Consumer Protection

Act, 1986.
[As amended in 2002]

Object and Purpose of Consumer Law.

A person may be consumer

of - goods, or - services.
If you purchase a motor bike, a lap-top,
or a smart phone for your use or for use
of any of your family members, you
could be the - consumer of goods.
When you book a flight ticket of air ways,
take a insurance policy, open a bank
account, get your motor bike repaired, or
pay prescribed fee and apply for certified
copies from Registrar of Companies, you
could be the - consumer of services.
2 tries to The consumer protection Act, 1986

 Prior to the Consumer Protection Act, 1986 for any

consumer complaint, one has to
- go to an ordinary Civil Court;
- engage a lawyer,
- pay the necessary fee, and
- be subjected to dilatory procedure
- wait for years or decades
before any decision or order,
positive or negative, emerges in that litigation.
Now, under the Consumer Protection Act,
No Court fee but nominal charges ranging
from Rs. 100 - 500/- only are payable.
No additional fee in case of Appeal
Summary procedure in disposing off the
complaint.
So Inexpensive & quick remedy expected.
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Consumer Protection Act, 1986

Enacted to provide for the better
protection of the interest of consumer
Act applies to whole of India except Jammu
and Kashmir
Chapter I, II and IV came into force on
15.4.1987. Chapter III came into force on
1.7.1987.
The latest amendment to the Act was in
2002 and the amended Act came into force
w.e.f.
15th March 2003.
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What is a Complaint?
Complaint means
- any allegation

- in writing
- made by a complainant

that:
1. An unfair trade practice or a restrictive trade
practice has been adopted by any trader or
service provider;
2. The goods bought or agreed to be bought by
him suffer from one or more defects;
3. The services hired or availed of or agreed
to be hired or availed off by him suffer from
deficiency in any respect;
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What is a Complaint? - 2
4.

A trader or service provider as the case

may be has charged for the goods or for
the services mentioned in the complaint, a
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

.
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What is a Complaint? - 3

5. 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 compiled 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;
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What is a Complaint? - 4
6. Service which is
- hazardous or likely to be hazardous
- to the life and safety of the public
when used,
are being - offered by the service
provider
which such person (service provider)
could have known with due diligence
- to be injurious to life and safety.
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Who is a Consumer ?

1. Any Person who buys goods or avails

services for consideration
2. Consideration may be - fully paid, partially paid or - fully promised to be
paid or partially promised to be paid
3. Any body who uses the goods or services
with the consent of the consumer
4. Legal heir of consumer - in case of death of
consumer

Who is not a Consumer ?

Any Person (1) who buys goods

either for resale
or for
commercial purpose
and
(2) who avails services
for commercial purpose
is excluded from the definition;
Hence he/she is - not a consumer
Exception: However, any person who buys goods
for commercial use but exclusively for his
livelihood by means of self employment - is
a consumer.

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What is a Defect ?
Identified as
1. Fault
2. Imperfection
or
3. Shortcoming

In terms of
1. Quality
2. Quantity
3. Potency
4. Purity or
5. Standards

shall fall within the ambit of the definition

defect in goods.
Goods are required to be maintained
- as per
specifications prescribed
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- by or under
any law

What is a Deficiency ?
Identified as
1. Fault
2. Imperfection
3. Shortcoming or
4. Inadequacy

In terms of
1. Quality
2. Standard and
3. Manner of
performance

shall fall within the ambit of the definition

deficiency in service.
Services rendered shall
- confirm to
specifications prescribed
- by or under any law for the time
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being in force.

