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Consumer Protection Act, 1986 is an Act Act of of the Parliament of India enacted India enacted in 1986 to protect the interests of consumers in India India.. It makes provision for the the esta establ blis ishm hmen entt of cons consum umer er coun counci cils ls and and othe otherr auth authori oriti ties es for for the the settlement of consumers' disputes and for matters connected thereith.
CONSUMER PROTECTION ACT—1986 Consumer is at the core of business orld in the present da! econom!. "uantit! and #ualit! of $oods are produced as per the needs of the consumer. Advancement of an! business unit depends on the satisfaction of the consumer. %hat product ill be in $reat demand hich $ives ma&imum satisfaction to the consumer and so ill be produced on lar$e scale. As a result, the concerned production unit ill develop and earn lar$e profit. espite the (act that Importance of the consumer is idel! reco$ni)ed, he is deprived of his ri$hts and privile$e and is sub*ected to diverse kinds of e&ploitation. (or instance e&ploit e&ploitati ation on in the form of short short ei$ht ei$ht and measur measuree poor poor #ualit #ualit! ! of the product, product, adulteratio adulteration, n, suppl! of fake $oods, boardin$ and black marketin$ marketin$ of the $oods, deliver! of $oods not on schedule. +ot onl! that, even doubtful and false advertisements are indul$ed into b! the producers to attract consumers. ith a vie to protectin$ the consumers from such e&ploitation and makin$ them aare of their ri$hts, a method of consumer protection has been launched. +eed for protection arid satisfaction of the consumer is no bein$ idel! reco$ni)ed across the orld. India has also adopted the concept of consumer protection more seriousl! and vi$oursl!. Meaning of Consumer Protection
Consumer protection means the protection of the consumers from their e&ploitation b! the unfair trade practices of the producers-sellers. In fact, providin$ proper protection of the fundamental ri$hts and Interests of the consumers, freein$ them from e&ploitation, creat creatin in$ $ cons consum umer er aar aaren enes ess, s, consu consume merr provi providi din$ n$ the the ri$h ri$htt to clean clean busin busines esss environment to the consumers b! means of e$al amendments Is all that protection means,
Consumer Protection Act In In!ia
In India, India, Central Central and /tate 0overnments 0overnments have passed passed various various le$islati le$islative ve enactments enactments re$ardin$ Consumer Protection. Amon$ them, main Acts are • • •
ru$ and Cosmetics Act 1923, Industries evelopment and 4e$ulation Act 1951 Indian /tandards Institution Certification 7arks Act 195
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Prevention of (ood Adulteration Act 1952 :ssential Commodities /uppl! Act 1955 %he %rade and 7erchandise 7arks Act, 1958 7onopolies and 4estrictive %rade Practices Act 1969 Packa$ed Commodities 4e$ulation ;rder 19<5 /tandards of ei$hts and 7easures Act 19<6 Prevention of =lack 7arketin$ and 7aintenance of /upplies of :ssential Commodities Act 1983 /tandards of ei$hts and 7easures :nforcement Act. 1985.
In spite of above Acts Interests of the consumers ere not bein$ properl! safe$uarded. %here are man! reasons for it, but main amon$ them are to, First , consumer in $eneral had no knoled$e about the authorit! to hom complaints under these acts ere to be addressed. Second , to seek remed! under these various acts consumer had to take le$al action Involvin$ lot of time and mone!. +eed as therefore felt to enact such a le$islative measure as provide #uick and less e&pensive remed! to the a$$rieved consumer. Conse#uentl!, to protect properl! the interest of the consumers and to settle #uickl! their disputes, in ecember 1986 Consumer Protection Act as passed in India. It as enforced ith effect from April 15, 198<. ast amendment In the Act as made in. 33.
SCOPE AN" E#TENT O$ T%E ACT
1. :&cept >ammu and ?ashmir state, this Act e&tends to hole of India. . Provisions of this Act are In addition to the provisions made previousl! in the conte&t of the consumers. @. %his Act shall appl! to all $oods and services that come under the scope of this Act. Main E&ements'$eatures of Consumer Protection Act( 1986
Consumer Protection Act is the most pro$ressive Act of /ocial ell are and is referred to as Magna Carta of consumer protection. It is a land mark event In the histor! of Acts In India. Main features of the Act are as under •
It applies to all kinds of $oods and services.
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Provisions of this Act are in addition to the provisions of an! other Act in force In the countr!. %hus, this Act does not limit or reduce the scope of an! other Act
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nder this Act, there Is a provision for the Centre and /tate 0overnments to set up Consumer Protection Councils composin$ of both official and nonBofficial members. %he ob*ectives of the council are B to promote the ri$hts and Interests of the consumers, B to educate and protect them.
