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Consumer Protection Act, 1986
Submitted by : Group No:1
INTRODUCTION
 In spite of various provisions providing
protection to the consumer and providing
action against adulterated and sub-standard
articles in the different enactments like Code
of Civil Procedure, 1908, the Indian Contract Act,
1872, the Sale of Goods Act, 1930, the Indian
Penal Code, 1860, the Standards of Weights and
Measures Act,1976 and the Motor Vehicles Act,
1988, very little could be achieved in the field
of Consumer Protection.
 In order to provide for better protection of
the interests of the consumer the Consumer
Protection Bill, .1986 was introduced in the
Consumer Protection Act, 1986
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.
In order to promote and protect the rights and
interests of consumers, quasi judicial machinery is
sought to be set up at district, state and central
levels.
The main object of these bodies is to provide speedy
and simple redressal to consumer disputes. It is one of
the benevolent pieces of legislation intended to
protect the consumers at large from exploitation.
Objects of the Act
Right to be protected against marketing of
goods which are hazardous to life and
property.
Right to be informed about the quality,
potency, standard, and price of goods to
protect the consumer against unfair trade
practices.
Right to be heard and to be assured that
customers’ interests will receive due
consideration at appropriate forums.
Right to seek redressal against unscrupulous
exploitation of consumers.
Definitions
• Appropriate laboratory: It is recognized by
Central & State governments, which carries
out analysis or test of any goods with a
view to determining whether such goods
suffer from any defect.
• Complainant: One or more consumer or any
voluntary consumer association registered
under the Companies Act or the Central or
any State Government who or which makes
a complaint.
• Complaint: Any allegation in writing made
by a complainant with a view to obtaining
any relief provided by under this Act.
Consumer & Rights of consumers
A person who buys any goods for a
consideration which has been paid or
promised or partly paid and partly
promised or under any system of
deferred payment i.e. in respect of hire
purchase transaction.
A person who hires or avails of any services for
consideration which has been paid or promised or
partly paid and partly promised, or under any
system of deferred payment.
ORGANIZATIONAL SETUP
Organizational setup
Adjudicative bodies
District forum(580)
State commission(35)
Advisory bodies
National
commission(NCDRC)
Central Consumer
protection Council
State Consumer
Protection council
National Consumer
Protection Council
Consumer disputes redressal
agencies [sec.9]]
1. A consumer disputes redressal forum to be the
‘district forum’. This is to be established by the state
govt. in each district of the state by means of a
notification. More than one can also be established in
a single district.
2. A consumer disputes redressal commission to be
known as the ‚state commission‛. This has also to be
established by the govt. in the state by means of a
notification.
3. A national consumer disputes redressal commission
to be established by the central govt. by means of a
notification.
 The act thus envisages a hierarchy of three redressal
forums:-
1. District forum (Less than Rs. 20 Lacs).
2. State forum (Between Rs. 20 Lacs-1 Crore).
3. National forum (More than Rs. 1 Crore) .
DISTRICT FORUM [Sec-9 (a)]
• Composition
Headed BY Retired
Judge
One Women
One Person with
economics, law,
commerce,
accountancy public
affairs background
TERM OF OFFICE :Every person of district form holds 5
years of office or up to age 65 whichever is earlier , no re-
appoinment
District forum dispose a complaint generally
within 3months of the receipt of notice by opposite
party (within 5months if it requires analysis or
testing of commodities by a laboratory).
Any person aggrieved by the order made by the
district forum may appeal to state commission within
30days from the date of order.
District forum shall refer a copy of complaint to
the opposite party.
 District forum shall entertain the complaint up to
the value of Rs20 lakhs.
JURISDICTION (Sec.11)
 the opposite party or each of the opposite parties, where there are
more than one, at the time of the institution of the complaint,
actually and voluntarily resides or 2[carries on business or has a
branch office or] personally works for gain.
 Any of the opposite parties, where there are more than one, at the
time of the institution of the complaint, actually and voluntarily
resides, or 2[carries on business or has a branch office], or
personally works for gain, provided that in such case either the
permission of the District Forum is given, or the opposite parties
who do not reside, or 2[ carry on business or have a branch office],
or personally work for gain, as the case may be, acquiesce in such
institution; or
 The cause of action, wholly or in part, arises.
State commission [Sec-9 (b)]
• Composition
Headed BY high
court Retired
Judge
One Women –less
than 35 yrs, with
an degree
One Person with
economics, law,
commerce,
accountancy public
affairs background
TERM OF OFFICE :Every person of district form holds 5
years of office or up to age 67 whichever is earlier , no re-
appoinment
• State commission is the higher court after district
consumer forum.
• State govt. shall establish state commission.
• State commission shall have one president and at least
two member’s, one of whom shall be a women.
• The president of state commission shall be the person
who is or has been the judge of a high court.
