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Consumer Protection Act, 1986

Object of the Act
1. Better protection of interests of consumers

For this purpose, the Act makes provision for the establishment of Consumer
Councils and other authorities for the settlement of consumer disputes.

2. Protection of rights of consumers

The Act seeks to promote and protect the rights of consumers such as :
a. The right to be protected against marketing of goods or services which are
hazardous to life and property
b. The right to be informed about the quality, quantity, potency, purity,
standard and price of goods or services so as to protect the consumers against
unfair trade practices.
g to be assured,, wherever p
c. The right possible,, to access to ggoods and services
at competitive prices.
d. The right to be heard and to be assured that consumers’ interest will receive
due consideration at appropriate forums.
e. The right to seek redressal against unfair trade practices or restrictive trade
practices or unscrupulous exploitation of consumers,
f. Right to consumer education.

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Definitions
1. Consumer (Sec. 2(1)(d))

Consumer means any person, who :

a. buys any goods for a consideration
‐ which has been paid or promised or partly paid and partly
promised.
Consumer also includes any user of such goods other than the buyer
himself.
The use of such goods must however be for consideration paid or
promised or partly paid or partly promised or under any system of
deferred payment.
The use of such goods must be made with the approval of the buyer.
buyer
Consumer does not include a person who obtains goods for resale or for
any commercial purpose.
Commercial purpose does not include use by a person of goods bought
by him and services availed by him exclusively for the purposes of
earning his livelihood by means of self‐employment.

Definitions
b. Hires or avails of any services for a consideration which has
been paid or promised or partly paid and partly promised, or
under any system of deferred payment.
Consumer also includes any beneficiary of such services other
than
h theh person who h hires
hi or avails
il off such
h services.
i
The beneficiary must however, acquire the use of such services
for consideration paid or promised, or partly paid and partly
promised, or under any system of deferred payment.
Further such services must be availed of by the beneficiary with
the approval of the hirer but does not include a person who avails
of such services for any commercial purpose.

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Definitions
2. Complaint (Sec. 2(1)(c))

It means any allegation in writing made by a complainant with a view to obtaining

any relief provided by or under this Act. The allegation in writing must be that :
a. An unfair trade practice or a restrictive trade practice has been adopted by any
trader or service provider.
b. The goods bought by him or agreed to be bought by him suffer ff from
f one or
more defects.
c. The services hired or availed of or agreed to be hired or availed of by him suffer
from deficiency in any respect.
d. A trader or the 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
i. Fixed by or under any law for the time being in force.
ii. Displayed on the goods or any package containing such goods
iii. Displayed on the price list exhibited by him or under any law for the time being
in force
iv. Agreed between the parties
v. Goods which will be hazardous to life and safety when used are being offered
for sale to the public
vi. Services which will be hazardous or likely to be hazardous to life and safety of
the public when used, are being offered by the service provider.

Definitions
3. Complainant (Sec. 2(1)(b)

Complainant means :
a. A consumer
b. Any voluntary consumer association registered under the
Companies Act or under any other law for the time being in force.
c. The Central government or State government, who or which
makes a complaint
d. One or more consumers, where there are numerous
consumers having the same interest.
interest
e. In case of death of a consumer, his legal heir or representative.

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Definitions
4. Unfair trade practice (Sec. 2(1)(r))

It means a trade practice which a trader, for the purpose of promoting

the sale, use or supply of any goods or the provision of any service,
adopts any unfair method or unfair or deceptive practice.
It includes any of the following practices :
1. the practice of making any statement, whether orally or in writing or
by visible representation which :
a. Falsely represents that the goods are of a particular standard, quality,
quantity, grade, composition, style or model
b. Falsely represents that the services are of a particular standard,
quality or grade.
c. Falselyy represents
p anyy re‐built,, second‐hand,, renovated,,
reconditioned or old goods as new goods.
d. Represents that the goods or services have sponsorship, approval,
performance, characteristics, accessories, uses or benefits which such
goods or services do not have.
e. Represents that the seller or supplier has a sponsorship or approval
or affiliation which such seller or supplier does not have.

