Tuesday, 26 November 2013

The Consumer Protection Act 1986

The Consumer Protection Act 1986
Consumer Protection Act, 1986 is an act of Parliament of India enacted in 1986 to protect interests of consumers in India. It makes provision for the establishment of consumer councils and other authorities for the settlement of consum­ers' disputes and for matters connected therewith.
Consumer protection is a group of laws and organizations designed to ensure the rights of consumers as well as fair trade competition and the free flow of truthful information in the marketplace. The laws are designed to prevent businesses that engage in fraud or specified unfair practices from gaining an advantage over competitors; they may also provide additional protection for the weak and those unable to take care of themselves. Consumer protection laws are a form of government regulation, which aim to protect the rights of consumers. For example, a government may require businesses to disclose detailed information about products—particularly in areas where safety or public health is an issue, such as food. Consumer protection is linked to the idea of "consumer rights" (that consumers have various rights as consumers), and to the formation of consumer organizations, which help consumers make better choices in the marketplace and get help with consumer complaints.
Other organizations that promote consumer protection include government organizations and self-regulating business organizations such as consumer protection agencies and organizations, the Federal Trade Commission, ombudsmen, Better Business Bureaus, etc.
A consumer is defined as someone who acquires goods or services for direct use or ownership rather than for resale or use in production and manufacturing.[1]
Consumer interests can also be protected by promoting competition in the markets which directly and indirectly serve consumers, consistent with economic efficiency, but this topic is treated in competition law.
Consumer protection can also be asserted via non-government organizations and individuals as consumer activism.
Govt of India has made consumer protection act in 1986. The main aim is to protect consumers from immoral practice of business organizations. We see in general when a company or business concern becomes monopolize in market , then that company starts to get benefits of his monopoly powers by illegal ways. This law is very helpful to secure consumers and customers from such cheating and market frauds.

Main features of Consumer protect Act 1986

Under this act, consumers have right to get information of quality, quantity and price of products.
Under this act, consumer has power to sue in district forum and report or complaint against the cheating of businessmen to the authorities and get remedies for this.
This act also awakes consumers regarding their rights and powers. In other words, it helps to educate consumers about his rights.
After spending one decade this act becomes more strict for all cheaters who commit cheating with consumers.
CONSUMER PROTECTION ACT 1986 ( “CPA”) IN INDIA
The Consumer Protection Act, 1986 was enacted for better protection of the interests of consumers. The provisions of the Act came into force with effect from 15-4-87. Consumer Protection Act imposes strict liability on a manufacturer, in case of supply of defective goods by him, and a service provider, in case of deficiency in rendering of its services. The term “defect” and “deficiency”, as held in a catena of cases, are to be couched in the widest horizon of there being any kind of fault, imperfection or shortcoming. Furthermore, the standard, which is required to be maintained, in services or goods is not to be restricted to the statutory mandate but shall extend to that claimed by the trader, expressly or impliedly, in any manner whatsoever.
The salient features of the Act are:
(I) it covers all the sectors whether private, public, and cooperative or any person. The provisions of the Act are compensatory as well as preventive and punitive in nature and the Act applies to all goods covered by sale of goods Act and services unless specifically exempted by the Central Government;
(II) It enshrines the following rights of consumers:
(a) right to be protected against the marketing of goods and services which are hazardous to life and property; (b) right to be informed about the quality, quantity, potency, purity, standard and price of goods or services so as to protect the consumers against unfair trade practices; (c) right to be assured, wherever possible, access to a variety of goods and services at competitive prices; (d) right to be heard and to be assured that consumers’ interests will receive due consideration at the appropriate fora; (e) right to seek redressal against unfair trade practices or unscrupulous exploitation of consumers; and (f) right to consumer education;
(III) The Act also envisages establishment of Consumer Protection Councils at the central, state and district levels, whose main objectives are to promote and protect the rights of consumers; (v) To provide a simple, speedy and inexpensive redressal of consumer grievances, the Act envisages a three-tier quasi-judicial machinery at the national, state and district levels. These are: National Consumer Disputes Redressal Commission known as National Commission, State Consumer Disputes Redressal Commissions known as State Commissions and District Consumer Disputes Redressal Forum known as District Forum; and
(IV) the provisions of this Act are in addition to and not in derogation of the provisions of any other law for the time being in force.
The Consumer Protection Act of 1986 was enacted in India for the following reasons:
* Provide more accessible protection for consumers
* Provide a less formal, less expensive and faster way to seek justice relative to perceived problems/damages associated with consumer goods and services
* Applies to ALL goods and services (except those specifically exempted by Central Government)
* Covers all sectors (private, public and cooperative)
* Drove creation of Consumer Protection Counsels at the Central and State levels
The Consumer Protection Act 1986 was introduced to safeguard the interests of ordinary consumers in their daily transactions like the buying of goods or hiring of services.

