CONSUMER PROTECTION
CONSUMER PROTECTION
ACT (1986)
“Consumer” means an individual
“Consumer” means an individual
acting for personal, family or
acting for personal, family or
household purposes and does not
household purposes and does not
include a person who is acting for
include a person who is acting for
business purposes.
business purposes.
CONSUMER
For the purpose of "goods", a
For the purpose of "goods", a consumer
consumer
means a person belonging to the
means a person belonging to the
following categories:
following categories:
(i) One who buys or agrees to buy any goods
(i) One who buys or agrees to buy any goods
for a consideration which has been paid or
for a consideration which has been paid or
promised or partly paid and
promised or partly paid and partly promised or
partly promised or
under any system of deferred payment
under any system of deferred payment
(ii) It includes any user of
(ii) It includes any user of such goods other
such goods other
than the person who actually buys goods and
than the person who actually buys goods and
such use is made with the approval of
such use is made with the approval of the
the
purchaser.
For the purpose of "services", a "consumer"For the purpose of "services", a "consumer"
means a person belonging to the following means a person belonging to the following categories:
categories:
(i) One who hires or avails of any service or
(i) One who hires or avails of any service or
services for a consideration which has been paid or
services for a consideration which has been paid or
promised or partly paid and partly promised or
promised or partly paid and partly promised or
under any system of deferred payment
under any system of deferred payment
(ii) It includes any beneficiary of such service other
(ii) It includes any beneficiary of such service other
than the one who actually hires or avails of the
than the one who actually hires or avails of the
service for consideration and such services are
service for consideration and such services are
availed with the approval of such person.
The term “manufacturer” means a person who— The term “manufacturer” means a person who—
makes or manufactures any goods or partmakes or manufactures any goods or part
thereof; or thereof; or
does not make or manufacture any goods butdoes not make or manufacture any goods but
assembles parts thereof made or manufactured assembles parts thereof made or manufactured by others; or
by others; or
puts or causes to be put his own mark on anyputs or causes to be put his own mark on any
goods made or manufactured by any other goods made or manufactured by any other manufacturer.
manufacturer.
Explanation. —Explanation. — Where a manufacturer dispatches anyWhere a manufacturer dispatches any
goods or part thereof to any branch office maintained goods or part thereof to any branch office maintained by him, such branch office shall not be deemed to be by him, such branch office shall not be deemed to be the manufacturer even though the parts so dispatched the manufacturer even though the parts so dispatched to it are assembled at such branch office and are sold to it are assembled at such branch office and are sold or distributed from such branch office;
or distributed from such branch office;
MANUFACTURER
Rights of the consumers:
Rights of the consumers:
Protection against hazardous goods.
Protection against hazardous goods.
Right to consumer information.
Right to consumer information.
Right of access to variety and
Right of access to variety and
competitive prices.
competitive prices.
Right to due attention at
Right to due attention at
appropriate forums.
appropriate forums.
Right to seek redress.
Right to seek redress.
1.Protection against hazardous goods.
1.Protection against hazardous goods.
The Act says in the first place that the
The Act says in the first place that the
consumer has a right to be
consumer has a right to be protected
protected
against the marketing of goods which are
against the marketing of goods which are
hazardous to life and property.
hazardous to life and property.
The consumer is assured that if he has
The consumer is assured that if he has
been victimized into purchasing goods
been victimized into purchasing goods
which have injured his person or
which have injured his person or
property, he will have speedy and effecive
property, he will have speedy and effecive
remedy under the redressal hierarchy.
It also imposes a duty on the
It also imposes a duty on the
supplier, not to supply any
supplier, not to supply any
consumer goods which fail to
consumer goods which fail to
comply with the general safety
comply with the general safety
requirement.
requirement.
In this regard, the approved
In this regard, the approved
standards are published from time
standards are published from time
to time by the relevant authorities.
to time by the relevant authorities.
2.RIGHT TO CONSUMER
2.RIGHT TO CONSUMER
INFORMATION
INFORMATION
The consumer has been given the right to
The consumer has been given the right to
be informed by the producer about the
be informed by the producer about the
quality, quantity, potency, purity,
quality, quantity, potency, purity,
standard and prices of goods he buys.
standard and prices of goods he buys.
