The Consumer Protection Act, 1986 (68 of 1986)24th December; 1986           An Act to provide for better protection of the interests of consumers and for that purpose to make provision for the establishment of consumer councils and other authorities for the settlement of consumers' disputes and for matters connected therewith. It enacted by Parliament in the Thirty-seventh Year of the Republic of India as follows:—This act was passed in Lok Sabha on 9th December,1986 and Rajya Sabha on 10th December, 1986 and assented by the President of India on 24th December, 1986 and was published in the Gazette of India on 26th December, 1986.Background History of Consumer Protection Act:Indian Conrtact Act,1872Sale of Goods Act,1930Partnership Act,1932IPCFood Adulteration Act,1954

Consumer Protection Act:

Consumer Protection Act, 1986 seeks to promote and protect the interest of consumers against deficiencies and defects in goods or services. It also seeks to secure the rights of a consumer against unfair or restrictive trade practices.Definition:“An Act to provide for better protection of the interests of consumers and for that purpose to make provision for the establishment of consumer councils and other authorities for the settlement of consumers' disputes and for matters connected therewith.” (According to Consumer Protection Act, 1986).

Definition of Consumer:

  "consumer" means any person who—(i)   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( Loan, Credit, Instalments) and includes any user of such goods other than the person who buys such goods for consideration

paid or promised or partly paid or partly promised, or under any system of deferred payment when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose; or

(ii)   hires or avails of any services( Banking, financing Insurance and Transport Etc.) 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 purposes;( Art 2(1) (d) of Act, CPA 1986}

Explanation.— For the purposes of this clause, “commercial purpose” does not include use by a person of goods bought and used by him and services availed by him exclusively for the purposes of earning his livelihood by means of self-employment.Summary:1. Consumer may be any person( Gender, Age, Religion, Occupation and Community).2. Consideration is Necessary.3. Consideration must be payable, paid, partly paid and partly Promised.4. Consideration might be cash of kind.Who is Consumer / Not Consumer:Person who use the goods with the consent of Buyer is a beneficiary of Consumer Right.User of Promotional Scheme(ADD) is also Consumer.(Baby Anmol Mahajan Vs Videocon International, CAJ2013, Pt no-II, Pg-584, NC) Scratch Card 5KG gold won but Company refused to Give the Gift and she filled case to the consumer Court.

National Consumer Day:

As per instruction of Govt. 24th Day of Dec. every year is being observed as National Consumer Day to promote consumer awareness among the public by organizing meeting on a befitting manner involving VCOs working for consumer welfare, members by District Bar Association. School Children and other dignitaries including members of public. The aims and objects of organizing the meeting are to bring awareness among the general public about the facilities of speedy redressal of grievances under C.P. Act, 1986

COMMON METHODS OF EXPLOITATION:

1. Under weight and under measurements: not measured or weighted correctly.

2. Substandard Quality – defective home appliances and medicines beyond expiry date

3. High Price – Charging above the retail price

4. Duplicate Articles – Selling fake items in the name of the original.

5. Adulteration and Impurity – is done to get higher profits.

6. Lack of Safety Devices – absence of inbuilt safeguardsin appliances.

7. Artificial Scarcity – hoarding and black marketing.

8. False and Incomplete Information – misleading information on quality, durability and safety

9. Unsatisfactory after sales Service – high cost items like electronics and cars require constant and regular service.

10. Rough behaviour and Undue conditions – harassment in getting LPG Connection or a telephone connection.

FACTOR CAUSING EXPLOITATION OF CONSUMERS

1. Limited Information – providing full and correct information will help in the choice.

2. Limited Supplies – When goods and services are in short supply then price shoots up.

3. Limited Competition – single producer may manipulate the market in terms of price and stocks.

4. Low Literacy- illiteracy leads to exploitation. Hence Consumer Awareness is essential.CONSUMER PROTECTION COUNCILS :

Art 4: 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 (hereinafter referred to as the Central 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 represent-ing such interests 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,— 

(a)      the right to be protected against the marketing of goods and services which are hazardous to life and property;(b)      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;(c)       the right to be assured, wherever possible, access to a variety of goods and services at competitive prices;(d)      the right to be heard and to be assured that consumer's interests 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. B. The State Consumer Protection Councils.-

(1) The State Government shall, by notification, establish with effect from such date as it may specify in such notification, a Council to be known as the Consumer Protection Council for..................... (hereinafter referred to as the State Council). (2)   The State Council shall consist of the following members, namely:—(a)     the Minister incharge of consumer affairs in the State Government who shall be its Chairman;(b)     such number of other official or non-official members representing such interests as may be prescribed by the State Government.(c)     such number of other official or non-official members, not exceeding ten, as may be nominated by the Central Government.

Objects of the State Council. :

The objects of every State Council shall be to promote and protect within the State the rights of the consumers laid down in clauses (a) to (f) of section 6.8A.       (1)   The State Government shall establish for every district, by notification, a council to be known as the District Consumer Protection Council with effect from such date as it may specify in such notification.

(2)   The District Consumer Protection Council (hereinafter referred to as the District Council) shall consist of the following members, namely:—

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

(b)   such number of other official and non-official members representing such interests as may be prescribed by the State Government.

8B.       The objects of every District Council shall be to promote and protect within the district the rights of the consumers laid down in clauses (a) to (f) of section 6.                                                                              

Consumer Rights:

The following right are provided under CPA, 1986:

1. Right to safetyMeans right to be protected against the marketing of goods and services, which are hazardous to life and property. The purchased goods and services availed of should not only meet their immediate needs, but also fulfil long term interests. Before purchasing, consumers should insist on the quality of the products as well as on the guarantee of the products and services. They should preferably purchase quality marked products such as ISI, AGMARK, etc.

