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Consumer Protection Act
– An Introduction
Prof Prashant Kumar Gupta
Jain College of MBA and MCA
Why COPRA?
Doctrine of Caveat Emptor
This implies that the responsibility of identifying goods and finding
defects with them lies with buyer.
Collective Bargaining
Sellers Lobby; Forming cartels; Artificially keeping prices high!!!!
Multiple Laws
India Contract Act; Sale of Goods Act; Essential Commodities Act
Hurdles in the Litigation
Going to regular court; Expensive & Time Consuming
Remedy
Punishment in the form of Punitive & Deterrent measure
Introduction

The Consumer Protection Act was enacted in 1986.
Some Amendments were made in 2002.

The Act applies to the whole of India except the State of
Jammu and Kashmir.
It is an Act to provide better protection of the interest of
the consumers.
History

The act was passed in:
Lok Sabha on 9th December,1986
Rajya Sabha on 10th December, 1986
Assented by the President of India on 24th December, 1986
Published in the Gazette of India on 26th December, 1986.
The act was enacted in the 37th year of the Republic of India
and was amended in the years 1991, 1993 and 2002.
Objectives

Education

Be Heard

Safety

Redressal

Choose

Be Informed
Consumer

Buys any goods for consideration

Consideration must be paid or promised or partly paid
or partly promised or under any system of deferred
payment
Use is made with the approval
Not A Consumer

1.
2.
3.
4.
5.
6.
7.

A person who purchased goods for resale
A person who purchased goods for commercial
purpose
A person who obtains services without consideration
Tax-payers to municipality
Contractors
Applicants for jobs
Persons who filed suits in courts
When Can Consumer Complain?

Allegation made in writing for the following:An unfair trade practice or a restrictive trade practice
The goods suffers defects
The services suffer from deficiency
Extra price charged
Goods or services offered which are or may become
hazardous to life without information to customer
Who Can Complain?

The consumer to whom such goods are sold
Any recognized consumer association, where
that consumer is a member
One or more consumers, where there are
numerous consumers having same interest
The Central and State Government
Where to Complain?
Consumer Redressal Forums: District Forum
Value of the goods or services or compensation claimed does
not exceed Rs.20 Lakh.
 State Commission
Rs 20 Lakh to 1 Crore and also the appeals against the orders
of any District Forum within 30 days of judgement.
 National Consumer Disputes Redressal Commission
Exceeds Rs. 1 Crore and also the appeals against the orders of
any State Commission within 30 days od judgement.
Verdicts
If a trader is found guilty , he must have to:Remove the defects
Replace the goods with new goods of
similar description.
Return complainant the price
Pay compensation to the consumer for any
loss or injury suffered
Discontinue the unfair trade practices
Thank You…!

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Consumer Protection Act

  • 1. Consumer Protection Act – An Introduction Prof Prashant Kumar Gupta Jain College of MBA and MCA
  • 2. Why COPRA? Doctrine of Caveat Emptor This implies that the responsibility of identifying goods and finding defects with them lies with buyer. Collective Bargaining Sellers Lobby; Forming cartels; Artificially keeping prices high!!!! Multiple Laws India Contract Act; Sale of Goods Act; Essential Commodities Act Hurdles in the Litigation Going to regular court; Expensive & Time Consuming Remedy Punishment in the form of Punitive & Deterrent measure
  • 3. Introduction The Consumer Protection Act was enacted in 1986. Some Amendments were made in 2002. The Act applies to the whole of India except the State of Jammu and Kashmir. It is an Act to provide better protection of the interest of the consumers.
  • 4. History The act was passed in: Lok Sabha on 9th December,1986 Rajya Sabha on 10th December, 1986 Assented by the President of India on 24th December, 1986 Published in the Gazette of India on 26th December, 1986. The act was enacted in the 37th year of the Republic of India and was amended in the years 1991, 1993 and 2002.
  • 6. Consumer Buys any goods for consideration Consideration must be paid or promised or partly paid or partly promised or under any system of deferred payment Use is made with the approval
  • 7. Not A Consumer 1. 2. 3. 4. 5. 6. 7. A person who purchased goods for resale A person who purchased goods for commercial purpose A person who obtains services without consideration Tax-payers to municipality Contractors Applicants for jobs Persons who filed suits in courts
  • 8. When Can Consumer Complain? Allegation made in writing for the following:An unfair trade practice or a restrictive trade practice The goods suffers defects The services suffer from deficiency Extra price charged Goods or services offered which are or may become hazardous to life without information to customer
  • 9. Who Can Complain? The consumer to whom such goods are sold Any recognized consumer association, where that consumer is a member One or more consumers, where there are numerous consumers having same interest The Central and State Government
  • 10. Where to Complain? Consumer Redressal Forums: District Forum Value of the goods or services or compensation claimed does not exceed Rs.20 Lakh.  State Commission Rs 20 Lakh to 1 Crore and also the appeals against the orders of any District Forum within 30 days of judgement.  National Consumer Disputes Redressal Commission Exceeds Rs. 1 Crore and also the appeals against the orders of any State Commission within 30 days od judgement.
  • 11. Verdicts If a trader is found guilty , he must have to:Remove the defects Replace the goods with new goods of similar description. Return complainant the price Pay compensation to the consumer for any loss or injury suffered Discontinue the unfair trade practices