Consumer Protection Act
Consumer Protection Act
ACKNOWLEDGEMENT
Firstly, I am very grateful to my subject teacher Mrs. Sushmita Singh, without the kind
support and help of whom the completion of this project was a herculean task for me. He
donated his valuable time from his busy schedule to help me to complete this project. I would
like to thank him for his valuable suggestions towards the making of this project.
I am highly indebted to my parents and friends for their kind co-operation and encouragement
which helped me in completion of this project. I am also thankful to the library staff of my
college which assisted me in acquiring the sources necessary for the compilation of my
project.
Last but not the least; I would like to thank the Almighty who kept me mentally strong and in
good health to concentrate on my project and to complete it in time.
TABLE OF CONTENT
DECLARATION ............................................................................................................................................ 2
ACKNOWLEDGEMENT .............................................................................................................................. 2
INTRODUCTION .......................................................................................................................................... 4
CONSUMER ........................................................................................................................................................ 5
CONCLUSION ................................................................................................................................................. 25
BIBILIOGRAPHY .............................................................................................................................................. 26
INTRODUCTION
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.
Consumer protection is a group of laws and organizations designed to ensure the rights of
consumers as well as fair trade, competition and accurate information in the marketplace. The
laws are designed to prevent the businesses that engage in fraud or specified unfair practices
from gaining an advantage over competitors. They may also provide additional protection for
those most vulnerable in society.
Consumer protection laws are a form of government regulation that aim to protect the rights
of consumers. For example, a government may require businesses to disclose detailed
information about products—particularly in areas where safety or public health is an issue,
such as food. Consumer protection is linked to the idea of consumer rights and to the
formation of consumer organizations, which help consumers make better choices in the
marketplace and get help with consumer complaints. Other organizations that promote
consumer protection include government organizations and self-regulating business
organizations such as consumer protection agencies and organizations, ombudsmen, the
Federal Trade Commission in America and Better Business Bureaus in America and Canada,
etc.
CONSUMER
A consumer is defined as someone who acquires goods or services for direct use or
ownership rather than for resale or use in production and manufacturing. Consumer interests
can also be protected by promoting competition in the markets which directly and indirectly
HISTORICAL PERSPECTIVE
In the early years when welfare legislature’s 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
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 cheeked by sending
the children employed in the royal pigeon-house to buy petty articles .The prices fixed for the
Delhi market were also applied in the provincial capitals and towns.
During the British regime (1765-1947), also known as the Colonial Era·, Government’s
economic policies in India were concerned more with protecting and promoting the British
interests than with advancing the welfare of the native population. The administrations
primary per-occupation was with maintaining law and order, tax collection and defence .
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 . 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
Protecting consumers from unfair trade practices, adopted by the producers and/or sellers of
goods and services is termed as consumer protection. It not only includes educating
The necessity of adopting measures to protect the interest of consumers arises mainly due to
the helpless position of the consumers. There is no denying fact that the consumers have the
basic right to be protected from the loss or injury caused on account of defective goods and
deficiency of services. But they hardly use their rights due to lack of awareness, ignorance or
lethargic attitude.
However in view of the prevailing malpractices and their vulnerability there to, it is necessary
to provide them physical safety, protection of economic interests, access to information,
satisfactory product standard, and statutory measures for redressal of their grievances. The
other main arguments in favour of consumer protection are as follows:
The business must be guided by certain social and ethical norms. It is the moral responsibility
of the business to serve the interest of consumers. Keeping in line with this principle, it is the
duty of producers and traders to provide right quality and quantity of goods at fair prices to
the consumers.
The consumers are becoming more mature and conscious of their rights against the
malpractices by the business. There are many consumer organisations and associations who
are making efforts to build consumer awareness, taking up their cases at various levels and
helping them to enforce their rights.
Father of the Nation Mahatma Gandhi had once given a call to manufactures and traders to
“treat your consumers as god”. Consumers’ satisfaction is the key to success of business.
Hence, the businessmen should take every step to serve the interests of consumers by
providing them quality goods and services at reasonable price.
