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CONSUMER PROTECTION ACT, 1986
68 of 1986
An Act to provide for the better protection of the interest of consumers and for that purpose to make provision for the establishment of consumer councils and other authorities for the settlement of consumers' disputes and for matters connected therewith. Be it enacted by Parliament in the Thirty-seventh year of the Republic of India as follows
CHAPTER 01: PRELIMINARY
SECTION 01: SHORT TITLE, EXTENT, COMMENCEMENT AND APPLICATION
(1) This Act may be called the Consumer Protection Act, 1986.
(2) It extends to the whole of India except the State of Jammu and Kashmir.
(3) It shall come into force on such date as the Central Government may, by notification…, appoint and different dates may be appointed for different States and for different provisions of this Act.
(4) Save as otherwise expressly provided by the Central Government by notification, this Act shall apply to all goods and services.
SECTION 02: DEFINITIONS
(1) In this Act, unless the context otherwise requires,-
1[(a) "appropriate laboratory" means a laboratory or organisation-
(i) recognised by the Central Government;
(ii) recognised by a State Government, subject to such guidelines as may be prescribed by the Central Government in this behalf; or
(iii) any such laboratory or organisation established by or under any law for the time being in force, which is maintained, financed or aided by the Central Government or a State Government for carrying out analysis or test of any goods with a view to determining whether such goods suffer from any defect;]
2[(aa) "branch office" means-
(i) any establishment described as a branch by the opposite party; or
(ii) any establishment carrying on either the same or substantially the same activity as that carried on by the head office of the establishment;]
(b) "complainant" means-
(i) a consumer; or
(ii) any voluntary consumer association registered under the Companies Act, 1956 (1 of 1956)or under any other law for the time being in force; or
(iii) the Central Government or any State Government;
3[(iv) one or more consumers, where there are numerous consumers having the same interest;] who or which makes a complaint;
4(v) in case of death of a consumer, his legal heir or representative;
(c) "complaint" means any allegation in writing made by a complainant that-
6[(i) an unfair trade practice or a restrictive trade practice has been adopted by 5["any trader or service provider"];]
(ii)7[the goods bought by him or agreed to be bought by him] suffer from one or more defects;
(iii)8[the services hired or availed of or agreed to be hired or availed of by him] suffer from deficiency in any respects;
9(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;
9(v) goods which will be hazardous to life and safety when used are being offered for sale to the public,—
(a) in contravention of any standards 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;
9(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;
(d) "consumer" means any person who,-
(i) 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
(ii) hires11[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 11[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 12["but does not include a person who avails of such services for any commercial purpose."]
13Explanation.—For the purposes of this clause, "commercial purpose" does not include use by a person of goods bought and used by him and services availed by him exclusively for the purposes of earning his livelihood by means of self-employment;
(e) "consumer dispute" means a dispute where the person against whom a complaint has been made, denies or disputes the allegations contained in the complaint;
(f) "defect" means any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard which is required to be maintained by or under any law for the time being in force or11[under any contract, express or implied, or] as is claimed by the trader in any manner whatsoever in relation to any goods;
(g) "deficiency" means any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance which is required to be maintained by or under any law for the time being in force or has been undertaken to be performed by a person in pursuance of a con- tract or otherwise in relation to any service;
(h) "District Forum" means a Consumer Dispute Redressal Forum established under clause (a) of section 9-;
(i) "goods' means goods as defined in the Sale of Goods Act, 1930 (3 of 1930);
15(j) manufacturer" means a person who—
(i) makes or manufactures any goods or parts thereof; or
(ii) does not make or manufacture any goods but assembles parts thereof made or manufactured by others; or
(iii) puts or causes to be put his own mark on any goods made or manufactured by any other manufacturer;
16[(jj) "member" includes the President and a member of the National Commission or a State Commission or a District Forum, as the case may be;]
(k) "National Commission" means the National Consumer Disputes Redressal Commission established under clause (c) of section 9-;
(l) "notification" means a notification published in the Official Gazette;
(m) "person" includes,-
(i) a firm whether registered or not;
(ii) a Hindu undivided family;
(iii) a co-operative society;
(iv) every other association of persons whether registered under the Societies Registration Act, 1860 (21 of 1860) or not;
(n) "prescribed" means prescribed by rules made by the State Government or as the case may be, by the Central Government under this Act;
17(nn) "regulation" means the regulations made by the National Commission under this Act;
17(nnn) "restrictive trade practice" means a trade practice which tends to bring about manipulation of price or its conditions of delivery or to affect flow of supplies in the market relating to goods or services in such a manner as to impose on the consumers unjustified costs or restrictions and shall include—
(a) delay beyond the period agreed to by a trader in supply of such goods or in providing the services which has led or is likely to lead to rise in the price;
