The Consumer Protection Act, 1986 was enacted to provide a simpler and quicker access to redress of consumer grievances. The Act seeks to promote and protects the interest of consumers against deficiencies and defects in goods or services. It also seeks to secure the rights of a consumer against unfair trade practices, which may be practiced by manufacturers and traders.

1. CONSUMER
PROTECTIONACT
1986
BY SHIDIN DIVAKAR
SHIDIN DIVAKAR - MIIMS

2. For the purpose of goods, a consumer means .
“one who buys any goods for consideration; and
any user of such goods other than the person
who actually buys it, provided such use is made
with the approval of the buyer.”
(The expression ‘consumer’does not include a
person who obtains such goods for resale or for
any commercial purpose.)
CONSUMER
SHIDIN DIVAKAR - MIIMS

3. For the purpose of services,
a consumer means
” one who hires any service or services for
consideration; and any beneficiary of such
service(s) provided the service is availed
with the approval of such person.”
CONSUMER
SHIDIN DIVAKAR - MIIMS

4. EXAMPLES OF
CONSUMER
EXPLOITATION
The after sales service provider of the television set charged
Rs.200 as service charge though he repaired the set within the
warranty period.
The tickets issued to different passengers on the same day for
the same journey showed the same seat number.
Penalty of Rs. 50 was charged by SBI after issuing the cheque
book to the customer showing that the balance available in the
account was less than the minimum required balance for issue of
cheque book.
 The supply of cooking gas cylinder to the consumers is found to
be underweight.
SHIDIN DIVAKAR - MIIMS

5. Consumerprotectionmeanssafeguardingtheinterest
andrightsofconsumers.Inotherwords,itreferstothe
measuresadoptedfortheprotectionofconsumersfrom
unscrupulousandunethicalmalpracticesbythebusiness
andtoprovidethemspeedyredressaloftheirgrievances.
CONSUMER PROTECTION
SHIDIN DIVAKAR - MIIMS

6. NEEDFOR
CONSUMER
PROTECTION
Social Responsibility
The business must be guided by
certain social and ethical norms. It is
the moral responsibility of the
business to serve the interest of
consumers. Keeping in line with this
principle, it is the duty of producers
and traders to provide right quality
and quantity of goods at fair prices to
the consumers.
Increasing Awareness
The consumers are becoming more
mature and conscious of their rights
against the malpractices by the
business. There are many consumer
organizations and associations who
are making efforts to build consumer
awareness, taking up their cases at
various levels and helping them to
enforce their rights.
Consumer Satisfaction
Father of the Nation Mahatma Gandhi
had once given a call to manufactures
and traders to “treat your consumers as
god”. businessmen should take every
step to serve the interests of consumers
by providing them quality goods and
services at reasonable price.
Principle of Social Justice
Exploitation of consumers is against the
directive principles of state policy as
laid down in the Constitution of India.
Keeping in line with this principle, it is
expected from the manufacturers,
traders and service providers to refrain
from malpractices and take care of
consumers’ interest.
SHIDIN DIVAKAR - MIIMS

7. NEEDFOR
CONSUMER
PROTECTION
Principle of Trusteeship
According to Gandhian philosophy, manufactures and
producers are not the real owners of the business.
Resources are supplied by the society. They are merely
the trustees of the resources and, therefore, they should
use such resources effectively for the benefit of the
society, which includes the consumers.
Survival and Growth of Business
The business has to serve consumer interests for their
own survival and growth. On account of globalization
and increased competition, any business organization
which indulges in malpractices or fails to provide
improved services to their ultimate consumer shall find it
difficult to continue. Hence, they must in their own long
run interest, become consumer oriented.
SHIDIN DIVAKAR - MIIMS

8. The act was passed in Lok Sabha on 9th
December,1986 and it came into force from
1 July 1987. Rajya Sabha passed on 10th
December, 1986 and assented by the
President of India on 24th December, 1986
and was published in the Gazette of India on
26th December, 1986.
HISTORY
HISTORY OF CONSUMER
PROTECTION ACT
SHIDIN DIVAKAR - MIIMS

9. 1.It applies to all goods, services and unfair trade practices
unless specifically exempted by the Central Government.
2.It covers all sectors whether private, public or co-operative.
• It provides for establishment of consumer protection councils
at the central, state and district levels to promote and protect
the rights of consumers and a three tier quasi judicial
machinery to deal with consumer grievances and disputes.
FEATURES OF CONSUMER
PROTECTION ACT
SHIDIN DIVAKAR - MIIMS

