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CONSUMER
PROTECTION ACT,
1986
1
CONSUMER PROTECTION
ACT, 1986
Enforced from 10th June 1987 in India to provide
better protection to the interest of consumer
Act applies to whole of India except Jammu and
Kashmir
Chapter I, II and IV came into force on 15.4.1987.
Chapter III came into force on 1.7.1987
The act was amended in 2002 and the amendments
came into force w.e.f. 15th
March 2003.
2
AIMS OF CONSUMER
PROTECTION ACT 1986
Establishment Of:-
•“Consumer Disputes Redressal Forum” (District
forum)
•“Consumer Disputes Redressal commission” (State
commission)
•“National Consumer Disputes Redressal Commission”
(National commission)
•“ Central Consumer Protection Council ” for
promoting and protecting the rights of the consumers .
3
WHO IS A CONSUMER ?
A Consumer under the Act is:
" One who buys any goods, hires and
service/services for a consideration which
has been paid or promised or partly paid and
partly paid and partly promised under any
system of deferred payment.“
4
A CONSUMER IS….
 Any person who buys goods or avails services for
consideration. (Consideration may be fully or partially
paid or fully or partially promised to be paid.)
 Any body who uses the goods or services with the
consent of the consumer
 Legal heir of consumer in case death of consumer
 Does not include any person who buys goods and
services for resale or commercial purpose
 Any person who buys goods for commercial use but
exclusively for his livelihood by means of self
employment.
5
OBJECTIVES OF CONSUMER
PROTECTION ACT 1986
• Better protection of interests of consumers
• Consumer protection councils
• Quasi-judicial machinery for speedy redressal of
consumer disputes
-(To give relief’s of a specific nature )
-(To award, wherever appropriate, compensation to
consumer)
• Penalties for non-compliance of the orders given by
the quasi-judicial bodies
6
CONT…..
• Protection of rights of consumers
-Right to be protected against marketing of goods or
services which are hazardous to life and property
-To be informed about the quality, quantity, potency,
purity, standard and price of goods or services so as to
protect the consumers against unfair trade practices
-The right to be assured access to goods and services at
competitive prices
-The right to be heard at appropriate forums.
-The right to seek redresses against unfair trade practices
or restrictive trade practices or unscrupulous exploitation
of consumers
- Right to consumer education
7
8
SCOPE OF THE ACT
 Applies to all states except Jammu and Kashmir
 Applies to all type of goods and services, public utilities
& public sector undertakings
 All types of complains relating to unfair trade practice
 Remedies under this act is same as those in other laws.
 A suit pending in civil court cannot be heard in consumer
court
 Consumer forums have the power to adjudicate
disputes, but they do not have trappings of a court
WHAT IS A COMPLAINT?
“Complaint” means any allegation in
writing made by a compliant that :
 an unfair trade practice or a restrictive trade
practice has been adopted by any trader or service
provider;
 goods bought by him or agreed to be bought by him
suffer from one or more defects ;
 service hired or availed of or agreed to be hired or
availed off by him suffer from deficiency in any
respect;
 Service which are hazardous or likely to be
hazardous to the life and safety of the public when
used.
9
CONT……
A trader or service provider as the case may be has
charged for the goods or for the services mentioned in
the complaint, a price in excess of the price
a) fixed by or under any law for the time being in
force;
b) displayed on the goods or any package
containing such goods;
c) displayed on the price list exhibited by him by or
under any law for the time being in force;
d) agreed between the parties .
10
CONT…….
Goods which will be hazardous to life and safety
when used are being offered for sale to the public –
a) In contravention of any standards relating to
safety of such goods as required to be
compiled with, by or under any law for the
time being in force;
b) If the trader could have known with due
diligence that the goods so offered are unsafe
to the public;
11
WHO CAN FILE A COMPLAINT?
A complaint may be filed by
 The consumer to whom the goods are sold or services
are provided
 Any recognized consumer association
 One or more consumers with same interest
 The central government or state government
12
13
APPEAL
•It shall be filed within thirty days.
•Delay in filing appeal may be condoned if there is
sufficient cause.
LIMITATION PERIOD
• Within two years from the date on which the
cause of action has arisen.
CONSUMER DISPUTE
REDRESSAL AGENCIES
 District forum
Headed by District judge
Jurisdiction-District
 State Commission
Headed by Judge of High Court
Jurisdiction-Whole state
 National Commission
Headed by Chief Justice Of India
Jurisdiction-Entire nation
14
WHERE TO FILE A
COMPLAINT?
Cost of goods or services and
compensation asked
Forum / Commission
Does not exceed Rs. 20
lakhs
District Forum (of the
district where the cause of
action has arisen or where the
opposite party resides)
Rs. 20 lakhs and above
but not exceeding One
Crore
State Commission
Above One Crore National Commission at
New Delhi
15
FILING OF COMPLAINTS
The Fee for filing the Complaint for the district forum is
as under
Sr.
No.
