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Consumer Protection Act, 1986

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.

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Repealed by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Status: Repealed

History of the Act edit

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 edit

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 edit

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 edit

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 Education And Research Centre (Gujarat)
  • Bureau Of Indian Standards
  • Federation Of Consumer Organisation In Tamil Nadu
  • Mumbai Grahak Panchayat
  • Consumer Voice (New Delhi)
  • Legal Aid Society (Kolkata)
  • Akhil Bhartiya Grahak Panchayat
  • The Consumers Eye India.
  • United India Consumer's Association.

Consumer Disputes Redressal Agencies edit

  • District Consumer Disputes Redressal Commission (DCDRC): Also known as the "District Commission" is established by the State Government in each district of the State. The State Governments may establish more than one District Forum in a district. It is a district-level court that deals with cases valuing up to 10 million (US$130,000).[2][3]
  • State Consumer Disputes Redressal Commission (SCDRC): Also known as the "State Commission" established by the State Government in the State. It is a state-level court that takes up cases valuing less than 100 million (US$1.3 million)[2][3]
  • National Consumer Disputes Redressal Commission (NCDRC): Established by the Central Government. It deals with matters of more than ₹100 million.[3]

Objectives of the central council edit

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 edit

Jurisdiction of District Forum edit

  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 edit

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 edit

(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]

References edit

  1. ^ Kumar, Vineet (12 September 2016). "An Analysis of Consumer Protection Laws in India". iPleaders. Retrieved 10 December 2016.
  2. ^ a b c . NCDRC. Archived from the original on 21 July 2011. Retrieved 18 December 2012.
  3. ^ a b c "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.

External links edit

  • Text of the Act

consumer, protection, 1986, copra, parliament, india, elected, protect, interests, consumers, india, replaced, consumer, protection, 2019, made, establishment, consumer, councils, other, authorities, settlement, consumer, grievances, matters, connected, with, . 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 Parliament of IndiaCitationAct No 68 of 1986Enacted byParliament of IndiaCommenced24 December 1987Repealed byConsumer Protection Act 2019Status Repealed Contents 1 History of the Act 2 Significance of the Act 3 Consumer Protection Council 3 1 Various Consumer Organizations 4 Consumer Disputes Redressal Agencies 5 Objectives of the central council 6 Jurisdiction Three Tier System of Council Courts 6 1 Jurisdiction of District Forum 6 2 Jurisdiction of State Commission 6 3 Jurisdiction of National Commission 7 References 8 External linksHistory of the Act editThe 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 editThis 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 editConsumer 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 edit 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 Education And Research Centre Gujarat Bureau Of Indian Standards Federation Of Consumer Organisation In Tamil Nadu Mumbai Grahak Panchayat Consumer Voice New Delhi Legal Aid Society Kolkata Akhil Bhartiya Grahak Panchayat The Consumers Eye India United India Consumer s Association Consumer Disputes Redressal Agencies editMain article Consumer Court District Consumer Disputes Redressal Commission DCDRC Also known as the District Commission is established by the State Government in each district of the State The State Governments may establish more than one District Forum in a district It is a district level court that deals with cases valuing up to 10 million US 130 000 2 3 State Consumer Disputes Redressal Commission SCDRC Also known as the State Commission established by the State Government in the State It is a state level court that takes up cases valuing less than 100 million US 1 3 million 2 3 National Consumer Disputes Redressal Commission NCDRC Established by the Central Government It deals with matters of more than 100 million 3 Objectives of the central council editThe objectives of the Central Council are to promote and protect the rights of the consumers such as The right to be protected against the 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 as the case may be to protect the consumer against unfair trade practices The right to be assured wherever possible access to a variety of goods and services at competitive prices The right to be heard and to be assured that consumer s interest 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 The right to consumer education Jurisdiction Three Tier System of Council Courts editJurisdiction of District Forum edit 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 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 dd Consumer courts do not have jurisdiction over matters where services or goods were bought for a commercial purpose 4 Jurisdiction of State Commission edit Subject to the other provisions of this Act the State Commission shall have jurisdiction a to entertaini 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 dd b to call for the records and pass appropriate orders in any consumer dispute dd Jurisdiction of National Commission edit a to entertain dd i complaints where the value of the goods or services and compensation if any claimed exceeds rupees ten crore and dd dd ii appeals against the orders of any State mayor and dd dd 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 dd References edit Kumar Vineet 12 September 2016 An Analysis of Consumer Protection Laws in India iPleaders Retrieved 10 December 2016 a b c Consumer Protection and National Consumer Disputes Redressal Commission NCDRC Archived from the original on 21 July 2011 Retrieved 18 December 2012 a b c 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 Meera Industries Howrah vs Modern Constructions Howrah Jurisdiction of National Commission under Revision Application is limited Consumer Law India 13 November 2016 Retrieved 28 January 2017 External links editText of the Act Retrieved from https en wikipedia org w index php title Consumer Protection Act 1986 amp oldid 1201974161, wikipedia, wiki, book, books, library,

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