DR CA S P DESAI CONSUMER PROTECTION ACT
1. INTRODUCTION
―It is good to have money and the things that money can‘t buy, but it‘s good too, to check up
once in a while and make sure you haven‘t lost the things money can‘t buy.‖ – George
Lorimer, American editor & writer
When we buy a good or service, we rarely have adequate knowledge about its quality and
safety. We are quite concerned about getting cheated. This is when the need for consumer
protection arises. In the past few years, the subject of consumer protection has become a
matter of increasing public concern because unscrupulous business tactics seriously affect the
nation‘s well-being by contributing to social unrest and by causing undue financial distress to
consumers.
The consumer is the one who pays to consume the goods and services produced. As such,
consumers play a vital role in the economic system of a nation. In the absence of their
effective demand, the producers would lack a key motivation to produce, which is to sell to
consumers.
Economic activity flourishes when consumers can trust producers, but the consumer must
have reasonable grounds for trust. Consumers will then value, not only quality and safety, but
also the assurance of quality and safety. Therefore trust depends on assurance. Producers
generally gain by providing assurance, so they seek to build, expand and project a good
reputation. Producers demonstrate quality and safety and make the content of promises clear
and publicly understood by means of advertisements, displays, sales assistance, labeling and
packaging etc. But when some form of damage or undue hazard arises, then the trust of the
consumer goes off.
Generally consumer protection comes in the form of government regulations. Consumer
protection is a group of laws and organizations designed to ensure the rights of consumers as
well as fair trade, competition and accurate information in the marketplace. The laws are
designed to prevent businesses that engage in fraud or specified unfair practices from gaining
an advantage over competitors. They may also provide additional protection for those most
vulnerable in society.
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DR CA S P DESAI CO
ONSUMER PROTECTIO
P ON ACT
1.1. Wh
ho is a consu
umer?
A conssumer is defined
d as someone who
w acquirees goods or
o services for directt use or
ownershhip rather thhan for resaale or use inn productionn and manuffacturing.
A consuumer is onee who decides whether or not to buuy an item at
a the store, or someonee who is
influencced by adveertisement and
a marketiing. Every time someo
one goes to a shop andd buys a
thing, thhey make a decision ass a consumeer.
In the ffields of eco
onomics, maarketing and advertisinng, a consum
mer is geneerally defineed as the
one whho pays to consume the
t goods and servicees produced
d by a seller (i.e., coompany,
organizzation). A coonsumer caan be a persson (or grouup of peoplee), generallyy categorized as an
end useer or target demographi
d ic for a prodduct, good, or service.
Consum
mer means any
a person who - (i) buys
b any ggoods for a consideratiion which has
h been
paid orr promised or partly paid and partly
p prom
mised, or under
u any system
s of deferred
paymennt, and incluudes any user of such goods
g other than the peerson who buys
b such goods for
consideeration paidd or promised or partly
y paid or ppartly prom
mised, or unnder any syystem of
deferredd payment when suchh use is maade with thee approval of such peerson, but ddoes not
include a person who
w obtainss such goodds for resalle or for anny commerccial purposee; or (ii)
hires orr avails of any
a servicess for a conssideration which
w has beeen paid or promised or
o partly
paid annd partly promised,
p oor under anny system of deferred
d payment, and incluudes any
beneficiary of succh services other than the personn who hiress or avails of the servvices for
consideeration paidd or promiseed, or partlyy paid and partly prom
mised, or unnder any syystem of
deferredd payment, when such services arre availed of with the approval
a of the first meentioned
person; (but does not includde a personn who avaiils of suchh services of
o any com
mmercial
purposee). (Sec.2(d)) of the Connsumer Prottection Act, 1986)
According to this definition,
d a person to be
b a consum
mer of goods should sattisfy that –
T goods are
The f consideration.
a bought for
A person who uses thhe goods wiith the approval of the buyer is a
Any
c
consumer.
A person who obtainns the goodss for resale or
Any o commerccial purposees is not
a consumer.
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DR CA S P DESAI CO
ONSUMER PROTECTIO
P ON ACT
Person
P buyinng goods foor self-emplloyment is a consumer..
A persoon is a consu
umer of servvices if –
T servicess are hired or
The o availed of.
C
Consideratio
on must be paid
p or payable.
B
Beneficiary of services is also a coonsumer.
Goods are those products which
w are manufacture
m ed or prodduced and sold to connsumers
throughh wholesalerrs and retaillers.
n which is made available to the potential user
Servicee means servvice of anyy description u with
respect to the prov
vision of faccilities in coonnection with
w bankingg, finance, innsurance, trransport,
supply of electriical or otther energy
y, housingg, construcction, wateer supply, health,
entertaiinment, amu
usement etc. It does not
n includee any servicce renderedd free of chharge or
under a contract off personal seervice.
