Working consumer councils in furthering the consumer interests in

India

CONTENTS
INTRODUCTION 6

7
CONSUMER RIGHTS

CONSUMER PROTECTION 8-9

CONSUMER PROTECTION ACT,1986 10-12

13-17
CONSUMER PROTECTION COUNCILS

CONSUMER DISPUTE REDRESSAL FORUM 18-19

CONCLUSION 20

BIBLIOGRAPHY 21

INTRODUCTION
Consumers play a vital role in the economic system of a nation because in the absence of
effective demand that emanates from them, the economy virtually collapses. Mahatma
Gandhi said, "A consumer is the most important visitor on our premises. He is not dependent
on us, we are on him. He is not an interruption to our work, he is the purpose of it. We are
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not doing a favor to a consumer by giving him an opportunity. He is doing us a favor by
giving us opportunity to serve him. But, of late, unfortunately cheating by way of
overcharging, black marketing, misleading advertisements, etc has become the common
practice of greedy sellers and manufacturers to make unreasonable profits. In this context, it
is the duty of the government to confer some rights on consumers to safeguard their
interests.
Who is a consumer?
One that consumes,especially one that acquires goods or services for direst use or ownership
rather than for resale or use in production and manufacturing.

Consumer:
- We are all consumers in one form or another.
-The consumer is a victim of many unfair tactics adopted in themarket.
- The consumer often suffers in quality, quantity and price of goods or
services.
- He also suffers due to the unfairness of many one sided standard forms
of contract, for want of adequate information.

Caveat emptor – ‘Let the buyer beware’.

-This doctrine of law assumed that the consumer was responsible for
protecting himself.
- This principle is no longer appropriate in the present day.
- Modern goods are highly sophisticated.
- The common consumer are very little aware of their technologies.
- The consumers thus need protection by law.

CONSUMER RIGHTS

1. Right to Safety: The right to be protected against goods which are hazardous to life and
property.
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2. Right to Information: The right to be informed about the quality, quantity, purity, price
and standards of goods.

3. Right to Choose: The right to be assured access to a variety of products at competitive

prices, without any pressure to impose a sale, i.e., freedom of choice.

4. Right to be Heard: The right to be heard and assured that consumer interests will receive
due consideration at appropriate forums.

5. Right to Seek Redressal: The right to get relief against unfair trade practice or
exploitation.

6. Right to Education: The right to be educated about rights of a consumer.

CONSUMER PROTECTION

Protection of Consumer Rights

Consumer protection means safeguarding the rights and interests of consumers. It includes
all the measures aimed at protecting the rights and interests of consumers.
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 • Removal of defects in goods or deficiency in service.
• Replacement of defective goods with new goods of similar description which shall be
free from any defect.
• Return of price paid by the consumer.
• Payment of compensation for any loss or injury suffered by the consumer.
• Discontinue the restrictive, or unfair trade practice, and not to repeat it.
• Withdraw the hazardous goods from being offered for sale and not to offer them for
sale.
• Provide for adequate cost to the aggrieved party

Reasons why consumers need protection

• Prices might be fixed artificially high either by one firm or by a group of firms acting
together.

• Misleading price reductions might be offered.

• Customers might not receive the correct weight or quantity of goods.

• Advertisements might make false claims for goods.

• Inferior and even dangerous ingredients and components might be used in

production to keep costs down.

Consumer Protection in India

- In India, consumer justice is a part of social and economic justice.

