CONSUMER PROTECTION ACT 1986

THE CONSUMER PROTECTION (AMENDMENT) ACT

2002

THE CONSUMER PROTECTION (AMENDMENT) ACT

2005
OBJECTIVES OF THE ACT
Protection of Interest of Consumers
Protection of Rights of Consumer:
1. Right to be protected against marketing of goods and services which
are hazardous to life and property
2. Right to be assured of Goods and services at competitive price
3. Right to be informed about the quality quantity, potency, purity
standard and Price
4. Right to be Heard
5. Right to seek redressal
6. Right to consumer Education:
7. Consumer protection councils
Quasi-judicial machinery
WHO IS A CONSUMER

Consumer means any person who:

a) Buys any goods for consideration which has paid, or promised or partly
paid or partly promised, or under any system of deferred payment 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 persons, but does not include a person who obtain such
goods for resale or any other commercial purpose
WHO IS A CONSUMER
CONTD
b) Hires or avails of any services for a consideration which has been
paid or promised or partly paid or partly promised, or under 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 or partly promised, or
under 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.
GOODS
According to the sale of Goods Act- Goods means every kind of
movable property other than the actionable claims and money; and
includes stocks and shares, growing crops, grass and things attached
to or forming part of land which are agreed to be severed before sale
or under the contract of sale.
Flats and housing was included under goods in 1993
SERVICES
Services of any description which is 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 the purveying of news or other information
Housing construction is a service
 CASE
Amit bought a television set from an
electronic store for using it at home. The
television was defective. Is Amit a
consumer?
Sumit, on a holiday with his family,
hired a taxi service. The taxi was in poor
condition, the driver did not have
adequate rest and drove rashly. The taxi
broke down on two occasions and
eventually all of them in the middle of
the hills. They could not reach in time to
catch their flight. Is Sumit a consumer?
 CASE
Sujit bought a pressure cooker for
domestic use. The money for it was to
be paid next week. It burst in the
second use? Is Sujit a consumer?
Suman bought a cell phone for personal
use .The payment of the phone was to
start the following month. The payment
was to be one in six monthly
installments. The phone was defective.
Is Suman a consumer?
 CASE
A manufacturer of pens was
distributing his pens free to the visitors
to an exhibition. The pens were
defective and leaking. The pens spoilt
the clothes of several persons. Sunita is
one of the persons who has spoilt her
clothes. Is she a consumer?
COMPLAINANT
Acc to the Act, Complainant means-
a) A consumer; or
b) Any voluntary consumer association
registered under the companies act,1956 or
under any other law for the time being in
force, or
c) The central government or any state
government;
d) One or more consumers, where there are
numerous consumers having the same
interest
COMPLAINT
Complaint means any allegation in writing made by a complainant with a view to obtain any relief under the Act
RESTRICTIVE TRADE PRACTICE
According to Act: Restrictive trade practice
means a trade practice which tends to bring
about manipulation of price or its conditions of
delivery or to affect the flow of supplies in the
market relating to goods or services in such a
manner as to impose on the consumers
unjustified costs or restrictions and shall include:
Delay beyond the period agreed to by a trader in
supply of such goods or in providing the
services which has led or is likely to lead to rise
in the prices
Any trade practice which requires a consumer to
buy, hire or avail of any goods or, as the case
may be, services as condition precedent to
buying, hiring or availing of other goods or
services.
 UNFAIR TRADE PRACTICES
Unfair means and deceptive practices

Misleading advertisements
Making of false statements
Publication of any advertisement for the sale
at a bargain price that are not intended to be
offered for sales
Not providing gifts/prizes after declaration of
results
CONSUMER DISPUTE REDRESSAL
AGENCIES
Point of District Forum State National
Distinction Commission Commission

Territorial 1 or more One or more All India

Jurisdiction districts state

Qualification of Serving, Serving, or Serving, or

President Retired or Retired Judge Retired Judge
qualified of high court of supreme
district judge court
CONTD..

Composition President and President and President and

two members-1 min. 2 members- min. 4 members-
woman 1 woman 1 woman

Qualification Age Same as District Same as District

-35,graduate, 10 Forum Forum
yrs ex. in
eco,law,a/c,e-
commerce
Re-appointment Yes Yes Yes
CONTD

Monetary Upto 20 lakhs 20 lakhs-1 crore More than one

Jurisdiction crore

Administra-tive State commission National

Control commission

Penalties Imprisonment for not less than 1 mth but can extend to 3
yrs. Fine not less than 2000.

Frivolous Dismiss the complaints and costs upto Rs 10000/-

complaint
PROCEDURE FOR MAKING A
COMPLAINT
A complainant can make a complaint before the
appropriate consumer dispute redressal agency.
The complaint relating to any goods and
services is given to the opposite party within 21
days .
The opposite party is allowed to put forth his
version within 30 days.
In case of defect in goods, a sample of the
goods is sent to the lab for a report within 45
days.
The report is given to the opposite party.
A complaint shall be decided within 3 months if
no lab test is required and within 5 months if the
lab test is required.
 FINDINGS
The following orders can be made by the consumer
dispute redressal agency:
1. To remove the defect
2. To replace the goods
3. To return to the complainant the price
4. To pay compensation
5. To remove the defects in goods or deficiencies in
services.
6. To discontinue the unfair trade practice
7. Not to offer hazardous goods
8. To cease manufacture of hazardous goods.
9. To issue corrective advertisement
10. To provide for adequate cost
DECISIONS OF NATIONAL COMMISSION AND SUPREME COURT

Doctors are within the purview of this act

Government hospitals/health centres who render
service for free the provisions of the act do not
apply.
Damages are payable if there is negligence of the
opposite party .
Provident fund subscribers are also consumers.
Deficiency of railway services.
Confirmed ticket not providing a seat is a deficiency
of service.
Nursing home not able to manage emergency is a
negligence of service.
 DECISIONS OF NATIONAL COMMISSION AND SUPREME COURT

Deceased husbands premium was not deduced from

salary wife can claim the benefits
Unauthorized escalation of price due to delay of
delivery.
Full payment done for flat, but due to some reasons
flat not allotted and advised to opt for another
scheme is not valid This is deficiency of service