Exploitation of consumers is against the directive principles of state policy as laid down in
the Constitution of India. Keeping in line with this principle, it is expected from the
manufacturers, traders and service providers to refrain from malpractices and take care of
consumers’ interest.
According to Gandhian philosophy, manufactures and producers are not the real owners of
the business. Resources are supplied by the society. They are merely the trustees of the
resources and, therefore, they should use such resources effectively for the benefit of the
society, which includes the consumers.
The business has to serve consumer interests for their own survival and growth. On account
of globalization and increased competition, any business organization which indulges in
malpractices or fails to provide improved services to their ultimate consumer shall find it
difficult to continue. Hence, they must in their own long run interest, become consumer
oriented.
RIGHT OF CONSUMERS
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John F, Kennedy, the former USA President, in his message to consumer had given six rights
to consumers. These rights are (i) right to safety, (ii) right to be informed, (iii) right to
choose, (iv) right to be heard, (v) right to redress and (vi) right to represent. These rights had
paved the way for organised consumer movement in the USA and later it spread all over the
world. In India, the Consumer Protection Act, 1986 has also provided for the same rights to
consumers. Let us have a brief idea about these rights of consumers.
1. RIGHT TO SAFETY
It is the right of the consumers to be protected against goods and services which are
hazardous to health or life. For example, defective vehicles could lead to serious accidents.
The same is true of electrical appliances with sub-standard material. Only recently, there
were mass protests and boycott of soft drinks due to presence of hazardous pesticides beyond
permissible limits. Thus, right to safety is an important right available to the consumer which
ensures that the manufacturers shall not produce and sell sub-standard and dangerous
products.
2. RIGHT TO BE INFORMED
3. RIGHT TO CHOOSE
The right to choose provides that the consumer must be assured, whenever possible, access to
a variety of goods and services at competitive prices. If the market has enough varieties of
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products at highly competitive prices, the buyers have an opportunity of wide selection.
However, incase of monopolies like railways, postal service and electricity supply etc. it
implies a right to be assured of satisfactory quality of service at a fair price.
4. RIGHT TO BE HEARED
The rights to safety, information and choice will be frivolous without the right to be heard.
This right has three interpretations. Broadly speaking, this right means that consumers have a
right to be consulted by Government and public bodies when decisions and policies are made
affecting consumer interests. Also, consumers have a right to be heard by manufactures,
dealers and advertisers about their opinion on production, marketing decisions and any
grievances of the consumers. Now-a-days, most of the top manufacturers and firms have set
up consumer service cells to attend to consumers’ complaints and take appropriate steps for
their redressal. Thirdly consumers have the right to be heard in legal proceedings in law
courts dealing with consumer complaints.
The consumers have been given the right of redressal of their grievances relating to the
performance, grade, quality etc. of the goods and services. If required, the product must be
repaired / replaced by the seller/ manufacturer. The Consumer Protection Act has duly
provides for a fair settlement of genuine grievances of the consumers. It has also set up a
proper mechanism for their redressal at district, state and national levels.
It means the right to receive knowledge and skill to become informed consumer. In this
direction the consumer associations, educational institutions and the policy makers can play
an important part. They are expected to impart information and knowledge about (i) the
relevant laws which are aimed at preventing unfair trade practices, (ii) the ways and means
which dishonest traders and producers may adopt to deceive the consumers, (iii) insistence on
a bill or receipt at the time of purchase, and (iv) the procedure to be followed by consumers
while making complaints. Effective consumer education leads to an increased level of
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consumer awareness and help them to enforce their rights more effectively, and protect
themselves against fraudulent, deceitful and grossly misleading advertisement, labeling, etc.
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RESPONSIBILITY OF CONSUMERS
We have learnt about the various rights of the consumers. Let us now have an idea about their
duties and responsibilities. These include the following:
To put a stop to adulteration and corrupt practices of the manufacturers and traders, it is the
duty of every consumer to be conscious of the quality of product they buy. They should look
for the standard quality certification marks like ISI, Agmark, FPO, Woolmark, Eco-mark,
Hallmark etc. while making the purchases.
The advertisement often exaggerates the quality of products. Hence, the consumers should
not rely on the advertisement and carefully check the product or ask the users before making
a purchase. Incase there are discrepancies, the same should be brought to the notice of the
sponsors and the appropriate authority, if need be.
