Consumer Protection Act, 1986

The objectives of the act is to provide for the better protection of the interests of

consumers and for that purpose to make provision for the establishment of consumer councils and authorities for the settlement of

consumers disputes and for matters connected therewith.

Consumer protection councils• The act provides for the establishment of a

central consumer protection council by the central government and the state consumer protection council in each state by the respective state governments.

• The central council shall consist of the Minister in charge of consumer affairs in the central government who shall be its Chairman and such number of other official or nonofficial members representing such interests as may be prescribed. The council shall meet as and when necessary but at least one meeting of the council shall be held every year.

Objects of councils• The objects of councils are to promote and

protect the rights of the consumers such as:

1: the right to be protected against marketing of goods and services which are hazardous to life and property.

2: the right to be informed about the quality, quantity, purity, standard and price of goods and services so as to protect the consumer against unfair trade practices.

3: the rights to be assured, wherever possible, access to a variety of goods at competitive prices.

4: the rights to be heard and assured that consumer’s interests will receive due consideration at appropriate forums.

5: the right to seek redressal against unfair trade practices.

6: the right to consumer education.

• The consumer protection act provides for a three-tier consumer disputes redressal system encompassing the :

• 1: district• 2: state• 3: national levels

Consumer Disputes Redressal Agencies

• There are 2 levels of consumer disputes redressal agencies in the State and one agency at the national level.

• In other words, the act provides for the establishment of the following consumer disputes redressal agencies:

(a) a district forum

(b) a state commission in each state

© a national commission

1: district forum: the district form consist of

(a) a person: who is or has been or is qualified to be a district judge nominated by the state government who shall be its president.

(b) a person of eminence in the field of education, trade or commerce

© a lady social worker

2: state commission: each state commission shall consist of:

(a)a person who is or has been a judge of a high court, appointed by the state government ( who shall be its president) and

(b) 2 other members who shall be persons of ability, integrity, and standing and have adequate knowledge or experience of or have shown capacity in dealing with problems relating to economics, law commerce, accountancy, industry, public affairs, one of whom shall be women.

• 3: national commission: national commission was established by central government in Aug. 1988. the responsibility for the establishment of the other two agencies, with the prior approval of the central government, rests with the respective sate government.

• The national commission shall consist of :

(a) a person who is or who has been a judge of the Supreme court, appointed by the Central Government( who shall be its president) &

(b) 2 other members who shall be persons of ability, integrity, and standing and have adequate knowledge or experience of or have shown capacity in dealing with problems relating to economics, law, commerce, accountancy, industry etc, one of whom shall be women.

Consumer complaints• A complaint , in relation to any goods sold or

delivered or any service provided may be filed with the redressal agency by:

(a) the consumer to whom such goods are sold or delivered or such service provided.

(b) any recognised consumer association, whether the aggrieved consumer is a member of such association or not

© one or more consumers, where there are numerous consumers having the same interest

(d) the central or state government.

Remedial action If the consumer disputes redressal agency is satisfied that any of the

allegation contained in the complained is true, it shall issue an order to the opposite party directing him to take one or more of the following things, namely:

1: to remove the defect pointed out by the appropriate laboratory from the goods .

2: to replace the goods with new goods of similar description which shall be free from all defects.

3: to remove the defects or deficiencies.

4: to discontinue the unfair/ restrictive trade practice or not to repeat them.

5: not to offer the hazardous goods for sale.

6:To withdraw the hazardous goods from being offered for sale.

7: to provide for adequate costs to parties.

Penalties• If a trader or person against whom a complaint

is made or the complaint fails or omits to comply with any order made by a redressal agency, he shall be punishable with imprisonment for any term not exceeding 3 yrs or with fine not exceeding 10 thousand rupees or with both.

Conclusion• The consumer protection act, 1986, which was

modified by the amendment act of 1993, is a very important means to protect the consumer rights.

• The act has been hailed for the time frame set for the disposal of the cases.

• In fact, the act envisages a simple, inexpensive, and speedy redressal of consumer grievances related to defective goods, deficient services and unfair and restrictive trade practices. But several problems mentioned above come in the way of expeditious disposal of the cases.

• The effective functioning of the consumer redressal agencies and consequently, the achievement of objectives of the act, are hindered by several implementation problems and inadequate consumer actions.

• Consumers, all around the world, are victims of poor quality, unsafety, under measurement, adulteration and false promises.

• Indian consumers suffer and lose thousands of crores of rupees every year due to adulteration and quantity deceptions.

Factors of consumers protectionINTERNATIONAL ENDEAVOURS

CONSUMER COOPERATIVES CONSUMERADVOCATES

PUBLIC SECTOR LEGAL MEASURES

CONSUMERISM INDIVIDUAL CONSUMERS

FIRMS AND TRADE ASSOCIATIONS

CONSUMERPROTECTION

• The most important legal measure to protect the consumer rights is the consumer protection act, 1986.

• this act provides for the establishment of a central consumer protection council by the central government and a state consumer protection council in each state by the respective state government.

The objects of these councils are to promote and protect the rights of the consumers such as:

1: the right to be protected against marketing of hazardous goods and services.

2: the right to be informed about the relevant factors about the goods and services so as to protect the consumer against unfair trade practices.

3: the right to reasonable choice.

4: the right to be heard.

5: the right to seek redressal of legitimate complaints.

6: the right to consumer education.

Consumer disputes redressal agencies under consumer protection act

Consumer disputes redressal agencies under consumer protection act

DISTRICT FORUM

(for dealing cases involving upto Rs. 5

lakh)

STATE COMMISION(for dealing cases

involving Rs. More that 5 and less than 20 lakh and appeals against orders of

district forum)

NATIONAL COMMISION(for dealing cases

involving Rs. more than 20 lakh and appeals against orders of state commissions.