Consumer Protection Act

INTRODUCTION

Consumer rights are an integral part of our lives like the consumerist way of

life. We have all made use of them at some point in our daily lives. Market

resources and influences are growing by the day and so is the awareness of

ones consumer rights. These rights are well defined and there are agencies

like the Government, consumer courts and voluntary organizations that work

towards safeguarding. While we like to know about our rights and make full

use of them, consumer responsibility is an area which is still not demarcated

and it is hard to spell out that all the responsibility is that a consumer is

supposed to shoulder.

Consumer Protection Act, 1986 is an important Act in the history of the

consumer movement in the country. The Act was made to provide for the

better protection and promotion of consumer rights through the

establishment of consumer councils and quasi-judicial machinery. It is mile

stone in the history of socio-economic legislation and directed towards public

welfare and public benefits.

The CPA was passed by the Lok Sabha on 5th December 1986 and Rajya

Sabha on 10th December, 1986 and assented to by the president in the

Gazette of India.
 Extra Part II: Section 1 dated 26.12.1986.and at PP 1-12 called, “the

CPA 1986 (Act No.66 of 1986) and the preamble states that, “An Act provide

for better protection of the interest of the consumers and for that purpose to

make provisions for the establishment of consumer councils and other

authorities for the settlement of consumer’s dispute and for matters

connected therewith.”

Under the Act, consumer disputes redressal agencies have been set up

through out the country with the District Forum at the District level, State

Commission at the State level and National Commission at national level to

provide simple, inexpensive and speedy justice to the consumer with

complaints against defective goods, deficient services and unfair and

restrictive trade practices.

The Law relating to consumer protection in India is at recent origin and

is developing slowly, day by day, with the pronouncement of orders passed

by the commissions constituted under the Act all over India and the National

Commission. However the presence of some protective Laws for the benefits

of consumer in the ancient culture cannot be denied.

BACKGROUND

In the early years when welfare legislatures like the consumer protection

Act did not exist, the maxim Caveat emptor (let the buyer beware) governed

the market deals. We find the seeds of consumer protection during the

Mughal times and especially during the time of Khiljis. It is said that Sultan

Ala-ud-Din Khilji (1296 A.D. to 1316 A.D.) had introduced strict price control

measures based on production costs. He had also established separate

shopping centers in Delhi for (1) grain, (2) cloth, sugar, dried fruits, herbs,

butter, and oil, (3) horses, slaves, and cattle, and (4) miscellaneous

commodities. The supply of grain was ensured by collecting tax in kind in the

production areas and keeping it in the royal storehouses. Hoardings of grain

were forbidden. Elsewhere the growers were ordered to sell their grains for

cash in their fields at fixed prices and were not allowed to take any grain

home for private sale. The market controller, the state intelligence officer,

and the Sultan’s secret agents, each submitted independent reports on these
shopping centers to the Sultan. Even a minor violation of the rules was not

tolerated.

The shopping center for cloth, known as the sara-i-adl, was established

near one of the royal palaces on the inner side of the Bada-un-Gate. All

goods, including foreign imports, were first taken there and their price fixed.

Every merchant was registered with the commerce ministry and had to sign

a bond guaranteeing a regular supply to the goods in which they traded. The

Hindu Multani merchants were advanced money by the treasury to import

rare commodities for the sara-i-adl, some price were subsidized. Costly

fabrics and luxury goods could be sold only to those who have obtained

permits from the Government. The prices of cattle were also fixed and

unscrupulous merchants were deprived of their trading rights.

The shopping center for general commodities was under the direct

control of the commerce ministry. Ala-ud-Din’s Minister of commerce was

also the Superintendent of weights and Measure and the Controller of the

Commercial transactions. He was assisted by Superintendent for each

commodity. Prices and weight and measure were chequed by sending the

children employed in the royal pigeon-house to buy petty articles i.The prices

fixed for the Delhi market were also applied in the provincial capitals and

towns.

During the British regime (1765-1947)ii, also known as the ‘Colonial Era’,

Government’s economic polices in India were concerned more with

protecting and promoting the British interests than with advancing the

welfare of the native population. The administration’s primary per-

occupation was with maintaining law and order, tax collection and defenceiii.

Accordingly much of the legalisation enacted during the British regime was

primarily aimed at serving the colonial rulers intend of the natives. There

were, however, some pieces of legislation which protected the overall public

interest through not necessarily the consumer interest.iv Prominent among

these were: the Indian Penal code, 1860, the sale of Goods act, 1930, the

dangerous drugs act, 1930 and the drugs and cosmetics act, 1940. In a

sense, the sale of good act, and the principles of the law of torts were more

for the protection of the trader than the consumer1.

THE POST-INDENDENCE SCENARIO

The struggle for India’s independence was over by 15 th August, 1947.

However, the attainment of independence was not an end in itself. Due to

the increased emphasis on industrialization during the second five year plan,

there was tremendous growth and establishment of heavy industries. As a

result there was a considerable amount of migration of rural population to

the urban areas in search of employment, as India is characterized by a vast

amount of disguised unemployment in the agricultural sector. Growing

urbanization due to heavy industrialization resulted in proliferation of human

needs-of basic necessaries and also of luxuries. Due to the shortage of

certain necessaries and even their non-availability at reasonable rates with

growing menace of adulteration, it was found necessary to empower the

Government to control their production, quality, supply, and distribution.

Therefore the decade of 1950s, right from the very beginning, saw the

enactment of a number of laws to safeguard the interests of the consumers

from various angles. The enactment of the Banking Companies Act,1949

(later called The Banking Regulation Act) to amend and consolidate the Law

related to banking matters as well as the Industries(Development and

Regulation)Act,1951 to implement the Industrial Policy Resolution of 1948

were among the earliest stapes taken by the National Government in India in

the direction of consumer protection.

With the continuous industrialization and urbanization, environmental

problems also came more to the forefront, but seldom got any worth while

attention of Indian planners and policy makers till the fateful incident of

Bhopal in 1984. Thus the Bhopal catastrophe, perhaps for the first time,

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focused considerable attention on the industrialization hazards,

environmental pollution, Government responsibility and business

accountability. The Union Carbide tragedy also highlighted the potential risks

to the lives of the citizens or consumers from the operations transnational

corporations in foreign lands.