It is a social welfare legislation which was enacted as a result of widespread consumer protection movement. The main object of the legislature in the enactment of this act is to provide for the better protection of the interests of the consumer and to make provisions for establishment of consumer councils and other authorities for settlement of consumer disputes and matter therewith connected.
Objects:
a) Protection Against Hazardous Goods :
-
The Act says in the first place
that the consumer has a right
to be protected against the marketing of goods
which ar
e hazardous to life and property.
b) Right to Consumer Information :
-
The consumer has been given the right
to informed by the producer about the quality, quantity, potency, purity,
standard and prices of goods he buys.
c) Right of Access to Variety
of Goods and at Competitive Prices :-The central council as constituted under the Act has been charged with the responsibility of bringing about the organization of
markets and market practices in such a way that all dealers are supplied with a variety of goods for the benefit of the consumer and that the go
ods with a variety are being offered at competitive prices.
d) Right to Due Attention at Appropriate Forums :-That Central
Consumer Protection Council has been charged with the responsibility of
assuring consumers that they would be heard as of right by the appropriate
forums and the consumer will receive due attention and consideration from
such Forums.
e) Right Against Unscrupulous Exploitation, Restrictive and Unfair Trade
Practices :-The consumer hasbeen given the right to seek redress against
restrictive or unfair trade practices or unscrupulous exploitation.
f) Right to Consumer Education :-This has been made one of the missions
of the Consumer Protection Act, 1986 and the Central Consumer Prote
ction Council has been charged with the responsibility to provide to the people
proper education in terms of their remedies under the Act. Once the people are
rendered conscious of their power, they may, perhaps, feel energized to
struggle against exploitation by manufacturers and traders. Controlling hands and tools of the govt are easily corruptible. They also suffer from slow motion. They often fail in their mission. But consciousness of the people as a whole, for every person is a consumer one way or the other, when aroused by proper consumer education, is likely to be above petty temptations and therefore more effective in its mission.

Objects of the Consumer Protection Act, 1986

Objects

The preamble to the Act states that the Act is legislated to provide for better protection of the interests of consumers and for that purpose to make provision for the establishment of consumer councils and other authorities for the settlement of consumer's disputes and for matters connected therewith.

The basic rights of consumers as per the Consumer Protection Act (CPA) are
1. the right to be protected against marketing of goods and services which are hazardous to life and property

2. the right to be informed about the quality, quantity, potency, purity, standard and price of goods, or services so as to protect the consumer against unfair trade practices

3. the right to be assured, wherever possible, access to variety of goods and services at competitive prices

4. the right to be heard and be assured that consumers' interests will receive due consideration at appropriate forums

5. the right to seek redressal against unfair trade practices or restrictive trade practices or unscrupulous exploitation of consumers

6. the right to consumer education


The CPA extends to the whole of India except the State of Jammu and Kashmir and applies to all goods and services unless otherwise notified by the Central Government. 

The Central Consumer Protection Council.