• State commission shall entertain complaints where the
value of claim exceeds Rs20 lakhs but does not
exceeds Rs1 crore. Besides, it shall entertain appeals
against the order of any district forum within the state
also.
Jurisdiction:- [sec.(17)] & Appeals:-[sec.(19)]
Jurisdiction
i. To entertain complaint where the value of the goods or
services and compensation, if any, claimed exceeds RS5 lakhs
but does not exceeds RS 20 lakhs.
ii. To entertain appeals against the order of any district forum
within the state.
iii. 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 within the state.
Appeals:
i. An aggrieved person of state commission can appeal to the
national commission.
ii. 30days period from the order of the state commission is
allowed for carrying the matter before the national
commission.
iii. A late appeal may also be entertained provided that the
commission is satisfied that there was a sufficient cause for
not preferring an appeal within the prescribed period.
National commission (sec. 9 and 20
to 23)
• Composition
Headed BY
Supreme court
Retired Judge
One Women –less
than 35 yrs, with
an degree
One Person with
economics, law,
commerce,
accountancy public
affairs background
TERM OF OFFICE :Every person of district form holds 5
years of office or up to age 70 whichever is earlier , no re-
appoinment
 National commission shall entertain complaint
where the value of claim exceeds Rs1 crore.
 National commission enjoys all power which are
enjoyed by a civil court.
 Any person aggrieved by the order made by
national commission may prefer an appeal to
supreme court within 30days from the date of
order.
Jurisdiction:- [sec.(21)] & Appeals:-[sec.(23)]
Jurisdiction
i. The national commission is to entertain complaints
where the value of the goods or services and
compensation claimed exceeds RS20 lakhs.
ii. The appellate jurisdiction is to entertain appeals
against orders of any of the state commission
Appeals:
 The working procedure is the same as that of the Forum
U/S [13(4)], (5) and (6) and for the rest it has been
prescribed by the central govt.
 The national commission has the power to issue an order
to the opposite party directing him to do any 1 or more
of the things referred to sec.14(1)(a) to(i).
FILING OF COMPLAINTS
A complaint may be filed by
a) The consumer to whom the goods are sold
or services are provided
b) Any recognized consumer association
c) One or more consumers with same
interest
d) The central government or state
government
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.
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 or the
National Commission, such trader or person (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.
Example
Jet Airways to pay Rs 71K compensation
• Jet Airways has been ordered by a consumer forum here to pay
over Rs 71,000 as compensation to a family of four for not
communicating their food preference to the connecting airline
and making them go hungry for over 10 hours during their flight
to Toronto from London.
• The district forum asked Jet Airways to compensate the family
while also holding it guilty of rendering deficient service and
not informing the family, the Sharmas, about the number of
bags allowed on the connecting Air Canada flight, due to which
they had to pay an additional expense of Rs 4,500 (approx) and
also discard a bag worth Rs 2,000.
• "The tickets were booked at Delhi and with the particulars of
the allowable baggage while going to London. Jet Airways was
responsible for not clarifying the correct position to the
complainant about baggages.
• "The Jet Airways was also responsible for not informing the
food choice to the connecting flight to Canada from London. We,
therefore, hold it responsible for both deficiencies," said the
New Delhi district consumer forum.
• The Sharmas, residing in Rohini, in their plea, had said they had
booked four tickets through a travel agent of the Jet Airways
Jet Airways to pay Rs 71K compensation
• While booking the tickets, they had mentioned their meal choice as vegetarian, said Sharmas
adding that when they took the connecting Air Canada flight to Toronto at London, they
found their meal choice had not been communicated to Air Canada, due to which they had to
go hungry during the 10-hour flight.
• They also said according to the tickets issued by Jet Airways two bags of upto 23 kg weight
could be carried by each passenger, but Air Canada informed them that only one bag per
traveller was allowed, due to which they had to pay Rs 4,500 and also discard a bag worth Rs
2,000.
• Jet Airways, in their reply to a email sent by the Sharmas had said the rules of Air Canada
were to be followed and had also shifted the blame on to the travel agent.
• The forum, however, rejected Jet Airways' contention that Air Canada rules would apply and
it was the travel agent's fault for not informing the family about luggage rules.
• "We fail to appreciate the contention raised by Jet Airways. The tickets were booked at Delhi
and with the particulars of the allowable baggage while going to London.
• Any change of that position in respect of baggages to be carried till Toronto by Air Canada
cannot be introduced mid-way in the journey.
• "We allow the expenses incurred of Rs 6,200 paid by the complainants for the baggages and
allow compensation of Rs 10,000 for each of the complainants for going without food for 10
long hours of flight. We also allow another compensation for harassment of Rs 25,000 to all
complainants including litigation expenses," the forum said.
Conclusion
• Consumer Protection Law are designed to ensure
fair competition and the free flow of truthful
information in the market place.
