THE CONSUMER PROTECTION ACT The Consumer Protection Act was enacted in 1986. Amendments were made in 2002.

The Act applies to the whole of India except the State of Jammu and Kashmir. An Act to provide for the better protection of the interest of the consumers. Establishment of Consumer Councils and other authorities for the settlement of consumers disputes. Objects and Reasons Inter alia- to promote and protect. a) the right to be protected against marketing of goods which are hazardous to life and property. b) the right to be informed about the quality, quantity, potency, purity, standard and price of goods to protect the consumer against unfair trade practice c) the right to be assured, wherever possible, access to an authority of goods at competitive price. d) the right to be heard and to be assured that consumers interests will receive due consideration at appropriate forum. e) the right to seek redressal against unscrupulous exploitation of consumer. f) the right to consumer education. It would be imperative to know some of the important definitions in the Act.

Consumer means any person who1) buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose 2) hires or avails of any services for a consideration which has been paid or promised or under any system of deferred payment and includes any beneficiary of such services other than the person who hires or avails of the services or consideration paid or promised, or partly paid and partly promised, or under any system of deferred payments, when such services are availed of with the approval of the first mentioned person but does not include a person who avails of such services for any commercial purpose Consumer Dispute means a dispute where the person against whom a compliant has been made, denies or disputes the allegations contained in the complaint Complaint means any allegation in writing made by a complainant thati) an unfair trade practice or a restrictive trade practice adopted by any trader or service provider ii) the goods bought by him or agreed to be bought by him suffers from one or more defect

iii) the services hired or availed of or agreed to be hired or availed of suffer from deficiency in any respect iv) a trader or the service provider, as the case may be, has charged for the goods or for the services mentioned in the complaint, a price in excess of the pricea) fixed by or under any law for the time being in force b) displayed on the goods or any package containing such goods c) agreed between the parties Complainant meansi) a consumer ii) voluntary consumer association registered under the Companies Act 1956, or under any law for the time being in force iii) the Central Government or any State Government iv) one or more consumers where there are numerous consumers having the same interest 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. 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. The aims and objectives of the Act are achieved by the constitution and creation if District Forum, State Commission and National Consumer Disputes Redressal Commission. These agencies are created to look into the grievance of a consumer and as far as possible to set right the deficiency either in the goods or the services. Consumer Disputes Redressal Forums are established by the State Government in each District of the State. 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 possessing a bachelors degree from a recognized university, be a person of ability, integrity and standing and have adequate knowledge and experience of at least ten years in dealing with problems related to economics, law, commerce, accountancy, industry, public affairs or administration. Every member of the District Forum shall hold office for a term of 5 years or up to the age of 65 years which ever is earlier. Subject to the other provisions of the Act a District forum shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed does not exceed Rs.20 Lakhs. A District Forum shall have the powers a) to remove the defect pointed out by the appropriate laboratory from the goods in question

b) to replace the goods with new goods of similar description which shall be free from any defect c) to return to the complainant the price, or as the case may be, the charges paid by the complainant d) to pay such amount as may be awarded by it as compensation to the consumer for any loss or injury suffered by the consumer due to the negligence of the opposite party Each State Commission shall consist of a person who is or has been a Judge of a High Court who shall be its President. Not less than 2 and not more than such number of members as may be prescribed, and one of whom shall be a woman, who shall have similar qualifications as required to be appointed as members of a District Forum. Every member of the State Commission shall hold office for a term of 5 years or up to the age of 67 years which ever is earlier. Each State Commission shall have jurisdiction to entertain complaints where the value of the goods or services and compensation, if any, claimed exceeds Rs. 20 Lakhs but does not exceed Rs.1 Crore and appeals against the orders of any District Forum within the State. For the purpose of filing an appeal, the appellant shall deposit fifty percent of the amount or rupees thirty five thousand whichever is less. The National Commission shall consist of a person who is or has been a Judge of the Supreme Court, shall be its President. Not less than 4 and not more than such number of members as may be prescribed and one of whom shall be a woman with similar

