Definition Consumer Protection Act, 1986 is an act of Parliament of India enacted in 1986 to protect interests of consumers in India.

. It makes provision for the establishment of consumer councils and other authorities for the settlement of consumers' disputes and for matters connected therewith.

Introduction
Caveat emptor rule ( let the buyer beware) in sale of goods act of 1930, sprout the root of consumer interest protection. United nations passed resolution of consume protection in april 1985 In India 1986 was the enactment of consumer protection act Aimed at providing simple, quick, and cheaper protection of consumers interest

Objectives
Better protection of interests of consumers Protection of rights of consumers -Right to be protected against marketing of goods or services which are hazardous to life and property - 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 - Right to consumer education Consumer protection councils -quasi-judicial machinery at the district ,State and central levels Penalties for non-compliance of the orders given by the quasi-judicial bodies have also been provided

Scope of the Act

Applies to whole of the state Exept the state of Jammu and Kashmir Applies to all type of goods and services, public utilities & public sector undertakings

All types of complains relating to goods ,unfair trade practice Remedies under this act is same as those in other laws. A suit pending in civil court cannot be heard in consumer court Consumer forums have the power to adjudicate disputes, but they do nat have trappings of a court The consumer court powers are limited

Unfair trade practices [sec. 2(1) (r)]

It means trade practices which a trader, for the purpose of promoting the sale, use or supply of any goods or for the provision of any service, adopts any unfair method or unfair or deceptive practice.

The practices included are: (1)The practice of making any statement, whether orally or in writing or by visible representation whichFalsely represents that the goods are of particular standard, quality, quantity, grade, composition, style or model; Falsely represents that the services are of particular standard, quality or grade; Falsely represents any rebuilt, second hand, renovated, or old goods as new goods; Represents that the goods or services have sponsorship, approval, performance, characteristic, accessories, uses or benefits which such goods or services do not have; Represents that the seller or the supplier has sponsorship or approval or affiliation which such seller or supplier does not have;

Make a false or misleading representation concerning the needs for , or the usefulness of, any goods or services; Gives to the public any warranty or guarantee of the performance or length of life of a product or of any goods that is not based on an adequate or proper test thereof. Materially misleading the public concerning the price at which a product or like products or goods or services, have been or are ordinarily sold or provided. 2. False offer of bargain price [section 2(1)(r)(2): A price that is stated in any advertisement to be a bargain price by reference to 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 like products are sold. 3. Schemes offering gifts or prizes [section 2(1)(r)(3)] Offering gifts or prizes or other items with the intention of not providing them and conducting promotional contests. Creating an impression that something is being given free of charge when it is fully or partly covered by the amount charged in the transaction. Conducting of any contest, lottery or game of chances etc for the purpose of promoting-directly or indirectly- the sale, use or supply of any product or any business interest. Case law :- Society for Civil Rights vs Colgate Palmolive 4. Withholding any schemes [sec 2(1)(r)(3A)] Withholding from the participants of any scheme offering gifts, prizes or other items free of charge, on its closure the information about final result of scheme. The participants of a scheme shall be deemed to have been informed of the final results of the scheme where such results are within a reasonable

time published prominently in the same newspapers in which the scheme was originally published. 5. Hoarding, of goods [sec 2(1)(r)(5): Hoarding, destruction or refusal to sell the goods which raises or tends to raise the cost of those or other similar goods or services shall amount to an unfair trade practice.

6. spurious goods [section 2(1)(r)(6): Spurious goods and services means such goods and services which are claimed to be genuine but are not so.

DEFICIENCY IN SERVICE Section 2(1) (g) of the Act provides that, deficiency means any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance which is required to be maintained by or under any law for the time being in force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service. Deficiency means any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance. Such quality and manner of performance of service should have been required to be maintained by or under any law for the time being in force or undertaken to be performed by a person in pursuance of a contract or otherwise. The deficiency must be in relation to a service. Case Law :- Gen. Manager, Southern Railway, Madras Vs. N. Prabhakaram.