1.2. Con
nsumer Ad
dvocacy
Consum
mer advocaccy refers to actions takken by indivviduals or groups
g to promote
p andd protect
the inteerests of the
t buying public. Historically,
H consumerr advocatess have assumed a
somewhhat adversaarial role inn exposing unfair bussiness pracctices or unnsafe produucts that
threatenn the welfaare of the general
g mer advocaates use tacctics like publicity,
pubblic. Consum
boycottts, letter-wrriting camppaigns, andd lawsuits to raise awareness
a o issues affecting
of a
consum
mers and to counteract
c t financial and politiccal power of
the o the organiizations they target.
Since evven large bu
usinesses caan be visiblly woundedd when theirr mistreatmeent of consuumers or
other coonstituenciees arouses thhe ire of con
nsumer advvocacy orgaanizations, itt should be obvious
to smalll business owners thatt they can ill-afford
i too engage inn business practices
p thaat might
draw thhe attention of consumeer advocatess.
Periodss of vocal coonsumer addvocacy aroound the turrn of the tw
wentieth cen
ntury and inn the late
1960s have
h left a legacy of legislationss and agenccies intended to proteect consumeers. The
rights oof consumerrs have exppanded to in
nclude prodduct safety,, the legitim
macy of advvertising
claims, the satisfacctory resoluution of griievances, annd a say in
n governmennt decisionss. In the
early daays of induustry, comppanies couldd afford to ignore con
nsumers' wiishes because there
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DR CA S P DESAI CONSUMER PROTECTION ACT
was so much demand for their goods and services. As a result, they were often able to
command high prices for products of poor quality. The earliest consumer advocates to point
out such abuses were called "muckrakers," and their revelations of underhanded business
practices spurred the creation of several federal agencies and a flurry of legislation designed
to curb some of the most serious abuses. At the same time, increased competition began to
provide consumers with more choices among a variety of products of higher quality.
1.3. Consumer Awareness
The market today is flooded with very large number as well as varieties of goods and
services. The number of producers and final sellers of the commodities have also increased
many folds. So it has become very difficult to know as to who is a genuine producer or
seller? It is practically not possible for consumers to personally come in contact with a
producer or seller. Moreover in the age of advanced information technology the physical
distance between consumer and producer/seller has also increased, since consumers can get
their commodities at door step by booking orders over telephone or through internet etc.
Similarly from among large varieties of commodities, it has become very difficult to know as
to which one is genuine. People think that a product which has appeared in some
advertisement must be good or the producer whose name is known through advertisement
must be selling the right product. But this may not be true always. Much information is
deliberately hidden in certain advertisements to mislead the consumers.
Consumer awareness refers to the following:
(i) The knowledge of the product purchased by the consumers in terms of its quality. For
example the consumer should know whether the product is good for health or not,
whether the product is free of creating any environmental hazard or not etc.
(ii) The education about the various types of hazards and problems associated with
marketing of a product - For example, one way of marketing a product is
advertisement through newspapers, television etc. Consumers should have proper
education about the bad effects of advertisement. They must also verify the
contents of the advertisement.
(iii) The knowledge about ‗Consumer Rights‘ - This means that, first, the consumer must
know that he/she has the right to get the right kind of product. Secondly, if the
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DR CA S P DESAI CONSUMER PROTECTION ACT
product is found out to be faulty in some manner, the consumer should have
knowledge of claiming compensation as per the law of the land.
(iv) The knowledge about consumer‘s own responsibilities - This implies that consumers
should not indulge in wasteful and unnecessary consumption.
1.4. Consumer Rights
The purchase of goods and services entitles the consumer to certain rights which are as
follows –
1) Right to Safety - A consumer has the right to safety against such goods and
services that are hazardous to his health, life and property.
For example, counterfeit and substandard drugs; appliances made of low quality
raw material, such as iron, pressure cooker, etc. and low quality food products like
bread, milk, jam, butter, etc. The consumers have the right to safety against the
loss caused by such products.
2) Right to be informed - A consumer has the right to be provided with all the
information on the basis of which he decides to buy goods or services. Such
information may relate to quality, purity, potency, standard, date of manufacture,
method of use, etc. of the commodity. Thus, a producer is required to provide all
these information in a proper manner, so that the consumer is not cheated.
3) Right to choose - A consumer has the absolute right to buy any goods or services
of his choice from among the different goods or services available in the market.
In other words, no seller can influence his choice in an unfair manner. If any seller
does so, it will be deemed as interference in his right to choice.