Definitions
f. Makes a false or misleading representation concerning the need for,
or the usefulness, of any goods or services.
g. Gives to the public any warranty or guarantee of the performance,
efficacy or length of life of a product or of any goods that is not based
on an adequate or proper test thereof.
h. Makes to the public a representation in a form that purports to be (i)
warranty or guarantee of a product or of any goods or services (ii) a
promise to replace, maintain or repair an article or any part thereof or
to repeat or continue a service until it has achieved a specified result,
if such purported warranty or guarantee or promise is materially
misleading or if there is no reasonable prospect that such warranty,
guarantee or promise will be carried out.
i. Materially misleads the public concerning the price at which a
product or like products or goods or services, have been or are
ordinarily sold or provided.
j. Gives false or misleading facts disparaging the goods, services or
trade of another person

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Definitions
2. permits the publication of any advertisement whether in any
newspaper or otherwise, or the sale or supply at a bargain price,
or goods or services that are not intended to be offered for sale or
supply at the bargain price, or for a period that is, and in
quantities that are reasonable,
reasonable having regard to the nature of the
market in which the business is carried on, the nature and size of
business, and the nature of the advertisement.
Bargaining price means :
‐ a price that is stated in any advertisement to be a bargain price,
by reference to an ordinary price or otherwise,
‐ a price that a person who reads, hears or sees the advertisement
would reasonably understand to be a bargain price having regard
to the prices at which the product advertised or like products are
ordinarily sold

Definitions
3. permits
‐ the offering of gifts, prizes or other items with the intention of
not providing them as offered or creating impression that
something is being given or offered free of charge when it is fully
or partly covered by the amount charged in the transaction as a
whole.
‐ the conduct of any contest, lottery, game of chance or skill for
the purpose of promoting directly the sale, use or supply of any
product or any business interest.

3A. Withholds from the participants of any scheme offering gifts,

prizes or other items free of charge, on its closure the information
about final result of the scheme.
The participants of a scheme should have the results of such
scheme published within a reasonable time prominently in the
same newspaper in which the scheme was originally advertised.

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Definitions
4. permits the sale or supply of goods intended to be used, or are
a kind likely to be used, by consumers, knowing or having reason
to believe that the goods do not comply with the standards
prescribed by competent authority relating to performance,
composition, contents, design, constructions, finishing or packing
as are necessary to prevent or reduce the risk of injury to the
person using the goods.

5. permits the hoarding or destruction of goods, or refuses to sell

the goods or to make them available for sale or to provide any
service, if such hoarding or destruction or refusal raises or tends
to raise or is intended to raise,
raise the cost of those or other similar
goods or services.

6. manufacture of spurious goods or offering such goods for sale

or adopting deceptive practices in the provision of services.

Definitions
5. Restrictive trade practice (Sec. 2(1)(nnn))

It means a trade practice which tends to bring about manipulation

of price or its conditions of delivery or to affect flow of supplies in
the market relating to goods or services in such a manner as to
impose on the consumers unjustified costs or restrictions and
shall include :
‐ delay beyond the period agreed to by a trader in supply of such
goods or in providing the service which has led or is likely to lead
to rise in the price.
‐ any trade practice which requires a consumer to buy, hire or
avail of any goods or, as the case may be, services as condition
precedent to buying, hiring or availing of other goods or services.

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Definitions
6. Defect (Sec. 2(1)(f))

It means any fault, imperfection or shortcoming in the quality,

potency, purity or standard which is required to be maintained by
or under any law for the time being in force under any contract,
contract
express or implied, or as is claimed by the trader in any manner
whatsoever in relation to any goods.

7. Deficiency (Sec. 2(1)(g))

It means any fault,

fault imperfection,
imperfection shortcoming or inadequacy in
the quantity, nature and manner of performance which
‐ is required to be maintained by or under any law for the time
being in force.
‐ has been undertaken to be performed by a person in pursuance
of a contract or otherwise in relation to any service.

Definitions
8. Goods (Sec. 2(1)(i))

It means goods as defined in the Sale of Goods Act, 1930.

