Consumer Protection Act

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CONSUMER PROTECTION ACT, 1986

The consumer protection Act, 1986, provides for the better protection of consumers. Unlike existing laws which are punitive or preventive in nature, the provisions of this Act are compensatory in nature. The act is intended to provide simple, speedy and inexpensive redressal to the consumers' grievances, award relief and compensation wherever appropriate to the consumer. The act has been amended in 1993 both to extend its coverage and scope and to enhance the powers of the redressal machinery.

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RIGHTS ENJOYED BY CONSUMER

STRUCTURE OF CONSUMER PROTECTION ACT

EXTENT AND COVERAGE OF CONSUMER PROTECTION ACT

WHO IS CONSUMER?

WHAT IS CONSUMER COMPLAINT?

RELIEF AVAILABLE TO CONSUMER

JURISDICTION

LIMITATION

DEFINITIONS

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RIGHTS ENJOYED BY CONSUMER

Right to be protected against the marketing of goods and service that is hazardous to life and property.
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.
Right to choice wherever possible , access to a variety of goods and services at competitive prices.
Right to be heard and to be assured that consumers' interests will receive due consideration at appropriate forums;
Right to seek redressal against unfair trade practices unscrupulous exploitation of consumers.
Right to consumer education.
Right to clean and healthy environment.

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STRUCTURE OF CONSUMER PROTECTION ACT

The Act envisages a three- tier quasi-judicial machinery at the National, State and District levels.

National Consumer Disputes Redressal Commission - known as "National Commission" deals with complaints involving costs and compensation higher than Rs. One Crore.
State Consumer Disputes Redressal Commissions - known as "State Commission, deals with complaints involving costs and compensation higher than Rs. Twenty Lakhs and less than Rs. One Crore.
District Consumer Disputes Redressal Forums - known as "District Forum, deals with complaints involving costs and compensation less than Rs. Twenty Lakhs.

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EXTENT AND COVERAGE OF CONSUMER PROTECTION ACT

The Act applies to all goods and services unless specifically exempted by the Central Government.
It covers all the sectors whether private, public or cooperative.
The provisions of the Act are compensatory in nature.
The provisions of this Act are in addition to and not in derogation of the provisions of any other law for the time being in force.
The Act envisages establishment of Consumer Protection Councils at the Central and State levels, whose main objects will be to promote and protect the rights of the consumers.

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WHO IS CONSUMER?

All of us are consumers of goods and services. For the purpose of the Consumer Protection Act, the word "Consumer" has been defined separately for "goods" and "services".

(A) For the purpose of "goods", a consumer means a person belonging to the following categories:

One who buys or agrees to buy any goods for a consideration which has been paid or promised or partly paid and partly promised or under any system of deferred payment;
It includes any user of such goods other than the person who actualy buys goods and such use is made with the approval of the purchaser.

Note : A person is not a consumer if he purchases goods for commercial or resale purposes. However, the word "commercial" does not include use by consumer of goods bought and used by him exclusively for the purpose of earning his livelihood, by means of self employment.

(B) For the purpose of "services", a "consumer" means a person belonging to the following categories:

One who hires or avails of any service or services for a consideration which has been paid or promised or partly paid and partly promised or under any system of deferred payment.
It includes any beneficiary of such service other than the one who actually hires or avails of the service for consideration and such services are availed with the approval of such person.

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WHAT IS CONSUMER COMPLAINT?

Under the Consumer Protection Act, a complaint means any allegation in writing made by a complainant in regard to one or more of the following:-

Any unfair trade practice as defined in the Act or restrictive trade practices like tie-up sales adopted by any trader.
One or more defects in goods. The goods hazardous to life and safety, when used,are being offered for sale to public in contravention of provisions of any law for the time being in force.
Deficiencies in services.
A trader charging excess of price.

(i) Fixed by or under any law for the time being in force; or
(ii) Displayed on goods; or
(iii) Displayed on any packet containing such goods.

Procedures for filing complaints and seeking redressal are simple. There is no fee for filing a complaint before the District Forum, the State Commission or the National Commission. ( A stamp paper is also not required). Three to five copies of the complaint on plain paper depending on the number of opposite parties, etc. are required to be filed.

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JURISDICTION

If the cost of goods or services and compensation asked for is up to rupees twenty lakh ,then the complaint can be filed in the District Forum which has been notified by the State Governmentfor the district where the cause of action has arisen or where the opposite party resides. A complaint can also be filed at a place where the branch office of the opposite party is located.
If the cost of goods or services and compensation asked for is more than rupees twenty lakh , but less than rupees one crore then the complaint can be filed before the State Commission notified by the State Government or Union Territory Concerned.
If the cost of goods or services and compensation asked for exceed rupees one crore then the complaint can be filed before the National Commission at New Delhi.

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LIMITATION

The District Forum, the State Commission or the National Commission shall not admit a complaint unless it is filed within two years from the date on which cause of action has arisen.

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RELIEF AVAILABLE TO CONSUMER

Depending on the facts and circumstances, the Redressal Forums may give order for one or more of the following relief.

Removal of defects from the goods,
Replacement of the goods;
Refund of the price paid;
Award of compensation for the loss or injury suffered;
Removal of defects or deficiencies in the services;
Discontinuance of unfair trade practices or restrictive trade practices or direction not
to repeat them;
Withdrawal of the hazardous goods from being offered to sale; or
Award for adequate costs to parties

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DEFINITIONS

(i)"goods" means goods as defined in the State of Goods Act, 1930 (3 of 1930).According to the Sale of Goods Act, 1930. "goods" means every kind of movable property other than actionable claims and money, and includes stock and shares, growing crops, grass, and this attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale.

(ii)"service" means service of nay description which is 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 or both, housing construction, entertainment, amusement or the purveying of news or other information, but does not include the rendering of any service free of charge or under a contract of personal service.

(iii)"restrictive trade practice" means any trade practice which requires a consumer to buy, hire or avail of any goods or, as the case may be, services as a condition precedent for buying, hiring or availing of other goods or services.

(iv)"defect" means any fault, imperfection or 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 or under any contract express or implied or as is claimed by the trader in any manner whatsoever in relation to any goods.

(v)"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.

(vi)"unfair trade practice" the detailed definition is given in the Consumer Protection Act, 1986 as amended by the Consumer Protection (Amendment) Act. 1993. It means a trade practice which, 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 including any of the following practices, namely :-

(a) false or misleading representation,

(b) bargain price

(d) non compliance of product safety standard.

(e) hoarding or destruction of goods.

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CONTENTS OF CONSUMER COMPLAINT

Procedures for filing complaints and seeking redressal are simple. There is no fee for filing a complaint before the District Forum, the State Commission or the National Commission. ( A stamp paper is also not required). Three to five copies of the complaint on plain paper are required to be submitted by the complainant or his authorized agent in person or could be sent by post to the appropriate Forum / Commission.

A complaint should contain the following information:-

(a) The name, description and the address of the complainant.

(b) The name , description and address of the opposite party or parties, as the case may be, as far as they can be ascertained;

(d) Documents, if any, in support of the allegations contained in the complaint.

(e) The relief which the complainant is seeking.

The complaint should be signed by the complainant or his authorized agent.

The complaint is to be filed within two years from the date on which cause of action has arisen.

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