10/1/2014 Consumer Protection Act-1986

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The Consumer Protection Act, 1986
(68 of 1986)
24th December; 1986

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 consum-
ers' disputes and for matters connected therewith.

BE it enacted by Parliament in the Thirty-seventh Year of the Republic of India as follows:

PRELIMINARY
CONSUMER PROTECTION COUNCILS
CONSUMER DISPUTES REDRESSAL AGENCIES
MISCELLANEOUS



CHAPTER I

PRELIMINARY

1. Short title, extent, commencement and application.(1 ) This Act may be called the Consumer
Protection Act, 1986.
(2) It extends to the whole of India except the State of Jammu and Kashmir.
(3) It shall come into force on such date as the Central Government may, by notification, appoint and
different dates may be appointed for different States and for different provisions of this Act.
(4) Save as otherwise expressly provided by the Central Government by notification, this Act shall apply
to all goods and services.
2. Definitions. - (1) In this Act, unless the context otherwise requires,
(a) "appropriate laboratory" means a laboratory or organisation
(i) recognised by the Central Government;
(ii) recognised by a State Government, subject to such guidelines as may be prescribed by
the Central Government in this behalf; or
(iii) any such laboratory or organisation established by or under any law for the time being in
force, which is maintained, financed or aided by the Central Government or a State
Government for carrying out analysis or test of any goods with a view to determining
whether such goods suffer from any defect;
(aa) "branch office" means
(i) any establishment described as a branch by the opposite party; or
(ii) any establishment carrying on either the same or substantially the same activity as that
carried on by the head office of the establishment;
(b) "complainant" means
(i) a consumer; or
(ii) any voluntary consumer association registered under the Companies Act, 1956 (1of
1956)or under any other law for the time being in force; or
(iii) the Central Government or any State Government,
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(iv) one or more consumers, where there are numerous consumers having the same interest;
(v) in case of death of a consumer, his legal heir or representative; who or which makes a
complaint;
(c) "complaint" means any allegation in writing made by a complainant that
(i) an unfair trade practice or a restrictive trade practice has been adopted by any trader or
service provider;
(ii) the goods bought by him or agreed to be bought by him; suffer from one or more defects;
(iii) the services hired or availed of or agreed to be hired or availed of by him suffer from
deficiency in any respect;
(iv) a trader or service provider, as the case may be, has charged for the goods or for
the service mentioned in the complaint a price in excess of the price
(a) fixed by or under any law for the time being in force
(b) displayed on the goods or any package containing such goods ;
(c) displayed on the price list exhibited by him by or under any law for the time
being in force;
(d) agreed between the parties;
(v) goods which will be hazardous to life and safety when used or being offered for
sale to the public,--
(A) in contravention of any standards relating to safety of such goods as required
to be complied with, by or under any law for the time being in force;
(B) if the trader could have known with due diligence that the goods so offered are
unsafe to the public;
(vi) services which are hazardous or likely to be hazardous to life and safety of the public
when used, are being offered by the service provider which such person could have
known with due diligence to be injurious to life and safety;;
(d) "consumer" means any person who
(i) buys any goods for a consideration which has been paid or promised or partly paid and
partly promised, or under any system of deferred payment and includes any user of such
goods other than the person who buys such goods for consideration paid or promised or
partly paid or partly promised, or under any system of deferred payment when such use is
made with the approval of such person, but does not include a person who obtains such
goods for resale or for any commercial purpose; or
(ii) hires or avails of any services for a consideration which has been paid or promised or
partly paid and partly promised, or under any system of deferred payment and includes
any beneficiary of such services other than the person who 'hires or avails of the services
for consideration paid or promised, or partly paid and partly promised, or under any
system of deferred payment, when such services are availed of with the approval of the
first mentioned person but does not include a person who avails of such services for
any commercial purposes;
Explanation. For the purposes of this clause, commercial purpose does not
include use by a person of goods bought and used by him and services availed by him
exclusively for the purposes of earning his livelihood by means of self-employment;
(e) "consumer dispute" means a dispute where the person against whom a complaint has been
made, denies or disputes the allegations contained in the complaint.
(f) "defect" means any fault, imperfection or shortcoming in the quality, quantity, potency, purity
or standard which is required to be maintained by or under any law for the time being in force
under any contract, express or implied or as is claimed by the trader in any manner
whatsoever in relation to any goods;
(g) "deficiency" means any fault, imperfection, shortcoming or inadequacy in the quality, nature
and manner of performance which is required to be maintained by or under any law for the
time being in force or has been undertaken to be performed by a person in pursuance of a
contract or otherwise in relation to any service;
(h) "District Forum" means a Consumer Disputes Redressal Forum established under clause
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(a) of section 9;
(i) "goods" means goods as defined in the Sale of Goods Act, 1930 (3 of 1930);
(j) manufacturer means a person who
(i) makes or manufactures any goods or part thereof; or
(ii) does not make or manufacture any goods but assembles parts thereof made or
manufactured by others; or
(iii) puts or causes to be put his own mark on any goods made or manufactured by any other
manufacturer;
Explanation. Where a manufacturer dispatches any goods or part thereof to any branch
office maintained by him, such branch office shall not be deemed to be the manufacturer even
though the parts so dispatched to it are assembled at such branch office and are sold or
distributed from such branch office;
(jj) "member" includes the President and a member of the National Commission or a State
Commission or a District Forum, as the case may be;
(k) "National Commission" means the National Consumer Disputes Redressal Commission
established under clause (c) of section 9;
(l) "notification" means a notification published in the Official Gazette;
(m) "person" includes,
(i) a firm whether registered or not;
(ii) a Hindu undivided family;
(iii) a co-operative society;
(iv) every other association of persons whether registered under the Societies Registration
Act, 1860 (21 of 1860) or not;
(n) "prescribed" means prescribed by rules made by the State Government, or as the case may
be, by the Central Government under this Act;
(nn)regulation means the regulations made by the National Commission under this Act;
(nnn) restrictive trade practice means a trade practice which tends to bring about
manipulation of price or conditions of delivery or to affect flow of supplies in the market
relating to goods or services in such a manner as to impose on the consumers
unjustified costs or restrictions and shall include
(a) delay beyond the period agreed to by a trader in supply of such goods or in
providing the services which has led or is likely to lead to rise in the price;
(b) any trade practice which requires a consumer to buy, hire or avail of any goods or, as the
case may be, services as condition precedent to buying, hiring or availing of other goods or
services;
(o) "service" means service of any description which is made available to potential users and
includes, but not limited to, the provision of facilities in connection with banking, financing
insurance, transport, processing, supply of electrical or other energy, board or lodging or both,
housing construction, entertainment, amusement or the purveying of news or other
information, but does not include the rendering of any service free of charge or under a
contract of personal service;
(oo) spurious goods and services mean such goods and services which are claimed to
be genuine but they are actually not so;
(p) "State Commission" means a Consumer Disputes Redressal Commission established in a
State under clause (b) of section 9;
(q) "trader" in relation to any goods means a person who sells or distributes any goods for sale
and includes the manufacturer thereof, and where such goods are sold or distributed in
package form, includes the packer thereof;
(r) "unfair trade practice" means a trade practice which, for the purpose of promoting the sale,
use or supply of any goods or for the provision of any service, adopts any unfair method or
unfair or deceptive practice including any of the following practices, namely;