(b) any trade practice which requires a consumer to buy, hire or avail of any goods or, as the case may be, services as condition precedent to buying, hiring or availing of other goods or services;';
(o) "service" means service of any description which is made available to potential18["users and includes, but not limited to, the provision of "] facilities in connection with banking, financing, insurance, transport, processing, supply of electrical or other energy, board or lodging or both,16[housing construction,] entertainment, amusement or the purveying of news or other information, but does not include the rendering of any service free of charge or under a contract of personal service;
20(oo) "spurious goods and services" means such goods and services which are claimed to be genuine but they are actually not so;
(p) "State Commission" means a Consumer Disputes Redressal Commission established in a State under clause (b) of section 9-;
(q) "trader" in relation to any goods means a person who sells or distributes any goods for sale and includes the manufacturer thereof, an where such goods are sold or distributed in package form, includes the packer thereof;
21[(r) "unfair trade practice" means a trade practice which, for the purpose of promoting the sale, use or supply of any goods or for the provision of any service, adopts any unfair method or unfair or deceptive practice including any of the following practices, namely :-
(1) the practice of making any statement, whether orally or in writing or by visible representation which,-
(i) falsely represents that the goods are of a particular standard quality, quantity, grade, composition, style or model;
(ii) falsely represents that the services are of a particular standard, quality or grade;
(iii) falsely represents any re-built, second-hand, renovated, reconditioned or old goods as new goods;
(iv) represents that the goods or services have sponsorship, approval, performance, characteristics, accessories, uses or benefits which such goods or services do not have;
(v) represents that the seller or the supplier has a sponsorship or approval or affiliation which such seller or supplier does not have;
(vi) makes a false or misleading representation concerning the need for, or the usefulness of, any goods or services;
(vii) gives to the public any warranty or guarantee of the performance, efficacy or length of life of a product or of any goods that is not based on an adequate or proper test thereof : Provided that where a defence is raised to the effect that such warranty or guarantee is based on adequate or proper test, the burden of proof of such defence shall lie on the person raising such defence;
(viii) makes to the public a representation in a form that purports to be -
(i) a warranty or guarantee of a product or of any goods or services; or
(ii) a promise to replace, maintain or repair an article or any part thereof or to repeat or continue a service until it has achieved a specified result, if such purported warranty or guarantee or promise is materially misleading or if there is no reasonable prospect that such warranty, guarantee or promise will be carried out;
(ix) materially misleads the public concerning the price at which a product or like products or goods or services, have been or are, ordinarily sold or provided, and, for this purpose, a representation as to price shall be deemed to refer to the price at which the product or goods or services has or have been sold by sellers or provided by suppliers generally in the relevant market unless it is clearly specified to be the price at which the product has been sold or services have been provided by the person by whom or on whose behalf the representation is made;
(x) gives false or misleading facts disparaging the goods, services or trade of another person. shall be deemed to be a statement made to the public by, and only by, the person who had caused the statement to be so expressed, made or contained;
(2) permits the publication of any advertisement whether in any news- paper or otherwise, for the sale or supply at a bargain price, of goods or services that are not intended to be offered for sale or supply at the bargain price, or for a period that is, and in quantities that are, reasonable, having regard to the nature of the market in which the business is carried on, the nature and size of business, and the nature of the advertisement.
(3) permits-
(a) the offering of gifts, prizes or other items with the intention of not providing them as offered or creating impression that something is being given or offered free of charge when it is fully or partly covered by the amount charged in the trans- action as a whole;
(b) the conduct of any contest, lottery, game of chance or skill, for the purpose of promoting, directly or indirectly, the sale, use or supply of any product or any business interest;
23(3A) withholding from the participants of any scheme offering gifts, prizes or other items free of charge, on its closure the information about final results of the scheme.
Explanation.—For the purposes of this sub-clause, the participants of a scheme shall be deemed to have been informed of the final results of the scheme where such results are within a reasonable time published prominently in the same newspapers in which the scheme was originally advertised;
(4) permits the sale or supply of goods intended to be used, or are of a kind likely to be used, by consumers, knowing or having reason to believe that the goods do not comply with the standards pre - scribed by competent authority relating to performance, composition, contents, design, constructions, finishing or packaging as are necessary to prevent or reduce the risk of injury to the person using the goods;
(5) permits the hoarding or destruction of goods, or refuses to sell the goods or to make them available for sale or to provide any service, if such hoarding or destruction or refusal raises or tends to raise or is intended to raise, the cost of those or other similar goods or services.]