This is intended to save the
This is intended to save the consumer
consumer
from unfair trade practices like false and
from unfair trade practices like false and
misleading descriptions about the nature
misleading descriptions about the nature
and quality of the goods.
Right to Consumer Information
Right to Consumer Information
For example: a misrepresentation as to price
For example: a misrepresentation as to price
may occur in a concealed way in throwing
may occur in a concealed way in throwing
grand-clearance or reduction sales when, in
grand-clearance or reduction sales when, in
fact, the prices are less than the original
fact, the prices are less than the original
ones.
ones.
In all cases of unfair trade practices, the
In all cases of unfair trade practices, the
consumer would have the option of either
consumer would have the option of either
applying to the Monopolies Commission under
applying to the Monopolies Commission under
MRTP Act,1969 or to the forums under the
MRTP Act,1969 or to the forums under the
Consumer Act,1986.
3.
3.
RIGHT OF ACCESS TO VARIETY ANDRIGHT OF ACCESS TO VARIETY AND COMPETITIVE PRICESCOMPETITIVE PRICES
The Central Council as constituted under the Act hasThe Central Council as constituted under the Act has
been charged with the responsibility of bringing about been charged with the responsibility of bringing about the organisation of markets and market practices in the organisation of markets and market practices in such a way that all dealers are supplied with a variety such a way that all dealers are supplied with a variety of goods for the benefit of the consumer and that the of goods for the benefit of the consumer and that the goods with a variety are being offered at competitive goods with a variety are being offered at competitive prices.
prices.
This is based upon the belief that the best way toThis is based upon the belief that the best way to
improve quality and value for money is to give the improve quality and value for money is to give the citizen wider choice through the mechanism of free citizen wider choice through the mechanism of free
competition. It is only then that the consumer will have competition. It is only then that the consumer will have access to variety and will be able to enjoy the benefit access to variety and will be able to enjoy the benefit of competitive prices. This would require a certain of competitive prices. This would require a certain degree of liberty of shopkeepers in selecting and degree of liberty of shopkeepers in selecting and stocking goods of choice.
Shopkeepers’ freedom in this respect is often curtailedShopkeepers’ freedom in this respect is often curtailed
by the abuse of monopoly power in the shape of by the abuse of monopoly power in the shape of monopolistic or restrictive trade practices.if a
monopolistic or restrictive trade practices.if a
shopkeeper is making his customers helpless and is shopkeeper is making his customers helpless and is thereby leaving them with no choice but to buy goods thereby leaving them with no choice but to buy goods of one kind only, the matter may be brought to the of one kind only, the matter may be brought to the
notice of the Monopolies Commission and the latter can notice of the Monopolies Commission and the latter can examine whether the shopkeeper is himself tied up by examine whether the shopkeeper is himself tied up by the producer and, if so, the Commission may liberate the producer and, if so, the Commission may liberate him from the burden of his ties and restore him his him from the burden of his ties and restore him his choice as to stock-in-trade. Now by virtue of Section choice as to stock-in-trade. Now by virtue of Section 6(c) this power will be exercisable by the Central
6(c) this power will be exercisable by the Central Council also. This is a part of the belief that the best Council also. This is a part of the belief that the best way to improve quality and value of money is to give way to improve quality and value of money is to give the citizen wider choice through the mechanism of free the citizen wider choice through the mechanism of free competition.
4. RIGHT TO DUE ATTENTION AT 4. RIGHT TO DUE ATTENTION AT APPROPRIATE FORUMS
APPROPRIATE FORUMS
The Central Council is, in the fourth place,
The Central Council is, in the fourth place,
charged with the responsibility of assuring
charged with the responsibility of assuring
consumers that they would be heard as of
consumers that they would be heard as of
right by the appropriate forums and the
right by the appropriate forums and the
consumer will receive due attention and
consumer will receive due attention and
consideration from such forums. Thus, it
consideration from such forums. Thus, it
is the duty of the council so to organise
is the duty of the council so to organise
and compose the different forums under
and compose the different forums under
the Act that an aggrieved consumer is
the Act that an aggrieved consumer is
heard as of right and receives due
heard as of right and receives due
consideration at the hands of an
consideration at the hands of an
appropriate redressal forums.