2. Right to chooseMeans right to be assured, wherever possible of access to variety of goods and services at competitive price. In case of monopolies, it means right to be assured of satisfactory quality and service at a fair price. It also includes right to basic goods and services. This is because unrestricted right of the minority to choose can mean a denial for the majority of its fair share. This right can be better exercised in a competitive market where a variety of goods are available at competitive prices

3. Right to be informedMeans 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. Consumer should insist on getting all the information about the product or service before making a choice or a decision. This will enable him to act wisely and responsibly and also enable him to desist from falling prey to high pressure selling techniques.

4. Right to consumer educationMeans the right to acquire the knowledge and skill to be an informed consumer throughout life. Ignorance of consumers, particularly of rural consumers, is mainly responsible for their exploitation. They should know their rights and must exercise them. Only then real consumer protection can be achieved with success.

5. Right to be heardMeans that consumer's interests will receive due consideration at appropriate forums. It also includes right to be represented in various forums formed to consider the consumer's welfare. The Consumers should form non-political and non-commercial consumer organizations which can be given representation in various committees formed by the Government and other bodies in matters relating to consumers.

6. Right to Seek redressalMeans right to seek redressal against unfair trade practices or unscrupulous exploitation of consumers. It also includes right to fair settlement of the genuine grievances of the consumer. Consumers must make complaint for their genuine grievances. Many a times their complaint may be of small value but its impact on the society as a whole may be very large. They can also take the help of consumer organisations in seeking redressal of their grievances.As the markets are globalizing, the direct link between the manufacturer and the final user getting distant, post purchase grievances have to be heard through a strong redressal system. For this, Consumer disputes redressal agencies (popularly known as Consumer Forums or Consumer Courts) are set up under the Act at District, State and National level to provide simple and inexpensive quick redressal against consumer complaints. The District Forum:

Composition of the District Forum. — (1) Each District Forum shall consist of,— 

(a)  a person who is, or  has been, or is qualified to be a District Judge, who shall be its President;(b) two other members, one of whom shall be a woman, who shall have the following qualifications, namely:—

(i)     be not less than thirty-five years of age,

(ii)    possess a bachelor's degree from a recognised university,

(iii)  be persons of ability, integrity and standing, and have adequate knowledge and experience of at least ten years in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or administration:

(1A) Every appointment under sub-section (I) shall be made by the State Government on the recommendation of a selection committee consisting of the following, namely:—(i)   the President of the State Commission                                  —   Chairman.(ii)  Secretary, Law Department of the State                                 —   Member.(iii) Secretary incharge of the Department dealing with      consumer affairs in the State                                                 —   Member.Provided that where the President of the State Commission is, by reason of absence or otherwise, unable to act as Chairman of the Selection Committee, the State Government may refer the matter to the Chief Justice of the High Court for nominating a sitting Judge of that High Court to act as Chairman. (2)  Every member of the District Forum shall hold office for a term of five years or up to the age of sixty-five years, whichever is earlier:

(3) The salary or honorarium and other allowances payable to, and the other terms and conditions of service of the members of the District Forum shall be such as may be prescribed by the State Government.Jurisdiction of the District Forum.—(1) Subject to the other provisions of this Act, the District Forum shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed ''does not exceed rupees twenty   lakhs . This limit is commonly known as the ‘pecuniary jurisdiction’ of the Consumer Redressal Forum(2)   A complaint shall be instituted in a District Forum within the local limits of whose jurisdiction,—(a)     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 carries on business or has a branch office or personally works for gain, or(b)     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 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

carry on business or have a branch office, or personally work for gain, as the case may be, acquiesce in such institution; or(c)     the cause of action, wholly or in part, arises. 

The State Forum:The State Forum deals with the complaints where the value of the goods and services and compensation claimed does not exceed rupees one crore( 1Cr.)

The National Forum :The National Forum entertains the complaints where the value of the goods or services and compensation claimed exceeds rupees one crore.The Consumer Forum can order the company to take the following actions once it hears the complaint and decides that the company is at fault:

Correct deficiencies in the product to what they claim. Repair defect free of charges Replace product with similar or superior product Issue a full refund of the price Pay compensation for damages / costs / inconveniences Withdraw the sale of the product altogether Discontinue or not repeat any unfair trade practice or the restrictive trade

practice Issue corrective advertisement for any earlier misrepresentation

Consumer Responsibilities

Ask Yourself! Have you faced any problems as a consumer? Have you ever complained when you have had such a problem? Do you know that you could seek the assistance of a consumer group to

protect your interests?

Be Critically Aware The responsibility to be more alert and to question more – about prices,

about quantity and quality of goods bought and services used.

Be Involved The responsibility to be assertive – to ensure that you get a fair deal as a

consumer. Remember, if you are passive, you are likely to be exploited.

Be Organized The responsibility to join hands and raise voices as consumers; to fight in

a collective and to develop the strength and influence to promote and protect consumer interest.

Practice Sustainable Consumption The responsibility to be aware of the impact of your consumption on other

citizens, especially the disadvantaged or powerless groups; and to consume based on needs – not wants.

Be Responsible to the Environment The responsibility to be aware and to understand the environmental

consequences of our consumption. We should recognize our individual and social responsibility to conserve natural resources and protect the earth for future generations.