Now with the opening up of the Global Market and economics and

progressive removal of international trade barriers, two phenomenons have

been witnessed with.

First, there is influx of foreign brands and franchises.

Second, within India, there is increasing competition among manufacturers

which has benefited consumers in the form of improvement in quality of

goods and resources. Thus in turn has witnessed more and more legislations

aimed at regulating the manufacturing and trading activities and providing

protection to consumers at large. Now the maxim caveat emptor has been

replaced by, “let the seller beware”. As a result of this change in scenario

business has now come to be substantially regulated by Government and

Authorities in favour of consumers.

Inspite of various provisions providing protection to the consumer and

providing for stringent action against adulterated and substandard articles in

the different enactments like Criminal Procedure Code, 1908, Indian Contract

Act, 1972, Sales of Goods Act, 1930, Indian Penal Code 1860, Standard of

Weights and Measures Act, 1976 and Motor Vehicle Act,1988, very little

could be achieved in the area of consumer protection. Though Monopolies

and Restrictive Trade Practices Act, 1969 and prevention of Food

Adulteration Act, 1954 have provided relief to consumers, yet it becomes

necessary to protect consumers from exploitation and to save them from

adulteration and substandard goods and services and to safe guard their

interests.

In order to provide for better protection of the interest of the

consumers the Consumer Protection Bill, 1986 was introduced in the Lok

Sabha on December 5th 1986. The CPA 1986 was enacted to provide for

better protection of the interest of consumer and for the purpose to make
provisions for establishment of Consumers Councils and other authorities for

settlement of consumer’s dispute and for matters connected therewith.

The CPA is only one of the several Laws framed to protect consumers

from unfair and undesirable practices of business community such law

became necessary due to growing frustration of consumers with substandard

quality of goods, unsatisfactory services and unfair business trade practices.

The Act is a social welfare legislation enacted to provide for the better

protection of the interest of the consumers and different redressal forums

have been established under the said Act for settlement of consumer’s

disputes. The legislature hereby enacted such legislation for speedy solution

of disputes of the consumers for the benefit of people at large. The people to

allow those forums to function as far as possible without avoidable

interdiction by the High Court. The consumer legislation is a beneficiary

piece of legislation and the legislature in order to help the consumers has not

prescribed any court fee to be affixed on the complaint. But it is expected

from the complainant that they should come before the Redressal Agencies

with clean hands and that the relief claimed by them are not inflated.

On a strict reading of the provisions of the Act as a whole it would be

seen that in enacting the statute the interaction of the Parliament was to

provide protection and relief to four categories of consumers:

(i) Persons who have suffered loss or damage as a result of any unfair

trade practice adopted by any trader.

(ii) Persons who have purchased goods for which the trader has charged a

price in excess of the price fixed by or under any law for the time being in

force, or displayed on the goods or any package containing such goods.

(iii) Persons who have purchased goods for consideration which are found

suffer from one or more defects.

(iv) Persons who have hired any services for consideration when the

services provided are found to suffer from deficiency in any respect.

OBJECTIVE
 The provision of the Act in the light of its preamble reads as: “An Act

to provide better protection of the interest of consumers… for the settlement

of consumer dispute and for matters connected therewith”.

The word ‘protection’ furnishes the key to the mind of the makers of the act.

Its provision has to be interpreted in favour of the consumer, in such a

manner as to provide maximum relief to him.

The primary duty of the court, while constructing provisions of the Act

is to adopt a constructive approach. It should not do violence to the

provisions and should also not be contrary to attempted objective of the Act.

This Act has not been frame to provide a loophole and excuses to well

organized traders, producers2 and big business houses and manufactures on

technical grounds.

RELIEF UNDER THE CONSUMER PROTECTION ACT

Reliefs provided under the Act, 1986 are as follows:

(I) SPECIFIC RELIEFS

The Act allows consumers to file complaints on five specific grounds.

The Act does not allow complaints to frame their reliefs as they do not wish

nor does it leave it to the Consumer Disputes Redressal Agencies (CDRAs) to

work out remedies according to their discretion. The reliefs possible are

indicated in Article 14 of the Act. One can find below the reliefs obtainable in

the case of each of the items of complaint listed in Article 2(1) (c).

DEFECTS IN GOODS

There are several remedies in respect of this:

-Removal of the defect pointed out by the laboratory

-Removal of defect in respect of goods not sent to laboratory analysis

-Replacement of goods

-Return of price

In respect of fungible goods the removal of defect will not be of any

use to the complainant. But however the order will be operative in future as

regards the same goods and would serve the interest of all consumers.

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Clause (a) being restricted to defects pointed out by the laboratories, Clause

(e) provides the relief in respect of other goods not sent to the laboratory. It

is true that the word “goods” is not found in that Clause. The clause should

normally read as “to remove the defects in the goods or deficiencies in the

services in question”. But it can be understood only as such, since one can

gather from the definition of the word “defect” in Clause 2(1)(f) that it

relates only to goods. Similarly “deficiency” is only in respect of service

[Clause 2(1) (g). The complainant should, therefore, take care not to use the

word “defect’ for “deficiency” or vice-versa.

DEFICIENCY IN SERVICE

The reliefs are:

-Return of charges paid

-Removal of the deficiency

Removal of deficiency in not always possible once service has been

rendered. Even if possible, it is no usually desired by the consumer, who had

a bad experience, to resort to the same person for service.

OVER-PRICING OF ARTICLES

Return of the price against return of the article or reimbursement of

the excess price.

UNFAIR TRADE PRACTICE AND RESTRICTIVE TRADE PRACTICE

The reliefs are:

-To discontinue them or not to repeat them

Unfair trade practice and restrictive trade practice are defined in the

Act with great precision. These words should be used only in cases

contemplated in the definitions of those words, not in case of other grounds

of complaint like defect in goods or overt-pricing, because the reliefs in such

case are different.

HAZARDOUS GOODS

The reliefs are:

-Not to offer the hazardous goods for sale (g);

 -To withdraw the hazardous goods from being offered for sale (h);

It is thus seen that for each ground of complaint there is one or more

reliefs available which can be asked for alternatively or cumulatively. It is for

the complainant to decide and to frame properly the reliefs with indication of

the respective clauses.

