Beruflich Dokumente
Kultur Dokumente
by
S.V. Rama Krishna, Advocate
on
Consumer Protection
Act, 1986
Consumer Protection
• Consumer protection can be traced back to the
provisions of Monopolies and Restrictive
Trade Practices Act, 1969
• In 1984 Unfair Trade Practices were covered
in the Act.
• MRTP Commission has wide powers to deal
with unfair and restrictive trade practices.
Legal framework prior to Consumer
Protection Act, 1986
• Torts
• Indian Contract Act, 1872
• Sale of Goods Act, 1930
• Dangerous Drugs Act, 1930
• Agricultural Produce (Grading & Marketing) Act,
1937
• Drugs and Cosmetics Act, 1940
• The Indian Standards Institution (Certification
Marks) Act, 1952
• Prevention of Food Adulteration Act, 1954
• Drugs and Magic Remedies (Objectionable
Advertisements) Act, 1954
• Essential Commodities Act, 1955
• The Standards of Weights and Measures Act, 1976
• Trade and Merchandise Marks Act, 1972
• Prevention of Black Marketing and Maintenance of
Supplies of Essential Commodities Act, 1980
Remedies prior to CPA
• Civil Courts
• Lengthy legal procedures
• Costs by way of filing fee, advocate fee etc.
• Time consuming in settling the cases
• Vexatious litigation by way of adjournments and appeals
• MRTP – Headquartered at Delhi and not reachable to
small towns and villages.
Reasons for consumer
exploitation
• Demand – supply gap causing shortages in
economy
• Monopolies
• Restricted competition
• False advertisements
• Over-pricing
• Exaggerated claims
Basic Rights of Consumers
• To satisfy basic needs
• Safety in using the goods
• Standard of service agreed upon
• Proper information about the goods
• Choice in purchase
• To be heard in case of complaints
• To seek redressal of grievances
• Consumer education
• Healthy environment
Consumer Protection Act, 1986
(contains 31 sections divided into IV
chapters)
• Received assent of the President on
24.12.1986 and published in Gazette of
India on 26.12.1986. Provisions of Chapters
I,II and IV came into effect from 15.4.1987.
• Twice amended in 1993 (w.e.f. 18.6.1993)
and in 2002 (w.e.f. 15.3.2003)
Philosophy behind the Act
• Seeks to protect interests and rights of consumers
• Aims to provide simple, quick and easy remedy
to consumers
• Providing three-tier quasi-judicial framework at
District Level, State Level and National Level
Redressal For a with distinct jurisdictions and
appellate powers.
Preamble of CPA, 1986
• An Act to provide for the better protection
of the interest of consumers and for that
purpose to make provision for the
establishment of consumer councils and
other authorities for the settlement of
consumers’ disputes and for matters
connected therewith.
Important definitions in the Act
Who is a “consumer”?
• (i) an unfair trade practice or a restrictive trade practice has been adopted
by any trader or service provider;
• (ii) the goods bought by him or agreed to be bought by him] suffer from
one or more defects;
• Three-tier mechanism at –
• (i) District Level (District Forum)
• (ii) State Level (State Commission)
• (iii) National Level (National
Commission)
Jurisdiction of District Forum
• According to Section 11, a District Forum has
jurisdiction to entertain complaints where the
value of the goods or services and the
compensation, if any, claimed does not exceed
Rs.20 lakhs;
• Within the local limits of of the District Forum
where the opposite party resides or carries on
business or has branch office or personally works
for gain
Jurisdiction of State Commission
• According to Section 17, State Commission
can entertain complaints where the value
exceeds Rs.20 lakhs but does not exceed
Rs.1 crore;
• Appeals against orders of District Forum
within the State.
Jurisdiction of National
Commission
• According to Section 21, the National
Commission can entertain complaints where
the value exceeds Rs.1 crore;
• Appeals against orders of State
Commission
Finality of Orders
• 24. Every order of a District Forum, the
State Commission or the National
Commission shall, if no appeal has been
preferred against such order under the
provisions of this Act, be final.
Appeals
• To State Commission against orders of District
Forum within 30 days together with 50% of
amount ordered or Rs.25000 whichever is less.
• To National Commission against orders of State
Commission within 30 days together with 50% of
amount ordered or Rs.35000 whichever is less.
• To Supreme Court against orders of National
Commission together with 50% of amount ordered
or Rs.50000 whichever is less.
Limitation
• 24A.(1) 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 the cause of action has arisen.
• (2) Notwithstanding anything contained in sub-section (1), a
complaint may be entertained after the period specified in sub-
section (1), if the complainant satisfies the District Forum, the State
Commission or the National Commission, as the case may be, that
he had sufficient cause for not filing the complaint within such
period:
• Provided that no such complaint shall be entertained unless the
National Commission, the State Commission or the District Forum,
as the case may be, records its reasons for condoning such delay.
Penalties
• Sec. 27: For failure to comply with the orders passed by District
Forum or State Commission or National Commission, the penalties
shall be :
• (i) Imprisonment for a term which shall not be less than one month
but which may extend to three years, or
• (ii) Fine which shall not be less than Rs.2000 but which may extend
to Rs.10000, or