qualifications as required in the case of appointment as a member to a District Forum or a State Commission. Every member of the National commission shall hold office for a term of 5 years or up to the age of 70 years which ever is earlier. The National Commission shall have jurisdiction to entertain complaints where the value of the goods or services and compensation, if any, the claim exceeds Rs. 1 Crore and appeals against the orders of any State Commission. For the purpose of filing an appeal, the appellant shall deposit fifty percent of the amount or rupees fifty thousand whichever is less. Both the State Commission and the National Commission shall have powers to carry out all the functions of a District Forum as mentioned supra. Every order of a District Forum, State Commission or National Commission, shall, if no appeal has been preferred against such orders under the provisions of this Act, shall be final. The District Forum, State Commission or the National Commission shall not admit a complaint unless it is filed within 2 years from the date on which the cause of action has arisen. Where a trader or a person against whom a complaint is made fails or omits to comply with any order made by the District Forum, the State Commission, the National Commission, as the case may be, such trader or person shall be punished with imprisonment for a term which shall not be less than 1 month but which may extend to 3 years, or with fine which shall be not less than 2,000/- Rs. but which may extend to 10,000/-Rs., or with both.

Notwithstanding anything contained in the Code of Criminal Procedure, 1973, the District Forum or the State Commission or the National Commission, as the case may be, shall have the power of a Judicial Magistrate of the first class for the trial of offences under this Act. Development of Consumer International Sphere Protection Movement in

The increase in the volume of the International Trade and Commerce has promoted the inter-governmental co-operation. The expanding role of transnational corporations in the production, distribution and promotion of goods and services have raised a number of issues which call for international co-ordination. Many developing countries face the problem of well coordinated public distribution system. The majority of the consumers are of low income group and they face non availability of food products and basic commodities of life of acceptable quality at a reasonable price. A consumer protection in developing countries is more of a necessity rather than of a matter of academic discussion. How Does The Act Help 1) Physical safety of consumers 2) Protection of economic interest of consumers 3) Consumers access to information needed to make informed choice 4) Measures enabling consumers to obtain redress

5) Distribution of essential goods and services 6) Satisfactory production and performance of standard 7) Adequate business practices and informative marketing Consumer Education is a must as it helps in1) Critical awareness 2) Active consumer involvement 3) Imbibing social responsibility 4) Realizing ecological responsibility 5) Solidarity of consumers The Sale of Goods Act, 1930 contained general provisions as to conditions and warranties and covered such aspects as, sale by sample, sale by description, implied conditions as to quality or fitness. But soon it was realized that these provisions were not adequate in protecting the consumer against the unscrupulous, greedy and dishonest sellers. The so called guarantees proved to be mere paper guarantees confined only to the manufacturing defect, if any, so proved and accepted by the manufacturer himself. Warranties were subject to the principle of caveat emptor or let the buyer beware. It was, therefore, necessary that a Forum be created where a consumer not satisfied with the quality of goods supplied or services rendered may ventilate his grievance and a machine devised to afford him adequate protection.

The Consumer Protection Act, can be described as a magnificent project heralding a new era and revolutionizing the entire field of consumer protection, education and guidance. Its greatest attraction is its convenient channel of justice through simple, unfettered, non-cumbersome procedure- no court fees, no need of a lawyer, can make a complaint on a plain paper and so on. The Act is aimed at quick disposal. Concept of Consumer Sovereignty In a free market economy, producers have to adjust to changing preferences. The long skirt manufacturer must adjust to mini-skirt or risk going out of business!!! In other words give people what they want instead of what a particular group (manufacturer) thinks they ought to want. Purpose of Consumer Law Law is a set of rules that control the affairs and relationship within a community. Law is a body of rules or regulation which the people have established to make it easier to live with one another. In recent times the consumer protection and consumer movement has emerged as one of the most important development in business and law. By gaining a working knowledge of the law, it becomes possible for the consumers to better conduct their affairs and protect their interests. Today there are so many products for sale that the consumer cannot understand much of the items put for sale and he may

require considerable technical ability and education to evaluate the products and he must depend on workable laws and legal procedures for protection against shoddy workmanship, carelessness, hidden defects, other product flaws, various flaws and swindles practiced by the sellers and misleading advertisements. Another aspect of consumer protection is the problem of claiming compensation against the large producer where the goods or services are defective. Litigation is expensive and troublesome to the small consumer. So, policy has been to encourage producers to adopt codes of practice where under legitimate complaints are promptly dealt with, encourage small claims and arbitration procedures to solve dispute expeditiously, inexpensively and relatively informally. Purpose of Consumer Act Growth of science and technology, large scale industrialization and huge population has led to the emergence of modern complex society. The chief characteristic of such a society is a large scale production of various goods by different establishments and the desire of people to acquire and use or consume those goods. There are double standards when it comes to consumer who is a producer and supplier of goods and services. This is the root cause of manifold problems. It is to suppress and control the exploitative tendencies of man that various kinds of control such as moral, ethical, religious, social, legal etc., have operated from time to time. In India, the problem of exploitation of the people by the people or even the Government is not a new problem.

