Consumer Protection Act, 1986
Consumer Protection Act 1986 was an Act by the Parliament of India aimed at protecting the interests of consumers in India. It was replaced by the Consumer Protection Act, 2019. It was made for the establishment of consumer councils and other authorities for the settlement of consumer's dispute and matters connected with it.
History of the Act
Consumer rights in India were historically overlooked, leading to rampant exploitation of consumers by businesses. This necessitated the creation of a robust legislation to protect consumers from unfair practices, hence the 'Consumer Protection Act, 1986' was introduced.Significance of the Act
This Act is regarded as the 'Magna Carta' in the field of consumer protection for checking unfair trade practices, ‘defects in goods’ and ‘deficiencies in services’ as far as India is concerned. It has led to the establishment of a widespread network of consumer forums and appellate courts all over India. It has significantly impacted how businesses approach consumers and have empowered consumers to a greater extent.Consumer Protection Council
Consumer Protection Councils are established at the national, state and district level to increase consumer awareness. They guide consumers on how to file cases in the Consumer Disputes Redressal Commissions.Various Consumer Organizations
To increase the awareness of consumers, there are many consumer organisation and NGOs that have been established. Consumer Guidance Society of India was the first consumer organisation established in India in 1966; It was followed by many others such as:- Consumer Education And Research Centre
- Bureau Of Indian Standards
- Federation Of Consumer Organisation In Tamil Nadu
- Mumbai Grahak Panchayat
- Consumer Voice
- Legal Aid Society
- Akhil Bhartiya Grahak Panchayat
- The Consumers Eye India.
- United India Consumer's Association.
- All India Consumer Welfare Council
- Consumer Protection Council Tamil Nadu
Consumer Disputes Redressal Agencies
- District Consumer Disputes Redressal Commission : Also known as the "District Commission" is established by the State Government in each district of the State. The State Governments may establish more than one District Forum in a district. It is a district-level court that deals with cases valuing up to.
- State Consumer Disputes Redressal Commission : Also known as the "State Commission" established by the State Government in the State. It is a state-level court that takes up cases valuing less than
- National Consumer Disputes Redressal Commission : Established by the Central Government. It deals with matters of more than ₹10 million.
Objectives of the central council
- The right to be protected against the marketing of goods and services which are hazardous to life and property.
- The right to be informed about the quality, quantity, potency, purity, standard and price of goods or services, as the case may be to protect the consumer against unfair trade practices;
- The right to be assured, wherever possible, access to a variety of goods and services at competitive prices ;
- The right to be heard and to be assured that consumer's interest will receive due consideration at appropriate forums;
- The right to seek redressal against unfair trade practices or restrictive trade practices or unscrupulous exploitation of consumers
- The right to consumer education
Jurisdiction/Three Tier System of Council Courts
Jurisdiction of District Forum
- 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 one crore.
- A complaint shall be instituted in a District Forum within the local limits of whose jurisdiction:-