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. 

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