(II) GENERAL RELIEF OF COMPENSATION

Compensation may be asked in all cases,

Negligence in case of defects in goods, though not frequent, may

however happen. Therefore, compensation will be a welcome relief to the

consumer in addition to the other which he possesses.

It is in respect of service that compensation will play a big role.

In this connection it is to be stated that negligence is very close to

deficiency which arises in consumer will get only return of charges, whereas

if there is negligence, he will get compensation in addition. Compensation

has to be specifically asked for and the acts of negligence pointed out. Once

negligence is proved, the amount of compensation has to be determined. As

per the Act it is for loss or injury suffered. The complaint has, therefore, to

give details of the loss and estimate it in terms to be established. The

correctness of the estimate has also to be established. The complainant can

start by an affidavit. If the demand appears reasonable the same have to be

adduced, failing which the CDRA concerned will determine itself the amount.

Lastly how and to what extent loss or injury is attributable to negligence is

also to be shown and proved except in cases of res ipsa loquitur, where the

fact is eloquent by itself.

Whereas the extent of other reliefs is determined by the Act itself this

one is left to the appreciation of the CDRAs. Regarding the assessment of

compensation by CDRAs there are two methods: Global assessment to the

best of the judgment of the adjudicating body which consists at least of there

persons or computation of damages with the help lf some yardsticks. The

second course appears to be more accurate. But the yardsticks are not easy
to determine properly and may lead some times to grace errors. The

preference of the CDRAs is now for global assessment.

MEANING AND SCOPE OF CONSUMER AND C.P.A.

As the preamble of CPA 1986 reflect; this socio-economic Law was

enacted to provide for the better protection of the interest of consumers and

for that purpose the CPA 1986 seeks to provide speedy and simple redressal

to consumer dispute. In Charan Singh v. Healing Touch Hospitalv the Hon’ble

Supreme Court has made important observations on the object of the act.

S.2(1)d of the act defined consumer as “Consumer” means any person who-

(i) Buys any goods for a consideration which has been paid or promised or

partly paid and party 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 person, but does not include

with the approval of self person, but does not include a person who obtains

such goods for resale or for any commercial purpose or

(ii) {Hires for avails of} any services for a consideration which has been

paid promised or partly paid or partly promised or under any system of

differed payment and includes any beneficiary of such services other than

the person. [hires or avails of ] the services for consideration paid or

promised or partly paid or partly promised, under any system of differed

payment, when such services are availed or with the approval the first

mentioned person.

The word ‘consumer’ as has been defined in the Act means any person who

buys any goods for consideration, but does not include a person who obtain

such goods for resale or for any commercial purpose. Thus a person who

purchases goods for any commercial purpose, does not fall within the

definition of word consumer. Going by plain dictionary meaning of the words

used in the definition of consumer it is clear that this Act intends to restrict

the benefits to ordinary consumers purchasing goods either for their own
consumption or even for use in small ventures which they have embarked

upon in order to make a living and to deny the benefit of the Act to persons

purchasing goods either for the purpose of resale or for the purpose of

being used in profit making activity engaged on a large scale.

Scope

The definition has two parts. The first part in clause (1) deals with

buyer and user of goods. The 2nd part covers the hirers and beneficiary of

services.

CONSUMER RIGHTS

Consumers in the advanced countries, obviously, are much more

conscious of their rights than in countries like India. In 1962, President John

F. Kennedy, and in 1965, President Johnson emphasized the consumer rights

and gave an impetus to consumerism in the U.S.A and other countries.

Important consumer rights include:

1. Right against exploitation by unfair trade practices.

2. Right to protection of health and safety from the goods and services the

consumers buy or are offered free.

3. Right to be informed of the quality and performance standards,

ingredients of the product, operational requirements, freshness or the

product, possible adverse side effects and other relevant facts concerning

the product or service.

4. Right to be heard if there is any grievance or suggestions.

5. Right to get genuine grievances redressed.

6. Right to choose the best from a variety of offers.

7. Right to physical environment that will protect and enhance the quality of

life.

Exploitation of Consumers

Consumers are, however, by and large, practically denied most of these

rights. They are exploited by a large number of restrictive and unfair trade
practices. A situation has developed in science is extensively applied to

marketing to ruthlessly, exploit the consumers by stimulating the weak

points and soft corners of their mind. Misleading, false or deceptive

advertisements are quite common. Many a time the advertisements

deliberately give only half truths so as to give a different impression than is

the actual fact. Thus, advertisements may, be misleading because things

that should be said have not been said, or, because advertisements are

composed or purposefully presented in such a way as to mislead.

CONSUMER PROTECTION

For effective consumer protection, a practical response on the part of

three parties, for example, the business, the government and the

consumers, is essential.

Firstly, the business, comprising the producers and all the elements of

the distribution channels, has to pay due regard to consumer rights. The

producer has an inescapable responsibility to ensure efficiency in production

and the quality of output. He should also resist the temptation to charge

exorbitant prices in a seller’s market. Many a time, the imperfections on the

supply side, like hoarding and black marketing, mercilessly gouge the

consumer. Hence, a socially responsible producer should see to it that

whatever is produced reaches the ultimate consumer in time and at

reasonable prices.

Secondly, the Government has to come to the rescue of the helpless

consumer to prevent him from being mislead, duped, cheated and exploited.

It should also take special care of the vulnerable sections. Governments

should establish or maintain legal and/or administrative measures to enable

or, as appropriate, relevant organizations to obtain redress through formal or

informal procedures that are expeditious, fair, inexpensive and accessible.

Such procedures should take particular account of the needs of low-income

consumers.

Thirdly, consumers should accept consumerism as a means of

asserting and enjoying their rights. Consumerism should succeed in making

the business and the government more responsive to the rights of the
consumers. Consumerism is a social force to (i) make the business more

honest, efficient, responsive and responsible, and (ii) pressurize the

government to adopt the necessary measures to protect consumer interests

by guaranteeing their legitimate rights.

CONSUMER PROTECTION AND CONSUMERISM IN INDIA

Plight of the Indian Consumer

An examination of the important problems facing the Indian consumer

would make clear the need for more effective government intervention and

consumer movement to safeguard consumer rights.

The following factors make the plight of the Indian consumer

miserable.