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%his Act provides for the folloin$ ri$hts to the consumer 4i$ht to safet!, o 4i$ht to be heard, o o 4i$ht to consumer education, o 4i$ht to seek redressal o 4i$ht to Choose o 4i$ht to be Informed
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%his Act is based on the principle of compensation herein fair compensation to the a$$rieved part! is provided for. %o redress the $rievance, there Is provision for threeBtier *udicial machiner! o istrict level o /tate level and o +ational evel
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%his Act provides affective protection to the consumer from different t!pes of e&ploitations, such as defective $oods, adulteration, underBei$ht, e&cessive price, unsatisfactor! or deficient services and unfair trade practices. %his Act redresses in a simple, cheap and d!namic manner the $rievance of the consumer in limited time. All suppliers of $oods and services belon$in$ to private, public and coBoperative sectors come under the purvie of this Act.
Rig)t to Consumer
In a free market econom!, consumer is soverei$n. e has the ri$ht to bu! or not to bu! a product offered for sale, to e&pect the product to be safeD to e&pect the product sale, to be hat it is claimed to beD to be ade#uatel! informed about the most salient aspect of the product. e has a ri$ht to receive proper and efficient service and satisfaction. nder section 6 of Consumer Protection Act, consumer has folloin$ ri$hts (I) Right to Safety: Consumer has the ri$ht to be protected a$ainst marketin$ of such $oods and services as are ha)ardous to health, life and propert!. %here are several fake, adulterated, inferior, defective, ineffective and dan$erous $oods available in market. %he! are in*urious to bod! and health. Consumer therefore, has the ri$ht to safet! from all such
2 $oods as ell as are likel! to cause harm to his bod! and health, besides causin$ loss of mone!. (II) Right to Choose: nder this ri$ht, consumer can choose an! from amon$ the variet! of $oods and services available in the market. ;ne finds in the market $oods of different brand, #ualit!, shape, colour, si)e, desi$n and price produced b! different manufacturers. nder this ri$ht, the consumer must be assured access to variet! of $oods and services at competitive prices as far as possible. 7isleadin$ or false advertisement, ron$ information or in an! other a!, If an! person manufacturer, seller influences his preference, in an unfair or unnecessar! manner, it ill be treated as intervention in his ri$ht to choose.
(III) Right to be Informed: Consumer has the ri$ht to $et all necessar! information on the basis of hich he ma! decide to bu! the $ood or service. e has therefore the ri$ht to be Informed about the #ualit!, #uantit!, purit!, potenc!, standard, price of $oods, etc. (IV) Right to be heard Consumer has the ri$ht to present before the appropriate forum or authorities all those matters hich effect his interests. %his ri$ht Includes the ri$ht to make protest and file complaints. %his ri$ht implies that matters of interest to the consumer ill receive due consideration at appropriate forums, so that he is encoura$ed to e&press his problems, complaints and un*ust treatment meted out to him. (V) Right to seek redressal: Consumer has the ri$ht to $et his claims and complaints settled a$ainst the manufacturers and sellers. %his ri$ht provides the consumer freedom from unfair trade practice or unscrupulous e&ploitation b! the trader. =esides, it helps him secure compensation. (VI) Right to Consumer Education: nder this ri$ht, consumer is entitled to $et Information or educated about those thin$s hich are necessar! for him. /uch an education creates aareness about his ri$hts and he comes to kno hen to approach for the redressal of his $rievance and e&ploitation. %his helps a consumer protect himself a$ainst fraudulent, deceptive and misleadin$ advertisement and poor or ne$li$ent services.
Machinery for Redressal of Consumer Grievances:
To provide simple, speedy and inexpensive redressal of consumer grievances, the act envisages three- tier quasi-judicial machinery at the national, state and district levels.
* National Consumer Disputes edressal Commission - !no"n as #National Commission#. * Consumer Disputes edressal Commissions !no"n as #$tate Commission%.
5 * Consumer Disputes edressal &orums- !no"n as #District &orum%.
*I+ T)e "istrict Consumer Protection Counci&
%he /tate 0overnment shall establish for ever! district, b! notification a council to be knon as the istrict Consumer Protection Council ith effect from such date as it ma! specif! in such notification. Composition of the district forum :ach istrict (orum shall consist of B •
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A person ho is, or ho has been or is #ualified to be, a istrict >ud$e, ho shall be its PresidentD %here ill be other members ho shall be persons of abilit!, inte$rit! and standin$ and have ade#uate knoled$e or e&perience or have shon capacit! In dealin$ ith problems rebatin$ to economics, la, commerce, accountin$, industr!, public affairs or administration, one of hom shall be a omen. :ver! appointment shall be made b! the /tate 0overnment on the recommendation of Se&ection Committee consistin$ of the folloin$ namel! o o
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%he President of the /tate CommissionB Chairman, /ecretar!, a epartment of the /tateB 7ember, /ecretar!, inchar$e, of the epartment dealin$ ith Consumer affairs in the /tateB 7ember.