What is a Service?
Service means - service of any
description, which is
made available to potential users and
includes, but
not limited to the Provisions of the
facilities in
Connection with
1) banking
2) financing
3)
insurance
4) Transport

5)

processing

6) supply of electrical or other energy

7) boarding or lodging or both 8)
house building
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Consumer Dispute Redressal

Agencies
The Act envisages a - Three Tier System
1) A Consumer Dispute Redressal Forum
- at the District level. [DCF]
2) A Consumer Dispute Redressal
Commission - at the State level.
[Called State Commission - SCDRC]

3) A National Consumer Dispute

Redressal Commission - at National
level.[Called National Commission - NCDRC]
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Jurisdiction
The Four (4) aspects of Jurisdiction are:
1. Subject matter Jurisdiction
2. Territorial Jurisdiction
3. Pecuniary Jurisdiction
4. Appellate Jurisdiction

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Subject matter Jurisdiction

All the Thee (3) types of Consumer Disputes
Adjudicating Bodies at District, State and
National Level have exclusive jurisdiction
over the Consumer Disputes contemplated
under the Consumer Protection Act 1986,
as amended.
No Civil Court or High Court or any other
Tribunal has jurisdiction over the consumer
disputes and as such they cannot entertain
or adjudicate upon consumer disputes.
Supreme Court is the Court of Last Appeal.
Any one who is aggrieved of the decision or
order of National Commission may appeal to SC.
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Territorial Jurisdiction
Name of the Body

Limits of Jurisdiction

District Forum

Geographical area
comprising that
district.

State Commission

National Commission

Geographical area
comprising that state
or Union Territory.
Whole of the
Geographical territory
of India
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Pecuniary Jurisdiction
Name of the Body

District Forum

Where the value of the

goods or services plus (+)
the compensation, if any
claimed,
Does not exceed Rs. 20 lakhs

State Commission

Above Rs. 20 lakhs but not

exceeding Rs. One Crore

National
Commission

Above One Crore rupees

Besides, State and National Commission have

appellate jurisdiction.
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Filing of Complaints
A complaint may be filed by
1.
The consumer to whom the
- goods are sold or
- services are provided
2.
Any - recognised consumer association
3.
One or more consumers with same interest
4.The central or state government
1.

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Certain Power of Civil Court

- vested in District Forum
The District Forum shall have - the powers of Civil
Court while trying a suit in respect of the
following matters;
a) The summoning and enforcing attendance of any
defendant or witness and examining the witness on
oath.
b) The discovery and production of any document or
other material object producible as evidence.
c) The reception of evidence on affidavit
d) The requisition of the report of the concerned
analysis or test from the appropriate laboratory
or from any other relevant source.
e) Any other matter which may be prescribed.
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Relief to the Complainant ?

If the Complaint is proved, the Forum shall order

- to remove defect pointed out by the appropriate

laboratory from the goods in question;
- to replace the goods with new goods of
similar description which shall be free from any
defect;
- to return to the complainant the price, or, as
the case may be, the charges paid by the
complainant;
- 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
negligence of the opposite party;
- to remove the defect in goods or deficiency in
the services in question.
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Direction to the Opposite Party

- to discontinue the unfair trade practice or the
restrictive
trade practice or not to repeat them;
- not to offer hazardous goods for sale;
- to withdraw the hazardous goods from being
offered for
sale;
- to cease manufacture of hazardous goods and
to desist from
offering services which are hazardous in
nature;
- to pay such sum as may be determined by it, if
it is of the
opinion that loss or injury has been suffered
by a large
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Appeal
Shall be filed within thirty (30)
days from the
- date of receipt of
Order.
Delay in filing appeal may be
condoned
- if there is sufficient cause.

Limitation Period
Within two (2) years from the
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Dismissal of Frivolous or Vexatious

Complaints
Where a complaint instituted

- before the District Forum, the State

Commission or the National Commission,
- is found to be frivolous or vexatious
it shall for reasons to be recorded in
writing
- dismiss the complaint and
- make an order that
- the complainant shall pay
- to the opposite party such,
- Cost not exceeding Rs.10,000/- as may specified in the order.
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Penalties
Where a trader or a person against whom a complaint is
made (or the complainant)
fails or omits to comply with any order
made by the District Forum, the State
Commission or the National Commission,
such trader or person (or complainant) shall be
1. punishable with Imprisonment for a term

- which shall not be less than one month but

- which may extend to three years or
2. with fine - which shall not be less than Rs.200
but - which may extend to Rs.10,000/- or
3. with both.
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THANK YOU
Prof. Dr. KSN Sarma
Icfai Business School (IBS)
Hyderabad