5/2/2019 CONSUMER PROTECTION ACT, 1986

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CONSUMER PROTECTION ACT, 1986

Preamble - CONSUMER PROTECTION ACT, 1986

An Act with the objective of providing provisions, implementing of which will protect the rights of the
consumers, through establishing consumer councils and other authorities who would work for the
consumers in order to settle their disputes.

Section 1 - Short title, extent, commencement and application

The provisions of the 'Consumer Protection Act, 1986' shall be construed harmoniously so as to avoid
conflicts between its provisos and provisions of any other law.

Section 2 - Definitions

Any premises established and aided by the government for carrying out analysis of any goods with a
view to determine its defects

Any office which the respondent calls it as its branch shall be the branch office for the purpose of this
Act.

A consumer or any association who complains on behalf of the consumer shall be called as a
complainant under the Act, it can also be any Government (Central/State)

Where there are more than one consumer they can can file a complaint as a consortium and shall be
deemed to be a complainant under the Act

If the complain dies during the proceedings of the complaint his/her legal heir can be his/her
representative and can act as a complainant.

A complaint means an allegation made by the consumer/complainant regarding: use of UTP/RTP by the
trader or service provider, or defective goods or any deficient service or excess charging of price

Hazardous goods/services means any goods/services which contravenes the standards of safety of
public laid down under any law

Consumer can be hirer or buyer of any goods/services for a consideration, for any use except for
commercial purposes.

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Commercial purpose does not include use of goods or services hired or bought by him for only earning
his/her living

Defect means any fault or shortcoming in the quality/quantity/potency/purity of the goods

Deficiency means any fault/imperfection in the quality, nature of performance , which is required t be
maintained under any law in force

Consumer disputes redressal forum shall be the District Forum

Manufacturer shall be a person who manufactures or assembles parts already manufactured or put its
own mark on the goods made by other manufactures.

National Consumer Disputes Redressal Commission shall be also known as National Commission

Person can be an individual, or a firm, or HUF or a Co-op Society or every other association of persons

RTP means a practice which tends to bring about manipulation of price or its conditions of delivery or
to affect supplies so as to impose unnecessary costs on the consumers

Service means any service and includes facilities in connection with banking, financing, insurance,
transport, processing, supply of electricals etc.

Spurious goods means which are not actually genuine

UTP means a unfair trade practice or unfair method or deceptive practice use to promote the sale, use
or supply of any goods.

Results of a scheme to be declared in reasonable time

Section 3 - Act not in derogation of any other law

The act shall not have the provisions which on implementation shall cause a conflict with other laws

Section 4 - The Central Consumer Protection Council

This section talks about the Central Consumer Protection Council that can be established by the Central
Government of India.

Section 5 - Procedure for meetings of the Central Council

The Central Council shall meet at least once a year

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Section 6 - Objects of the Central Council

The main object of the Central Council to promote and protect the rights of the consumers

Section 7 - The State Consumer Protection Councils

The State Consumer Protection Councils shall be established by the State Government, under the
chairmanship of the Minister of Consumer Affairs

At least two meetings are necessary in a year

Section 8 - Objects of the State Council

The same objects as of the Central Council shall be that of the State Council

Section 8A - The District Consumer Protection Council

The District council shall be established in every district under the chairmanship of the collector of that
particular district

The council shall meet at least twice in a year.

Section 8B - Objects of the District Council

The object of the district council shall be the same as of the Central Council.

Section 9 - Establishment of Consumer Disputes Redressal Agencies

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The act also provides for the establishment of the consumer redressal forum which shall also be known
as the district forum.

Section 10 - Composition of the District Forum

A person who has been or has qualified to be a District Judge shall be the President of the forum.

There should be at least one woman out of two members of the forum which shall not be less than 35
years of age, holding a bachelor's degree, and has not been convicted or undercharged insolvent.

State government shall make an appointment of the chairman , president of the commission.

If the president of the state commission remains unable to act as chairman of the selection committee,
the state government may refer the matter to the Chief Justice of appropriate High Court for
nominating a sitting judge to act as a chairman.

Members of the forum shall hold office upto the age of 65 years or five year of joining whichever is
less.

Section 11 - Jurisdiction of the District Forum

The forum can take up the complaints of case in which the compensation is not more than 20 laces
rupees.

Section 12 - Manner in which complaint shall be made

A "complainant" as defined above can lodge a complain through the procedure mentioned herein.

Section 13 - Section 13

The forum shall refer a copy of complaint to the opposite party within 21 days and directing him to
submit his version of case.

Forum can decide complaint ex-prate if the complainant brings to the notice of the forum that the
opposite party has remained absent or had failed to take the action within the time given by the forum.

If complainant fails to appear on the date of hearing the forum shall decide the case on merits or
dismiss t as it thinks fit.

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If complaint does not require analysis or testing of goods than it shall be decided within 3 months and
if analysis is needed then a period of 5 months.

The forum has the power to pass the interim order in circumstance it deems fit.

Section 14 - Finding of the District Forum

The forum can issue orders against the complained if it is satisfied that the goods suffer from defects
and may direct him to remove the defects or replace the goods or return the price or pay
compensation or remove deficiencies or may ask the complained to discontinue the UTP or RTP and to
withdraw the hazardous goods from the market and not to offer them for sale.

At least president of the forum and one member should be present during the proceeding.

Section 15 - Appeal

Aggrieved of any order a person can appeal against such order to the State Commission within a
period 30 days.