• The law are designed to prevent business that
engages in fraud or specified unfair trade
practices (UTP) from gaining an advantage over
competitors and way providing additional
protection for the weak and those unable to take
care of themselves.
Thank you
We're not in the business of shaping consumer demand.
We respond to it.

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Consumer protection act

  • 1. Consumer Protection Act, 1986 Submitted by : Group No:1
  • 2. INTRODUCTION  In spite of various provisions providing protection to the consumer and providing action against adulterated and sub-standard articles in the different enactments like Code of Civil Procedure, 1908, the Indian Contract Act, 1872, the Sale of Goods Act, 1930, the Indian Penal Code, 1860, the Standards of Weights and Measures Act,1976 and the Motor Vehicles Act, 1988, very little could be achieved in the field of Consumer Protection.  In order to provide for better protection of the interests of the consumer the Consumer Protection Bill, .1986 was introduced in the
  • 3. Consumer Protection Act, 1986 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. In order to promote and protect the rights and interests of consumers, quasi judicial machinery is sought to be set up at district, state and central levels. The main object of these bodies is to provide speedy and simple redressal to consumer disputes. It is one of the benevolent pieces of legislation intended to protect the consumers at large from exploitation.
  • 4. Objects of the Act Right to be protected against marketing of goods which are hazardous to life and property. Right to be informed about the quality, potency, standard, and price of goods to protect the consumer against unfair trade practices. Right to be heard and to be assured that customers’ interests will receive due consideration at appropriate forums. Right to seek redressal against unscrupulous exploitation of consumers.
  • 5. Definitions • Appropriate laboratory: It is recognized by Central & State governments, which carries out analysis or test of any goods with a view to determining whether such goods suffer from any defect. • Complainant: One or more consumer or any voluntary consumer association registered under the Companies Act or the Central or any State Government who or which makes a complaint. • Complaint: Any allegation in writing made by a complainant with a view to obtaining any relief provided by under this Act.
  • 6. Consumer & Rights of consumers A person who buys any goods for a consideration which has been paid or promised or partly paid and partly promised or under any system of deferred payment i.e. in respect of hire purchase transaction. A person who hires or avails of any services for consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment.
  • 7. ORGANIZATIONAL SETUP Organizational setup Adjudicative bodies District forum(580) State commission(35) Advisory bodies National commission(NCDRC) Central Consumer protection Council State Consumer Protection council National Consumer Protection Council
  • 8. Consumer disputes redressal agencies [sec.9]] 1. A consumer disputes redressal forum to be the ‘district forum’. This is to be established by the state govt. in each district of the state by means of a notification. More than one can also be established in a single district. 2. A consumer disputes redressal commission to be known as the ‚state commission‛. This has also to be established by the govt. in the state by means of a notification. 3. A national consumer disputes redressal commission to be established by the central govt. by means of a notification.  The act thus envisages a hierarchy of three redressal forums:- 1. District forum (Less than Rs. 20 Lacs). 2. State forum (Between Rs. 20 Lacs-1 Crore). 3. National forum (More than Rs. 1 Crore) .
  • 9. DISTRICT FORUM [Sec-9 (a)] • Composition Headed BY Retired Judge One Women One Person with economics, law, commerce, accountancy public affairs background TERM OF OFFICE :Every person of district form holds 5 years of office or up to age 65 whichever is earlier , no re- appoinment District forum dispose a complaint generally within 3months of the receipt of notice by opposite party (within 5months if it requires analysis or testing of commodities by a laboratory). Any person aggrieved by the order made by the district forum may appeal to state commission within 30days from the date of order. District forum shall refer a copy of complaint to the opposite party.  District forum shall entertain the complaint up to the value of Rs20 lakhs.
  • 10. JURISDICTION (Sec.11)  the opposite party or each of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides or 2[carries on business or has a branch office or] personally works for gain.  Any of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides, or 2[carries on business or has a branch office], or personally works for gain, provided that in such case either the permission of the District Forum is given, or the opposite parties who do not reside, or 2[ carry on business or have a branch office], or personally work for gain, as the case may be, acquiesce in such institution; or  The cause of action, wholly or in part, arises.
  • 11. State commission [Sec-9 (b)] • Composition Headed BY high court Retired Judge One Women –less than 35 yrs, with an degree One Person with economics, law, commerce, accountancy public affairs background TERM OF OFFICE :Every person of district form holds 5 years of office or up to age 67 whichever is earlier , no re- appoinment • State commission is the higher court after district consumer forum. • State govt. shall establish state commission. • State commission shall have one president and at least two member’s, one of whom shall be a women. • The president of state commission shall be the person who is or has been the judge of a high court. • State commission shall entertain complaints where the value of claim exceeds Rs20 lakhs but does not exceeds Rs1 crore. Besides, it shall entertain appeals against the order of any district forum within the state also.
