Consumer Protection Act, 1986

1. CONSUMER PROTECTION
ACT

2. CONTENTS:
Introduction
Definition
Objectives
Changes brought by CPA
Penalities
Consumer Disputes Redressal Commission
Product Liability.

3. INTRODUCTION:
The Consumer Protection Act, implemented in
1986.
The act was implemented in order to provide better
protection to the rights of the consumer.
It safeguards and encourages consumers to speak
against insufficiency and flaws in goods and
services.
The act get amended in 2002 and 2019.

4. DEFINITION:
Consumer means any person who buys any
goods for a consideration which has been
paid or partly paid or under any system of
deferred payment.

5. OBJECTIVES:
The Consumer Protection Act, 1986 provides for the
following rights to the consumers;
 Right to be heard and assured that consumers .
 Right to seek redressal against unfair trade practices or
unscrupulous exploitation of consumers.
 Right to consumer education.
 Right to access to variety of goods and services at
competitive prices.

6. CHANGES BROUGHT BY NEW CPA:
The new act is the establishment of a Central Consumer
Protection Authority(CCPA).
CCPA have an investigation wing headed by a Director-
General.
The wing have the power to conduct inquiries related to:
Voilations of Consumer rights.
Unfair trade practices
Misleading advertisements.
Recall goods or withdraw services of a hazardous
nature.

7. PENALITIES FOR MISLEADING ADVERTISEMENT:
CCPA may impose a penalty on a manufactureer or an
endorser upto Rs. 10 lakh and imprisonment for upto 2
years for a false or misleading advertisement.
In case of subsequent offence, the fine may extend to
Rs. 50 lakh and imprisonment upto 5 years.
CCPA can also prohibit that particular product or
service for a period upto 1 year.

8. CONSUMER DISPUTES REDRESSAL
COMMISSION:
CDRC is setted up at the district, state, and national
levels. A consumer can file complaint with CDRC in
relation to:
 Unfair or resrictive trade practices.
 Defective goods or services
 Overcharging or deceptive charging
 Offering of goods or servies for sale which may be
hazardous to life and safety.

9. PRODUCT LIABILITY:
It means liability of a product manufacturer, service
provider or seller to compensate a consumer for any
harm or injury caused by a defective good or
deficient services.
To claim compensation, a consumer has to prove any
one of the conditions for defect or deficient, as given
in the bill.