Where an compensation order has been passed by the forum then no appeal shall be entertained by
the state commission unless 50% of that amount or rupees 25000 whichever is less, has been
deposited.

Section 16 - Composition of the State Commission

A judge of a High Court shall be the president of the State commission.

Any appointment under this clause shall be made after the consultation with the CJI of the high court.

At least two members shall be there out which one has to be a woman.

Every appointment has to be made on the recommendation of a selection committee.

President of the state commission to be its chairman.

Secretary of the law department of the state to be its member.

The salary shall be decided by the state government.

Members of the state commission shall hold office for the term of 5 year or upto the age of 67 years
which ever is earlier.

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Section 17 - Jurisdiction of the State Commission

Value of goods claimed between 20l to 1cr to be admitted to the state commission.

Section 17A - Transfer of cases

This section gives the power to the State Commission to either on an application or on its own accord,
transfer the complaint lying pending before one district forum to some other district forum.

Section 17B - Circuit Benches

Circuit branch can be anywhere as the state government in consultation with the state commission
decides.

Section 18 - Procedure applicable to State Commissions

The rules made for the disposal of complaints by the district forum shall apply to the state
commissions also.

Section 18A - Vacancy in the office of the President (Omitted)

[Omitted]

Section 19 - Appeals

Any person aggrieved of the order made by state commission can appeal to the national commission
within thirty days from the date of such order.

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Section 19A - Hearing of appeal

A complaint to be disposed within 90 days from the date of its admission.

Section 20 - Composition of the National Commission

Judge of the supreme court shall be the president of the national commission.

Appointment to be made after the consultation with the Chief Justice of India.

At least 4 members to be the members of the commission and out of them at least one member should
be woman.

At most 50% of the members of the commission to have a experience of at least 10 years as a
presiding officer at the district level court or any tribunal at equivalent level.

Judge of the supreme court to be the chairman of the commission and the secretary of the department
of legal affairs and consumer affairs to be the member.

Salary of the members of the national commission to be decided by the central government.

Every member of the national commission shall hold office upto the age of 70 years or for a term of 5
years whichever is less.

A person appointed as a president of the national commission is eligible for re-appointment for another
term of 5 years on the basis of recommendation of the selection committee.

Section 21 - Jurisdiction of the National Commission

Where the value of goods and compensation exceeds rupees one crore the complaints can be admitted
to the national commission.

Section 22 - Power and procedure applicable to the National Commission

Procedure applicable to forum for deciding over the matters shall also be applicable to the national
commission.

National commission has the power to review any order made by it.

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Section 22A - Power to set aside ex parte orders

National commission has the power to set aside the ex parte orders on application.

Section 22B - Transfer of cases

National commission may transfer the case of one forum to another and one state commission to
another on the application of the complainant.

Section 22C - Circuit Benches

Circuit branches of the national commission can be at any other place other than Delhi as the central
government in consultation with the national Commission may decide.

Section 22D - Vacancy in the office of the President

If the office of the president of the forum or of commissions is vacant or the president remains unable
to perform his/her duties, in such a case senior most member of the forum or commission shall
perform the duty.

Section 23 - Appeal

An appeal can be made against the order of the national commission to the Supreme Court of India
within 30 days.

Section 24 - Finality of orders

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If any appeal is not made against the orders of the forum or either of the commission shall imply such
orders to be final.

Section 24A - Limitation period

After 2 years of the cause of action the complaint cannot be admitted by the district forum or state or
national commission.

If the forum or commissions are satisfied with the excuse for late filing of case then the delay can be
condone.

Section 24B - Administrative control

The national commission to have the administrative control on the state commission with regards to
returns, disposal of cases, issuance of instructions etc.

Section 25 - Enforcement of orders of the District Forum, the State Commission or the National Commission

Non compliance of the interim order may attract the attachment of the property of the said person.

Section 26 - Dismissal of frivolous or vexatious complaints

If any complaint before the district forum or the state commission or the national commission is found
out to be useless, then, after written reasons such complaints will have to be dismissed and the
complainant shall be monetarily penalised.

Section 27 - Penalties

Sentence at least one month which may extend to three years or fine of at least 2000 rupees which
may extend to 10000 rupees or both can be levied on the person who omits to comply with the order
of any three bodies mentioned herein.

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Section 27A - Appeal against order passed under section 27

Appeal against the order of district forum can be made to the state commission and against the order
of the state to the national commission and appeal against order of national commission to the
Supreme Court, each before the expiry of thirty days of the order.

Section 28 - Protection of action taken in good faith

No suit can be filed against the member of forum or state commission or national commission for
executing any order made by it in good faith.

Section 28A - Service of notice, etc.

All notices under this act to be sent by registered post.

Section 29 - Power to remove difficulties

In case of any difficulties the central government may make regulations and rules to remove the such
difficulties and as soon as they are made they have to be laid before each House of Parliament.

Section 29A - Vacancies or defects in appointment not to invalidate orders

No act or proceeding of the District Forum, the State Commission or the National Commission will be
treated as invalid only because of the existence of any vacancy amongst its members or due to any
defect in the constitution of the commission.

Section 30 - Power to make rules

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It can make rules for carrying out the provisions of this act.

Section 30A - Power of the National Commission to make regulations

The national commission has the power to make regulations which shall not be inconsistent with the
provisions of this act.

Section 31 - Rules and regulations to be laid before each House of Parliament

Every rules and regulation made under this act shall be laid before each House of the Parliament for a
total period of 30 days in one session.

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