Consumer Protection Act, 1986

Compiled by : Dr.Samir Saiyad MPHIL,MHA,PGDBM.

Historical background

Adoption of guidelines by general assembly of united nations by consumer protection resolution dated April 16,1985
Provides a framework for govt. Objective to assist countries in achieving or maintaining

adequate protection for their population Encourages high level of ethical conduct Protection of consumers from hazards of health & safety Availability of effective consumer redress

Act enacted by Indian parliament in 1986

Setting up of three-tier structure

Definition

Consumer
Some one who buys and uses product and services He is a person who buys any goods for consumption or use He hires or avails any service for use It does not include a person who obtain such goods for resale or

commercial purpose

Definition

Defect
Any fault, imperfection, shortcoming in the quality, quantity,

potency, purity or standard which is required to be maintained by or under any law for the time being in force

Definition

Deficiency
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

Definition

Service
Service of any description which is made available to potential users & includes the provision of facilities in connection with banking, financing, insurance, transport, processing, supply of electrical or other energy, board or lodging or both, entertainment, amusement or the purveying news or information, but does not include the rendering of any service free of charge or under contract of personal service

Definition

Spurious goods & services

Goods & services which are claimed to be genuine but are

actually not so

Consumer dispute
A dispute, where the person disagrees or denies the allegations

contained in the complaint against him/her.

Definition

Complainant or plaintiff
A complainant is someone who makes a formal complaint in a

court of law. It refers to

A consumer Any voluntary consumer association registered under the companies

act,1956 or under any law The central govt. or state govt. One or more consumers having the same interest

Definition

Complaint
Any allegation in writing made by a complainant that An unfair trade practice has been adopted by any trader The goods bought by him or agreed to be bought by him have one or more defects The services hired or availed of or agreed to be hired or availed by him suffer from deficiency in any respect

Definition

Complaint
Any allegation in writing made by a complainant that A trader or service provider, as the case may be, has charged for the services mentioned in the complaint or for selling good at a price in excess of the price Fixed by law for the time being Displayed on any goods or any package containing such goods Displayed on the price list exhibited by him or under any law Agreed between the parties

Consumer Dispute Redressal Agencies

Three agencies to receive & dispose complaints according to merit

District consumer redressal forum in each district State consumer disputes redressal commission National consumer disputes redressal commission

District consumer redressal forum

Qualification of the members

Total members : Three Quorum : Any 2 person( either president) present should

sign an award passed by the forum Composition : District judge or qualified as district judge as president

District consumer redressal forum

Two members (at least one woman) with following qualifications

At least 35 yrs of age Bachelors degree or higher Persons of ability, integrity and standing and having 10 yrs

experience in economics, law, commerce, accountancy, industry, public affairs or administration

District consumer redressal forum

Term of Office
Five years or up to the age of 65 yrs, whichever is earlier

Disqualification criteria
Convicted and sentenced to imprisonment for offence involving

turpitude Un-discharged insolvent Unsound mind as declared by competent court Dismissed or removed from service of government

District consumer redressal forum

Disqualification criteria
Conflicting financial interest as per state governments opinion Any other disqualification prescribed by state government

District consumer redressal forum

Jurisdiction of the forum

Disputes arising in the district in which forum is located The value of goods / service is less than Rs. 20 lacs

Time limit for disposal 3 months Appeal time

In case of aggrieved -within 30 days In case of person against whom award was passed within 30

days and shall deposit 50% of the ordered amount or 25,000 Rs. Whichever is less-

State Consumer Dispute Redressal Commission

Qualification of the members

Judge of the high court (present or ex) as president Minimum two members (one of them shall be a woman), with

following qualification
At least 35 yrs of age Bachelors degree or higher
Persons of ability, integrity and standing and having 10 yrs experience in

economics, law, commerce, accountancy, industry, public affairs or administration

State Consumer Dispute Redressal Commission

Selection process
President appointed by State Govt. after consultation with the

chief justice of the high court Other members selected by committee

President (chairman) Secretary of law department (member)
Secretary in-charge of the dept. dealing with consumer affairs (member)

State Consumer Dispute Redressal Commission

Term of service
5 years or 67 years of age whichever is earlier Eligible for re-election Salary or honorarium or allowances payable by State Government

Disqualification
Convicted and sentenced to imprisonment for offence involving

turpitude Un-discharged insolvent Unsound mind as declared by competent court Dismissed or removed from service of government Conflicting financial interest as per state governments opinion Any other disqualification prescribed by state government

State Consumer Dispute Redressal Commission

Jurisdiction
Value of goods and services exceeds 20 lacs but below 1 crore Pending from district forum or where decision of district forum

was questioned Can transfer any case to state on its own motion

Circuit benches
In the capital of state or Any other place as notified by state government

State Consumer Dispute Redressal Commission

Appeal
For aggrieved,to National Commission within 30 days of issue

of the order For Appellant, he should deposit 50% of compensation awarded or Rs. 35,000 whichever is less

National Consumer Dispute Redressal Commission

Qualification
Total member Five Composition President, who is or has been the judge of the

supreme court Four members with following qualification

Minimum 35 yrs of age Bachelors degree or higher Persons of ability, integrity and standing and having 10 yrs experience in

economics, law, commerce, accountancy, industry, public affairs or administration Not more than 50% of members of judicial background

National Consumer Dispute Redressal Commission

Selection of members
Appointed by committee having following members Judge of the supreme court - President Secretary to the Government of India, (legal dept) Member Secretary to the Government of India who deals with consumer affairs Members

National Consumer Dispute Redressal Commission

Service conditions
Term of office 5- yrs or 70 yrs of age whichever is earlier Eligible for re-appointment Receive salary/honorarium as prescribed by the Union Govt.

National Consumer Dispute Redressal Commission

Disqualification
Convicted and sentenced to imprisonment for offence involving

turpitude Un-discharged insolvent Unsound mind as declared by competent court Dismissed or removed from service of government Conflicting financial interest as per state governments opinion Any other disqualification prescribed by Central government

National Consumer Dispute Redressal Commission

Jurisdiction of the commission

Value of goods / services / compensation exceeding 1 crore Pending from state commission or wherin jurisdiction of state

commission has been questioned On its own motion May modify / revise its own order, if in its opinion there is an apparent error Set aside order passed against any party

National Consumer Dispute Redressal Commission

Circuit benches
Main seat New Delhi Such places as notified by union govt after consulting the

national commission

Appeal
To Supreme Court within 30 days of issue of the order For Appellant, he should deposit 50% of compensation awarded

or Rs. 50,000 whichever is less

Finality of the order

Every order of a district forum, state commission or national commission shall be final if no appeal is filed against such order

Limitation period for filing a complaint

District forum, state commission or national commission shall not admit a complaint unless it is filed within two years from date on which cause of action has arisen

Administrative control

National commission has administrative control

Call for records regarding filed or disposed cases Issue instructions General overseeing of the functions

Enforcement of orders

Party not complying with the orders

The property of the party can be attached Attached property can be sold after 3 months Amount & damage can be paid to the party who is entitled

Thank You!