The consumer should inspect a variety of goods before buying the goods and service. For this
purpose he/she should compare their quality, price, durability, after sales service etc. This
would enable the consumers to make the best choice within the limit of their own resources.
The consumer should insist on a valid documentary evidence (cash memo/invoice) relating to
purchase of goods or availing of any services and preserve it carefully. Such proof of
purchase is required for filing a complaint. In case of durable goods the manufactures
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generally provide the warrantee/guarantee card along with the product. It is the duty of
consumers to obtain these documents and ensure that these are duly signed, stamped and
dated. The consumer must preserve them till the warrantee/ guarantee period is over.
The consumers must be aware of their rights as stated above and exercise them while buying
goods and services. For example, it is the responsibility of a consumer to insist on getting all
information about the quality of the product and ensure himself/herself that it is free from any
kind of defects.
As a consumer if you are dissatisfied with the product/services, you can ask for redressal of
your grievances. In this regard, you must file a proper claim with the company first. If the
manufacturer/company does not respond, then you can approach the forums. But your claim
must state actual loss and the compensation claim must be reasonable. At no cost fictitious
complaints should be filed otherwise the forum may penalise you.
It is expected from the consumers that they use and handle the product/services properly. It
has been noticed that during guarantee period, people tend to reckless use of the product,
thinking that it will be replaced during the guarantee period. This practice should be avoided.
Apart from the responsibility enumerated above, the consumers should be conscious of their
duty towards other consumers, society and ecology and make responsible choice. In other
words, their purchases and consumption should not lead to waste of natural resources and
energy and environmental pollution.
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WAYS AND MEANS OF CONSUMER PROTECTION
Lok Adalats are the effective and economical system for quick redressal of the public
grievances. The aggrieved party can directly approach the adalats with his grievance, and his
issues are discussed on the spot and decisions are taken immediately. The consumers may
take the advantage of this system to solve their problems. Cases of electricity billing,
telephone billings, road accidents etc. can be taken up in Lok Adalat for spot settlement.
Infact, Indian Railways, Mahanagar Telephone Nigam Limited and Delhi Vidyut Board hold
Lok Adalat regularly to settle user’s grievances on the spot.
Public Interest Litigation (PIL) is a scheme under which any person can move to the court of
law in the interest of the society. It involves efforts to provide legal remedy to un-represented
groups and interests. Such groups may consist of consumers, minorities, poor persons,
environmentalists and others. Any person or organisation, though not a party to the
grievances, can approach the court for remedial action in case of any social atrocities.
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(c) REDRESSAL FORUMS AND CONSUMER PROTECTION COUNCILS
Under the Consumer Protection Act 1986, a judicial system has been set up to deal with the
consumer grievances and disputes at district level, state level and national level. These are
known as District Forum, State Consumer Disputes Redressal Commission (State
Commission) and National Consumer Disputes Redressal Commission (National
Commission). Any individual consumer or association of consumers can lodge a complaint
with the District, State or National level forum, depending on the value goods and claim for
compensation. The main objective of these forums is to provide for a simple, speedy and
inexpensive redressal of consumers’ grievances. The Act as amended in 2002 also provides
for setting up of Consumer Protection Council at district, state and national level for
promotion and protection of the rights of the consumers as laid down in Section 6 of the Act.
The councils are required to give wide publicity to the rights of consumers, the procedures for
filling complaints by them and provide inputs to consumer movement in the country.
To increase the level of awareness among the consumers the Government of India has
initiated various publicity measures. It regularly brings out journals, brochures, booklets and
various posters depicting the rights and responsibilities of consumers, redressal machineries
etc. It observes World Consumer Rights Day on 15 March and National Consumer Day on 24
December. Several video programmes on consumer awareness are broadcasted through
different television channels. Similarly, audio programmes are also broadcasted through All
India Radio and FM channels. The poster and slogan competition on consumer protection are
also organised at various level. To encourage the participation of public in the field of
consumer protection the Government has also instituted National Awards to the persons who
have done outstanding work in this field.
