An Overview of the

Consumer Protection Act

What is the Consumer Protection Act?
The Consumer Protection Act, implemented in 1986, gives easy and fast
compensation to consumer grievances. It safeguards and encourages consumers to
speak against insufficiency and flaws in goods and services. If traders and
manufacturers practice any illegal trade, this act protects their rights as a consumer.
The primary motivation of this forum is to bestow aid to both the parties and
eliminate lengthy lawsuits.

This Protection Act covers all goods and services of all public, private, or cooperative
sectors, except those exempted by the central government. The act provides a
platform for a consumer where they can file their complaint, and the forum takes
action against the concerned supplier and compensation is granted to the consumer
for the hassle he/she has encountered.

Consumer Rights and Responsibilities:

The Rights of the Consumer

 Right to Safety- Before buying, a consumer can insist on the quality and guarantee of
the goods. They should ideally purchase a certified product like ISI or AGMARK.
 Right to Choose- Consumer should have the right to choose from a variety of goods and
in a competitive price.
 Right to be informed- The buyers should be informed with all the necessary details of
the product, make her/him act wise, and change the buying decision.
 Right to Consumer Education- Consumer should be aware of his/her rights and avoid
exploitation. Ignorance can cost them more.
 Right to be heard- This means the consumer will get due attention to express their
grievances at a suitable forum.
 Right to seek compensation- The defines that the consumer has the right to seek
redress against unfair and inhumane practices or exploitation of the consumer.

The Responsibilities of the Consumer

 Responsibility to be aware – A consumer has to be mindful of the safety and quality of

products and services before purchasing.
 Responsibility to think independently– Consumer should be well concerned about
what they want and need and therefore make independent choices.
 Responsibility to speak out- Buyer should be fearless to speak out their grievances
and tell traders what they exactly want
  Responsibility to complain- It is the consumer’s responsibility to express and file a
complaint about their dissatisfaction with goods or services in a sincere and fair manner.
 Responsibility to be an Ethical Consumer- They should be fair and not engage
themselves with any deceptive practice.

How to File a Complaint?

 Within two years of purchasing the product or services, the complaint should be filled.
 In the complaint, the consumer should mention the details of the problem. This can be an
exchange or replacement of the product, compensation for mental or physical torture.
However, the declaration needs to be reasonable.
 All the relevant receipts, bills should be kept and attached to the complaint letter.
 A written complaint should be then sent to the consumer forum via email, registered post,
fax or hand-delivered. Acknowledgement is important and should not be forgotten to
receive.
 The complaint can be in any preferred language.
 The hiring of a lawyer not required.
 All the documents sent and received should be kept.

Explain the redressal mechanism available to consumers under

the Consumer Protection Act, 1986.
 Solution
 Redressal Agencies: For the redressal of consumer
grievances, the Consumer Protection Act, 1986 provides for
setting up of a three-tier machinery at the district, state and
the national levels. These agencies are:
 1. District Forum or District Consumer Dispute Redressal
Forum
 (i) The State Governments are required to establish District
Forums in each district.
 (ii) Each District Forum consists of a chairman and two
members appointed by the State Government, one of whom
should be a woman.
 (iii) A District Forum can receive consumer complaints,
where the value of goods or services and the compensation
claimed is not more than 20 lakhs.
 (iv) The complaint can be filed by a consumer to whom
goods are sold or services rendered, or any recognised
consumer association.
 (v) On receiving the complaint, the District Forum shall refer
the complaint to the opposite party concerned and send the
sample of goods for testing in a laboratory. The opposite
party is the seller, manufacturer or any organisation against
whom the complaint has been filed.
 2. State Commission or State Consumers Disputes Redressal
Commission
 (i) State Commission is set up by the State Government and
its jurisdiction is restricted to the boundaries of the state
concerned.
 (ii) The State Commission shall consist of a President, who is
or has been a judge of a High Court and two other members,
one of whom is a woman. All the three shall be appointed by
the State Government.
 (iii) Only those complaints can be filed, where the value of
goods or services and compensation claimed is more than
Rs. 20 lakhs but not more than Rs. 100 lakhs. The appeals
against the orders of any District Forum can also be filed
before the State Commission, within 30 days of passing of
the order.
 3. National Commission or National Consumer Disputes
Redressal Commission
 (i) The National Commission is set up by the Central
Government.
 (ii) It shall consist of a President, who is or has been a judge
of the Supreme Court and four other members appointed by
the Central Government, one of whom shall be a woman.
 (ii) All complaints pertaining to those goods or services and
compensation whose value is more than Rs. 100 lakhs can
be filed. Appeals against the order of any State Commission
can also be filed before the National Commission, within 30
days of passing of the order.
  (iv) An order passed by the National Commission is
appealable before the Supreme Court.

