Consumer Protection Act 1986 Notes

Discussed are the Consumer Protection Act 1986 Notes. The Consumer Protection Act 1986 is enacted for various reason. The consumer protection Act 1986 notes contains almost all the details of the Act. The government understand the necessity of this act due to various circumstances major reasons are:-

The reason behind the enactment of Consumer Protection Act 1986:

1) In most of the cases the consumer are common people i.e. general public who does not have any idea about what to do when they come across such situations.

2) the affected customer are generally not aware about who is the authority to be contacted for such issues. To whom the complaint has to be addressed.

3) in case any customer filled a complaint against any goods or services they to spend lot of money and time.

SCOPE AND EXTENT OF THE CONSUMER PROTECTION ACT 1986:

except Jammu and Kashmir state, this Act extends to whole of India.

Provisions of this Act are In addition to the provisions made previously in the context of the consumers

This Act shall apply to all goods and services that come under the scope of this Act

Main features of the Act are as under

It applies to all kinds of goods and services.

Provisions of this Act are in addition to the provisions of any other Act in force  country. Thus, this Act does not limit or reduce the scope of any other Act

Under this Act, there Is a provision for the Center and State Governments to set up Consumer Protection Councils composing of both official and non-official members. The objectives of the council are:- to promote the rights and Interests of the consumers,- to educate and protect them.

This Act provides for the following rights to the consumer:

Right to safety,

Right to be heard,

Right to consumer education,

Right to seek redressal

Right to Choose

Right to be Informed

Click here for details of Consumer Rights as per the Consumer Protection Act

Who is not a Consumer?

A person obtaining goods for “resale” or for any “commercial purpose”; or

Buys goods without Consideration; or

Hires or avails any services without Consideration; or

Uses the goods without approval of the person who has bought goods for consideration; or

Is beneficiary of services w/o consent of the person who has hired the services for consideration; or

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Obtains service under a contract of personal service.

Restrictive Trade Practices

Trade practice which tends to bring about manipulation of price or;

its conditions of delivery or;

to affect flow of supplies in the market relating to goods or;

services in such a manner as to impose on the consumers unjustified cost or restrictions.

Unfair Trade Practice

For which a trader, for promoting sale, use or supply of any goods or provision of services, adopts any unfair method or deceptive practice.

Includes:

A) The practice of making any statement, orally, written, or visually anything false or misleading.

B) Permits the publication of any advertisement in any newspaper or otherwise, for sale or supply at a bargain price of goods/ services that are not intended to be offered for sale or supply at the bargain price

Authorities under this ACT

This Act is based on the principle of compensation wherein fair compensation to the aggrieved party is provided for. To redress the grievance, there Is provision for three-tier judicial machinery

District level

State level and

National Level

District Forum

CONSUMER DISPUTES REDRESSAL AGENCIES Redressal Forums. – a Consumer Disputes Redressal Forum to be known as the “District Forum” established by the State Government in each district of the State by notification

Composition of District Forums

Each District Forum shall consist of,—  a person who is, or  has been, or is qualified to be a District Judge, who shall be its President; two other members, one of whom shall be a woman, who shall have the following qualifications, cont…..

Qualification of members of District Forum

be not less than thirty-five years of age, possess a bachelor’s degree from a recognised university, 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:

Jurisdiction of the District Forum

. 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.

State Commission…

State Commission – A Consumer Disputes Redressal Commission to be known as the “State Commission” established by the State Government in the State.

Composition of state commission members

Each State Commission shall consist of—  A person who is or has been a Judge of a High Court, appointed by the State Government, who shall be its President Continued… not less than two, and not more than such number of members, and one of whom shall be a woman, who shall have the following qualifications, namely

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Composition of state commission members

be not less than thirty-five years of age; possess a bachelor’s degree from a recognized university; 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:

Jurisdiction of State Commission

Jurisdiction of the SC The State Commission shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed ”exceeding rupees twenty lakhs but less than one crore”.

National Commission 

National Commission – A National Consumer Disputes Redressal known as the ” National Commission” is established by the Central Government .

Composition of national COmmission

Each National Commission shall consist of—  A person who is or has been a Judge of a Supreme Court, appointed by the central Government, who shall be its President Continued… not less than two, and not more than such number of members, and one of whom shall be a woman.

Jurisdiction of national Commission

Jurisdiction of the National Commission. The National Commission. shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed ”exceeding rupees one crore”.

How to File a Complaint

Who can File the Complaint

A complaint may be filed by

The consumer to whom the goods are sold or services are provided

Any recognised consumer association

One or more consumers with same interest

The central government or state government

Requirements

No Fees

3 to 5 copies of complaints in a plain paper

Can be sent by post

Duly signed

With in 2 years of cause of action

Content of complaint

Name and address of complainant

Name and address of the opposite party if ascertained.

The facts relating to complaint

When and where the problem occur

Supportive documents if any

The relief which he is seeking

Possible relief

Removal of defects from goods or services.

Replacement or refund

Award of compensation against loss or injury

to avoid or not to repeat unfair or restrictive trade practices.

Not to sell dangerous goods

Procedures followed by forum

The parties must present on the date of hearing with out fail.

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On receiving the complaint the forum will direct the opposite party to answer on that with in 21 days and may extent the period for 15 more days.

If the opposite party admit the claim the case will be decided by the forum on the basis of records available with in 3 months

cont…….

If the opposite party denies

The forum will send the sample of the goods to laboratory if applicable and demand for the report.

In case of goods for which the testing is available the forum must decide the case with in 5 months.

Powers of forum

To summon and ask for forceful attendance of the parties for hearing

Examining the eye witness and pay commission if required

Order the authorized laboratory to submit the report on any goods

Find or ask for any documents or materials as evidence

To provide judgment and order remedial actions against 3rd party.

To dismiss any case and ask the complainant to pay a fine not exceeding rs.10000 to the opposite party if the complaint is proved to be fake.

Appeal

When the forum award any judgment the party who feels dissatisfaction on it can make an appeal in following way.

1. appeal against the district forum can be done in state forum with in 30 days

2. appeal against the state forum can be done in national forum with in 30 days

3. appeal against the national forum can be done in supreme court with in 30 days

Summation of Consumer Protection Act 1986

By coming through the entire act it can be understood that the ,main motto behind this act is to provide speedy dismissal of any complaint in simple, speedy way and in inexpensive awards.

Example 1 Mr. A bought a TV set from an electronics store for using it at home. The TV was defective. Is Mr. A a consumer? Yes Mr. A is a consumer

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