RESTRICTIVE TRADE PRACTICE 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

CONSUMERS NEED PROTECTION AGAINST Price fixing or output restraint i.e delivery/flow of supplies to impose unjustified costs/restrictions on consumers. Collusive tendering; market fixing territorially among competing suppliers, depriving consumers of free choice, fair competition. Supplying only to particular distributors or on condition of sale only within a territory. Delaying in supplying goods/services leading to rise in price. Requiring a consumer to buy/hire any goods or services as a pre-condition for buying/hiring other goods or services. DEFECT Sec 2 (1) (f) Any fault, imperfection or shortcoming in the quality, quantity, potency, or standard which is required to be maintained by or under any law for the time being in force, or under any contract, express or implied or as is claimed by the trader in any manner whatsoever in relation to any goods

CONSUMER PROTECTION COUNCILS

1. Central Consumer Protection Council The Central Government may, by notification, establish with effect from such date as it may specify in such notification, a council to be known as the Central Consumer Protection Council

Objects of the central council(Sec.6) a) The right to be protected against the marketing of goods and services which are hazardous to life and property. b) The right to be assured ,where ever possible ,access to a variety of goods and services at competitive price c) The right to consumer education. d) The right to be heard and to be assured that consumer interests will receive due consideration at appropriate forums. e) The 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. 2.The state consumer protection councils(Sec.7and 8) Members :Chairman:-The minister in charge of consumer affairs of the state government. Such number of other official or non-official members representing such interests as may be prescribed by the state government.

Meetings:Number of meetings:-Not less then 2 meetings every year Time and place:- Depends on the chairman Objective:- To promote and protect within the states The rights of the consumer as laid down in Sec(6)

The district consumer protection council Members:- District collector is the Chairman Other official and nonofficial members are appointed by the state government

Meetings:Number of meetings:- not less then 2 meetings Time and place:- as decided by the chairman Objective:To protect and preserve the right of the consumer within the district laid down under the Sec(6).

Nature and scope of remedies & State commission In case the goods complained against suffer from any of the allegations contained in the complaint about the services are proved, the district forum/the state commission may pass one or more of the following orders;

To remove the defects pointed out by the appropriate laboratory from all the goods in question. To replace the goods of similar description which shall be free from defect. To discontinue the unfair trade practice or restrictive trade practice or not to remove them. To withdraw the hazardous goods from being offered for sale. In the case of misleading advertisements the other party has to pay the cost of the corrective advertisements.

Tenure and Removal of President or Members (Rule 13) Tenure :Every member of the national commission shall hold the office for 5 years or up to the age of seventy years, whichever is earlier. A member shall be eligible for reappointment for another term of 5 years or up to the age of seventy years, whichever is earlier. The reappointment is to be made on the basis of recommendation of the selection committee. Removal of president or members(rule 13) Has been adjudged an insolvent. If any conviction of an offence, Physically or mentally incapable of acting as a president or member, or Has acquired such financial or other interest as is likely to affect prejudicially his function as the president or member, or Has so abused his position as to render his continuance in office prejudicial to public interest, or

Remains absent in three consecutive sittings except for reasons beyond his control.

TIME FRAME WITHIN WHICH A COMPLAINT CAN BE FILED Section 24A of the Act provides that a consumer dispute can be filed within two years from the date on which the cause of action arises. The point of time when cause of action arises is an important factor in determining the time period available to file a complaint. There are no set rules to decide such time. It depends on the facts and circumstances of each case. The complaint should be filed within 2 years from the date of cause of action. Appeals are require to be filed within 30 days from the date of receipt of the court's order.

It may be noted that these time frames are not absolute limitations. If the Consumer Forum is satisfied that there was sufficient cause for not filing the complaint within the prescribed period, it can entertain a complaint beyond limitation time. However the Forum must record the reasons for condensation of delay.