Consumer organisations have been active all over the world to promote and protect consumer
interests. A number of such organisations have also been set up in recent years in different
parts of India. It is felt that neither it is possible to discipline all members of the business
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community through moral sanctions and a code of fair business practices nor can administrate
orders and legislative provisions to ensure consumer protection without the active
involvement of consumer associations. Now with an increasing number of consumer
organisations involved in consumer protection, the consumer movement is getting a foothold
in India and helping individuals to seek quick and adequate redressal of their grievances.
The government has created a consumer welfare fund for providing financial assistance to
strengthen the voluntary consumer movement in the country particularly in rural areas. This
fund is mainly used for setting up facilities for training and research in consumer education,
complaint handling, counseling and guidance mechanisms, product testing labs, and so on.
A number of laws have been enacted in India to safeguard the interest of consumers and
protect them from unscrupulous and unethical practices of the businessmen. Some of these
Acts are as follows:
The object and interest of almost all these enactments are mainly punitive, though some of
these are also preventive in nature. However, none of these laws provide any direct relief to
the consumers. Hence, amendments have been made in some of these laws by which
individual consumers and consumer organisations have been conferred the right to take
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initiative and launch legal proceedings in civil and criminal courts against the violators.
Another legal enactment that made a dent in this situation was the Monopolies and
Restrictive
Trade Practices Act, 1969. It gained the status of a specific consumer protection law with
amendments made in 1984. Inspite of the changes made in 1984, a need was felt to have a
more elaborate legislation. So the Consumer Protection Act was passed in 1986 to offer the
necessary protection to consumers and provide an elaborate mechanism to deal with
consumer grievances and disputes.
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FEATURES OF CONSUMER PROTECTION ACT
(a) It applies to all goods, services and unfair trade practices unless specifically exempted by
the Central Government.
(c) It provides for establishment of consumer protection councils at the central, state and
district levels to promote and protect the rights of consumers and a three tier quasi judicial
machinery to deal with consumer grievances and disputes.
The term ‘goods’ under this Act has the same meaning as under the sale of goods Act.
Accordingly it covers all types of movable property other than money and includes stocks
and shares, growing crops, etc. The term ‘service’ means service of any description made
available to potential users and includes banking, financing, housing construction, insurance,
entertainment, transport, supply of electrical and other energy, boarding and lodging,
amusement, etc. The services of doctors, engineers, architects, lawyers etc. are included
under the provisions of Consumer Protection Act.
FILING OF COMPLAINTS
For redressal of consumer grievances a complaint must be filed with the appropriate forum.
In this section let us know, who can file a complaint, what complaints can be filed, where to
file the complaint, how to file the complaints etc.
The following persons can file a complaint under Consumer Protection Act 1986:
(a) A consumer;
(b) Any recognized voluntary consumer association whether the consumer is a member of
that association or not;
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(c) The Central or any State Government; and
(d) One or more consumers where these are numerous consumers having same interest.
A consumer can file a complaint relating to any one or more of the following:
(a) An unfair trade practice or a restrictive trade practice adopted by any trader or service
provider;
(b) Goods bought by him or agreed to be bought by him suffer from one or more defect;
(c) Services hired or availed of, or agreed to be hired or availed of, suffer from deficiency in
any respect;
(d) price charged in excess of the price (i) fixed by or under the law for the time being in
force, (ii) displayed on the goods or the package, (iii) displayed in the price list, or
(e) goods or services which are hazardous or likely to be hazardous to life and safety
when used.
If the value of goods and services and the compensation claimed does not exceed Rs. 20 lakh,
the complaint can be filed in the District Forum; if it exceeds Rs. 20 lakh but does not exceed
Rs. One crore, the complaint can be filed before the State Commission; and if it exceeds Rs.
One crore, the complaint can be filed before the National Commission.
A complaint can be made in person or by any authorised agent or by post. The complain can
be written on a plain paper duly supported by documentary evidence in support of the
allegation contained in the complaint. The complaint should clearly specify the relief sought.
It should also contain the nature, description and address of the complainant as well as the
opposite party, and so also the facts relating to the complaint and when and where it arose.