9. Service (Sec. 2(1)(o))

It means service of any description which is made available to potential

users. It includes provision of facilities in connection with :
‐ banking
‐ financing
‐ insurance
‐ transport
‐ processing
‐ supply of electrical or other energy
‐ board or lodging or both
‐ house construction
‐ entertainment, amusement or other purveying of news or other
information.

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Definitions
10. Spurious goods and services (Sec. 2(1)(r))

It means such goods and services which are claimed to be genuine

but they are actually not so.

Manner in which complaint shall be made (Sec. 12)
1. A complaint, in relation to any goods sold or delivered or agreed to be sold or
delivered or any service provided or agreed to be provided, may be filed with a
District Forum by :
‐ the consumer
‐ any recognised consumer association.
‐ one or more consumers, where there are numerous consumers having the
same interest, with the permission of the District Forum.
‐ the Central government or State government
2. Every complaint shall be accompanied with such amount of fee payable in such
manner as may be prescribed.
3. On receipt of a complaint, the District Forum may, by order, allow the
complaint to be proceeded with or rejected.
However, a complaint shall not be rejected unless an opportunity of being
heard has been given to the complainant.
4. The
h admissibility
d b l off the
h complaint
l shall
h ll ordinarily
d l be
b decided
d d d within
h 21 days
d
from the date on which the complaint was received.
5. Where, a complaint is allowed to be proceeded with, the District Forum may
proceed with the complaint in the manner provided in the Act.
6. However, where a complaint has been admitted by the District Forum, it shall
not be transferred to any other Court or tribunal or any authority set up by or
under any law for the time being in force.

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Procedure on admission of complaint (Sec. 13)
1. The District Forum shall, on admission of a complaint, refer a copy of the
complaint to the opposite party mentioned in the complaint.
2. Further, it shall direct the opposite party to give his version of the case within a
period of 30 days
The period may be extended by a further period not exceeding 15 days as may
be granted by the District Forum.
3. Where the opposite party on receipt of a complaint referred to him denies or
disputes the allegations contained in the complaint, or omits or fails to take any
action to represent his case within the time given by the District Forum, the
District Forum shall proceed to settle the consumer dispute in the following
manner :
4. In case where the complaint alleges a defect in the goods which cannot be
determined without proper analysis or test of the goods, the District Forum
shall obtain a sample of the goods from the complainant, seal it and
authenticate it and refer the sample so sealed to the appropriate laboratory for
an analysis
l or test whichever
h h may be
b necessary.
The direction for such analysis or test shall be made with a view to finding out
whether such goods suffer from any defect alleged in the complaint or suffer
from any other defect.
The laboratory shall report its findings to the District Forum within a period of
45 days of the receipt of the reference or within such extended period as may
be granted by the District Forum.

Procedure on admission of complaint (Sec. 13)
5. Before any sample of the goods is referred to any appropriate
laboratory for analysis or test, the District Forum may require the
complainant to deposit to the credit of the Forum such fees as may be
specified.
Such fees are meant for payment to the appropriate laboratory for
carrying
i out theh necessary analysis
l i or test in
i relation
l i to the h goods d ini
question.
6. The District Forum shall remit the mount of fee deposited to its credit to
the appropriate laboratory to enable it to carry out the analysis or test.
On receipt of the report from the appropriate laboratory, the District
Forum shall forward a copy of the report along with such remarks as the
District Forum may feel appropriate to the opposite party.
7. If any of the parties disputes the correctness of the finding of the
appropriate laboratory, or disputes the correctness of the methods of
analysis or test adopted by the appropriate laboratory, the District
Forum shall require the opposite party or the complainant to submit in
writing his objections in regard to the report made by the appropriate
laboratory.

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Procedure on admission of complaint (Sec. 13)
8. The District Forum shall give a reasonable opportunity to the
complainant as well as the opposite party of being heard as to the
correctness or otherwise of the report made by the appropriate
laboratory and also as to the objection made in relation thereto.
9 Thereafter
9. Th f it i shall
h ll issue
i an appropriate
i order.
d
10. The proceedings complying with the procedure laid down above
cannot be called in question in any Court on the ground that the
principles of natural justice have not been complied with.

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