10. SHIDIN DIVAKAR - MIIMS

11. RIGHTS OF
CONSUMERS
 Right to Safety
 Right to be Informed
 Right to Choose
 Right to be Heard
 Right to Seek Redressal
 Right to Consumer Education
SHIDIN DIVAKAR - MIIMS

12. 1.Right to Safety: To be protected against the marketing of goods or the provision of
services that are hazardous to health and life.
2.Right to Information: To be protected against dishonest or misleading advertising
or labeling and the right to be given the facts and information needed to make an
informed choice.
3.Right to Choice: To choose products at competitive prices with an assurance
of satisfactory quality.
4.Right to Seek Redress: To be compensated for misrepresentation, shoddy goods
or unsatisfactory services.
5.Right to Consumer Education: To acquire the knowledge and skills necessary
to be an informed customer
6.Right to Safety: To live and work in an environment which is neither threatening
nor dangerous and which permits a life of dignity and well-being.
SHIDIN DIVAKAR - MIIMS

13. • Consumer must exercise his right-The consumer
must select the product according to his preferences, he
must file a complaint if he is not satisfied with the
quality of product.
• Cautious Consumer-The consumer should not blindly
believe on the words of seller. He must insist on getting
full information on quality, quantity,utility,price etc
• Consumer must be quality-conscious-According to
this,
consumer himself stops compromising the quality of
product. While purchasing the goods or services
consumer must look for quality marks such as ISI
mark,Agmark,ISO,Wool Mark etc.
• Insist on cash memo- To file a complaint the
consumer needs the evidence of purchase, and cash
memo is the evidence or proof that consumer has
paid for the good or service.
• Filling complaints for the redressal of genuine
grievances-
The consumer must file a complaint even for a small
loss. This awareness among consumers will make the
sellers more conscious to supply quality product.
CONSUMER
REPONSBILITY
SHIDIN DIVAKAR - MIIMS

14. WHERE TO SUIT
• District Forum
• State Forum
• National Forum
SHIDIN DIVAKAR - MIIMS

15. DISTRICT
FORUM It consists of a president and two other members. The president
can be a retired or working judge of District Court. They are
appointed by state govt.In 1986,it had jurisdiction to entertain
complaints where the value of goods or services does not
exceeds Rs.5,00,000 but now the limit is raised to Rs.20lakh.
The agency sends the goods for testing in lab. If the aggrieved
party is not satisfied by the judgment of district forum then
they can file an appeal in State Commission within 30 days by
depositing 25000 or 50% of penalty amount whichever is less.
SHIDIN DIVAKAR - MIIMS

16. STATE
FORUM It consists of a president and two other members. The president
must be a retired or working judge of high court. They all are
appointed by state govt.In 1986,it had a jurisdiction to
entertain complaints when the value of goods or services
exceeds Rs.5lakh but now the limit is raised upto
Rs.1crore.The State Commission sends the goods for testing in
lab if required. If the upset party is not satisfied with the
judgment then they can file an appeal in National Commission
within 30 days by depositing Rs.3500 or 50% of penalty
amount whichever is less.
SHIDIN DIVAKAR - MIIMS

17. NATIONAL
FORUM
It consists of a president and four members one of whom shall
be women. They are appointed by Central Govt.In 1986,it had
jurisdiction to entertain complaints where the value of goods
or services exceeds Rs.20lakh but now exceeds Rs.1crore.
The National Commission sends the goods if required.
If aggrieved party is not satisfied with the judgment then they
can file a complaint in Supreme Court within 30 days.
SHIDIN DIVAKAR - MIIMS

18. SHIDIN DIVAKAR - MIIMS

19. Who can file a
complaint?
A consumer or Any voluntary consumer association
registered under the companies act 1956 or under
any other law for the time being in force or
The central government or any state government
One or more consumers, where there are
numerous consumers having the same interest or,
 In case of death of a consumer, his legal heir or
representative.
SHIDIN DIVAKAR - MIIMS

20. PROCEDURE
SHIDIN DIVAKAR - MIIMS

21. SOME RELIEFS OR
REMEDIES TO CONSUMER
• Removal of defects from the goods.
• Replacement of the goods.
• Refund of price paid.
• Compensation of loss or injury suffered.
• Removal of deficiency in service.
• Stopping the sale of hazardous goods.
SHIDIN DIVAKAR - MIIMS

22. SHIDIN DIVAKAR - MIIMS