Value of Goods / Service and Compensation Amount
of Fees
1) Upto Rs. 1 lakh rupees Rs. 100
2) Rs. 1 Lakh and above but less than Rs.5 lakhs Rs. 200
3) Rs. 5 Lakhs and above but less than Rs. 10 lakhs Rs. 400
4) Rs. 10 lakhs and above but less than Rs. 20 lakhs
16
The fees shall be paid by Cross demand Draft drawn on a
nationalized bank or through crossed Indian postal order drawn
in favour of the Registrar of the Sate Commission and payable at
the place of the State Commission (w.e.f. 5.3.2004.)
POWER OF CIVIL COURT TO
DISTRICT FORUM
The District Forum shall have the powers of Civil Court
while trying a suit in respect of the following matters ;
a) The summoning and enforcing attendance of any defendant
or witness and examining the witness on oath.
b) The discovery and production of any document or other
material object producible as evidence.
c) The reception of evidence on affidavit
d) The requisition of the report of the concerned analysis or
test from the appropriate laboratory of from any other
relevant source.
e) Any other matter which may be prescribed. 17
RELIEF TO THE COMPLAINANT
IF THE COMPLAINT IS PROVED THE FORUM SHALL
ORDER:
a) to remove 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 negligence of the
opposite party;
e) To remove the defect in goods or deficiency in the
services in question.
18
CONT…..
f) to discontinue the unfair trade practice or the
restrictive trade practice or not to repeat them;
g) not to offer hazardous goods for sale;
h) to withdraw the hazardous goods from being offered
for sale;
 to cease manufacture of hazardous goods and to desist
from offering services which are hazardous in nature;
 to pay such sum as may be determined by it, if it is of the
opinion that loss or injury has been suffered by a large
number of consumers who are not identifiable
conveniently.
 to issue corrective advertisements to neutralize the effect
of misleading advertisement at the cost of the opposite
party responsible for issuing such misleading
advertisement;
i) To provide for adequate cost to parties. 19
DISMISSAL OF FRIVOLOUS OR
VEXATIOUS COMPLAINTS
 Where a complaint instituted before the District
Forum, the State Commission or the National
Commission, is found to be frivolous or vexatious,
it shall, for reasons to be recorded in writing,
dismiss the complaint and make an order that the
complainant shall pay to the opposite party such
Cost, not exceeding ten thousand rupees, as may
specified in the order.
20
PENALTIES
Where a trader or a person against whom a
complaint is made (or the complainant) fails or omits
to comply with any order made by
 The District Forum
 The State Commission
 The National Commission
Such trader or person shall be punishable with
imprisonment term of minimum 1 month up to 3yrs
with fine of minimum Rs.2,000 up to Rs.10,000.
21
22
THANK YOUTHANK YOU 

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Consumerprotectionact

  • 2. CONSUMER PROTECTION ACT, 1986 Enforced from 10th June 1987 in India to provide better protection to the interest of consumer Act applies to whole of India except Jammu and Kashmir Chapter I, II and IV came into force on 15.4.1987. Chapter III came into force on 1.7.1987 The act was amended in 2002 and the amendments came into force w.e.f. 15th March 2003. 2
  • 3. AIMS OF CONSUMER PROTECTION ACT 1986 Establishment Of:- •“Consumer Disputes Redressal Forum” (District forum) •“Consumer Disputes Redressal commission” (State commission) •“National Consumer Disputes Redressal Commission” (National commission) •“ Central Consumer Protection Council ” for promoting and protecting the rights of the consumers . 3
  • 4. WHO IS A CONSUMER ? A Consumer under the Act is: " One who buys any goods, hires and service/services for a consideration which has been paid or promised or partly paid and partly paid and partly promised under any system of deferred payment.“ 4
  • 5. A CONSUMER IS….  Any person who buys goods or avails services for consideration. (Consideration may be fully or partially paid or fully or partially promised to be paid.)  Any body who uses the goods or services with the consent of the consumer  Legal heir of consumer in case death of consumer  Does not include any person who buys goods and services for resale or commercial purpose  Any person who buys goods for commercial use but exclusively for his livelihood by means of self employment. 5
  • 6. OBJECTIVES OF CONSUMER PROTECTION ACT 1986 • Better protection of interests of consumers • Consumer protection councils • Quasi-judicial machinery for speedy redressal of consumer disputes -(To give relief’s of a specific nature ) -(To award, wherever appropriate, compensation to consumer) • Penalties for non-compliance of the orders given by the quasi-judicial bodies 6
  • 7. CONT….. • Protection of rights of consumers -Right to be protected against marketing of goods or services which are hazardous to life and property -To be informed about the quality, quantity, potency, purity, standard and price of goods or services so as to protect the consumers against unfair trade practices -The right to be assured access to goods and services at competitive prices -The right to be heard at appropriate forums. -The right to seek redresses against unfair trade practices or restrictive trade practices or unscrupulous exploitation of consumers - Right to consumer education 7
