Chapter 5: The Consumer Protection Act, 1986

5.1 Introduction to the Consumer Protection Act, 1986

 

The Consumer Protection Act, 1986, was enacted to provide a simpler and quicker access to redressal of consumer grievances. The Act aims to protect the rights of consumers and to address the issues arising from unfair trade practices, defective goods, and deficient services. It empowers consumers by ensuring their rights and establishing mechanisms for the effective resolution of consumer disputes.

 

 5.2 Salient Features and Basic Provisions of the Act

 

 5.2.1 Salient Features

 

- Comprehensive Coverage: The Act covers all goods and services except those specifically exempted by the Central Government.

- Consumer Protection Councils: Establishes councils at the national, state, and district levels to promote and protect consumer rights.

- Quasi-Judicial Bodies: Establishes Consumer Disputes Redressal Commissions at the district, state, and national levels for adjudicating consumer disputes.

- Simplified Complaint Procedure: Provides a straightforward process for filing complaints by consumers.

- Relief to Consumers: Offers various remedies to consumers, including removal of defects, replacement of goods, refund of the price, and compensation for damages.

 

 5.2.2 Basic Provisions

 

- Definitions: Defines key terms such as 'consumer', 'complaint', 'deficiency', 'defect', 'service', and 'unfair trade practices'.

- Rights of Consumers: Outlines the rights of consumers, including the right to safety, information, choice, and redressal.

- Liability: Specifies the liability of manufacturers, service providers, and traders for defective products and deficient services.

- Penalties: Imposes penalties for non-compliance with the orders of the Consumer Disputes Redressal Commissions.

 

 5.3 Consumer Rights

 

The Act enumerates six consumer rights, aimed at empowering consumers and ensuring their protection against exploitation:

 

 5.3.1 Right to Safety

 

Consumers have the right to be protected against the marketing of goods and services that are hazardous to life and property. This includes the right to be informed about the safety and quality of products and services.

 

 5.3.2 Right to be Informed

 

Consumers have the right to be informed about the quality, quantity, potency, purity, standard, and price of goods or services to protect themselves against unfair trade practices.

 

 5.3.3 Right to Choose

 

Consumers have the right to access a variety of goods and services at competitive prices. This right ensures that consumers are not forced to compromise on quality or price.

 

 5.3.4 Right to be Heard

 

Consumers have the right to be heard and to be assured that their interests will receive due consideration at appropriate forums. This right includes the right to lodge complaints and seek redressal.

 

 5.3.5 Right to Redressal

 

Consumers have the right to seek redressal against unfair trade practices, defective goods, and deficient services. This includes the right to a fair settlement of genuine grievances.

 

 5.3.6 Right to Consumer Education

 

Consumers have the right to acquire the knowledge and skills to make informed and confident choices about goods and services. This right emphasizes the need for consumer education and awareness programs.

 

 5.4 Organizational Setup

 

The Consumer Protection Act, 1986, establishes a three-tier quasi-judicial machinery for the redressal of consumer disputes:

 

 5.4.1 District Consumer Disputes Redressal Forum (District Forum)

 

- Jurisdiction: The District Forum deals with complaints where the value of goods or services and the compensation claimed does not exceed INR 20 lakhs.

- Composition: It consists of a president and two other members, one of whom should be a woman.

- Functions: The District Forum hears and adjudicates consumer complaints within its jurisdiction.

 

 5.4.2 State Consumer Disputes Redressal Commission (State Commission)

 

- Jurisdiction: The State Commission deals with complaints where the value of goods or services and the compensation claimed exceeds INR 20 lakhs but does not exceed INR 1 crore. It also hears appeals against the orders of the District Forums.

- Composition: It consists of a president and not less than two other members, one of whom should be a woman.

- Functions: The State Commission hears and adjudicates consumer complaints and appeals within its jurisdiction.

 

 5.4.3 National Consumer Disputes Redressal Commission (National Commission)

 

- Jurisdiction: The National Commission deals with complaints where the value of goods or services and the compensation claimed exceeds INR 1 crore. It also hears appeals against the orders of the State Commissions.

- Composition: It consists of a president and at least four other members, one of whom should be a woman.

- Functions: The National Commission hears and adjudicates consumer complaints and appeals within its jurisdiction.

 

 5.5 Complaint Filing Procedure and Redressal Mechanism

 

 5.5.1 Complaint Filing Procedure

 

A consumer complaint can be filed by:

 

- A consumer.

- Any voluntary consumer association.

- The Central or any State Government.

- One or more consumers, where there are numerous consumers having the same interest.

- The legal heir or representative of a deceased consumer.

 

 5.5.2 Steps to File a Complaint

 

1. Identify the Jurisdiction: Determine the appropriate forum (District, State, or National) based on the value of the goods or services and the compensation claimed.

2. Prepare the Complaint: Draft a complaint detailing the facts, the relief sought, and any supporting documents.

3. Submit the Complaint: File the complaint in the appropriate forum, along with the prescribed fee.

4. Service of Notice: The forum issues a notice to the opposite party to respond to the complaint.

5. Hearing: The forum conducts hearings where both parties can present their arguments and evidence.

6. Order: The forum passes an order after hearing both sides. If the complainant is dissatisfied with the order, they can appeal to the higher forum (State Commission or National Commission).

 

 5.5.3 Redressal Mechanism

 

The Consumer Disputes Redressal Commissions have the authority to provide various remedies to consumers, including:

 

- Removal of Defects: Directing the seller to remove the defect in the goods or services.

- Replacement: Ordering the replacement of defective goods.

- Refund: Directing the seller to refund the price paid by the consumer.

- Compensation: Awarding compensation for any loss or injury suffered by the consumer due to negligence.

- Discontinue Unfair Practices: Ordering the discontinuation of unfair trade practices or restrictive trade practices.

- Withdrawal of Hazardous Goods: Directing the withdrawal of hazardous goods from sale.

- Corrective Advertising: Ordering corrective advertisement to neutralize the effect of misleading advertisements.

 

 References

 

1. D.N. Saraf, "Law of Consumer Protection in India"

2. Avtar Singh, "Consumer Protection Law"

3. R.K. Bangia, "A Handbook of Consumer Protection Laws and Procedures"

4. M.C. Kuchhal, "Mercantile Law"

5. P.K. Majumdar, "The Law of Consumer Protection in India"