What is the procedure to file a complaint in the Consumer Court?

STEP 1: Intimation via Notice: A notice to be sent by the aggrieved party to the service provider who
provided the goods or the services. The notice communicates the intention of the complainer to
resort to litigation and informs him about the defects in the goods or the deficiency in the service or
any unfair practice. The notice is also an attempt to settle the complaint without approaching the
Forum i.e. if the service provider is willing to offer compensation or any other remedy.

STEP 2: Get the Consumer Complaint Drafted: If the service provider is not willing to offer
compensation or any other remedy, the next step is to file a formal complaint under the Consumer
Protection Act, 1986. The filing of the Complaint does not necessarily require a lawyer. The complaint
can be filed by the aggrieved person. The following details must be specified in the complaint: 1.
Name, description and the address of the complainant(s) and the Opposite Party or parties. 2. Cause
of Action, the approximate date, time and venue. 3. Relevant facts relating to the cause of action. 4.
The Relief or Remedy claimed by the complainant in accordance with the facts of the case. 5.
Signature and Verification by the complainant or his authorized agent.

STEP 3: Attach Relevant Documents: Copies of material evidence and relevant documents that
support your case in Consumer Court are important. These documents include: o A copy of the bill,
receipt of delivery, packaging of a product, a record of online booking of the goods bought o
Warranty/Guarantee certificates o A copy of the written complaint and notice sent to the
manufacturer/seller STEP 4: Appropriate Forum: Choose the appropriate forum for filing the
complaint in accordance with the pecuniary jurisdiction which is estimated in reference to the total
value of goods and services bought or availed and the amount of compensation sought.

STEP 5: Pay Requisite Court Fees: A prescribed fee is required to be paid along with the complaint
filed depending on the forum. The court fee depends upon the value of goods bought and the
amount of compensation sought.
STEP 6: Submit an Affidavit: The person who wants to file a case in the Consumer Court is also
required to submit an affidavit in the court. The affidavit must state that the facts presented and
statements made by the consumer are true to their knowledge.

Consumer Consumer
Protection Act Protection Act
Basis 1986 2019

The jurisdiction under The jurisdiction under

Consumer Protection Consumer Protection
Act 1986 was District Act 2019 is District
Forum (up to ₹20 Commission (up to ₹1
Jurisdiction Lakhs), State Crore), State
Commission (₹20 Lakhs Commission (₹1 Crore
to ₹1 Crore), and to ₹10 Crore), and
National Commission National Commission
(above ₹1 Crore). (₹10 Crore and above).

Under this Act, a Central

During this Act, no such government protection
Regulator
provision was there. authority is to be
formed.

Under this Act, the

Under this Act, MRP
MRP/ discounted price or
was a criterion for
Purchase actual purchase price is
deciding the
Price used to decide
jurisdiction.
jurisdiction.

Under this Act, every

Under this Act, there provision applicable to
E-Commerce was no mention of E- the direct seller is also
Commerce. applicable to the E-
Commerce seller.

Under this Act, the court

No such provision was can refer to a
Mediation
there under this Act. settlement through
mediation.
 Consumer Consumer
Protection Act Protection Act
Basis 1986 2019

Under this Act, the State

Commission and the
Unfair Terms
No such provision was National Commission
and
there under this Act. have the power to
Conditions
declare a contract null
and void if it is unfair.

Under this Act, there

are three authorities;
Under this Act, there
viz., District
were three authorities;
Commission, State
Authority viz., District Forum,
Commission, and
State Commission, and
National Consumer
National Commission.
Dispute Redressal
Commission.

Under Consumer Under Consumer

Protection Act 1986, Protection Act 2019, the
Composition
the State Commission State Commission is
of State
was composed of one composed of one
Commission
president and two other president and four other
members. members.