1. Short supply of many goods and services, especially of essential items,

is a very serious problem afflicting the Indian consumer. The demand-

supply imbalance has produced all the associated evils of profiteering,

hoarding and black-marketing, corruption, nepotism, irresponsiveness

and arrogance towards consumers. Although the situation has

improved as a result of the increase in competition due to

liberalization, it is still far from satisfactory.

2. The Indian consumer is also the victim of lack of effective or workable

competition. “Competition among sellers, even though imperfect, may

be regarded as effective or workable if it offers buyers real alternatives

sufficient to enable them, by shifting their purchases form one seller to

another, substantially to influence quality, service, and price. Effective

competition depends also upon the general availability of essential

information; buyers cannot influence the behaviour of sellers unless

alternatives are known. It requires the presence in the market of

several sellers, each of them possessing the capacity to survive and

grow, and the preservation of conditions which keep alive the threat of

potential competition among sellers is thus to be found in the

availability of buyers of genuine alternatives in policy among their

sources of supplyvi.”
 3. Many products with which consumers in advanced countries are quite

familiar are still new to a very large segment of the Indian consumers.

The unfamiliarity of the consumers with product features makes the

sale of substandard, inferior or even defective products easier in India

than in advanced countries.

4. Due to low literacy levels and unsatisfactory information flows, the

Indian consumers, by and large, are not conscious of all their rights.

This encourages irresponsible and unscrupulous business attitudes and

tactics.

5. It has been said that the legal process in India is comparatively time-

consuming and cumbersome. This discourages the consumers from

seeking the Redressal of their grievance by means of the judicial

process.

6. Consumerism in India is not well organized and developed.

7. Though the public sector had not been developed and expanded to

serve the public interest by providing effective competition to the

private sector, increasing production, improving distribution, etc., it

failed to produce benefits that were commensurate with the

investment.

8. Though there are a number of laws to safeguard the interests of

consumers, they are not effectively implemented and enforced to

achieve the objectives.

The above factors are effective State intervention and consumerism to

ensure the rights of consumers.

Government Measures

In India, the Government has taken a number of measures to protect

consumer interests. The various Government measures may be classified

into (i) statutory regulation of private business, and (ii) development of the

public sector.

Statutory Regulation: Government of India has armed itself with a number

of statutory weapons to control the production, supply, distribution, price and

quality of a large number of goods and services. It is empowered to regulate

the terms and conditions of sale, the nature of trade and commerce, etc.

There is a feeling that, “unlike in the West, the Government in India has a

large number of controls on industry and is, therefore, in a position to

respond more swiftly and effectively than western Governments. I some

ways our bureaucracy has perfected the art of assuming the guardianship of

all interests of the consumers and the vulnerable sections.”

Growth of Public Sector: There had been a significant growth and

expansion of the public sector in India. One of the most important objectives

of the public sector was the enhancement of consumer welfare by increasing

production, improving efficiency in production, improving efficiency in

production and supply, making available goods and services at fair prices,

curbing private monopolies and reducing market imperfections, improving

the distribution system, and so on. The public sector, in fact, is expected to

implement the societal marketing concept.

There is, however, a general feeling that the public sector in India has

still a long way to go to realize these objectives. It has established

monopolies or near-monopolies in public utilities, whose performance is far

from satisfactory.

LEGAL PROVISION

PREAMBLE

“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” .

Be it enacted by Parliament in the Thirty-seventh Year of the Republic of

India as follows:

1. SHORT TITLE, EXTENT, COMMENCEMENT AND APPLICATION

(1) This Act may be called the Consumer Protection Act, 1986.

(2) It extends to the whole of India except the State of Jammu and

Kashmirvii.

(3) It shall come into force on such date 1 as the Central Government
 may, by notification appoint and different dates may be appointed for

different States and for different provisions of this Act.

(4) Save as otherwise expressly provided by the Central Government

by notification, this Act shall apply to all goods and services.

2. Definitions.

(1) In this Act, unless the context otherwise requires,-

[(a) "Appropriate laboratory" means a laboratory or organization-

(i) Recognized by the Central Government ;

(ii) Recognized by a State Government, subject to such guidelines as

may be prescribed by the Central Government in this behalf; or

(iii) Any such laboratory or organization established by or under any

law for the time being in force, which is maintained, financed or aided

by the Central Government or a State Government for carrying out

analysis or test of any goods with a view to determining whether such

goods suffer from any defect;]

(b) "Complainant" means -

(i) A consumer; or

(ii) Any voluntary consumer association registered under the

companies Act, 1956 (1 of 1956), or under any other law for the time

being in force; or

(iii) The Central Government or any State Government, who or which

makes a complaint;

[(iv) One or more consumers where there are numerous consumers

having the same interest;]

[(v) in case of death of a consumer, his legal heir or

representative.]who or which makes a complaint;

(c) "Complaint'' means any allegation in writing made by a

complainant that-

[(i) An unfair trade practice or a restrictive trade practice has been

adopted by any trader or service provider;]]

 (ii) [The goods bought by him or agreed to be bought by him] suffer

from one or more defects;

(iii) [Service hired or availed of or agreed to be hired or availed of by

him] suffer from deficiency in any respect;

(iv) [a trader or the service provider, as the case may be, has charged

for the goods or for the service mentioned in the complaint, a price in

excess of the price in excess of the price-

(a) fixed by or under any law for the time being in force;

(b) displayed on the goods or any package containing such goods;

(c) displayed on the price list exhibited by him by or under any law for

the time being in force;

(d) agreed between the parties;

[(v) goods which will be hazardous to life and safety when used are

being offered for sale to the public:

(A) in contravention of any standards relating to safety of such goods as

required to be complied with, by or under any law for the time being in

force;

(B) if the trader could have known with due diligence that the goods so

offered are unsafe to the public;

[(vi) service which are hazardous or likely to be hazardous to life and

safety of the public when used, are being offered by the service

provider which such person could have known with due diligence to be

injurious to life and safety.

