Consumer Protection Act, 1986

Introduction
Law relating to consumer protection is contained in the consumer protection act, 1986. the act applies to all goods and services. 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.

Objects of the Act

Right to be protected against marketing of goods which are dangerous to life and property. Right to be informed about the quality, potency, standard, and price of goods to protect the consumer against unfair trade practices. Right to be heard and to be assured that customers interests will receive due consideration at appropriate meeting. Right to seek redressal against dishonest exploitation of consumers. Right to consumer education. Consumer protection councils Central & State.

Definitions
Appropriate laboratory: It is recognized by Central
& State governments, which carries out analysis or test of any goods with a view to determining whether such goods suffer from any defect.

Complainant: One or more consumer or any voluntary

consumer association registered under the Companies Act or the Central or any State Government who or which makes a complaint.

Complaint: Any claim in writing made by a complainant

with a view to obtaining any relief provided by under this Act.

 Consumer: Any person, who (i) buys any goods for a consideration which has been paid or promised or partly paid or promised, or under any system of deferred payment. (ii) hires or avails of any service for a consideration which has been paid or promised or partly paid or promised, or under any system of deferred payment. For (i) Consumer also includes any user other than buyer himself. It must involve some consideration. Consumer does not include resale or commercial use of obtained goods. For (ii) Consumer includes any beneficiary of services other than the person who hires or avails such services.

 Consumer dispute a dispute where the person against whom a complaint has been made, denies or disputes the allegations contained in the complaint. Defect fault, imperfection, or shortcoming in the quality, potency, purity, or standard Deficiency fault, imperfection, or inadequacy in the quality, nature and manner of performance District Forum Consumer Disputes Redressal Forum National Commission National Consumer Disputes Redressal Commission Person includes a firm, a HUF, a cooperative society, State Commission Consumer Disputes Redressal Forum

 Service: It includes, provision of facilities in connection with banking, financing, insurance, transport, processing, electrical or other energy supply, boarding & lodging, house construction and plots by Housing & Development Board, entertainment and amusement, and telephone connection and facility by Telecom Department. Service however does not include the rendering of any service free of charge or under a contract of personal service. Spurious goods & services which are claimed to be genuine but they are actually not so. Trader a person who sells, distributes, manufacturers, or a packer of any goods for sale.

Who is not a Consumer?

A person obtaining goods for resale or for any commercial purpose; or Buys goods without Consideration; or Hires or avails any services without Consideration; or Uses the goods without approval of the person who has bought goods for consideration; or Is beneficiary of services w/o consent of the person who has hired the services for consideration; or

Consumer protection council

Consumer protection councils are three types i. Central consumer protection council ii. State consumer protection council iii.District consumer protection council

1) Central Consumer Protection Council. Section 4 to

6.
Establishment section 4. The central government shall establish by notification a council to be known as the central consumer protection council. Membership. The Central Council shall consist of the following members, The Minister in charge of the consumer affairs in the Central Government, who shall be its Chairman, and Such number of other official or non-official members representing such interests as may be prescribed.

 According to rule 3 of the consumer protection rules, 1987, the central council shall consist of the following member namely: The Minister in charge of the consumer affairs in the Central Government, who shall be its Chairman, and

The minister of state. The minister of food and civil supplies or minister in charge of consumer affairs in states. 8 member of parliament, 5 from the lok sabha 3 from the rajya sabha. The commissioner for castes and scheduled tribunal Representative of central govt. department

 Representative of consumer organization not less than 35. Representative of women not less than 10, Representative of farmer s, trade and industries- not exceeding 20. Person capable of representating consumer not specified above not exceeding 15. The secretary in the department of public supplies shall be the member secretary of the central council.

Objects of the Central Council. The objects of the Central Council shall be to promote and protect the rights of the consumers such as, The right to be protected against the marketing of goods and services which are hazardous to life and property; The right to be assured, wherever possible, access to a variety of goods and services at competitive prices; The right to be heard and to be assured that consumer's interests will receive due consideration at appropriate forums;

 The right to be informed about the quality, quantity, potency, purity, standard and price of goods or services the right to seek redressed against unfair trade practices or restrictive trade practices or unscrupulous exploitation of consumers; and The right to consumer education.

 Procedure for meetings of the central council (section 5). The Central Council shall meet as and when necessary, but at least one meeting of the Council shall be held every year. The Central Council shall meet at such time and place as the Chairman may think fit and shall observe such procedure in regard to the transaction of its business as may be prescribed.

2)

The state consumer protection council section 7 and 8.

Section 7 of the consumer protection Act provides for the establishment of state consumer protection councils by any state government to be known as consumer protection council for that state.

Members
The State Council shall consist of the following members, namely: The Minister In charge of consumer affairs in the State Government who shall be its Chairman; Such number of other official or non-official members representing such interests as may be prescribed by the State Government.

 such no. of other official or non-official members, not exceeding 10, as may be nominated by the Central Government. Procedure for meetings of the State Council. The State Council shall meet as and when necessary but not less than two meetings shall be held every year. The State Council shall meet at such time and place as the Chairman may think fit and shall observe such procedure in regard to the transaction of its business as may be prescribed by the State Government.

Objects of the State Council. The objects of every State Council shall be to promote and protect within the State the rights of the consumers.

3).

District consumer protection council section 8-A as inserted by the consumer protection act 2002.

The state government shall establish for every district by notification a council to be known as the district consumer protection council. Membership a) The collector of the district. b) Such number of other official and non-official member representing such interest as may be prescribed by the state govt. The district council held not less than twice in year. Time and place of meeting Chairman of council decide time and place which is suitable and fit.

