Consumer Protection Act 1986

Consumer Protection Act, 1986: Problems With the Consumer Protection System and Recommendations for Increasing Efficiency.

Introduced in the Lok Sabha in December 1986, the Consumer Protection Act, 1986 provided for the protection of the rights of the consumers. It established a redressal mechanism for the consumers if they were affected by defective manufactured goods and imperfect services, either due to their lack of knowledge or the vendor’s fault. Product liability on the part of vendors was covered under this Act.

The Consumer Protection of 1986 was replaced by the Consumer Protection Act of 2019.

OBJECTIVE OF THE CONSUMER PROTECTION ACT, 1986

The Consumer Protection Act, 1986 was introduced to protect consumers’ rights and interests. Consumer Protection Authorities were established across three tiers – Central Consumer Protection Council, State Consumer Protection Councils, and District Consumer Protection Councils.

These rights along with product liability, consumer dispute redressal commissions, jurisdiction, penalties, and more were covered under Chapters II and III of the Act.

CENTRAL-LEVEL

The Consumer Protection Act, 1986 established the CENTRAL CONSUMER PROTECTION COUNCIL . The Chairman was the Union Minister in charge of consumer affairs.

The Central Council met whenever necessary, with at least one meeting in a year.

The objectives of the Central Council to promote and protect the rights of the consumers were –

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 practises
3. The right to be assured access to a variety of goods and services at competitive prices
4. The right to be heard and to be assured that consumer’s interests will receive due consideration at appropriate forums
5. The right to seek redressal against unfair trade practises or restrictive trade practises or unscrupulous exploitation of con­sumers
6. The right to consumer education.

(The objectives across Central, state, and district levels remain the same)

The Central Government established the National Consumer Disputes Redressal Commission, consisting of –

• Present or former Supreme Court Judge appointed by the Central Government, who shall be its President
• Not more and not less than four members, one of whom shall be a woman. They must not be less than 35 years of age and must possess a bachelor’s degree from a recognized university
• To possess integrity and adequate knowledge and experience of at least 10 years in the fields of economics, law, commerce, accountancy, industry, public affairs, or administration.

The Jurisdiction of the National Commission –

• Entertain complaints where the value of the goods/services and claimed compensation, if any, exceeded rupees 1 Crore
• Appeals against the orders of any State Commission and
• Dealt with consumer disputes where it appeared that a State Commission had illegally or irregularly exercised its jurisdiction, whether it exceeded it or failed to act.

STATE-LEVEL

The STATE CONSUMER PROTECTION COUNCILS ’ members included the Chairman (Minister-in-charge of consumer affairs in the State Government) and other official or non-official members representing the prescribed interests of the State Government. These members, not exceeding 10, were nominated by the Central Government.

The State Council was to meet when necessary, with not less than two meetings held every year.

A State Government established a State Commission within the state, consisting of –

• Present or former High Court Judge, appointed by the State Government, who shall be its President
• Not less than two, and no more than the prescribed number of members, one of whom shall be a woman. They must not be less than 35 years of age and must possess a bachelor’s degree from a recognized university
• Possess integrity and have adequate knowledge and experience of at least 10 years in the fields of economics, law, commerce, accountancy, industry, public affairs, or administration.

The Jurisdiction of the State Commission –

• Entertain complaints where the value of the goods/services and compensation claimed, if any, exceeded rupees 20 Lakhs but does not exceed rupees 1 Crore
• Appeals against the orders of any District Forum within the State and
• Dealt with con­sumer disputes where it appears that a District Forum has illegally or irregularly exercised its jurisdiction, whether it exceeded it or failed to act.

DISTRICT-LEVEL

The DISTRICT CONSUMER PROTECTION COUNCILS ’ membership included the District Collector as its Chairman and other official or non-official members representing the prescribed interests of the State Government.

The District Council shall meet whenever necessary, with not less than 2 meetings held every year.

The State Government shall establish one or more District Forums in each district of the State, consisting of –

• Present or former District Judge, who shall be its President
• 2 other members, one of whom shall be a woman. They must not be less than 35 years of age and must possess a bachelor’s degree from a recognized university
• Possess integrity and have adequate knowledge and experience of at least 10 years in the fields of economics, law, commerce, accountancy, industry, public affairs, or administration.

The Jurisdiction of the District Forums –

• Entertain complaints where the value of the goods/services and the compensation claimed, if any, does not exceed rupees 20 Lakhs
• Conducting business for personal gain or residing in a district qualifies a case to be filed in that District Forum
• The cause of action, wholly or in part, arises in that district.

Conclusion

The Consumer Protection Act, 1986 protected the rights and interests of consumers. It introduced consumer disputes and redressal commissions dealing with compensation, product liability, and penalties. A three-tier system across the district, state, and centre made quality assurance, consumer education, and justice accessible to all. A system of appeals to higher levels, from the State Commission to the National Commission, ensured grievance redressal.

Today, the Consumer Protection Act, 2019 protects the interests of the consumers.