(d) "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 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 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 then 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 purpose]

[Explanation. For the purposes of this sub-clause "commercial purpose"

does not include use by a consumer 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]

(e) "Consumer dispute'' means a dispute where the person against

whom a complaint has been made, denies or disputes the allegations

contained in the complaint;

(f) "Defect" means any fault, imperfection or short coming in the quality,

quantity, potency, purity or standard which is required to be maintained

by or under any law for the time being in force or [under any contract

express or implied or] as is claimed by the trader in any manner

whatsoever in relation to any goods; (g) "Deficiency" means any fault,

imperfection, shortcoming or inadequacy in the quality, nature and

manner of performance which is required to be maintained by or under

any law for the time being in force or has been undertaken to be

performed by a person in pursuance of a contract or otherwise in

relation to any service

9. Establishment of Consumer Disputes Redressal Agencies.

There shall be established for the purpose of this Act, the following

agencies, namely:

(a) A Consumer Disputes Redressal Forum to be known as the "District

Forum" establishment by the State Government in each district of the

State by notification:

[Provided that the State Government may if it deems fit, establish

 more then one District Forum in a district.]

(b) A Consumer Disputes Redressal Commission to be known as the

"State Commission" established by the State Government in the State

by notification; and

(c) A National Consumer Disputes redressal Commission established by

the Central Government by notification.

10. Composition of the district forum

[(1) Each District Forum shall consist of -

(a) A person who is, or who 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) posses a bachelor's degree from a recognized 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:

Provided that a person shall be disqualified for appointment as

member if he-

(a) has been convicted and sentenced to imprisonment for an offence

which, in the opinion of the State Government, involves moral

turpitude; or

(b) is an undischarged insolvent; or

(c) is of unsound mind and stands so declared by a competent court; or

(d) has been removed or dismissed from the service of the Govt. or a

body corporate owned or controlled by the Government; or

(e) has, in the opinion of the State Government, such financial or other

interest as is likely to affect prejudicially the discharge by him of his

functions as a member; or
(f) has such other disqualifications as may be prescribed by the State

Government.]

[(1-A) Every appointment under sub-section (1) shall be made by the

State Government on the recommendation of 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:

Provided that a member shall be eligible for re-appointment for

another term of five years or up to the age of sixty-five years,

whichever is earlier, subject to the condition that he fulfils the

qualifications and other conditions for appointment mentioned in

clause (b) of sub-section (1) and such reappointment is also made on

the basis of the recommendation of the Selection Committee

Provided Further that a member may resign his office in writing under

his hand addressed to the State Government and on such resignation

being accepted, his office shall become vacant and may be filled by

appointment of a person possessing any of the qualifications

mentioned in sub-section (1) in relation to the category of the member

who is required to be appointed under the provisions of sub-section

(1A) in place of the person who has resigned :

 Provided Also that a person appointed as the President or as a

member, before the commencement of the Consumer Protection

(Amendment) Act, 2002, shall continue to hold such office as President

or member, as the case may be, till the completion of his term.

(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:

[Provided that the appointment of a member on whole-time basis shall

be made by the State Government on the recommendation of the

President of the State Commission taking into consideration such

factors as may be prescribed including the work load of the District

Forum.]

11. Jurisdiction of the district forum.

(1) Subject to 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] .

(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 then 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 works for
39

gain, as the case may be, acquiesce in such institution; or

(c) The cause of action, wholly or in part arises.

12. Manner in which complaint shall be made .

(1) A complaint in relation to any goods sold or delivered or agreed to

be sold or delivered or any service provided or agreed to be provided,

may be filed with a District Forum, by-

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

agreed to be sold or delivered or such service provided or agreed to be

provided;

(b) any recognized consumer association whether the consumer to

whom the goods sold or delivered or agreed to be sold or delivered or

service provided or agreed to be provided is a member of such

association or not; or

(c) one or more consumers, where there are numerous

consumers having the same interest, with the permission of the

District Forum, on behalf of, or for the benefit of, all consumers so

interested; or

(d) the Central Government or the State Government, as the

case may be, either in its individual capacity or as a representative of

interests of the consumers in general.

(2) Every complaint filed under sub-section (1) shall be accompanied

with such amount of fee and payable in such manner as may be

prescribed.

(3) On receipt of a complaint made under sub-section (1), the District

Forum may, by order, allow the complaint to be proceeded with or

rejected:

Provided that a complaint shall not be rejected under this sub-

section unless an opportunity of being heard has been given to the

complainant:

Provided Further that the admissibility of the complaint shall ordinarily

 be decided within twenty-one days from the date on which the

complaint was received

(4) Where a complaint is allowed to be proceeded with under

sub-section (3) the District Forum may proceed with the complaint in

the manner provided under this Act

Provided that where a complaint has been admitted by the District

Forum, it shall not be transferred to any other court or tribunal or any

authority set up by or under any other law for the time being in force.

Explanation: For the purposes of this section, "recognized consumer

association" means any voluntary consumer association registered

under the Companies Act, 1956 (1 of 1956), or any other law for the

time being in force.

13. PROCEDURE ON RECEIPT OF COMPLAINT

(1) The District Forum shall, on receipt of a complaint, if it

relates to any goods, -

(a) refer a copy of the complaint to the opposite party mentioned in

the complaint directing him to give his version of the case within a

period of thirty days or such extended period not exceeding fifteen

days as may be granted by the District Forum ;

(b) where the opposite party on receipt of a complaint referred to him

under clause (a) denies or disputes the allegations contained in the

complaint, or omits or fails to take any action to represent his case

within the time given by the District Forum, the District Forum shall

proceed to settle the consumer dispute in the manner specified in

clauses (c) to (g)

(c) where the complaint alleges a defect in the goods which cannot be

determined without proper analysis or test of the goods, the District

Forum shall obtain a sample of the goods from the complainant, seal it

and authenticate it in the manner prescribed and refer the sample so

sealed to the appropriate laboratory along with a direction that such

laboratory make an analysis or test whichever may be necessary, with

a view to finding out whether such goods suffer from any defect

alleged in the complaint or from any other defect and to report its

findings thereon to the District Forum within a period of forty-five days

of the receipt of the reference or within such extended period as may

be granted by the District Forum

(d) before any sample of the goods is referred to any appropriate

laboratory under clause (c), the District Forum may require the

complainant to deposit to the credit of the Forum such fees as may be

specified, for payment to the appropriate laboratory for carrying out

the necessary analysis or test in relation to the goods in question

(e) the District Forum shall remit the amount deposited to its credit

under clause (d) to the appropriate laboratory to enable it to carry out

the analysis or test mentioned in clause (c) and on receipt of the report

from the appropriate laboratory, the District Forum shall forward a

copy of the report along with such remarks as the District Forum may

feel appropriate to the opposite party

(f) if any of the parties disputes the correctness of the findings of the

appropriate laboratory, or disputes the correctness of the methods of

analysis or test adopted by the appropriate laboratory, the District

Forum shall require the opposite party or the complainant to submit in

writing his objections in regard to the report made by the appropriate

laboratory

(g) the District Forum shall thereafter give a reasonable opportunity to

the complainant as well as the opposite party of being heard as to the

correctness or otherwise of the report made by the appropriate

laboratory and also as to the objection made in relation thereto under

clause (f) and issue an appropriate order under section 14.