Procedure for meetings of the District Council.

The District Council shall meet as and when necessary but not less than two meetings shall be held every year. The District Council shall meet at such time and place within the district as the Chairman may think fit and shall observe such procedure in regard to the transaction of its business as may be prescribed by the State/central Government.

The objects of every District Council shall be to promote and protect within the district the rights of the consumers

Consumer dispute Redressal agencies

There shall be established for the purpose of this act. The following agencies namely A) a consumer dispute redressal forum to be known as the district forum established by the state government in each district of the state by notification. The state government may, if it deems fit, establish more than one district forum in a district. B) A consumer dispute redressal commission to be known as the state commission established by the state govt. in the state by notification,

C) A national consumer dispute redressal commission established by the central govt. by notification. A) Consumer disputes redressal forum. The district forum District Forums - a Consumer Disputes Redressal Forum to be known as the "District Forum" established by the State Government in each district of the State by notification:

 Each District Forum shall consist of, A person who is, or has been, or is qualified to be a District Judge, who shall be its President; Two other members, one of whom shall be a woman, who shall have the following qualifications, namely Be not less than thirty-five years of age, Possess a bachelor's degree from a recognised university, Be persons of ability, honesty and standing, and have adequate knowledge and experience of at least ten years in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or administration:

Jurisdiction section 11.

Forum / Commission Where the value of the goods or services and the compensation, if any claimed,
District Forum State Commission Does not exceed Rs. 20 lakhs Rs. 20 lakhs and above but not exceeding One Crore

National Commission Above One Crore

FILING OF COMPLAINTS
A complaint may be filed by a) The consumer to whom the goods are sold or services are provided b) c) d) Any recognized consumer association One or more consumers with same interest The central government or state government

FILING OF COMPLAINTS
The Fee for filing the Complaint for the district forum is as under
Sr. No. 1) 2) 3) Value of Goods / Service and Compensation Upto Rs. 1 lakh rupees Rs. 1 Lakh and above but less than Rs.5 lakhs Rs. 5 Lakhs and above but less than Rs. 10 lakhs Amount of Fees Rs. 100 Rs. 200 Rs. 400

4)

Rs. 10 lakhs and above but less than Rs. 20 lakhs Rs. 500

The fees shall be paid by Cross demand Draft drawn on a nationalized bank or through crossed Indian postal order drawn in favour of the Registrar of the Sate Commission and payable at the place of the State Commission (w.e.f. 5.3.2004.)

Procedure on admission of complain

Complain relating to goods. A) Complain relating to goods. The district forum shall, on admission of a complaint, if it related to any goods, refer a copy the complaint to the opposite party mentioned in the complaint, further it shall direct the opposite party to give his account of case within 30 days. The period may extend by further period not exceeding 15 days.

 District forum shall proceed to settle the consumer dispute in the following manner. 1. Reference of sample to analyze where the complaint alleges a defect in the goods which cannot be determined without proper analysis or test. Appropriate test apply on goods and report must be submitted to district forum within 45 days. 2. Deposit of fees. Deposit fees by district forum for laboratory analysis of goods. 3. Remission of fees to laboratory and forwarding of report to opposite party.

4. Objection by any of the party. In writing give objection regards to the report made by the appropriate laboratory. 5. Reasonable opportunity to parties of being heard and issue of order.

 Finding of the forum. Section 14. After the proceeding conducted under section 13, the forum may be satisfied that the goods complained against suffer from any of the defects specified in the complaint about service or goods are proved. So, district forum passed the order to opposite party directing him to take one or more of following step. 1. A remove the defect pointed out by appropriate laboratory from the goods in question. 2. To replace goods with new goods of similar description which shall be free from any defect. 3. to return to the complainant the price.

4. To pay compensation to the consumer. 5. To provide adequate cost to parties. every order made by the district forum shall be signed by its president and the member and members who conducted the processing.

APPEAL

shall be filed within thirty days. Delay in filing appeal may be condoned if there is sufficient cause.

2) State commission section 16 to 19

1. State Commission A Consumer Disputes Redressal Commission to be known as the "State Commission" established by the State Government in the State.

Each State Commission shall consist of

A person who is or has been a Judge of a High Court, appointed by the State Government, who shall be its President.

 not less than two, and not more than such number of members, and one of whom shall be a woman, who shall have the following qualifications, namely: - be not less than thirty-five years of age; - possess a bachelor's degree from a recognized university; - be persons of ability, integrity and standing, and have adequate knowledge and experience of at least ten years in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or administration:

 Every appointment under section 16 shall be made by state government are following. 1. president of the state commission chairman 2. secretary of the law department of the state-member. 3. Secretary in charge of the department dealing with consumer affairs in the state member. Every member of the state commission shall hold office for a term of 5 year or up to the 67 years, whichever is ealier.

Jurisdiction section 17 (1)

Forum / Commission
District Forum State Commission National Commission

Where the value of the goods or services and the compensation, if any claimed,
Does not exceed Rs. 20 lakhs Rs. 20 lakhs and above but not exceeding One Crore Above One Crore

Besides, State and National Commission have appellate jurisdiction also.

Procedure
The provision of section 12, 13, 14 and the rules made there under for the disposal of complaints by the district forum shall, with such modification as may be necessary, be applicable to the disposal dispute by the state commission.

3. National Commission A National Consumer Disputes Redressal known as the " National Commission is established by the Central Government . Place of the national commission. The office of the national commission shall be located in the union territory of Delhi. Rule 5 of the consumer protection rule 1957.

Jurisdiction of the National Commission.

The National Commission. shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed ''exceeding rupees one crore.