Explanatory note on the Consumer protection Act 1986

Write Explanatory note on the Consumer protection Act 1986.

    The consumer Protection Act, 1986 is an important landmark in the history of consumer protection legislation in India. It provides for a system for the protection of consumer right and the redress of consumer disputes its objective is to provide for the better protection of the interests of consumer and for that purpose to make provision for the establishment of consumer councils and authorities for the settlement of consumers’ disputes and for matter connected therewith.

    It extends to whole of India except the state of Jammu and Kashmir. It applies to all goods and service save as otherwise expressly provided by the Central Government by notification.

Consumer protection councils:

    Consumer protection Act provides for the establishment of a Central consumer Protection councils by the Central Government and a state consumer council in each state by the respectively state Governments.

The Central Consumer Protection Councils:

    It shall consist of minister in-charge of the Department of food and civil Supplies who shall be its chairman and such number of other officials or non-official member representing such interest as may be prescribed. The councils shall meet as and when necessary but not less than three meeting of the councils shall be held every year.

The state consumer protection councils:

    It shall consist oof such member as may be specified by the state Government by notification from time to time.

    The object of the central councils are to promote and protect the right of the consumers such as:

• Right to be protected against marketing of goods which are hazardous to any property.
• 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.
• Right to be assured, wherever possible, to access to a variety of goods at prices.
• Right to be heard and assured that consumers ‘interest will receive due consideration at appropriate forums.
• Right to seek redress against unfair trade practices or unscrupulous exploitation of consumers.
• Right to consumer education.
• The object of every State Councils are to protect within the State the right of the Consumers-listen above.

    Consumers disputes redress agencies:

    The consumer protection Act proceeds for a three-tier consumer disputes redress system encompassing the district, state and national levels. There are two levels of agencies in the state and one agency at the national level.

A national commission:

    It was established by the central government in August 1998. The responsibility for the establishment of the other two agencies, with the prior approval of central government, rests with the respective state Government, The National commission shall consist of a person who is or who has been judge of the Supreme Court, appointed by the Central government (who shall be its president (and two) other member who shall be person of ability, integrity, and standing and have adequate capacity in dealing problem-relating to economics, law, commerce, accountancy, industry, public affairs or administration, one of whom shall be a women.

A state commission in each-state:

    Each state Commission shall consist of person who is or has been a judge of a High court, appointed by the state-Government who shall be its president) and two member who shall be persons of ability, integrity and standing and have knowledge or experience or have shown capacity in dealing with problems relating to economics, law, commerce, accountancy, industry, public, affair  or administration, in of whom shall be a woman.

A district forum in each district of every state:

    The district forum shall consist of (a) a person who is or has been, or is qualified to be a District Judge nominated by the State Government who shall be its president, (b) a person who has knowledge in the field of education, trade or commerce, and (c) a lady social worker.

Jurisdiction:

    A complain where the value of the goods services and the compensation, of any, is less than rupees one lakh is to be dealt with the Distract forum. Where such value exceeds rupees one lakh but does not exceed rupees ten. Lakhs it said to be dealt with State Commission. Caves involving more than rupees ten lakhs falls within the jurisdiction of the National Commission.

Appeals:

    The state commission will entertain appeals against the orders of any District forum within the state. Appeals against the order of the state commission can be made to the national commission. Appeals against the orders of the national commission can be made to the Supreme Court.

Power to calls for the records:

    The state commission is empowered to call for the records and pass appropriate orders in any consumer dispute which is pending before or has been decided by any District forum within the state =, where it appears to the state commission that such District forum has exercise a jurisdiction not vested in it by law, or has failed to exercise a jurisdiction not vested in it by law, or has failed to exercise a jurisdiction so vested or has acted in exercise of its jurisdiction illegally or with material irregularity. The National Commission has similar jurisdiction over the State commission.

Complainants Action:

    A complaint, in relation to any goods are sold or delivered or any service provided may be filed with a District Forum or state commission) as the case may be by the following:

1. The consumer to whom such goods sold or delivered or such service provided.
2. Any recognized consumer association whether the affected consumer is a member of such association or not.
3. The Central or state government.

Remedial Actions:

    If any of the consumer disputes redress agencies is satisfied that any of the allegation is satisfied that any of the allegation contained in the complaint is true, it shall issue an order to the opposite party direction him to take one or more of the following remedial actions:

1. To remove the defect pointed out by the appropriate laboratory from the goods in question.
2. To replace the goods with new goods of similar description which shall be free from all defects.
3. To return to the complaints the price or, as the case may be, the charge paid by the complaints.
4. To pay such amount as may be awarded by it as compensation to the consumer for any loss or injury suffered by the consumer due to the negligence of the opposite party.

Punishment for default:

    If a trader or person against whom a complaint is made fails or omits to company with any order made by a redress agency he shall be punishable with any term not exceeding three year or with fine not imprisonment for any term not exceeding ten thousand rupees or with both.

    The consumer protection Act applies not only to the private sector but also to the public sector and government agencies. The undertaking in the public and cooperative sector and those undertaking the management of which has been take over by the government are exempted from the provision dealing with unfair trade practices under the MRTP Act.

Amendment to the consumer protection Act:

    Following progressive amendment to the consumer protection Act were introduced by the consumer protection(amendment) ordinance, 1993.

1. The pecuniary jurisdictions of the district forum was raised from Rs. 1 lakh to Rs. 5 lakhs and that of state commission from Rs.10 lakhs to Rs. 20 lakhs.
2. State Government are empowered to established more than one district forum in a district if it deems fit in large cities. The raising of the pecuniary jurisdiction will increase the workload of district forums as most of consumer complaints do not exceed Rs. 5 lakhs in value. Therefore, the state government should establish in the consumers interest more than one forum in district with larger cities.
3. Now an aggrieved party can institute a complaint at place where branch office of the opposite party of an establishment is situated.
4. Right is granted to one or more consumer to institute a complaint where there are serval consumer having the same interest.
5. The definition of unfair trade practices (UTP) has been incorporated at length in the Act thereby dispensing with the need to refer to the MRTP Act for definition of UTP.
6. Use by consume of goods bought and used by him exclusively for the purpose of earning livelihood in chase of self-employment is excluded from the definition of commercial purpose.
7. Housing construction has been included within the definition of services.
8. The forum has been given additional authority and power. The forum can issue an order to the opposite party directed him to remove defect or deficiency in the service in question; to discontinue to the UTP or restrictive trade practices (RTP) or not repeat them; not to offer hazardous goods for sale; to provide for adequate costs to parties.