(2) The District Forum shall, if the complaint received by it under

section 12 relates to goods in respect of which the procedure specified

in sub-section (1) cannot be followed, or if the complaint relates to any

services, -

(a) refer a copy of such complaint to the opposite party directing him

to give his version of the case within a period of thirty days or such

extended period not exceeding fifteen days as may be granted by the

District Forum

(b) where the opposite party, on receipt of a copy of the complaint,

referred to him under clause (a) denies or disputes the allegations

contained in the complaint, or omits or fails to take any action to

represent his case within the time given by the District Forum, the

District Forum shall proceed to settle the consumer dispute, -

(i) on the basis of evidence brought to its notice by the complainant

and the opposite party, where the opposite party denies or disputes

the allegations contained in the complaint, or

(ii) on the basis of evidence brought to its notice by the complainant

where the opposite party omits or falls to take any action to represent

his case within the time given by the Forum.

(3) No proceedings complying with the procedure laid down in sub-

sections (1) and (2) shall be called in question in any court on the

ground that the principles of natural justice have not been complied

with.

(4) For purposes of this section, the District Forum shall have the same

powers as are vested in a civil court under the Code of Civil Procedure,

1908 (5 of 1908), while trying a suit in respect of the following matters,

namely :-

(i) the summoning and enforcing attendance of any defendant or

witness and examining the witness on oath;

(ii) the discovery and production of any document or other material

object producible as evidence;

(iii) the reception of evidence on affidavits;

(iv) the requisitioning of the report of the concerned analysis or test

 from the appropriate laboratory or from any other relevant source;

(v) issuing of any commission for the examination of any witness; and

(vi) any other matter which may be prescribed.

viii
(5) Every proceeding before the District Forum shall be deemed to be

a judicial proceeding within the meaning of sections 193 and 228 of

the Indian Penal Code (45 of 1860), and the District Forum shall be

deemed to be a civil court for the purposes of section 195 and Chapter

XXVI of the Code of Criminal Procedure, 1973 (2 of 1974).

ix
(6) Where the complainant is a consumer referred to in sub-clause (iv)

of clause (b) of sub-section (1) of section 2, the provisions of rule 8 of

Order I of the First Schedule to the Code of Civil Procedure, 1908 (5 of

1908) shall apply subject to the modification that every reference

therein to a suit or decree shall be construed as a reference to a

complaint or the order of the District Forum thereon.

14. FINDING OF THE DISTRICT FORUM

(1) If, after the proceeding conducted under section 13, the District Forum is

satisfied that the goods complained against suffer from any of the

defects specified in the complaint or that any of the allegations

contained in the complaint about the services are proved, it shall issue

an order to the opposite party directing him to x(do) one or more of the

following things, namely,

(a) to remove the 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 the negligence of the opposite party

(e) to remove the defects or deficiencies in the services in question;

 (f) to discontinue the unfair trade practice or the restrictive trade

practice or not to repeat them

(g) not to offer the hazardous goods for sale

(h) to withdraw the hazardous goods from being offered for sale;

(i) to provide
xi
(2) Every proceeding referred to in sub-section (1) shall be conducted

by the President of the District Forum and at least one member thereof

sitting together

Provided that where the member, for any reason, is unable to

conduct the proceeding till it is completed, the President and the other

member shall conduct such proceeding de novo.

(2A) Every order made by the District Forum under sub-section (1)

shall be signed by its President and the member or members who

conducted the proceeding :

Provided that where the proceeding is conducted by the President and

one member and they differ on any point or points, they shall state the

point or points on which they differ and refer the same to the other

member for hearing on such point or points and the opinion of the

majority shall be the order of the District Forum.

(3) Subject to the foregoing provisions, the procedure relating to the

conduct of the meetings of the District Forum, its sittings and other

matters shall be such as may be prescribed by the State Government.

15. APPEAL

Any person aggrieved by an order made by the District Forum may

prefer an appeal against such order to the State Commission within a

period of thirty days from the date of the order, in such form and

manner as may be prescribed :

Provided that the State Commission may entertain an appeal after the

expiry of the said period of thirty days if it is satisfied that there was

sufficient cause for not filing it within that period.

16. COMPOSITION OF THE 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 :

(Provided that no appointment under this clause shall be made except

after consultation with the Chief Justice of the High Court);

(b) two 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 or administration, one

of whom shall be a woman :

(Provided that every appointment made under this clause shall be

made by the State Government on the recommendation of a selection

committee consisting of the following, namely :-

(i) President of the State Commission – Chairman

(ii) Secretary of the Law Department of the State – Member

(iii) Secretary, incharge of Department dealing with consumer affairs in

the State – Member)

(2) The salary or honorarium and other allowances payable to, and the

other terms and conditions of service of the members of the State

Commission shall be such as may be prescribed by the State

Government.

(3) Every member of the State Commission shall hold office for a term

of five years or up to the age of sixty-seven years, whichever is earlier

and shall not be eligible for re-appointment.

(4) Notwithstanding anything contained in sub-section (3), a person

appointed as a President or as a member before the commencement of

the Consumer Protection (Amendment) Act, 1993, shall continue to hold

such office as President or member, as the case may be, till the

completion ] of his term.