- A number of legislations have been enacted in the field of consumer
protection e.g.
• Drugs (Control) Act, 1950,
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 • Drugs and Magic Remedies (Objectionable Advertisement) Act,1954
• Prevention of Food Adulteration Act, 1954,
• Essential Commodities Act, 1955,
• Prevention of Black Marketing and Maintenance of supplies of
• Essential Commodities Act, 1980,
• Essential Services Maintenance Act, 1968,
• Trade and Merchandise Marks Act, 1958,
• Standards of Weights and Measures Act, 1976,
• Bureau of Indian Standards Act, 1986,
• The Monopolies and Restrictive Trade Practices Act, 1969

Some pre-independence legislations are:-

• Indian Contract Act, 1872
• Sale of Goods Act, 1930
• Agricultural Produce (Grading and Marketing) Act, 1937
• Drugs and Cosmetics Act, 1940
- These legislations are disproportionately costly and time consuming
particularly to the small consumers.
- The impact of these legislations in protecting the consumer has been
relatively small.
- The Monopolies and Restrictive Trade Practices Act, 1969, which was
amended in 1984 could not protect the ultimate consumers from
defective good or deficient services, overcharging of prices and
unscrupulous exploitation

Consumer Protection Act, 1986

The consumer protection act,1986 is the most important legislation in the area of consumer
[Link] is an umbrella legislation which has widened the scope of seeking redressal
of grievances of consumers without affecting the common law remedies available to them.

6
In other words the act provides protection to consumers in addition to and not in derogation
of the provisions of any other law.1
• The Parliament, therefore, passed a potentially very important legislation, viz. the
Consumers’ Protection Act, 1986 to provide for better protection of the interests of the
consumers.
• The importance of the Act lies in promoting welfare of the society by enabling the
consumer to participate directly in the market economy.
The Supreme Court in the case of Lucknow Development
Authority v. M.K. Gupta, [(1994) 1 CPR 569 (sc)] observed:
“The malady is becoming so rampant, widespread and deep
that the society instead of bothering, complaining and fighting
for it, is accepting it as part of life. The Act in these
unbelievable yet harsh realities appears to be a silver lining,
which may in course of time succeed in checking the rot.”

Overview of the Act

• The Act came into force on April 15, 1987.

• The Act is a comprehensive legislation with its main thrust on
providing simple, speedy and inexpensive redressal of consumer
grievances.
• The provisions of the Act are in addition to and not in derogation of
the provisions of any other law.
• Thus, the provisions of the Act are supplementary in nature and
have no overriding effect.

Objectives of the act

• Protection of rights of consumers.

• Right to be protected against marketing of goods or services which are

hazardous to life and property.
• 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.

1
The Consumer Protection Act,[Link].3.
7
 • The right to be assured, where ever possible, access to goods and
services at competitive prices.

• The right to be heard and to be assured that consumers interest will

receive due consideration at appropriate forums.

• The right to seek redresses against unfair trade practices or restrictive

trade practices or unscrupulous exploitation of consumers.

• Right to consumer education.

• Consumer protection councils.

• Quasi-judicial machinery for speedy redressal of consumer disputes.

• quasi-judicial machinery at the district ,State and central levels.

-(To give relief’s of a specific nature )
-(To award, wherever appropriate, compensation to consumer)

• Penalties for non-compliance of the orders given by the quasi-judicial

bodies.

Scope of the Act

• Applies to whole of the state Exept the state of Jammu and Kashmir.
• Applies to all type of goods and services, public utilities & public sector
undertakings.
• All types of complains relating to goods, unfair trade practice.
• Remedies under this act are same as those in other laws.
• A suit pending in civil court cannot be heard in consumer court.
• Consumer forums have the power to adjudicate disputes, but they do not
have trappings of a court.
• The consumer court powers are limited.

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Three Amendments of the Act:

The Consumer Protection (amendment) Act.19912

• The amendment made it clear that the proceeding of the District

Forum may be conducted by the President and one member and not
necessarily by all the members.
• The amendment also inserted new provisions regarding the filling up
of the vacancy in the office of the President, and also the vacancies
or defects in appointment not to invalidate the orders of the District
Forum, the State commission and the National Commission.

The Consumer Protection (amendment) Act.19933

• The scope of the Act was extended so as to cover the restrictive

trade practice within its ambit.
• The ‘housing construction’ was specifically inserted in the definition
of ‘service’.
• Provisions were made for filing class action complaints.
• The Consumer Disputes Redressal Agencies were empowered to
award costs to the parties; and to order to recall the goods which
will be hazardous to life and safety of the people.

