jurisdiction : The State Commission can entertain

complains where the value of the goods or services and the
compensation, if any, claimed exceeds Rs.20 lakks but does not
exceed Rs.1 crore. [Pecuniary Limits]

The State commission can entertain complaints if any of the

opposite party ordinarily resides or carries on business or personally
works for gain or has a branch office; or the cause of action arises
within the local limits of its jurisdiction. [Territorial Limits]
 CONTD…

2. Appellate Jurisdiction: The State Commission

also has the jurisdiction to entertain appeals against
the orders of any District Forum within the State.

3. Reversionary Jurisdiction : The State commission

also has the power to call for the records and pass
appropriate orders in any consumer dispute which is
pending before or has been decided by any District
Forum of the same state.
 National Consumer Disputes
Redressal Commission
The Act provides for the establishment of the National Consumer Dispute
Redressal Commission by the Central Government by notification in the
Official Gazette.

 Section 20 provides that the National Commission shall consist of :

(i) a person who is or has been a judge of the Supreme Court, to be

appointed by the Central Govt. (in consultation with the Chief Justice of
India), who shall be its President; and

(ii) not less than four, and not more than such number of members, as may
be prescribed, and one of whom shall be a woman.
 CONTD…

 The members of National Commission should be

persons of ability, integrity and standing; and should
have experience relating to economics, law, commerce,
accountancy, industry, public affairs or administration.
They must be graduates and over 35 years of age.

 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 and shall be eligible for re-
appointment.
 Jurisdiction [Sec. 21]
The jurisdiction of the National Commission is as follows:

1. Original Jurisdiction : The National Commission can entertain

complaints where the value of the goods or service and the compensation, if
any, claimed exceed Rs.1 crore.

2. Appellate Jurisdiction :The National Commission also has the

Jurisdiction to entertain appeals against the original orders of any State
Commission.

3. Reversionary Jurisdiction: The National Commission also has the power

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.
 Time limit for filing the
Complaint

A complaint must be filed within two years from the

date on which the cause of action arose.

However, the District Forum, State Commission or

National Commission may entertain complaint even
after the expiry of two years, if it is satisfied that
there was sufficient cause for not filing the
complaint within prescribed period of two years.