23(6) manufacture of spurious goods or offering such goods for sale or adopting deceptive practices in the provision of services.
(2) Any reference in this Act to any other Act or provision thereof which is not in force in any area to which this Act applies shall be construed to have a reference to the corresponding Act or provision thereof in force in such area.
SECTION 03: ACT NOT IN DEROGATION OF ANY OTHER LAW
The provisions of this Act shall be in addition to and not in derogation of the provisions of any other law for the time being in force.
CHAPTER 02: CONSUMER PROTECTION COUNCILS
SECTION 04: THE CENTRAL CONSUMER PROTECTION COUNCIL
(1)24["The Central Government 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 (hereinafter referred to as the Central Council).
(2) The Central Council shall consist of the following members, namely :-
(a) the Minister in charge of22[consumer affairs] in the Central Government, who shall be its Chairman, and
(b) such number of other official or non-official members representing such interests as may be prescribed
SECTION 05: PROCEDURE FOR MEETINGS OF THE CENTRAL COUNCIL
(1) The Central Council shall meet as and when necessary, but 25[at least one meeting] of the Council shall be held every year
(2) The Central Council shall meet at such time and place as the Chairman may think fit and shall observe such procedure in regard to the transaction of its business as may be prescribed
SECTION 06: OBJECTS OF THE CENTRAL COUNCIL
The objects of the Central Council shall be to promote and protect the rights of the consumer such as,-
(a) the right to be protected against the marketing of goods26[and services] which are hazardous to life and property;
(b) the right to be informed about the quality, quantity, potency, purity, standard and price of goods26[or services, as the case may be,] so as to protect the consumer against unfair trade practices;
(c) the right to be assured, wherever possible, access to a variety of goods26[and services] at competitive prices;
(d) the right to be heard and to be assured- that consumers' interests will receive due consideration at appropriate forums;
(e) the right to seek redressal against unfair trade practices26[or restrictive trade practices] or unscrupulous exploitation of consumers; and
(f) the right to consumer education
SECTION 07: THE STATE CONSUMER PROTECTION COUNCILS
(1)27["The Central Government shall"], by notification, establish with effect from such date as it may specify in such notification, a Council to be known as the Consumer Protection Council ............................(hereinafter referred to as State Council).
28[(2) The State Council shall consist of the following members, namely:-
(a) the Minister in -charge of consumer affairs in the State Government who shall be its Chairman;
(b) such number of other official or non -official members representing such interests as may be prescribed by the State Government.
29(c) such number of other official or non-official members, not exceeding ten, as may be nominated by the Central Government.
(3) The State Council shall meet as and when necessary but not less than two meetings shall be held every year.
(4) The State Council shall meet at such time and place as the Chairman may think fit and shall observe such procedure in regard to the transaction of its business as may be prescribed by the State Government.]
SECTION 08: OBJECTS OF THE STATE COUNCIL
The objects of. every State Council shall be to promote and protect within the State the rights of the consumers laid down in clauses (a) to (f) ofsection 6-
SECTION 08A: THE DISTRICT CONSUMER PROTECTION COUNCIL
30 (1) The State Government shall establish for every district, by notification, a council to be known as the District Consumer Protection Council with effect from such date as it may specify in such notification.
(2) The District Consumer Protection Council (hereinafter referred to as the District Council) shall consist of the following members, namely:—
(a) the Collector of the district (by whatever name called), who shall be its Chairman; and
(b) such number of other official and non-official members representing such interests as may be prescribed by the State Government.
(3) The District Council shall meet as and when necessary but not less than two meetings shall be held every year.
(4) The District Council shall meet at such time and place within the district as the Chairman may think fit and shall observe such procedure in regard to the transaction of its business as may be prescribed by the State Government.
SECTION 08B: OBJECTS OF THE DISTRICT COUNCIL
30The objects of every District Council shall be to promote and protect within the district the rights of the consumers laid down in clauses (a) to (f) of Section 6.
