Consumer Rights

This may be summed up as under:

• The Act applies to all goods and services unless specifically exempted by the Central Government.
• It covers all the sectors – private, public and cooperative.
• The provisions of the Act are compensatory in nature.
• It provides adjudicatory authorities, which are simple, speed and less expensive.
• It also provides for Consumer Protection Councils at the National, State and District levels.

The provisions of this Act are in addition to and not in derogation of the provisions of any other law for the time being in force.

The Act enshrines the following rights:

• The right to be protected against the marketing of goods which are hazardous to life and property;
• The right to be informed about the quality, quantity, potency, purity, standard and price of goods so as to protect the consumer against unfair trade practices;
• The right to be assured, wherever possible access to variety of goods at competitive prices;
• The right to be heard;
• The right to seek redressal against unfair trade practices or unscrupulous exploitation of consumer; and
• The right to consumer education.

The Act provides for the establishment of the Consumer Protection Councils at the National, State and District levels. The objectives of these councils are to help the respective governments in adopting and reviewing policies for promoting and protecting the rights of the consumers.

The District Forum can adjudicate on the matter up to Rs. 20 lakhs, State Commission up to one crore and National Commission above Rs. one crore. The proceedings before these adjudicatory bodies are regulated in accordance with the principles of natural justice.

Value of goods or services Amount of fee payable and compensation claimed

1. Up to one lakh rupee Rs. 100
2. One lakh and above but less than five lakh rupees Rs. 200
3. Five lakh rupees and above but less than Rs.10 lakh Rs. 400
4. Ten lakh rupees and above but not exceeding Rs.20 lakh Rs. 500

The National Commission, State Commissions and District Forums are required to decide complaint, as far as possible, within a period of three months from the date of notice received by the opposite party where complaint does not requires analysis or testing of commodities and within five months if it requires analysis or testing of commodities. The Appeals are allowed within 30 days against the order of the District Forum to the State Commission and against the order of the State Commission, to the National Commission. Appeal can also be preferred to the Supreme Court against the order of the National Commission within a period of 30days. No appeal by a person who is required to pay any amount in terms of an order of the National Commission shall be entertained by the Supreme Court unless that person has deposited in the prescribed manner fifty percent of that amount or rupees fifty thousand, whichever is less. Similarly there is a requirement for depositing Rs. 35000/- and Rs. 25000/- in case of appeals to National Commission and State Commission.

Complainant means

• A Consumer;
• Any Voluntary Consumer Association;
• The Central Government;
• The State Governments or Union Territory Administration;
• One or more consumers , where there are numerous consumers having the same interest
• In case of death of a consumer, his legal heir or representative.

An allegation in writing made by the complainant that

• Any unfair trade practice or restrictive trade practice has been adopted by any trader.
• The goods bought or agreed to be bought suffer from one or more defects.
• Services hired /availed or agreed to be hired /availed suffer from deficiencies in any respect.
• That a trader has charged for the goods or services mentioned in the complaint, a price in excess of the stipulated price.
• fixed by or under any law for the time being in force; or
• displayed on goods; or
• displayed on any package containing such goods
• That goods or services which are hazardous to life and safety of the public are being offered to the public.

A complaint can be filed by

• A consumer to whom goods are sold or delivered or agreed to be sold or delivered or such services provided or agreed to be provided.
• Voluntary Consumer Organisation
• the Central Government;
• the State Governments or Union Territory Administration;
• one or more consumers , where there are numerous consumers having the same interest

A Complaint should contain the following information

(a) The name, description and address of the complainant;

(b) The name, description and address of the opposite party or parties;

(c) The facts relating the complaint and when and where it arose;

(d) Documents ‘if any’ in support of allegations and

(e) The relief which the complainant is seeking.

The complaint should be signed by the Complainant or his/ her authorized agent.

Following reliefs are available to the Consumers under the Act:

• Removal of defects from the goods;
• Replacement of the goods;
• Refund of the price paid;
• Award of compensation for the loss or injury suffered;
• Discontinue and not to repeat unfair trade practice or restrictive trade practice;
• Not to offer hazardous goods for sale;
• To withdraw hazardous goods from sale;
• To cease manufacture of hazardous goods and desist from offering services which are hazardous in nature;
• If the loss or injury has been suffered by a large number of consumers who are not identifiable conveniently, to pay such sum (not less than 5% of the value of such defective goods or services provided) which shall be determined by Forum;
• To issue corrective advertisement to neutralize the effect of misleading advertisement;
• To provide adequate costs to parties.