Amendment of 2002

• These amendment have been made in the Act with a view to

achieving quicker disposal of consumer complaints by the Consumer
Disputes Redressal agencies; securing effective implementation of
their orders; widening the scope of some of the provision of the Act,
and streamlining the procedure under the Act.

2
The Consumer Protection(Amendment)Act,1991(Act No.34 of 1991)
3
The Consumer Protection(Amendment)Act,1993(Act No.50 of 1993)
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CONSUMER PROTECTION COUNCILS

4. The Central Consumer Protection Council.—

(1) The Central Government shall, by notification, establish with effect from such date as it
may specify in such notification, a Council to be known as the Central Consumer Protection
Council (hereinafter referred to as the Central Council).

(2) The Central Council shall consist of the following members, namely:—

(a) the Minister in charge of the consumer affairs in the Central Government, who shall be
its Chairman, and

(b) such number of other official or non-official members representing such interests as may
be prescribed.

5. Procedure for meetings of the Central Council.—(1) The Central Council shall meet as
and when necessary, but at least one meeting of the Council shall be held every year.

(2) The Central Council shall meet at such time and place as the Chairman may think fit and
shall observe such procedure in regard to the transaction of its business as may be
prescribed.

6. Objects of the Central Council.—The objects of the Central Council shall be to promote
and protect the rights of the consumers such as,—

(a) the right to be protected against the marketing of goods and services which are hazardous
to life and property;
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(b) the right to be informed about the quality, quantity, potency, purity, standard and price of
goods or services, as the case may be so as to protect the consumer against unfair trade
practices;

(c) the right to be assured, wherever possible, access to a variety of goods and services at
competitive prices;

(d) the right to be heard and to be assured that consumer's interests will receive due
consideration at appropriate forums;

(e) the right to seek redressal against unfair trade practices or restrictive trade practices or
unscrupulous exploitation of consumers; and

(f) the right to consumer education.

MEMBERS PROCEDURE OBJECTIVE

FOR MEETING

CENTRAL Minister of When To protect

CONSUMER consumer required rights of
PROTECTIO affairs(chairman At least once consumer.
N COUNCIL ) in a year.
To publicize
Total strength- Time and the
150 venue rights of
members(repres decided by consumer,
e chairman, complain
nting different also filling
interest groups) observed by procedure
him. ,redressal
agencies etc.
CENTRAL CONSUMER PROTECTION COUNCIL

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7. The State Consumer Protection Councils.—

( l ) The State Government shall, by notification, establish with effect from such date as it
may specify in such notification, a Council to be known as the Consumer Protection Council
for..................... (hereinafter referred to as the State Council).

(2) The State Council shall consist of the following members, namely:—

(a) the Minister incharge of consumer affairs in the State Government who shall be its
Chairman;

(b) such number of other official or non-official members representing such interests as may
be prescribed by the State Government.

(c) such number of other official or non-official members, not exceeding ten, as may be
nominated by the Central Government.

(3) The State Council shall meet as and when necessary but not less than two meetings shall
be held every year.

(4) The State Council shall meet at such time and place as the Chairman may think fit and
shall observe such procedure in regard to the transaction of its business as may be prescribed
by the State Government.

8. Objects of the State Council.—The objects of every State Council shall be to promote
and protect within the State the rights of the consumers laid down in clauses (a) to (f) of
section 6.

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STATE CONSUMER PROTECTION COUNCIL

MEMBERS PROCEDURE OBJECTIVE

FOR MEETING

Minister for When required To protect

STATE consumer rights of
CONSUMER affairs. At least 2 consumer.
PROTECTION meetings in a
COUNCIL Total year To publicize the
Strength:10 rights of
members Time and venue consumer,
(representing decided by complain filling
different chairman, also procedure
interest observed by ,redressal
groups) him. agencies etc.