The politician, in the name of serving the country, is seen exploiting the society, The administrator, small or big, in the name of advancing the countrys economic well-being, is seen exploiting its resources, The seller of goods and services is seen exploiting the customers and so on. The desire for rapid material advancement and economic prosperity has commercialized our life on a gigantic scale. The most painful casualty of this is the near total collapse of the nations character and moral fabric. For making huge profits or becoming rich overnight, all sorts of abominable means and methods of malpractices are being adopted by the traders, businessmen, employers, producers and sellers etc., at the cost of the consumers interest. Thus, marketing of goods injurious to health and life, deception of the consumer through unfair trade practices such as, substandard quality, adulteration, non-supply of correct quantity, excess pricing etc., are rampant in our society. The plight of the consumer is bad because of his ignorance, illiteracy and weak economic position. To tolerate the evil is to spoil the good. In modern times, law has become a potent instrument through which the task of nipping the evils afflicting the society is carried out. There are various laws which have direct or indirect bearing on interests of the consumer viz., Civil Procedure Code, Torts, Indian Penal Code, Negotiable Instruments Act, and Right to Information Act and so on.

Consumer is a person who has the ability to pay for the product or service, who possesses the power to make the buying decision. However, the sellers of goods and services exploit the interests of consumer by way of adulteration, sub-standard material, short weights and measures, high prices, deceptive packaging, misbranding etc., such attitude has given rise to the necessity to protect or safeguard the consumers interests. In this direction there are three alternatives; 1) Self-regulation on the part of business, 2) Enactment of laws in the interests of consumers, 3) United and organized action of consumers. Legislations like Standard of Weights and Measures Act, 1956, Essential commodities Act, 1955, Prevention of Food Adulteration Act, 1954, MRTP Act, 1969, Sale of Goods Act, 1930, etc. What are the principal needs of the consumer? Access to essential goods and services and fair choice, safety, information, representation, redress, consumer education and a healthy environment are the basic needs of a consumer. Consumer Guidance Guidance to a purchaser, what to buy, where to buy, when to buy, how to buy and how to make the best use of what he does buy in order to get the best value for his money. Consumer guidance societies, formed in almost all major cities provide leaflets to guide the consumer, for eg., have the spices and

pulses been artificially coloured? Has starch been added to milk to give it thickness? Is the grocer trying to palm off vanaspati as pure ghee? How to test? for eg. to tell whether starch has been added to milk or curd, perform the following test- add a drop of iodine solution to a little of the sample , if the colour turns blue it is an indication that starch has been added. Consumer Resistance Consumer resistance is one of the steps of collective self protection. The birth of the co-operative movement in the Scandinavian Countries was the direct result of economic pressures the exploitation to which the worker and consumer were subjected. The consumers were forced to enter the field of collective buying, processing and distribution much to the chagrin of those, who, at one time thought that their superiority and mastery was unquestioned. It was not only the refusal to buy but a constructive step of collective self protection. Fish prices brought down An out-burst took place in West Bengal in late 1960s when the price of fish sky rocketed. This being their staple food, the consumers decided to go on a No buy campaign within two days, the price came down. In New Delhi the price of coffee was raised from 50 paisa to 55 paisa in a restaurant. The residents strongly objected and as there was no justification for the rise, they went on No buy also they collectively started vending coffee on pavements, forcing the restaurant to bring down the price.

Laws for the protection of consumers With a view to protect the interest of the consumers various legislative steps have been taken and the courts have also been trying to provide appropriate remedies in common law by developing various principles of law to suit the needs of the times. Other methods of protecting the consumer are1) Judicial Activism 2) Public Interest Litigation 3) Legal Aid Authorities Judicial Activism- In one of the land mark judgments of the Supreme Court of India in the case of S.P.Gupta v/s Union of India the Honble court held- where the contest is between those who are socially and economically unequal, the judicial process may prove disastrous from the point of view of social justice, if the judge adopts a merely passive or negative role and does not adopt a positive and creative approach. The Judiciary cannot remain a mere bystander or spectator but it must become an active participant in the judicial process ready to use law in the service of social justice through a proactive and goal oriented approach. Public Interest Litigation- In the case referred to supra the Honble court further held- it may, therefore, now be taken as well established that where a legal wrong or a legal injury is caused to a person or to a determinate class of persons by reason of violation of any constitutional or legal right or any burden is imposed in contravention of any constitutional or legal provision