17. JURISDICTION OF THE STATE COMMISSION

Subject to the other provisions of this Act, the State Commission shall

have jurisdiction -

(a) to entertain -

(i) complaints where the value of the goods or services and

compensation, if any, claimed exceeds rupees (twenty lakhs but does

not exceed rupees ONE CRORE and :

(ii) appeals against the orders of any District Forum within the State;

and

(b) 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 where it appears to the State Commission that

such District Forum has exercised a jurisdiction not vested in it by law,

or has failed to exercise a jurisdiction so vested or has acted in exercise

of its jurisdiction illegally or with material irregularity.

19. Appeals

Any person aggrieved by an order made by the State Commission in

exercise of its powers conferred by sub-clause (i) of clause (a) of

section 17 may prefer an appeal against such order to the National

Commission within a period of thirty days from the date of the order in

such form and manner as may be prescribed :

Provided that the National Commission may entertain an appeal after

the expiry of the said period of thirty days if it is satisfied that there

was sufficient cause for not filing it within that period:

[ Provided Further that no appeal by a person, who is required to pay

any amount in terms of an order of the State Commission, shall be

entertained by the National Commission unless the appellant has

deposited in the prescribed manner fifty per cent, of the amount or

rupees thirty-five thousand, whichever is less.]

19A. Hearing of appeal

19A. Hearing of appeal.-

An appeal filed before the State Commission or the National

Commission shall be heard as expeditiously as possible and an

endeavor shall be made to finally dispose of the appeal within a period

of ninety days from the date of its admission :

Provided that no adjournment shall be ordinarily granted by the State

Commission or the National Commission, as the case may be, unless

sufficient cause is shown and the reasons for grant of adjournment

have been recorded in writing by such Commission:

Provided Further that the State Commission or the National

Commission, as the case may be, shall make such orders as to the

costs occasioned by the adjournment as maybe provided in the

regulations made under this Act:

Provided Also that in the event of an appeal being disposed of after the

period so specified, the State Commission or, the National Commission,

as the case may be, shall record in writing the reasons for the same at

the time of disposing of the said appeal.

20. Composition of the National Commission

(1) The National Commission shall consist of-

(a) a person who is or has been a Judge of the Supreme Court, to be

appointed by the Central Government, who shall be its President:

[Provided that no appointment under this clause shall be made except

after consultation with the Chief Justice of India

[(b) not less than four, and not more than such number of members,

as may be prescribed, and 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 recognized university; and

(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:

Provided that not more than fifty per cent, of the members shall be

from amongst the persons having a judicial background

Explanation.--For the purposes of this clause, the expression "persons

having judicial background" shall mean persons having knowledge and

experience for at least a period of ten years as a presiding officer at

the district level court or any tribunal at equivalent level:

Provided further that a person shall be disqualified for appointment, if

he-

(a) has been convicted and sentenced to imprisonment for an offence

which, in the opinion of the Central Government, involves moral

turpitude; or

(b) is an undischarged insolvent; or

(c) is of unsound mind and stands so declared by a competent court; or

(d) has been removed or dismissed from the service of the

Government or a body corporate owned or controlled by the

Government; or

(e) has, in the opinion of the Central Government, such financial or

other interest as is likely to affect prejudicially the discharge by him of

his functions as a member; or

(f) has such other disqualifications as may be prescribed by the Central

Government:

Provided also that every appointment under this clause shall be made

by I. Central Government on the recommendation of a Selection

Committee consisting the following, namely :-

21. JURISDICTION OF THE NATIONAL COMMISSION

Subject to the other provisions of this Act, the National Commission

shall have jurisdiction –

(a) to entertain –
 (i) complaints where the value of the goods or services and

compensation, if any, claimed exceeds rupees (one crore); and

(ii) appeals against the orders of any State Commission; and

(b) to call for the records and pass appropriate orders in any consumer

dispute which is pending before or has been decided by any State

Commission where it appears to the National Commission that such

State Commission has exercised a jurisdiction not vested in it by law,

or has failed to exercise a jurisdiction so vested, or has acted in the

exercise of its jurisdiction illegally or with material irregularity.

22. POWER OF AND PROCEDURE APPLICABLE TO THE NATIONAL

COMMISSION

The National Commission shall, in the disposal of any complaints or

any proceedings before it, have -

(a) the powers of a civil court as specified in sub-sections (4), (5) and

(6) of section 13 ;

(b) the power to issue an order to the opposite party directing, him to

do any one or more of the things referred to in clauses (a) to (i) of sub-

section (1) of section14, and follow such procedure as may be

prescribed by the Central Government).

23. APPEAL

Any person aggrieved by an order made by the National Commission in

exercise of its power conferred by sub-clause (i) of clause (a) of section

21, may prefer an appeal against such order to the Supreme Court

within a period of thirty days from the date of the order:

Provided that the Supreme Court may entertain an appeal after the

expiry of the said period of thirty days if it is satisfied that there was

sufficient cause for not filing it within that period.

[Provided further that no appeal by a person who is required to pay

any amount in terms of an order of the National Commission shall be

entertained by the Supreme Court unless that person had deposited in

 the prescribed manner fifty per cent. of that amount or rupees fifty

thousand, whichever is less.]

24. FINALITY OF ORDERS

Every order of a District Forum, State Commission or the National

Commission shall, if no appeal has been preferred against such order

under the provisions of this Act, be final

(24A. LIMITATION PERIOD

(1) The District Forum, the State Commission or the National

Commission shall not admit a complaint unless it is filed within two

years from the date on which the cause of action has arisen.

(2) Notwithstanding anything contained in sub-section (1), a complaint

may be entertained after the period specified in sub-section (1), if the

complainant satisfies the District Forum, the State Commission or the

National Commission, as the case may be, that he had sufficient cause

for not filing the complaint within such period:

Provided that no such complaint shall be entertained unless the

National Commission, the State Commission or the District Forum, as

the case may be, records its reasons for condoning such delay.

CHANGING SCENARIO OF CONSUMER MOVEMENT IN INDIA: PROBLEMS AND

PROSPECTS

The Consumer Protection Act, 1986, a milestone in the history of socio-

economic legislation in India, has considerably consolidated the process of

consumer protection and has given rise, during the past few years, to new

consumer jurisprudence. The Act introduced a three-tier quasi-judicial

consumer disputes redressal mechanisms at the district, State and national

levels for dispensing inexpensive and time-bound consumer justice. Though

passed in 1986, its effective implementation started only in 1990 when the

institutions envisaged under the Act were established by and large

throughout the country, thereby enabling a large number of consumers and

organizations to approach these Forums for the redressal of their grievances.

