THE CONSUMER PROTECTION ACT, 1986 :
To protect the interests of the consumers, the Consumer Protection Act was enacted. The Act extends to the whole of India except the State of Jammu and Kashmir. The Act covers all goods and services, except goods for resale or for commercial purpose and services rendered free of charge and a contract of personal service.
The basic rights of consumers that are sought to be promoted and protected under the Consumer Protection Act, 1986 are:
• the right to be protected against 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 so as to protect the consumer against unfair trade practices;
• the right to be assured, wherever possible, access to variety of goods and services at competitive prices;
• the right to be heard and to be assured that consumers interests 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; and right to consumer education.
Consumer means any person who –
(a) buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose; or
(b) hires or avails of any services for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such services other than the person who hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person but does not include a person who avails of such services for any commercial purpose. [Section 2(1)(d)].
It has been clarified that the term commercial purpose does not include use by a consumer of goods bought and used by him exclusively for the purpose of earning his livelihood by means of self-employment.
Therefore, to be a ‘consumer’ under the Act:
(i) the goods or services must have been purchased or hired or availed of for consideration which has been paid in full or in part or under any system of deferred payment, i.e. in respect of hire purchase transactions;
(ii) goods purchased should not be meant for re-sale or for a commercial purpose. Goods purchased by a dealer in the ordinary course of his business and those which are in the course of his business to supply would be deemed to be for ‘re-sale; and
(iii) in addition to the purchaser(s) of goods, or hirer(s) or users of services, any beneficiary of such services, using the goods/services with the approval of the purchaser or hirer or user would also be deemed a ‘consumer under the Act.
The complaint may be made by the complainant which includes a consumer or any voluntary consumer association registered under the Companies Act,1956 or any other law or the Central or State Government or one or more consumers, having the same interest and in case of death of a consumer his/ her legal heirs or representative.
The Act is for speedy disposal of the redressal of consumer disputes.
Consumer councils are established to promote and protect the rights of consumers. The Central Council has the jurisdiction for the entire country, followed by the State Council for each state and District Council for each district.
The Councils at the State level is headed by the chairman of the council, i.e., the Minister-in-Charge of the Consumer Affairs in the State Government.
The consumers’ complaints are dealt by District Forum, State and National Commission. District forum and State Commission are established by the State Governments, and the National Commission established by Central Government. District Forum has powers to deal with cases up to ` 20 lakhs. The State Commission deals with complaints exceeding value of ` 20 lakh and below ` One crore and appeals against the orders of any District forum within the State. The cases exceeding ` One crore would be handled by the National Commission. They also deal with appeals against the order of any State Commission.
Complaints should be in a prescribed manner, with full details, evidence and applicable fee. Supporting affidavit is required. Admissibility of complaint is to be decided within twenty one days.
Similarly, other procedures and requirements as per the Act which are in force, would be applicable.