Consumer Protection Act, 1986

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Parliament of India
Citation Act No. 68 of 1986
Enacted by Parliament of India
Commenced24 December 1987
Repealed by
Consumer Protection Act, 2019
Status: Repealed

The Consumer Protection Act, 1986 (COPRA) was an Act by the Parliament of India elected to protect 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 grievances and matters connected with it. The act was passed in Assembly in October 1986 and came into force on December 24, 1986. The statute on the right was made before this COPRA act 1986.

Contents

History of the Act

The industrial revolution and the development in international trade and commerce has led to the vast expansion of business and trade, as a result of which a variety of consumer goods have appeared in the market to cater to the needs of the consumers and a host of services have been made available to the consumers like insurance, transport, electricity, housing, entertainment, finance and banking. A well organised sector of manufacturers and traders with better knowledge of markets has come into existence, thereby affecting the relationship between the traders and the consumers making the principle of consumer sovereignty almost inapplicable. The advertisements of goods and services in television, newspapers and magazines influence the demand for the same by the consumers though there may be manufacturing defects or imperfections or short comings in the quality, quantity and the purity of the goods or there may be deficiency in the services rendered. In addition, the production of the same item by many firms has led the consumers, who have little time to make a selection, to think before they can purchase the best. For the welfare of the public, the glut of adulterated and sub-standard articles in the market have to be checked. In spite of various provisions providing protection to the consumer and providing for stringent action against adulterated and sub-standard articles in the different enactments like Code of Civil Procedure, 1908, the Indian Contract Act, 1872, the Sale of Goods Act, 1930, the Indian Penal Code, 1860, the Standards of Weights and Measures Act, 1976 and the Motor Vehicles Act, 1988, very little could be achieved in the field of Consumer Protection. Though the Monopolies and Restrictive Trade Practices Act, 1969 arid the Prevention of Food Adulteration Act, 1954 have provided relief to the consumers yet it became necessary to protect the consumers from the exploitation and to save them from adulterated and sub-standard goods and services and to safe guard the interests of the consumers. In order to provide for better protection of the interests of the consumer the Consumer Protection Bill, 1986 was introduced in the Lok Sabha on 5th December, 1986.

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. [1]

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. [2]

Various Consumer Organizations

To increase the awareness of consumers, there are many consumer organisations and NGOs that have been established. Consumer Guidance Society of India (CGSI) was the first consumer organization established in India in 1966; It was followed by many others such as:

Consumer Disputes Redressal Agencies

Objectives of the central council

The objectives of the Central Council are 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, as the case may be to protect the consumer against unfair trade practices;
  3. The right to be assured, wherever possible, access to a variety of goods and services at competitive prices ;
  4. The right to be heard and to be assured that consumer's interest will receive due consideration at appropriate forums;
  5. The right to seek redressal against unfair trade practices or restrictive trade practices or unscrupulous exploitation of consumers
  6. The right to consumer education...

Jurisdiction/Three Tier System of Council Courts

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 one crore.
  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 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 business 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 business 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.

Consumer courts do not have jurisdiction over matters where services or goods were bought for a commercial purpose. [4]

Jurisdiction of State Commission

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

a) to entertain
i) complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees one crore but does not exceed rupees ten crore; and
ii) appeals against the orders of any District Forum within the State; and
b) to call for the records and pass appropriate orders in any consumer dispute

Jurisdiction of National Commission

(a) to entertain—
(i) complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees ten crore; and
(ii) appeals against the orders of any State mayor; 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. [5]

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Andhra Pradesh State Consumer Disputes Redressal Commission is an autonomous, statutory and constitutional institution formed as a quasi judicial body for the state of Andhra Pradesh under Section 24-B of the Consumer Protection Act, 1986 to protect the rights of consumers. It is a system of alternate dispute resolution between conflicting parties during the process of trade. The president of the Andhra Pradesh State Consumer Disputes Redressal Commission is appointed by the Andhra Pradesh Government in consultation with the Chief Justice of state Andhra Pradesh High Court.

