Consumer Protection Act, 1986

Significance of the statute

This statute is regarded as the Magna Carta in the field of consumer protection for checking the unfair trade practices and ‘defect in goods’ and ‘deficiencies in services’ as far as India is concerned. It led to the establishment of a widespread network of consumer forums and appellate courts all over India. It has significantly impacted how businesses approach consumer complaints and empowered consumers to a great extent.

Consumer Protection Council

Consumer Protection Councils are established at the national, state and district level to increase consumer awareness.

The Central Consumer Protection Council

The Central Govt. 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

Consumer Disputes Redressal Agencies

Objectives of Central Council

The objectives of the Central Council is to promote and protect the rights of the consumers such as:-

1. the right to be protected against the marketing of goods and services which are hazardous to life and property.
2. the right to be informed about the quality, quantity, potency, purity, standard and price of goods or services,
3. the right to seek redressal against unfair trade practices or restrictive trade practices or unscrupulous exploitation of consumers; and
4. the right to consumer education.
5. the right against consumer exploitation
6. the right to choose

Objectives of State Council

The objective of every State Council shall be to promote and protect within the State the rights of the consumers laid down in clauses 1 to 6 in central council objectives.

Jurisdiction of District Forum

1. Subject to the other provisions of this Act, the District Forum shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed does not exceed rupees twenty lakhs.
2. A complaint shall be instituted in a District Forum within the local limits of whose jurisdiction:-

Consumer courts do not have jusridiction over matters where services or goods were bought for a commercial purpose.

Jurisdiction of state Commission

Subject to the other provisions of this Act, the State Commission shall have jurisdiction:-

Jurisdiction of National Commission

The National Commission has jurisdiction—

(a) to entertain—

(i) complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees one crore; and

(ii) appeals against the orders of any State Commission; and

(b) to call for the records and pass appropriate orders in any consumer dispute which is pending before or has been decided by any State Commission. However, the Supreme Court of India has held that the jurisdiction of National Commission under Revision Jurisdiction is very limited and can only be exercised when State Commission exceeds its jurisdiction, fails to exercise its jurisdiction or there is material illegality in the order passed by State Commission.