This has contributed to the growth of consumer organizations, the

emergence of specialized consumer law reporters and a much higher profile

for consumer protection in India than ever before.

Ever since 1990 when the consumer protection mechanisms

started functioning actively, certain remarkable changes have been

witnessed in the Indian legal system. These changes were, however,

preceded by a considerable number of problems associated-first with

the establishment and then with the smooth functioning of these

mechanisms

(I) PROMINENT DEVELOPMENTS IN THE ARENA OF CONSUMER

PROTECTION IN INDIA

There are at least three prominent developments in the arena of

consumer protection in India. These are:(a) Increased amount of

business self-regulation;(b) Growth and development of social action

litigation vis-à-vis consumer protection; and (c) Emergence of

environmental litigation before the consumer Forums.

The increasing ambit and amplitude of the Consumer Protection

Act, 1986 has compelled the public as well as the private sector to

regulate itself in the interest of consumers. The impact is accordingly

visible in case of airlines, banks, education, insurance industry,

railways, roadways and telecommunications. On the other hand, self-

regulation by the private sector has primarily been reflected in their

’Business Norms’ and ‘Codes of Ethics. If you go the market you will

now find that if any consumer says he will complain, the article sold is

replaced, though in the cash memo it is mentioned that goods sold will

not be taken back. A sense of fright has now come. The manufacturers

do not want a bad name for their products. The moment a complaint is

filed before a state commission, they offer to replace the article. Thus

there is now a greater demand for accountability on the part of both

public as well as the private sector. A significant number of decisions

by the consumer forums against the corporate sector has brought

 home the clear message that consumers are not going to tolerate the

unethical practices and irresponsible behaviour of the public or private

corporate sector any more.

(II) PROSPECTS OF CONSUMER MOVEMENT IN INDIA

After discussing the three prominent developments in the arena of

consumer protection, I now turn to the problems and prospects of the

consumer movement in the coming years. As a matter of fact, three

major problems are confronting the consumer protagonists in India.

The first problem concerns active functioning of the Consumer Forums

throughout the country. Not with standing the fact that these Forums

have now been established, by and large, throughout the country,

consumer activists and organizations have been repeatedly voicing

their grievances against the smooth functioning of these Forums. They

argue that these Forums have also started behaving like Civil Courts

and are likely to have mounting arrears soon. In addition, these

Forums still lack basic infrastructural facilities. The members sit only

part-time and 90 days decision-making requirement is not strictly

adhered to. There are also ego and status problems between judicial

members and the members with non-judicial background. Another

significant problem is that the stay orders from the High Courts have

begun to hold up a large number of cases filed before the Consumer

Forums, thereby denying the benefits of speedy and inexpensive

redressal machinery promised under the Consumer protection Act,

1986.

The second problem concerns the applicability of the

Consumer protection Act, 1986 to various services. As is evident, ever

since the implementation of the 1986 Act, whereas there has hardly

been any significant case in which the ‘goods’ has been vehemently

contested, there is a voluminous amount of case law which involved

determination of the meaning, definition, and ambit of the term

‘service’. Section2(1)(o)of the 1986 Act categorizes certain specific

types of services which, inter alia, include banking, financing,

insurance, transport, amusement and entertainment. The definition of

the term ‘service’ had already been kept very wide and now with the

inclusion of the two terms ‘housing and construction’ by the Consumer

Protection (Amendment) Act, 1993, it has been further widened. Only

two types of services have been kept out of the ambit of the 1986 Act.

They are services rendered free of charge and services rendered under

a contract of personal service. The non-mentioning of services like

education, health, housing, posts and telegraphs and

telecommunications had presumably given these services an

impression of their exclusion from the ambit of this legislation. At the

initial stages, therefore, these services contested the jurisdiction of the

1986 Act, thereby claiming complete immunity from their governance

by it. The Consumer Forums, however, have appreciably stood the test

of time and have brought all these services within the ambit of the

1986 Act.

Making consumers aware of their rights and taking consumer

movement to the rural India is the third and perhaps the most

important problem and a challenge before the consumer organizations.

As is well known, most consumers are still ignorant of their rights,

much less of being assertive about them. Though the Government

appears to be serious of this issue much however depends upon the

consumer organizations. They have still to cover a very long distance

so far as taking the movement to rural areas is concerned.

In conclusion, it would argue that consumer protection movement has

got a bright future in India. A part from Governmental seriousness in

the matter, consumer activists, organizations, and other voluntary

associations have also to play their part in the furtherance of consumer

movement. Above all, the consumers have to be aware of their rights

and should assert them selves in the market place.

_____________________________________________________________________________

_
i
id.,
ii
J.N.Pandey (1992): Constitutional Law of India, Allahabad: Central Law Agency, pp.1-16.
iii
Dharam Kumar and Meghnath Desai (eds) (1982): The Cambridge Economic Histroy of India,vol.2, Hyderbad: Orient
Longman, p.947.
iv
D.N.Saraf (1990): Law of Consumer Protection of India, Bombay: N.M. Tripathi, p.13.
v
AIR 2000 S
vi
Joel Dean. Managerial Economics, New Delhi: Prentice-Hall
vii
The provisions of Chapters I, II and IV of this Act have come into force in the whole of India

except the State of Jammu and Kashmir on 15-4-1987: vide Notification No. S.O. 390 (E), dated

15th April, 1987, published in the Gazette of India, 1987, Extra. Pt. II, Sec. (ii). The Provisions of

Chapter III of this Act have come into force in the whole of India except the State of Jammu and

Kashmir on 1-7-1987: vide Notification, No. S.O. 568 (E), dated 10th June, 1987, published in the

Gazette of India, 1987, Extra. Pt. II, Sec. 3 (ii).

viii
Ins. by Act 62 of 2002, sec. 9 (w. e. f. 15-3-2003).
ix
Ins. by Act 50 of 1993, sec. 11 (w. e. f. 18-6-1993).

x
Subs. for “take” by the Consumer (Amendment ) Act, 1993 (w.e.f. 18-6-1993)
xi
Subs. by Act 34 of 1991, sec.2, for sub-section (2) (w. r. e. f. 15-6-1991).