or without authority of law or any such wrong or legal injury or illegal burden is threatened and such person is by reason of poverty, helplessness, disability or socially or economically disadvantaged position, unable to approach the court for relief, any member of the public can maintain an application for an appropriate direction, order or writ. The technical rules of locus standi are relaxed through public interest litigation system. PIL is an extremely functional instrument for purposes of consumer protection. The poor, the deprived and the suffering consumers get justice without involving themselves in the machinery of the law. The courts help the social reformers thereby removing any strain and stress on the consumer. Legal Aid Authorities- Under section 4 (d) of the Legal Services Authorities Act, 1987, the National Legal Services Authority (called as Central Authority) is bound, subject to the directions of the Central Government to take necessary steps by way of social justice litigation with regard to consumer protection, environmental protection or any other matter of special concern to the weaker section of the society. This is a statutory recognition of PIL. However, the Central Authority will be guided by the Central Government in the filing of Social Interest Litigation. In PIL and SIL, the aim is to protect the public interest at large rather than individual interest. Protection of community interest will alleviate the suffering of individual citizens also. Thus consumer protection is many sided. The chances of obtaining of consumer justice today are much more then they existed a decade or two ago.

How the Indian Penal Code helps the consumer- Chapter XIII of the Code relates to the offences dealing with Weights and Measures. Sections 264-267 provide for the punishment of various offences relating to weights and measures. The Code provides for punishment for fraudulently using any instrument for weighing which he knows to be false, with a punishment of imprisonment which may extend to one year or with fine or with both. Sections 272 & 273 of the Code deal with the offences relating to the adulteration of food or drinks. Sections 274-276 deals with the offences relating to the adulteration of drugs. Sections 277 & 278 provide for the offences relating to public health and safety. Section 486 of the Code relates to offences against counterfeiting. Recognition of rights of consumers- The consumers in general and the Indian consumers in particular are disorganized, dispersed and at a disadvantage. The economic urge of commercialization dominates business activities. In order to convert the contribution of science into service of mankind every idea and invention need to be treated on the anvil of production of feasibility and consumer utility. The issue is to harmonize the unavoidable need with the inevitable evil. Consumer protection has reference to widening range of the activities of the Government and independent organizations that are designed to protect individuals form practices of both business and the Government which infringe upon the rights of consumers.

The consumer protection law seeks to augment the rights of buyers in relation to sellers. In this connection it must be remembered that the effectiveness of such laws do not begin and end with the recognition of the rights alone. This has to be supported by the following: 1) Awareness of the rights in consumers 2) Readiness to use the rights 3) Willingness to bear the consequences of asserting their rights 4) Acceptance of the consumer rights by business World Consumer Rights Day- Every year the 15th March is observed as World Consumer Rights Day. The significance of this day is that on this day in 1962 John.F.Kenedy, the then President of the U.S.A., declared four consumer rights in his special message to the American Congress. Later on the International Organization of Consumers Union added three more rights to the list. The Government of India too included these rights in its twenty point programme. These have also been incorporated in the United Nations Charter of Human Rights. These consumer rights are1) Right to safety 2) Right to be informed 3) Right to choose 4) Right to be heard 5) Right to redress

6) Right to consumer education 7) Right to healthy environment 8) Right to basic needs Rights of consumers under the Constitution of India- The Welfare State owes certain obligations. This throws up the question of the rights of the consumer. Does he enjoy any rights including the fundamental rights under the Constitution? Or the consumer has no link with the constitution?. One might say, what has the consumer to do with the Constitution or the Constitution with the consumer? The two are knitted together. They cannot be separated. The Constitution is as close to the consumer as to citizen. After all a consumer is a citizen also. The welfare of a consumer is no less important than that of a citizen. Consumer Rights to Healthy Environment- This is an aspect of right to life. After all who is a consumer? The answer is obvious, one who consumes, one who makes use of various products and by-products. Therefore, the consumer cannot be divorced from the environment around him. The surroundings in which he lives and works are vital for him. He cannot help but consume what is around him. It is necessary that surroundings and environment must be healthy. It is a sine qua non. In conclusion we may say that today consumer is the King and the providers of goods and services are no longer in a dictatorial position. ---------------------------------------------------------------------------------