CHAPTER 03: CONSUMER DISPUTES REDRESSAL AGENCIES
SECTION 09: ESTABLISHMENT OF CONSUMER DISPUTES REDRESSAL AGENCIES
There shall be established for the purposes of this Act, the following agencies, namely:-
(a) a Consumer Disputes Redressal Forum to be known as the "District Forum" established by the State Government31[* * *] in each district of the State by notification:32[Provided that the State Government may, if it deems fit, establish more than one District Forum in a district;]
(b) a Consumer Disputes Redressal Commission to be known as the "State Commission" established by the State Government31[* * * ] in the State by notification; and
(c) a National Consumer Disputes Redressal Commission established by the Central Government by notification
SECTION 10: COMPOSITION OF THE DISTRICT FORUM
33[(1) Each District Forum shall consist of-
(a) a person who is, or has been, or is qualified to be a District Judge, who shall be its President;
34"(b) two other members, one of whom shall be a woman, who shall have the following qualifications, namely:—
(i) be not less than thirty-five years of age,
(ii) possess a bachelor's degree from a recognised university,
(iii) be persons of ability, integrity and standing, and have adequate knowledge and experience of at least ten years in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or administration :
Provided that a person shall be disqualified for appointment as a member, if he—
(a) has been convicted and sentenced to imprisonment for an offence which, in the opinion of the State Government, involves moral turpitude; or (b) is an undischarged insolvent; or
(c) if of unsound mind and stands so declared by a competent court; or
(d) has been removed or dismissed from the service of the Government or a body corporate owned or controlled by the Government; or
(e) has, in the opinion of the State Government, such financial or other interest as is likely to affect prejudicially the discharge by him of his functions as a member; or
(f) has such other disqualifications as may be prescribed by the State Government;
35[(1A) Every appointment under sub -section (1) shall be made by the State Government on the recommendation of a selection committee consisting of the following, namely : -
(i) President of the State Commission-Chairman,
(ii) Secretary, Law Department of the State -Member,
(iii) Secretary, in charge of the Department dealing with consumer affairs in the State-Member.]
36Provided that where the President of the State Commission is, by reason of absence or otherwise, unable to act as Chairman of the Selection Committee, the State Government may refer the matter to the Chief Justice of the High Court for nominating a sitting Judge of that High Court to act as Chairman.
37(2) Every member of the District Forum shall hold office for a term of five years or up to the age of sixty-five years, whichever is earlier :
Provided that a member shall be eligible for re-appointment for another term of five years or up to the age of sixty-five years, whichever is earlier subject to the condition that he fulfils the qualifications and other conditions for appointment mentioned in clause (b) of sub-section (1) and such re -appointment is also made on the basis of the recommendation of the Selection Committee :
Provided further that a member may resign his office in writing under his hand addressed to the State Government and on such resignation being accepted. his office shall become vacant and may be filled by appointment of a person possessing any of the qualifications mentioned in sub-section (1) in relation to the category of the member who is required to be appointed under the provisions of sub-section (1-A) in place of the person who has resigned :
Provided also that a person appointed as the President or as a member, before the commencement of the Consumer Protection (Amendment) Act 2002 shall continue to hold such office as President or member, as the case may be, till the completion of his term.
(3) The salary or honorarium and other allowance payable to, and the other terms and conditions of service of the members of the District Forum shall be such as may be prescribed by the State Government
38Provided that the appointment of a member on while-time basis shall be made by the State Government on the recommendation of the President of the State Commission taking into consideration such factors as may be prescribed including the workload of the District Forum.
SECTION 11: JURISDICTION OF THE DISTRICT FORUM
(1) Subject to the other provisions of this Act, the District Form shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed39 ["does not exceed Rupees Twenty lakhs".]
(2) A complaint shall be instituted in a District Forum within the local limits of whose
jurisdiction,-
(a) the opposite party or each of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides or carries on business, or .40[has a branch office or] personally works for gain ; or
(b) any of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides, or carries on business41[or has a branch office], or personally works for gain, provided that in such case either the permission of the District Forum is given, or the opposite parties who do not reside, or carry on business41[or have a branch office], or personally work for gain, as the case may be, acquiesce in such institution; or
(c) the cause of action, wholly or in part, arises
SECTION 12: MANNER IN WHICH COMPLAINT SHALL BE MADE.
42 (1) A complaint in relation to any goods sold or delivered or agreed to be sold or delivered or any service provided or agreed to be provided may be filed with a District Forum by—
(a) the consumer to whom such goods are sold or delivered or agreed to be sold or delivered or such service provided or agreed to be provided;
(b) any recognised consumer association whether the consumer to whom the goods sold or delivered or agreed to be sold or delivered or service provided or agreed to be provided is a member of such association or not;
(c) one or more consumers, where there are numerous consumers having the same interest, with the permission of the District Foru
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