4) Right to be heard - A consumer has the right that his complaint be heard. This
right also empowers the consumers to fearlessly voice their complaints against the
defective products and the erring producer/company /seller.
5) Right to seek redressal - This right provides compensation to the consumers
against unfair trade practice of the seller. For instance, if the quantity and quality
of the product do not conform to those promised by the seller, the buyer has the
right to claim compensation. Several redressals are available to the consumer by
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DR CA S P DESAI CONSUMER PROTECTION ACT
way of compensation, such as free repair of the product, taking back of the
product with refund of money, changing of the product by the seller.
6) Right to consumer education - It means to have access to programs and
information that help consumers make better decisions before and after purchase.
Instructions and guidelines for consumers are issued by the government
departments and NGOs.
1.5. Consumers’ Responsibilities
Consumer protection is not only about consumers‘ rights but also about the responsibilities of
the consumers. Some of them are given hereunder –
1) Dealing with Advertisements - Advertisements have become a part and parcel of our
lives and even if we try we cannot avoid them. Companies are trying to sell their
products by making attractive audio-visuals, publishing only that part which may be
eye catching and hiding other crucial information and so on. Consumers need to be
cautious of such deceptive advertisements.
2) Buying Quality Certified Products - There are lot of products which are certified by
recognised agencies as safe to consume and good in quality. For example the Indian
Standard Institute (ISI) conducts quality testing of many consumer goods. If found
proper the product is labelled with ISI mark on it. For many food products the quality
assurance is certified by seal called AGMARK. Consumers should choose products
with ISI mark and AGMARK. A very important thing before purchasing food
products or medicines etc. is that the consumer must see the expiry date.
3) Demanding Bill of the Purchase - Every consumer must demand the bill after
purchase of goods and services. The bill is the proof of purchase and can be used to
seek justice if the consumer feels cheated after buying the commodity. Through the
bill the consumer also ensures that the government receives tax on the product
because it is mandatory for the seller to mention the tax amount on the bill. Such act
of the consumer makes him/her a responsible citizen of the country.
4) Being a Green Consumer - A consumer must consume those products which do not
cause damage to our environment. People should use biodegradable products which
can easily mix with soil and water after they are disposed off. Similarly people should
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DR CA S P DESAI CONSUMER PROTECTION ACT
save electricity, gas etc. by judicious use. Consumers are also responsible for
automobile pollution in town and cities. They should use public transport system and
eco-friendly vehicles.
5) Consumers as Managers - Consumers can unite together to provide themselves and
the community at large of a locality or village some basic needs such as drinking
water supply, health, education etc.
2.1 Complaint
An aggrieved consumer can seek redressal under the Consumer Protection Act by filing a
complaint. According to Sec.2(1)(c) of the Consumer Protection Act, 1986, 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 the service provider, as the case may be, has charged for the goods or for the
services 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, are being-offered for sale to
the public-
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(a) in contravention of any standard 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;
with a view to obtaining any relief provided by or under this Act.
Hence complaint is basically a statement in writing containing the allegations in detail, in
order to obtain relief provided under the Consumer Protection Act.
Who can file a complaint?
Only a person who is termed as a consumer under the Consumer Protection Act, 1986 can file
a complaint. Hence the following persons can file a complaint –
i. a consumer; or
ii. any voluntary consumer association registered under the Companies Act or under any
other law for the time being in force; or
iii. the Central Government or any State Government;
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 ;
Apart from the above mentioned persons, the following persons can also be considered as
consumers and file complaint –
i. beneficiary of goods / services
ii. legal representative / heir of the deceased consumer
iii. husband of the consumer
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DR CA S P DESAI CONSUMER PROTECTION ACT
iv. relative of consumer
v. insurance company
Contents of the Complaint
A complaint should contain any of the following allegations –
a) An unfair trade practice or a restrictive trade practice that has been adopted by any
trader. For example: X sold a six months old bike to Y representing it to be a new one.
Here Y can make a complaint against X for following an unfair trade practice.
b) The goods bought by him or agreed to be bought by him suffer from one or more
defects. For example - A bought a computer from B. It was not working properly
since day one. A can make a complaint against B for supplying him a defective
computer.
c) The services hired or availed of or agreed to be hired or availed of by him suffers
from deficiency in any respect. For example - X hired services of an advocate to
defend himself against his landlord. The advocate did not appear every time the case
was scheduled. X can make a complaint against the advocate.
d) Trader has charged for the goods mentioned in the complaint a price in excess of the
price fixed by or under any law for the time being in force or displayed on the goods
or any package containing such goods. For example - A bought a sack of cement from
B who charged him Rs.100 over and above the actual price of the cement declared by
the Government. Here A can make a complaint against B.
e) Goods which will be hazardous to life and safety when used are being offered for sale
to the public in contravention of the provisions of any law for the time being in force
requiring traders to display information in regard to the contents, manner and effect of
use of such goods. For example - X bought a tin of disinfectant powder. It had lid
which was to be opened in a specific manner, which the trader did not inform. While
opening the lid in the ordinary way, some powder flew in the eyes of X which
affected his vision. Here X can file a complaint against the trader.