5.Right To Seek Redressal
5.Right To Seek Redressal
This right gives the consumers the right to seek redressalThis right gives the consumers the right to seek redressal
against unfair trade practices or restrictive trade practices against unfair trade practices or restrictive trade practices or unscrupulous exploitation of consumers.
or unscrupulous exploitation of consumers.
The consumers have been given the right to seek redressThe consumers have been given the right to seek redress
against restrictive/unfair trade practices or unscrupulous against restrictive/unfair trade practices or unscrupulous exploitation. The right can be explained
exploitation. The right can be explained clearly byclearly by following example - where money was
following example - where money was deposited indeposited in
advance for the supply of a car within two months and the advance for the supply of a car within two months and the car was actually supplied some time after two months, car was actually supplied some time after two months, inin such situation retention of money beyond the
such situation retention of money beyond the period of period of two months is an unfair trade practice and the consumers two months is an unfair trade practice and the consumers can claim proper interest on the deposit for the period
CONSUMERS NEED PROTECTION
CONSUMERS NEED PROTECTION
AGAINST
AGAINST
UNFAIR TRADE PRACTICE UNFAIR TRADE PRACTICE
Adopting unfair methods or deception to promote sale, useAdopting unfair methods or deception to promote sale, use
or supply of goods or services e.g. or supply of goods or services e.g.
Misleading public about price (e.g. bargain price Misleading public about price (e.g. bargain price when it isMisleading public about price (e.g. bargain price Misleading public about price (e.g. bargain price when it iswhen it iswhen it is
not so). not so). not so). not so).
Charging above MRP printed.Charging above MRP printed.Charging above MRP printed.Charging above MRP printed.
Misleading public about another’s goods or sMisleading public about another’s goods or services.Misleading public about another’s goods or services.Misleading public about another’s goods or services.ervices.
Falsely claiming a sponsorship, approval or Falsely claiming a sponsorship, approval or affiliation.Falsely claiming a sponsorship, approval or affiliation.Falsely claiming a sponsorship, approval or affiliation.affiliation.
RESTRICTIVE TRADE PRACTICE
RESTRICTIVE TRADE PRACTICE
Price fixing or output restraint re: deliPrice fixing or output restraint re: delivery/flow of very/flow of
supplies to impose unjustified costs/restrictions on supplies to impose unjustified costs/restrictions on consumers.
consumers.
Collusive tendering; market fixing territorially amongCollusive tendering; market fixing territorially among
competing suppliers, depriving consumers of free competing suppliers, depriving consumers of free choice, fair competition.
choice, fair competition.
Supplying only to particular distributors or onSupplying only to particular distributors or on
condition of sale only within a territory. condition of sale only within a territory.
Delaying in supplying goods/services leading to riseDelaying in supplying goods/services leading to rise
in price. in price.
Requiring a consumer to buy/hire any goods orRequiring a consumer to buy/hire any goods or
services as a pre-condition for buying/hiring other services as a pre-condition for buying/hiring other goods or services. This is also termed
goods or services. This is also termed as TIE UPas TIE UP SALES. Eg: selling stabilizers alongwith air
SALES. Eg: selling stabilizers alongwith air conditioners
6.Right to Consumer Education
6.Right to Consumer Education
Need for consumer education
Need for consumer education
By increased information as to rights and
By increased information as to rights and
remedies,the consumer will be better empowered to
remedies,the consumer will be better empowered to
pursue his remedies.
pursue his remedies.
A consumer complaint which gives the impression
A consumer complaint which gives the impression
that the consumer is fully conscious of and alive to
that the consumer is fully conscious of and alive to
his rights would bring about more positive response
his rights would bring about more positive response
from his supplier.
from his supplier.
Once the people are rendered conscious of their
Once the people are rendered conscious of their
power they may perhaps feel
power they may perhaps feel energised to struggle
energised to struggle
against exploitation by manufacturers and traders
against exploitation by manufacturers and traders
People’s awareness is likely to prove
People’s awareness is likely to prove a better tool
a better tool
for putting the trade on sum level of discipline than
for putting the trade on sum level of discipline than
tons of government controls.