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PROJECTS
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The Consumer
Protection Act
OBJECTIVES
The consumer protection Act, 1986 (68 of 1986) is a milestone in the history
of socio-economic legislation in the country. It is one of the most
progressive and comprehensive piece of legislations enacted for the
protection of consumers. It was enacted after in-depth study of consumer
protection laws in a number of countries and in consultation with
representatives of consumers,trade and industry and extensive discussions
within the Government.
The main objective of the act is to provide for the better protection of
consumers. Unlike existing laws which are punitive or preventive in nature,
the provisions of this Act are compensatory in nature. The act is intended
to provide simple, speedy and inexpensive redressal to the consumers'
grievances, and reliefs of a specific nature and award of compensation
wherever appropriate to the consumer. The act has been amended in 1993 both
to extend its coverage and scope and to enhance the powers of the redressal
machinery.
Extend and Coverage of the Act:-
The salient features of the Act are summed up as under:-
- The Act applies to all goods and services unless specifically exempted by
the Central Government.
- It covers all the sectors whether private, public or cooperative.
- The provisions of the Act are compensatory in nature.
It enshrines the following rights of consumers:-
- Right to be protected against the marketing of goods and services which
are hazardous to life and property.
-Right to be informed about the quality, quantity, potency, purity, standard
and price of goods or services so as to protect the consumer against unfair
trade practices;
-Right to be assured , wherever possible , access to a variety of goods and
services at competitive prices;
-Right to be heard and to be assured that consumers' interests will receive
due consideration at appropriate forums;
-Right to seek redressal against unfair trade practices unscrupulous
exploitation of consumers; and
-Right to consumer education
-The Act envisages establishment of Consumer Protection Councils at the
Central and State levels, whose main objects will be to promote and protect
the rights of the consumers.
Structure
-To provide simple, speedy and inexpensive redressal of consumer grievances,
the Act envisages a three- tier quasi-judicial machinery at the
National,State and District levels.
*National Consumer Disputes Redressal Commission - known as "National
Commission".
*Consumer Disputes Redressal Commissions known as "State Commission.
*Consumer Disputes Redressal Forums- known as "District Forum.
-The provisions of this Act are in addition to and not in derogation of the
provisions of any other law for the time being in force.
Who is a Consumer?
All of us are consumers of goods and services. For the purpose of the
Consumer Protection Act,the word "Consumer" has been defined separately for
"goods" and "services".
-For the purpose of "goods", a consumer means a person belonging to the
following categories:
(i)One who buys or agrees to buy any goods for a consideration which has
been paid or promised or partly paid and partly promised or under any system
of deferred payment;
(ii)It includes any user of such goods other than the person who actualy
buys goods and such use is made with the approval of the purchaser.
Note :- A person is not a consumer if he purchases goods for commercial or
resale purposes However, the word "commercial" does not include use by
consumer of goods bought and used by him exclusively for the purpose of
earning his livelihood, by means of self employment.
- For the purpose of "services", a "consumer" means a person belonging to
the following categories:
(i)One who hires or avails of any service or services for a consideration
which has been paid or promised or partly paid and partly promised or under
any system of deferred payment;
i.It includes any beneficiary of such service other than the one who
actually hires or avails of the service for consideration and such services
are availed with the approval of such person.
Who can file a complaint
The following can file a complaint under the Act:-
- A consumer
- Any voluntary consumer organization registered under the Societies
Registration Act,1860 or under the Companies Act,1956 or under any other law
for the time being in force.
- The Central Government
- The State Government or Union Territory Administrations.
- One or more consumers on behalf of numerous consumers who are having the
same interest
(Class action complaints)
What constitutes a complaint?
Under the Act, a complaint means any allegation in writing made by a
complainant in regard to one or more of the following:-
- Any unfair trade practice as defined in the Act or restrictive trade
practices like tie-up sales adopted by any trader.
- One or more defects in goods. The goods hazardous to life and safety, when
used,are being offered for sale to public in contravention of provisions of
any law for the time being in force.
- Deficiencies in services.
- A trader charging excess of price.
(i) Fixed by or under any law for the time being in force; or
(ii) displayed on goods; or
(iii)Displayed on any packet containing such good;
Where to file a complaint
- If the cost of goods or services and compensation asked for is up to
rupees five lakh ,then the
complaint can be filed in the District Forum which has been notified by the
State Governmentfor the district where the cause of action has arisen or
where the opposite party resides. A complaint can also be filed at a place
where the branch office of the opposite party is located.
- If the cost of goods or services and compensation asked for is more than
rupees five lakh , butless than rupees Twenty lakh then the complaint can be
filed before the State Commission notified by the State Government or Union
Territory Concerned.
- If the cost of goods or services and compensation asked for exceed rupees
Twenty lakh then
the complaint can be filed before the National Commission at New Delhi.
How to file a complaint
Procedures for filing complaints and seeking redressal are simple.
- There is no fee for filing a complaint before the District Forum, the
State Commission or the National Commission. ( A stamp paper is also not
required) There should be 3 to 5 copies of the complaint on plain paper.
- The complainant or his authorized agent can present the complaint in
person.
- The complaint can be sent by post to the appropriate Forum / Commission.
- A complaint should contain the following information:-
(a) The name, description and the address of the complainant.
(b) The name , description and address of the opposite party or parties, as
the case may be, as far as they can be ascertained;
(c)The facts relating to complaint and when and where it arose;
(d)Documents, if any, in support of the allegations contained in the
complaint.
(e) The relief which the complainant is seeking.
- The complaint should be signed by the complainant or his authorized agent.
- The complaint is to be filed within two years from the date on which cause
of action has arisen.
Relief available to the consumers:-
Depending on the nature of relief sought by the consumer and facts, the
Redressal Forums may give orders for one or more of the following reliefs:-
(a) removal of defects from the goods,
(b) replacement of the goods;
(c) refund of the price paid;
(d) award of compensation for the loss or injury suffered;
(e) removal of defects or deficiencies in the services;
(f) discontinuance of unfair trade practices or restrictive trade practices
or direction not
to repeat them;
(g) withdrawal of the hazardous goods from being offered to sale; or
(h) award for adequate costs to parties.
Procedure for filing the appeal :-
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Procedure for filing the appeal :-
- Appeal against the decision of a District Forum can be filed before the
State Commission within a period of thirty days. Appeal against the decision
of a State Commission can be filed before the National Commission within
thirty days. Appeal against the orders of the National Commission can be
filed before the Supreme Court within a period of thirty days.
- There is no fee for filing appeal before the State Commission or the
National Commission.
- Procedure for filing the appeal is the same as that of complaint, except
the application should be accompanied by the orders of the District/State
Commission as the case may be and grounds for filing the appeal should be
specified.
Speedy Disposal :-
The thrust of the Act is to provide simple, speedy and inexpensive redressal
to consumers' grievances. To ensure speedy disposal of consumers'
grievances, the following provisions have been incorporated in the Act and
the rules farmed thereunder:-
- It is obligatory on the complainant or appellant or their authorized
agents and the opposite parties to appear before the Forum/Commission on the
date of hearing or any other date to which hearing could be adjourned.
- The National Commission, State Commission and District Forums are required
to decide complaints, as far as possible, within a period of three months
from the date of notice received by the opposite party where complaint does
not require analysis or testing of the commodities and within five months if
it requires analysis or testing of commodities.
- The National Commission and State Commissions are required to decide the
appeal as far as possible, within 90 days from the first date of hearing.
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