Terms and age: Provided that a member shall be eli$ible for reBappointment for another term of 5 !ears or up to the a$e of 65 !ears, hichever is earlier. >urisdiction of the district forum 1 /ub*ect to other provisions of this Act, the istrict (orum shall have *urisdiction to entertain complaints here the value of the $oods or services and the compensation if an!, claimed does not e&ceed rupees tent! lakhs. A complaint shall be instituted in a istrict (orum ithin the local limits of hose *urisdiction, B a %he opposite part! or each of the opposite parties, here there are more than one, at the time of the institution of the complaint, actuall! and voluntaril! resides or carries on business or has a branch office, or personall! orks for $ainD or
6 b An! of the opposite parties here there are more then one, a t the time of the institution of the complaint, actuall! and voluntaril! resides, or carries on business or has a branch office, or personall! orks for $ain, provided that in such case either the permission of the istrict (orum is $iven, or the opposite parties ho do not reside, or carr! on business or have a branch office, or personall! orks for $ain, as the case ma! be, ac#uiesce in such institutionD or c %he cause of action, holl! or in part arises.
*II+ T)e State Commission
4e$ardin$ /tate Commission folloin$ provision have been made In Consumer Protection Act 1986. :stablishment In ever! state, the state $overnment, b! issuin$ a notification can establish consumer 0rievance 4edressal Commission to be called E/tate CommissionF.
Composition :ach /tate Commission shall consist of •
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A person member ho is or has been a *ud$e of a i$h Court, appointed b! the /tate 0overnment. ho shall be its President. =ut his appointment shall be made onl! after consultation ith the Chief >ustice of the i$h Court. %here ill be other members ho shall be persons of abilit!, inte$rit! and standin$ and have ade#uate knoled$e or e&perience or have shon capacit! In dealin$ ith problems rebatin$ to economics, la, commerce, accountin$, industr!, public affairs or administration, one of hom shall be a omen. :ver! appointment shall be made b! the /tate 0overnment on the recommendation of the selection committee. %he Se&ection committee shall be composed of o President of the /tate Commission G Chairman o /ecretar! of the a epartment of the /tate G 7ember /ecretar! inchar$e of the epartment dealin$ ith Consumer Affairs in o the /tate G 7ember
%erms and A$e :ver! member of the /tate Commission shall hold office for a term 5 !ears, or up to the a$e of 6< !ears, hichever is earlier, and shall not be eli$ible for reBappointment.
< >urisdiction of /tate Commission /ub*ect to the other provision of this Act., the /tate Commission /hall have >urisdiction a to entertain i complaints here the value of the $oods or services and compensation, if an! claimed e&ceeds rupees 3lakhs but does not e&ceed rupees one crore. ii appeals a$ainst the orders of an! istrict (orum ithin the /taleD and b to call for the records and pass appropriate and pass appropriate orders In an! consumer dispute hich is pendin$ before or has been decided b! an! istrict (orum ithin the /tate, here It appears to the /tate 0overnment that such istrict (orum has e&ercised a *urisdiction not vested In it b! la or has failed to e&ercise a >urisdiction so vested or has acted in e&ercise on its *urisdiction ille$all! or ith material irre$ularit!.
III, T)e Nationa& Commission
(olloin$ are the provisions of the Consumer Protection Act in respect of the +ational Commission :stablishment =! issuin$ a notification Central 0overnment can set up a +ational Commission %his Commission has been established at +e elhi. Composition %he +ational Commission shall compose of •
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A person member ho is or has been a *ud$e of the /upreme Court, shall be appointed b! the Central 0overnment. e shall be its President. Provided that no appointment under this clause shall be made e&cept after consultation ith the Chief *ustice of India. %here shall be 2 other members includin$ one oman. %he! shall be persons of abilit! inte$rit!, e&perience of, or have shon capacit! in dealin$ ith problems relatin$ to economics, la, commerce, accountanc!, industr!, public affairs or Administration.
:ver! appointment shall be made b! the Central 0overnment on the recommendation of a Se&ection Committee consistin$ of the folloin$ namel! •
A person ho is a *ud$e of the /upreme Court, to be nominated b! the chief *ustice shall be its Chairman.
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%he secretar! epartment of e$al Affairs In the $overnment of India shall be s member. /ecretar! of the epartment dealin$ ith consumer affairs in the $overnment of India shall be its other members.
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%erm of 7embers :ver! member of the +ational Commission shall hold office for a term of 5 !ears or up to the a$e of <3 !ears, hichever is earlier. . >urisdiction of the +ational Commission /ub*ect to the other provisions of this Act, the +ational Commission shall have >urisdiction as under •
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to entertain complaints here the value of the $oods or services and compensation, if an!, claimed e&ceeds rupees 1crore. to entertain appeals a$ainst the orders of an! /tate CommissionD to call for the records and pass appropriate orders In an! consumer dispute hich is pendin$ before or has been decided b! an! state commission here it appears to the +ational Commission that such /tate Commission has e&ercised a *urisdiction not vested in it b! a, or has failed to e&ercise a *urisdiction so vested, or has acted in the e&ercise of its *urisdiction ille$all! or ith material irre$ularit!.