Time frame within which a complaint should be filed
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DR CA S P DESAI CONSUMER PROTECTION ACT
According to Sec.24A of the Consumer Protection Act, a complaint should be filed within a
period of 2 years from the date on which the cause of action has arisen.
The point of time when cause of action would arise is an important factor in determining the
time period available to file a complaint. There are no set rules to decide such time. It
depends on the facts and circumstances of each case. For example –
i. A got his eye operated by B in 1989. He got a certificate of blindness on 18th
December, 1989. He was still in hope of gaining his sight and went from second
operation in 1992 and was discharged on 21-1-1992. He filed a complaint against B
on 11-1-1994. B opposed on the ground that more than 2 years were over after 18-12-
1989, thus the complaint is not maintainable. The Commission held that here the
cause of action for filing the complaint would arose after the second operation when
A lost entire hope of recovery. Thus the suit is maintainable. (Mukund Lal
Ganguly v. Dr. Abhijit Ghosh III 1995 CPJ 64)
ii. A house was allotted on 1-1-1999. Defects appeared in the house on 10-1-1999. Here
the cause of action will arise on 10-1-1999.
If the Consumer Forum is satisfied that there was sufficient cause for not filing the complaint
within the prescribed period, it can entertain a complaint beyond limitation time. However
the Forum must record the reasons for condonation of delay. For example - A deposited some
jewellery with a bank. Bank lost it. Bank kept giving her false sense of hope to retrieve the
jewellery, and thus A was put in a state of inaction. Later on when A filed a suit on the Bank,
it claimed that the suit was not maintainable as the limitation time after the cause of action
arose has lapsed. The Commission reprimanded the bank and admitted the case - Agnes
D’Mello v. Canara Bank [1992] I CPJ 335 (NCDRC).
Relief available against the Complaint
The following reliefs can be sought by the complainant (Sec.14) –
(a) to remove the defect pointed but by the appropriate laboratory from the goods in
question;
(b) to replace the goods with new goods of similar description which is free from any
defect;
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DR CA S P DESAI CONSUMER PROTECTION ACT
(c) to return to the complainant the price, or, as the case may be, the charges paid by the
complainant;
(d) to pay such amount as may be awarded by it as compensation to the consumer for any
loss or injury suffered by the consumer due to the negligence of the opposite party;
(e) to remove the defects in goods or deficiencies in the services in question;
(f) to discontinue the unfair trade practice or the restrictive trade practice or not to repeat
them;
(g) not to offer the hazardous goods for sale;
(h) to withdraw the hazardous goods from being offered for sale;
(i) to cease manufacture of hazardous goods and to desist from offering services which
are hazardous in nature;
(j) to pay such sum as may be determined by it, if it is of the opinion that loss or injury
has been suffered by a large number of consumers who are not identifiable
conveniently, provided that the minimum amount of sum so payable should not be
less than five per cent of the value of such defective goods sold or services provided,
as the case may be, to such consumers. The amount so obtained should be credited in
favour of such person and utilized in such manner as may be prescribed;
(k) to issue corrective advertisement to neutralize the effect of misleading advertisement
at the cost of the opposite party responsible for issuing such misleading
advertisement;
(l) to provide for adequate costs to parties.
When a complaint cannot be filed?
A complaint on behalf of the public which consists of unidentifiable consumers cannot be
filed under the Consumer Protection Act.
For Example - A complaint was filed on the basis of a newspaper report that passengers
travelling by flight No. 1C-401 from Calcutta to Delhi on May 13, 1989 were made to stay at
the airport and the flight was delayed by 90 minutes causing great inconvenience to the
passengers. It was held that such a general complaint cannot be entertained. No passenger
who boarded that plane came forward or authorised the complainant to make the complaint -
Consumer Education and Research Society, Ahmedabad v. Indian Airlines Corporation, New
Delhi (1992) 1 CPJ 38 NC.
An unregistered association cannot file a complaint under the Act.
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A complaint after expiry of limitation period is not permitted. A complaint cannot be filed
after the lapse of two years from the date on which the cause of action arise unless the Forum
is satisfied about the genuineness of the reason for not filing complaint within the prescribed
time.
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