West Bengal State Consumer Disputes Redressal Commission is an autonomous, statutory and constitutional institution formed as a quasi judicial body in West Bengal under Section 24-B of the Consumer Protection Act, 1986 to protect the rights of consumers. It is a system of alternate dispute resolution between conflicting parties during the process of trade. The president of the States Consumer Disputes Redressal Commission is appointed by the state government in consultation with the Chief Justice of state high court.

Uttar Pradesh State Consumer Disputes Redressal Commission is an autonomous, statutory and constitutional institution formed as a quasi judicial body in Uttar Pradesh under Section 24-B of the Consumer Protection Act, 1986 to protect the rights of consumers. It is a system of alternate dispute resolution between conflicting parties during the process of trade. The president of the States Consumer Disputes Redressal Commission is appointed by the state government in consultation with the Chief Justice of state high court.

Telangana State Consumer Disputes Redressal Commission is an autonomous, statutory and constitutional institution formed as a quasi judicial body in Telangana under Section 24-B of the Consumer Protection Act, 1986 to protect the rights of consumers. It is a system of alternate dispute resolution between conflicting parties during the process of trade. The president of the States Consumer Disputes Redressal Commission is appointed by the state government in consultation with the Chief Justice of state high court.

Tamil Nadu State Consumer Disputes Redressal Commission is an autonomous, statutory and constitutional institution formed as a quasi judicial body in Tamil Nadu under Section 24-B of the Consumer Protection Act, 1986 to protect the rights of consumers. It is a system of alternate dispute resolution between conflicting parties during the process of trade. The president of the States Consumer Disputes Redressal Commission is appointed by the state government in consultation with the Chief Justice of state high court.

Punjab State Consumer Disputes Redressal Commission is an autonomous, statutory and constitutional institution formed as a quasi judicial body in Punjab under Section 24-B of the Consumer Protection Act, 1986 to protect the rights of consumers. It is a system of alternate dispute resolution between conflicting parties during the process of trade. The president of the States Consumer Disputes Redressal Commission is appointed by the state government in consultation with the Chief Justice of state high court.

Kerala State Consumer Disputes Redressal Commission is an autonomous, statutory and constitutional institution formed as a quasi judicial body in Kerala under Section 24-B of the Consumer Protection Act, 1986 to protect the rights of consumers. It is a system of alternate dispute resolution between conflicting parties during the process of trade. The president of the States Consumer Disputes Redressal Commission is appointed by the state government in consultation with the Chief Justice of state high court.

Karnataka State Consumer Disputes Redressal Commission is an autonomous, statutory and constitutional institution formed as a quasi judicial body in Karnataka under Section 24-B of the Consumer Protection Act, 1986 to protect the rights of consumers. It is a system of alternate dispute resolution between conflicting parties during the process of trade. The president of the States Consumer Disputes Redressal Commission is appointed by the state government in consultation with the Chief Justice of state high court.

E-Daakhil is an online portal launched by the Indian The National Consumer Disputes Redressal Commission (NCDRC) in September 2020 for facilitation of offline and online complaints relating to the Consumer Protection Act, 2019 by consumers. The portal is available across all State Consumer Redressal Commissions.

Chhattisgarh State Consumer Disputes Redressal Commission is an autonomous, statutory and constitutional institution formed as a quasi judicial body in Chhattisgarh under Section 24-B of the Consumer Protection Act, 1986 to protect the rights of consumers. It is a system of alternate dispute resolution between conflicting parties during the process of trade. The president of the States Consumer Disputes Redressal Commission is appointed by the state government in consultation with the Chief Justice of state high court.

References

  1. ↑ Kumar, Vineet (12 September 2016). "An Analysis of Consumer Protection Laws in India". iPleaders. Retrieved 10 December 2016.
  2. 1 2 3 "Consumer Protection and National Consumer Disputes Redressal Commission". NCDRC. Archived from the original on 21 July 2011. Retrieved 18 December 2012.
  3. 1 2 3 "District Consumer Forum is now District Commission; will hear cases of value up to ₹1 crore". Hindustan Times. 16 September 2020. Retrieved 1 July 2022.
  4. ↑ Meera Industries, Howrah vs. Modern Constructions, Howrah
  5. ↑ "Jurisdiction of National Commission under Revision Application is limited". Consumer Law India. 13 November 2016. Retrieved 28 January 2017.
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