S.No. |
Topic |
Notes Link |
1. |
Concept of consumer protection |
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2. |
Objective |
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3. |
Important Features of the Consumer Protection Act |
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4. |
Consumer Rights under the the Consumer Protection Act |
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5. |
Consumer protection |
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6. |
Redressal: Three Tier System Under Consumer Act |
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7. |
Who can file a complaint? |
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8. |
Appeal |
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9. |
Penalties |
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Concept of consumer protection
- Sale of adulterated goods.
- Sale of spurious goods.
- Sale of substandard goods.
- Sale of duplicate goods.
- Sale of duplicate goods use of false weights and measures leading to underweight.
- Hoarding and black marketing leading to scarcity and rise in price.
- Charging more than the maximum retail price for the product.
- Supply of inferior services.
With changing times the economic and business environment of India also went through a change. In the 1980s and 1990s, we opened our economy and truly became a global trading partner with the world. This exposed customers to new products but also new problems. And we finally introduced the Consumer Protection Act to safeguard consumers.
The Consumer Protection Act is an Act 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 consumers' disputes and for matters connected therewith. A number of laws have been enacted in India to safeguard the interest of consumers and protect them from unscrupulous and unethical practices of the businessessmen. Some of these Acts are as follows:
- Drug Control Act, 1950
- Agricultural Products (Grading and Marketing) Act, 1937
- Industries (Development and Regulation) Act, 1951
- Prevention of Food Adulteration Act, 1954
- Essential Commodities Act, 1955
- The Standards of Weights and Measures Act, 1956
- Monopolies and Restrictive Trade Practices Act, 1969
- Prevention of Black-marketing and Maintenance of Essential Supplies Act, 1980
- Bureau of Indian Standards Act, 1986
Objective
The main objectives of the Consumer Protection Act are to provide better and all-round protection to consumers and effective safeguards against different types of exploitation such as defective goods, deficient services and unfair trade practices. It also makes provisions for a simple, speedy and inexpensive machinery for redressal of consumers‘ grievances.
Important Features of the Consumer Protection Act
- The Act applies to all goods and services unless specifically exempted by the Central Government.
- It covers all the sectors – private, public and cooperative.
- The provisions of the Act are compensatory in nature.
- It provides adjudicatory authorities, which are simple, speedy and less expensive.
- It also provides for Consumer Protection Councils at the National, State and District levels.
- 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.
- It provides statutory recognition to six rights of consumer.
Who is a consumer according to the Consumer Protection Act, 1986?
A consumer is one who buys any goods for a consideration. It includes any user of such goods with the approval of the buyer. But it does not include any a person who obtains goods for the resale or commercial purpose. The considerationsumer also hires service for consideration.
Consumer Rights under the the Consumer Protection Act
Right to Safety
Means right to be protected against the marketing of goods and services, which are hazardous to
life and property. The purchased goods and services availed of should not only meet their immediate needs, but also fulfil long term interests.
Before purchasing, consumers should insist on the quality of the products as well as on the guarantee of the products and services. They should preferably purchase quality marked products such as ISI,AGMARK, etc.
Right to Choose
Means right to be assured, wherever possible of access to variety of goods and services at competitive price. In case of monopolies, it means right to be assured of satisfactory quality and service at a fair price. It also includes right to basic goods and services. This is because unrestricted right of the minority to choose can mean a denial for the majority of its fair share. This right can be better exercised in a competitive market where a variety of goods are available at competitive prices.
Right to be Heard
Means that consumer's interests will receive due consideration at appropriate forums. It also includes right to be represented in various forums formed to consider the consumer's welfare.
Right to be Informed
Means right to be informed about the quality, quantity, potency, purity, standard and price of goods so as to protect the consumer against unfair trade practices under the Consumer Protection Act.
Consumer should insist on getting all the information about the product or service before making a choice or a decision. This will enable him to act wisely and responsibly
The Consumers should form non-political and non-commercial consumer organizations which can be given representation in various committees formed by the Government and other bodies in matters relating to consumers.
Right to Seekredressal
Means right to seek redressal against unfair trade practices or unscrupulous exploitation of consumers. It also includes right to fair settlement of the genuine grievances of the consumer.
Consumers must make complaint for their genuine grievances.Many a times their complaint may be of small value but its impact on the society as a whole may be very large. They can also take the help of consumer organisations in seeking redressal of their grievances.
Right to Consumer Education
Means the right to acquire the knowledge and skill to be an informed consumer throughout life.Ignorance of consumers, particularly of rural consumers, is mainly responsible fortheir exploitation. They should know their rights and must exercise them. Only then real consumer protection can be achieved with success.
Consumer protection
Consumer protection is a group of laws and organizations designed to ensure
the rights of consumers, as well as fair trade, competition, and accurate information in the marketplace. The laws are designed to prevent the businesses that engage in fraud or
specified unfair practices from gaining an advantage over competitors. They may also provide additional protection for those most vulnerable in society. Consumer protection laws are a form of government regulation that aim to protect the rights of consumers.
Redressal: Three Tier System Under Consumer Act
District Forum:
These Forum are set by the district of the state concerned in each district wherein it consists of President and two members of which one should be a woman and is appointed by the State Government. In this, the complaining party should not make a complaint more than 20 Lacs and once the complaint is filed the goods are sent for testing and if they found defective the accused party should compensate and if the party is dissatisfied can make an appeal with state commission within 30 days.
State Commission:
This is set up by each state It consists of President and two members. Complains should be of at least 20 lacs and exceed not more than 1 crore. The goods are sent for testing and if found defective are asked for replacement or compensation. If not satisfied can make an appeal within 30 days in front of the National Commission.
National Commission:
Consist of President and 4 members. The complaint must exceed an amount of 1 crore. The goods are sent for testing and if found defective are asked for replacement or compensation.
Who can file a complaint?
- A complaint before the appropriate consumer forum can be made by:
- Any consumer
- any registered consumer association
- one or more consumer on the behalf of numerous having the same interest and
a legal heir or representative of a deceased consumer Central Government or any state government.
File a Consumer Complaint
- Complaint is to be filed within two years of buying the product or using the service.
- Complaint needs to be in writing. Letters should be sent by registered post, hand- delivered, by email or fax. Don't forget to take an acknowledgment.
- The complaint should mention the name and address of the person who is complaining and against whom the complaint is being filed. Copies of relevant documents must be enclosed.
Appeal
- Appeal is a legal instrumentality whereby a person not satisfied with the findings of a court has an option to go to a higher court to present his case and seek justice. In the context of consumer forums:
- An appeal can be made with the state commission against the order of the district forum within 30 days of the order which is extendable for further 15 days. (Section 15)
- An appeal can be made with the National Commission against the order of the state commission within 30 days of the order or within such time as the National Commission allows. (Section 19)
- An appeal can be made with the Supreme Court against the order of the National Commission within 30 days of the order or within such time as the Supreme Court allows. (Section 23)
Penalties

The consumer courts (district court, state commission and National Commission) are given vast powers to enforce their orders. If a defaulter does not appear in court despite notices and reminders, the court may decide the matter in his absence. The forum can sentence the defaulter to a maximum of three years' imprisonment and impose a fine of Rs. 10,000. Forums can issue warrants to produce defaulters in court. They can use the police and revenue departments to enforce orders.