CONSUMER PROTECTION ACT 1986

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 CONSUMER PROTECTION ACT 1986

The Consumer Protection Act of 1986 is a significant piece of legislation in India that was enacted to safeguard the rights and interests of consumers. It provides a framework for addressing consumer grievances and ensuring that businesses do not exploit consumers. Here's an in-depth look at the Act:

ConsumerProtection Act
consumer protection

1. Objectives of the Consumer Protection Act, 1986

The primary objectives of the Consumer Protection Act, 1986, are:

  • Protection of Consumers: To protect consumers from unfair trade practices, defective goods, and deficient services.

  • Consumer Rights: To promote and protect the rights of consumers, including the right to be informed, the right to choose, and the right to be heard.

  • Consumer Grievance Redressal: To provide a simple, speedy, and inexpensive mechanism for consumers to address their grievances and seek redressal.


2. Key Definitions

  • Consumer: Any person who buys goods or hires services for a consideration, which has been paid or promised, or partly paid and partly promised. It includes any user of such goods or services other than the person who actually buys them, provided that such use is made with the approval of the buyer.

  • Goods: All movable property other than actionable claims and money, and includes stocks and shares, growing crops, and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale.

  • Services: Includes services of any description which are made available to potential users and includes the provision of facilities in connection with banking, financing, insurance, transport, processing, supply of electrical or other energy, board or lodging, housing construction, entertainment, amusement, or the purveying of news or other information.


3. Consumer Rights under the Act

The Act recognizes the following six rights of consumers:


  • Right to Safety: Protection against the marketing of goods and services which are hazardous to life and property.
  • Right to be Informed: The right to be informed about the quality, quantity, potency, purity, standard, and price of goods or services, to protect the consumer against unfair trade practices.

  • Right to Choose: Access to a variety of goods and services at competitive prices.

  • Right to be Heard: The right to be heard and to be assured that consumer interests will receive due consideration at appropriate forums.

  • Right to Redressal: The right to seek redressal against unfair trade practices or unscrupulous exploitation of consumers.

  • Right to Consumer Education: The right to acquire the knowledge and skills to be an informed consumer.


4. Consumer Protection Councils

The Act establishes Consumer Protection Councils at the Central, State, and District levels, whose main objective is to promote and protect the rights of consumers.

  • Central Consumer Protection Council: Established by the Central Government, it is responsible for advising on policies for promoting and protecting consumers' rights.

  • State Consumer Protection Councils: Established by the State Governments, they perform a similar role at the state level.

  • District Consumer Protection Councils: Established by the District Governments, they work at the district level.


5. Consumer Dispute Redressal Agencies

The Act provides for a three-tier consumer grievance redressal mechanism:


  • District Consumer Disputes Redressal Forum (District Forum):

Jurisdiction: Cases where the value of goods or services and compensation, if any, does not exceed ₹20 lakhs.

Composition: A President and two other members, one of whom should be a woman.

Powers: Can order compensation, replacement of goods, or refund of price paid.


  • State Consumer Disputes Redressal Commission (State Commission):

Jurisdiction: Cases where the value of goods or services and compensation exceeds ₹20 lakhs but does not exceed ₹1 crore.

Composition: A President and at least two members, one of whom should be a woman.

Powers: Can hear appeals against the orders of the District Forum and have the same powers as the District Forum within their jurisdiction.


  • National Consumer Disputes Redressal Commission (National Commission):

Jurisdiction: Cases where the value of goods or services and compensation exceeds ₹1 crore.

Composition: A President (who is or has been a judge of the Supreme Court) and at least four members.

Powers: Can hear appeals against the orders of the State Commission and have the same powers as the State Commission within their jurisdiction.


6. Procedures for Filing Complaints

Who Can File: A consumer, any recognized consumer association, the Central or State Government, or multiple consumers with the same interest.

How to File: The complaint must be filed within two years from the date on which the cause of action arises. It can be filed in person or through an authorized representative.

Contents of Complaint: The complaint should include details of the defective goods or services, the compensation sought, and any supporting evidence.

Relief Available: The consumer forums can order the removal of defects, replacement of goods, refund of price, compensation for loss or injury, and cessation of unfair trade practices.


7. Appeals

  • District Forum to State Commission: Any person aggrieved by an order of the District Forum may appeal to the State Commission within 30 days.

  • State Commission to National Commission: Appeals against the orders of the State Commission can be made to the National Commission within 30 days.
  • National Commission to Supreme Court: Appeals against the orders of the National Commission can be made to the Supreme Court within 30 days.


8. Significance of the Act

  • Empowerment of Consumers: The Act empowers consumers to assert their rights and seek justice against wrongdoings by businesses.

  • Promoting Fair Trade Practices: The Act encourages businesses to follow fair trade practices, knowing that consumers have a legal avenue to seek redress.

  • Quick Redressal: The Act provides a simplified process for consumers to file complaints and seek redress, making justice more accessible.


9. Amendments and Evolution

The Consumer Protection Act, 1986, has been amended multiple times to adapt to changing market conditions and emerging consumer issues. Notably, it was replaced by the Consumer Protection Act, 2019, which introduced new provisions, such as e-commerce regulation, establishment of the Central Consumer Protection Authority (CCPA), and enhanced penalties for unfair trade practices.


Conclusion

The Consumer Protection Act, 1986, played a crucial role in laying the foundation for consumer rights in India. It provided a robust legal framework for the protection of consumers and set up a mechanism for the speedy redressal of consumer grievances, helping to create a more equitable marketplace. 

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