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Section 8A: The District Consumer Protection Council.

(1) The State Government shall establish for every district, by notification, a
council to be known as the District Consumer Protection Council with effect
from such date as it may specify in such notification.

(2) The District Consumer Protection Council (hereinafter referred to as the

District Council) shall consist of the following members, namely:—

(a) the Collector of the district (by whatever name called), who shall be its
Chairman; and

(b) such number of other official and non-official members representing such
interests as may be prescribed by the State Government.

(3) The District Council shall meet as and when necessary but not less than two
meetings shall be held every year.

(4) The District Council shall meet at such time and place within the district as
the Chairman may think fit and shall observe such procedure in regard to the
transaction of its business as may be prescribed by the State Government.

Section 8B. The objects of every District Council shall be to promote and protect
within the district the rights of the consumers laid down in clauses (a) to (f) of
section 6.

MEMBERS PROCEDURE OBJECTIVE

FOR
MEETING
DISTRICT Collector of the When required To protect
CONSUMER district(chairma Atleast 2 rights of
PROTECTION n) meetings in a consumer.
COUNCIL year (Clause a to f of
Total sec-6)
strength:As Time and venue
prescribed by decided by
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 state chairman, also
government observed by him.

Consumer Dispute Redressal Forum

Three-tier mechanism at –

• (i) District Level (District Forum)

• (ii) State Level (State Commission)

• (iii) National Level (National Commission)

DISTRICT FORUM

MEMBERS JURISDICTION FINDINGS APPEAL

PRESIDENTDISTRICT THE VALUE OF REMOVE THE AGGRIEVED

JUDGE. GOODS & DEFECTS. PARTY CAN
2 MORE SERVICES AND REPLACE THE APPEAL TO
MEMBERS COMPENSATION GOODS. STATE
INLUDING A CLAIMED PAY COMMISSION
WOMAN SHOULD BE COMPENSATION WITHIN 30
LESS THAN RETURN TO DAYS.
20,00,000 COMPLAINANT
THE PRICE.
DISCONTINUE
THE UNFAIR
TRADE
PRACTICE.
NOT TO OFFER
& WITHDRAW
HAZARDOUS
GOODS.

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STATE COMMISSION

MEMBERS JURISDICTION FINDINGS APPEAL

PRESIDENTHIGH VALUE OF SAME AS AGGRIEVED

COURT GOODS AND DISTRICT PARTY
JUDGE SERVICES OF FORUM. CAN APPEAL TO
APPOINTED MORE THAN NATIONAL
BY STATE 20,00,000 AND COMMISSION
GOVERNMENT LESS THAN WITHIN 30 DAYS.
NOT LESS 1,00,00,000.
THAN 2
MEMBERS.

NATIONAL COMMISSION

MEMBERS JURISDICTION FINDINGS APPEAL

PRESIDENTSUPREME VALUE OF SAME AS AGGRIEVED

COURT JUDGE. GOODS AND DISTRICT PARTY CAN
NOT LESS SERVICES OF FORUM. APPEAL TO
THAN 4 MORE THAN STATE
MEMBERS 1,00,00,000. COMMISSION
WITHIN 30
DAYS.

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CONCLUSION

Invariably, consumers are a vulnerable lot for exploitation, more so in a developing country
with the prevalence of mass poverty and illiteracy. India too is no exception to it. Instances
like overcharging, black marketing, adulteration, profiteering, lack of proper services in
trains, telecommunication, water supply, airlines, etc are not uncommon here. From time to
time, the government has attempted to safeguard consumer's interests through legislations
and the CPA 1986 is considered as the most progressive statute for consumer protection.
Procedural simplicity and speedy and inexpensive redressal of consumer grievances as
contained in the CPA are really unique and have few parallels in the world. Implementation
of the Act reveals that interests of consumers are better protected than ever before. However,
consumer awareness through consumer education and actions by the government, consumer
activists, and associations are needed the most to make consumer protection movement a
success in the country

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