2.

Elaborately explain the essential features of the consumer protection

act 1986. Also briefly discuss unfair trade practice and restrictive trade
practice as discussed under consumer protection Act?

(i)
Features of Consumer Protection Act 1986
1. This Act is applicable on both goods and services. Goods are manufactured by the
manufacturer and consumer buys them from manufacturer or seller. Services include
transport, electricity, water; roads, etc. are under this Act.
2. Consumer Redressal Forum-Under Consumer Protection Act, the three judicial systems has
been set up to provide relief to consumers. In this system, consumer forums have been set
up at various levels which are functioning to safeguard the interests of consumers. Under this
system, many forums and commissions have been set up at various levels where consumers
can lodge their complaints.
I. At district level there is District Consumer Dispute Redressal Forum. It is headed by a
judicial officer equivalent to Session Judge. He is assisted by two members. Cases involve
compensation up to 20 lakhs are entertained in this forum.
II. At state level there is State Consumer Dispute Redressal Commission. It is headed by a
judicial officer equivalent to High Court Judge. He is also assisted by two members. Here
cases involve compensation of 20 lakhs to one crore are entertained.
III. At national level there is National Consumer Dispute Redressal Commission. It is headed
by a Judge of Supreme Court. He is assisted by four members. Here cases involve
compensation above one crore are entertained. National Commission has jurisdiction for
appeals coming up against orders of State Commission. Supreme Court is the final deciding
authority.
3. Under this Act there is provision to settle the complaint within three months of filing it. If
the complaint needs laboratory testing, the period is extended to five months.

4. In Consumer Protection Act, clause VI defines the rights of the consumer which have been
already discussed in the previous chapter.
5. There is no fee for lodging a complaint. Even poor people can get justice.
6. The clause II of this Act has defined some terms used by Consumer Protection Act like:
I. Defect-it is any fault or shortcoming in quality, quantity, purity, potency, or standard fixed
by the government.
II. Deficiency-it is any fault, shortcoming or imperfection in quality or performance.
III. Unfair Trade Practice-it is unfair and deceptive procedure used to promote sale or supply
of goods and services like lottery, chit fund, conducting competitions, etc.
IV. Restricted trade practices.

(ii)
Unfair Trade Practice and Restrictive Trade Practice
According to the provisions of the Consumer Protection Act, 1986 unfair trade practice
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 the practice of making any statement, whether orally or in writing or by
visible representation which falsely represents that the goods are of a particular standard,
quality, quantity, grade, composition, style or model; falsely represents that the services are
of a particular standard, quality or grade; falsely represents any re-built, second-hand, renovated, reconditioned or old goods as new goods; makes a false or misleading representation
concerning the need for, or the usefulness of, any goods or services etc. permits the
publication of any advertisement whether in any newspaper or otherwise, for the sale or
supply at a bargain price, of goods or services that are not intended to be offered for sale or
supply at the bargain price. Bargaining price has been defined as a price that is stated in
any advertisement to be a bargain price, by reference to an ordinary price or otherwise, or a
price that a person who reads, hears or sees the advertisement, would reasonably

understand to be a bargain price having regard to the prices at which the product advertised
or like products are ordinarily sold.
The Act defines restrictive trade practice as a trade practice which tends to bring about
manipulation of price or conditions of delivery or to affect flow of supplies in the market
relating to goods or services in such a manner as to impose on the consumers unjustified
costs or restrictions and shall include delay beyond the period agreed to by a trader in supply
of such goods or in providing the services which has led or is likely to lead to rise in the price;
any trade practice which requires a consumer to buy, hire or avail of any goods or services as
condition to buying, hiring or availing of other goods or services.