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What are the reliefs available to consumers?
Depending on the nature of complaint the and relief sought by the consumer, and the facts of
the case, the Redressal Forum/Commission may order one or more of the following reliefs:
(e) Discontinuance of unfair trade practices or restrictive trade practice or not to repeat them.
(f) Withdrawal of hazardous or dangerous goods from being offered for sale.
The consumer can file the complaint within two years from the date on which the cause of
action had arisen. However, it may be admitted even after the lapse of two years if sufficient
cause is shown for the delay.
Every complaint must be disposed off as speedily as possible within a period of three months
from the date of notice received by the opposite party. Where the complaint requires
laboratory testing of goods this period is extended to five months.
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MACHINERY FOR SETTLEMENT OF GRIEVANCES
The judicial machinery set up under the Consumer Protection Act, 1986 consists of consumer
courts (forums) at the district, state and national levels. These are known as District forum,
State Consumer Disputes Redressal Commission (State Commission) and National Consumer
Disputes Redressal Commission (National Commission) separately.
1. District Forum
(a) Composition: The district forums consist of a Chairman and two other members one of
whom shall be a woman. The district forums are headed by the person of the rank of a
District Judge.
(b) Jurisdiction: A written complaint can be filed before the District Consumer forum where
the value of goods or services and the compensation claimed does not exceed Rs. 20 lakh.
c) Appeal: If a consumer is not satisfied by the decision of the District forum, he can
challenge the same before the State Commission, within 30 days of the order.
2. State Commission
(a) Composition: The State Commission consists of a President and not less then two and not
more than such number of members as may be prescribed, one of whom shall be a women.
The Commission is headed by a person of the level of High Court judge.
(b) Jurisdiction: A written complaint can be filed before the State Commission where the
value of goods or services and the compensation claimed exceeds Rs. 20 lakh but does not
exceed Rs. One crore.
(c) Appeal: In case the aggrieved party is not satisfied with the order of the State Commission
he can appeal to the National Commission within 30 days of passing of the order.
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3. National Commission
The National commission was constituted in 1988 by the central government. It is the apex
body in the three tier judicial machinery set up by the government for redressal of consumer
grievances. Its office is situated at Janpath Bhawan (Old Indian Oil Bhawan), A Wing, 5th
Floor, Janpath, New Delhi.
(a) Composition: It consists of a President and not less than four and not more than such
members as may be prescribed, one of whom shall be a woman. The National Commission is
headed by a sitting or retired judge of the Supreme Court.
(b) Jurisdiction: All complaints pertaining to those goods or services and compensation
whose value is more than Rs. one crore can be filed directly before the National Commission.
(c) Appeal: An appeal can be filed against the order of the National Commission to the
Supreme Court within 30 days from the date of order passed.
It may be noted that in order to attain the objects of the Consumers Protection Act, the
National Commission has also been conferred with the powers of administrative control over
all the State Commissions by calling for periodical returns regarding the institution, disposal
and pending of cases and issuing instructions for adoption of uniform procedures, etc.
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CONCLUSION
Consumer protection act are the laws which are designed to prevent businesses that engaged in
fraud or specific unfair practices from gaining an advantage over competitors; it also provide
additional protection for the weak and those unable to take care of themselves.
It ensures fair competitive and responsible market that work well for consumers and promote
ethical business practices. It also protect and promote the economic interests of consumers and
improve access to information that consumers require, to make informed choices according to their
individual needs.
Thus we can conclude that Consumer Protection Act is an absolute act that helps a consumer in case
he becomes prone to any fraud. This project has dealt with each and every topic related to the
Consumer Protection Act in detail. This project highlights each and every important aspect of the act
and how the act helps a person in case he witnesses any otherwise activity.
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BIBILIOGRAPHY
Books.
Websites.
https://rccp.gov.in/consumerprotection-india.php
http://ncdrc.nic.in/bare_acts/consumer%20protection%20act-1986.html
http://extwprlegs1.fao.org/docs/pdf/bha78749.pdf
https://www.india.gov.in/consumer-protection-act
https://www.toppr.com/guides/business-studies/consumer-protection/consumer-
protection-act/
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