  • 12. Jurisdiction:- [sec.(17)] & Appeals:-[sec.(19)] Jurisdiction i. To entertain complaint where the value of the goods or services and compensation, if any, claimed exceeds RS5 lakhs but does not exceeds RS 20 lakhs. ii. To entertain appeals against the order of any district forum within the state. iii. 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 within the state. Appeals: i. An aggrieved person of state commission can appeal to the national commission. ii. 30days period from the order of the state commission is allowed for carrying the matter before the national commission. iii. A late appeal may also be entertained provided that the commission is satisfied that there was a sufficient cause for not preferring an appeal within the prescribed period.
  • 13. National commission (sec. 9 and 20 to 23) • Composition Headed BY Supreme court Retired Judge One Women –less than 35 yrs, with an degree One Person with economics, law, commerce, accountancy public affairs background TERM OF OFFICE :Every person of district form holds 5 years of office or up to age 70 whichever is earlier , no re- appoinment  National commission shall entertain complaint where the value of claim exceeds Rs1 crore.  National commission enjoys all power which are enjoyed by a civil court.  Any person aggrieved by the order made by national commission may prefer an appeal to supreme court within 30days from the date of order.
  • 14. Jurisdiction:- [sec.(21)] & Appeals:-[sec.(23)] Jurisdiction i. The national commission is to entertain complaints where the value of the goods or services and compensation claimed exceeds RS20 lakhs. ii. The appellate jurisdiction is to entertain appeals against orders of any of the state commission Appeals:  The working procedure is the same as that of the Forum U/S [13(4)], (5) and (6) and for the rest it has been prescribed by the central govt.  The national commission has the power to issue an order to the opposite party directing him to do any 1 or more of the things referred to sec.14(1)(a) to(i).
  • 15. FILING OF COMPLAINTS A complaint may be filed by a) The consumer to whom the goods are sold or services are provided b) Any recognized consumer association c) One or more consumers with same interest d) The central government or state government
  • 16. 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.
  • 17. 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 or the National Commission, such trader or person (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.
  • 18. Example Jet Airways to pay Rs 71K compensation • Jet Airways has been ordered by a consumer forum here to pay over Rs 71,000 as compensation to a family of four for not communicating their food preference to the connecting airline and making them go hungry for over 10 hours during their flight to Toronto from London. • The district forum asked Jet Airways to compensate the family while also holding it guilty of rendering deficient service and not informing the family, the Sharmas, about the number of bags allowed on the connecting Air Canada flight, due to which they had to pay an additional expense of Rs 4,500 (approx) and also discard a bag worth Rs 2,000. • "The tickets were booked at Delhi and with the particulars of the allowable baggage while going to London. Jet Airways was responsible for not clarifying the correct position to the complainant about baggages. • "The Jet Airways was also responsible for not informing the food choice to the connecting flight to Canada from London. We, therefore, hold it responsible for both deficiencies," said the New Delhi district consumer forum. • The Sharmas, residing in Rohini, in their plea, had said they had booked four tickets through a travel agent of the Jet Airways
  • 19. Jet Airways to pay Rs 71K compensation • While booking the tickets, they had mentioned their meal choice as vegetarian, said Sharmas adding that when they took the connecting Air Canada flight to Toronto at London, they found their meal choice had not been communicated to Air Canada, due to which they had to go hungry during the 10-hour flight. • They also said according to the tickets issued by Jet Airways two bags of upto 23 kg weight could be carried by each passenger, but Air Canada informed them that only one bag per traveller was allowed, due to which they had to pay Rs 4,500 and also discard a bag worth Rs 2,000. • Jet Airways, in their reply to a email sent by the Sharmas had said the rules of Air Canada were to be followed and had also shifted the blame on to the travel agent. • The forum, however, rejected Jet Airways' contention that Air Canada rules would apply and it was the travel agent's fault for not informing the family about luggage rules. • "We fail to appreciate the contention raised by Jet Airways. The tickets were booked at Delhi and with the particulars of the allowable baggage while going to London. • Any change of that position in respect of baggages to be carried till Toronto by Air Canada cannot be introduced mid-way in the journey. • "We allow the expenses incurred of Rs 6,200 paid by the complainants for the baggages and allow compensation of Rs 10,000 for each of the complainants for going without food for 10 long hours of flight. We also allow another compensation for harassment of Rs 25,000 to all complainants including litigation expenses," the forum said.
  • 20. Conclusion • Consumer Protection Law are designed to ensure fair competition and the free flow of truthful information in the market place. • The law are designed to prevent business that engages in fraud or specified unfair trade practices (UTP) from gaining an advantage over competitors and way providing additional protection for the weak and those unable to take care of themselves.
  • 21. Thank you We're not in the business of shaping consumer demand. We respond to it.