  • 8. 8 SCOPE OF THE ACT  Applies to all states except Jammu and Kashmir  Applies to all type of goods and services, public utilities & public sector undertakings  All types of complains relating to unfair trade practice  Remedies under this act is same as those in other laws.  A suit pending in civil court cannot be heard in consumer court  Consumer forums have the power to adjudicate disputes, but they do not have trappings of a court
  • 9. WHAT IS A COMPLAINT? “Complaint” means any allegation in writing made by a compliant that :  an unfair trade practice or a restrictive trade practice has been adopted by any trader or service provider;  goods bought by him or agreed to be bought by him suffer from one or more defects ;  service hired or availed of or agreed to be hired or availed off by him suffer from deficiency in any respect;  Service which are hazardous or likely to be hazardous to the life and safety of the public when used. 9
  • 10. CONT…… A trader or service provider as the case may be has charged for the goods or for the services mentioned in the complaint, a price in excess of the price a) fixed by or under any law for the time being in force; b) displayed on the goods or any package containing such goods; c) displayed on the price list exhibited by him by or under any law for the time being in force; d) agreed between the parties . 10
  • 11. CONT……. Goods which will be hazardous to life and safety when used are being offered for sale to the public – a) In contravention of any standards relating to safety of such goods as required to be compiled with, by or under any law for the time being in force; b) If the trader could have known with due diligence that the goods so offered are unsafe to the public; 11
  • 12. WHO CAN FILE A COMPLAINT? A complaint may be filed by  The consumer to whom the goods are sold or services are provided  Any recognized consumer association  One or more consumers with same interest  The central government or state government 12
  • 13. 13 APPEAL •It shall be filed within thirty days. •Delay in filing appeal may be condoned if there is sufficient cause. LIMITATION PERIOD • Within two years from the date on which the cause of action has arisen.
  • 14. CONSUMER DISPUTE REDRESSAL AGENCIES  District forum Headed by District judge Jurisdiction-District  State Commission Headed by Judge of High Court Jurisdiction-Whole state  National Commission Headed by Chief Justice Of India Jurisdiction-Entire nation 14
  • 15. WHERE TO FILE A COMPLAINT? Cost of goods or services and compensation asked Forum / Commission Does not exceed Rs. 20 lakhs District Forum (of the district where the cause of action has arisen or where the opposite party resides) Rs. 20 lakhs and above but not exceeding One Crore State Commission Above One Crore National Commission at New Delhi 15
  • 16. FILING OF COMPLAINTS The Fee for filing the Complaint for the district forum is as under Sr. No. Value of Goods / Service and Compensation Amount of Fees 1) Upto Rs. 1 lakh rupees Rs. 100 2) Rs. 1 Lakh and above but less than Rs.5 lakhs Rs. 200 3) Rs. 5 Lakhs and above but less than Rs. 10 lakhs Rs. 400 4) Rs. 10 lakhs and above but less than Rs. 20 lakhs 16 The fees shall be paid by Cross demand Draft drawn on a nationalized bank or through crossed Indian postal order drawn in favour of the Registrar of the Sate Commission and payable at the place of the State Commission (w.e.f. 5.3.2004.)
  • 17. POWER OF CIVIL COURT TO DISTRICT FORUM The District Forum shall have the powers of Civil Court while trying a suit in respect of the following matters ; a) The summoning and enforcing attendance of any defendant or witness and examining the witness on oath. b) The discovery and production of any document or other material object producible as evidence. c) The reception of evidence on affidavit d) The requisition of the report of the concerned analysis or test from the appropriate laboratory of from any other relevant source. e) Any other matter which may be prescribed. 17
  • 18. RELIEF TO THE COMPLAINANT IF THE COMPLAINT IS PROVED THE FORUM SHALL ORDER: a) to remove 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 negligence of the opposite party; e) To remove the defect in goods or deficiency in the services in question. 18
  • 19. CONT….. f) to discontinue the unfair trade practice or the restrictive trade practice or not to repeat them; g) not to offer hazardous goods for sale; h) to withdraw the hazardous goods from being offered for sale;  to cease manufacture of hazardous goods and to desist from offering services which are hazardous in nature;  to pay such sum as may be determined by it, if it is of the opinion that loss or injury has been suffered by a large number of consumers who are not identifiable conveniently.  to issue corrective advertisements to neutralize the effect of misleading advertisement at the cost of the opposite party responsible for issuing such misleading advertisement; i) To provide for adequate cost to parties. 19
  • 20. DISMISSAL OF FRIVOLOUS OR VEXATIOUS COMPLAINTS  Where a complaint instituted before the District Forum, the State Commission or the National Commission, is found to be frivolous or vexatious, it shall, for reasons to be recorded in writing, dismiss the complaint and make an order that the complainant shall pay to the opposite party such Cost, not exceeding ten thousand rupees, as may specified in the order. 20
  • 21. PENALTIES Where a trader or a person against whom a complaint is made (or the complainant) fails or omits to comply with any order made by  The District Forum  The State Commission  The National Commission Such trader or person shall be punishable with imprisonment term of minimum 1 month up to 3yrs with fine of minimum Rs.2,000 up to Rs.10,000. 21