The Central Consumer Protection Council.—
The Consumer Protection Act empowers the Central Government to establish a Central Consumer Protection Council consisting of the Minister in charge of consumer affairs in the Central Government as its Chairman and such number of other official and non-official members representing such interests as may be prescribed. Under the Consumer Protection Council Rules 1987, the membership of the Council is restricted to 150 members including the Central Minister in charge of Consumer Affairs as the Chairman. The term of the Council is three years. To monitor the implementation of the recommendations of the Council, the Central Government may constitute a standing working group from amongst the members of the council under the Chairmanship of the Member Secretary of the Council. The Council shall meet as and when necessary, but at least one meeting of the Council shall be held at such time and place as the Chairman may think fit.
(1) The Central Government shall, by notification, establish with effect from such date as it may specify in such notification, a Council to be known as the Central Consumer Protection Council (hereinafter referred to as the Central Council).
(2) The Central Council shall consist of the following members, namely:—
(a) the Minister in charge of the consumer affairs in the Central Government, who shall be its Chairman, and
(b) such number of other official or non-official members represent­ing such interests as may be prescribed.
5. Procedure for meetings of the Central Council.—(1) The Central Council shall meet as and when necessary, but at least one meeting of the Council shall be held every year.
(2) The Central Council shall meet at such time and place as the Chairman may think fit and shall observe such procedure in regard to the transaction of its business as may be prescribed.
6. Objects of the Central Council.—The objects of the Central Council shall be to promote and protect the rights of the consumers such as,—
(a) the right to be protected against the marketing of goods and services which are hazardous to life and property;
(b) the right to be informed about the quality, quantity, potency, purity, standard and price of goods or services, as the case may be so as to protect the consumer against unfair trade practices;
(c) the right to be assured, wherever possible, access to a variety of goods and services at competitive prices;
(d) the right to be heard and to be assured that consumer's interests will receive due consideration at appropriate forums;
(e) the right to seek redressal against unfair trade practices or restrictive trade practices or unscrupulous exploitation of con­sumers; and
(f) the right to consumer education.
7. The State Consumer Protection Councils.—
The Consumer Protection Act provides for the establishment of State Consumer Protection Councils by the State Governments. The State Council shall consist of a Minister in charge of consumer affairs in the State Government as its Chairman and such number of other official or non-official members representing such interests as may be prescribed by the State Government and ten nominees of the Central Government. The State Council shall meet as and when necessary but not less than two meetings shall be held every year at such time and place as the Chairman may think fit.
( l ) The State Government shall, by notification, establish with effect from such date as it may specify in such notification, a Council to be known as the Consumer Protection Council for..................... (hereinafter referred to as the State Council).
(2) The State Council shall consist of the following members, namely:—
(a) the Minister incharge of consumer affairs in the State Government who shall be its Chairman;
(b) such number of other official or non-official members representing such interests as may be prescribed by the State Government.

(c) such number of other official or non-official members, not exceeding ten, as may be nominated by the Central Government.
(3) The State Council shall meet as and when necessary but not less than two meetings shall be held every year.
(4) The State Council shall meet at such time and place as the Chairman may think fit and shall observe such procedure in regard to the transaction of its business as may be prescribed by the State Government.
8. Objects of the State Council.—The objects of every State Council shall be to promote and protect within the State the rights of the consumers laid down in clauses (a) to (f) of section 6.

8A.
In order to promote and protect the rights of consumers, within the district, the Consumer Protection Act, provides for the establishment of a District Consumer Protection Council in every district. It shall consist of the Collector of the district as its Chairman and such number of other official and non-official members representing such interests as may be prescribed by the State Government. It shall meet as and when necessary but not less then two meetings shall be held every year. The Chairman shall decide the time and place of the meeting.
 (1) The State Government shall establish for every district, by notification, a council to be known as the District Consumer Protection Council with effect from such date as it may specify in such notification.
(2) The District Consumer Protection Council (hereinafter referred to as the District Council) shall consist of the following members, namely:—
(a) the Collector of the district (by whatever name called), who shall be its Chairman; and
(b) such number of other official and non-official members representing such interests as may be prescribed by the State Government.
(3) The District Council shall meet as and when necessary but not less than two meetings shall be held every year.
(4) The District Council shall meet at such time and place within the district as the Chairman may think fit and shall observe such procedure in regard to the transaction of its business as may be prescribed by the State Government.
8B. The objects of every District Council shall be to promote and protect within the district the rights of the consumers laid down in clauses (a) to (f) of section 6.
Composition and Functions of the Councils:
Central Council (Sec. 4):
The Central Council will be composed of following members:
1. The Minister in charge of Consumer Affairs of the union government will be the chairperson of the Council.
2. Such members official and non-official representing such interests as may be prescribed.
The Central Council meets as and when necessary. At least one meeting shall be held every year. The time and place of the meeting will be fixed by the Chairman. The procedure in regard to the transactions of the business shall also be determined by the Chairman. (Sec 5).
State Council (Sec. 7):
A State Council shall be composed of the following members, namely,
1. The Minister in charge of Consumer Affairs of the state government will act as Chairman.
2. Such members official and non-official representing such interests as may be prescribed by the state government.
The State Council shall meet as and when necessary. The time and place of the meeting shall be fixed by the Chairman. The Council shall observe such procedure regard to the transactions of its business as may be prescribed by the state government. At least two meetings shall be held every year.
Composition of the District Forum
[ 27 (1) Each District Forum shall consist of, -
(a) a person who is, or has been, or is qualified to be a District Judge, who shall be its President;

(b) two other members, who shall be persons of ability, integrity and standing, and have adequate knowledge or experience of, or have shown capacity in dealing with, problems relating to economics, law, commerce, accountancy, industry, public affairs or administration, one of whom shall be a woman. 27 ]