Consumer protection Act, 1986

Need of this Act Consumer protection Act, 1986 was enacted to protect consumers against exploitation from suppliers of goods and services. Though Consumer protection Act, 1986 is not the only Act that protects consumers from unscrupulous suppliers, but it surely is better than other laws because of its following special features:1) Inexpensiveness:- There is no need to engage a lawyer to present the case 2) Quick redressal mechanism:- Each case is provided with a time limit for disposal 3) Simplicity Other existing laws for consumers protection such as Sales of Goods Act, Prevention of Food Adulteration Act, Standards of Weight and Measures Act, Dangerous Drugs Act have lost their effectiveness because these laws are too expensive and time consuming. Objective Prime objective of this law is to protect consumers against exploitation from unscrupulous suppliers of goods and services. This law recognizes interests of consumers as their consumer rights and these consumer rights are promoted and protected by Consumer Protection Council. Consumer rights covered under this law are as follows:a) Right to safety :- To be protected against the sale of goods and services which are hazardous to their life or property b) Right to information:- To be informed about quality,quantity,weight and price of goods and services being paid for c) Right to choose:- To be provided with assured, wherever possible, access to variety of goods and services at competitive price d) Right to be heard :- to be assured that their interest will receive due consideration at appropriate forums e) Right to seek redressal against exploitation: - to seek legal redressal against unfair trade practices. f) Right to consumer education:- to have access to consumer education.

Scope and applicability:Consumer protection Act, 1986 extends to the whole of India except the state of Jammu and Kashmir and applies to all goods and services except those notified by central government Sec 1.

Definition of consumer

A consumer means 1) Any person who buys any goods for a consideration which has been paid or promised or partly paid or partly promised or under any system of deferred payments. It also include a person who uses these goods with the approval of the buyer .But it does not include a person who buys goods for commercial purpose. For examples:- suppose A buys TV without any money consideration, in that case A is not a consumer under Consumer protection Act,1986 because A has not paid any consideration. Example:- Suppose A buys TV against a money consideration but uses this TV for commercial purpose and not for personal use the also A is not a consumer under this law. 2) Any person who avails any services for a consideration which has been paid or promised or partly paid or partly promised or under any system of deferred payments. It also include a person who uses these services with the approval of the buyer .But it does not include a person who avails these services for commercial purpose.

Consumer can be classified in two categories:1) Consumer of goods 2) Consumer of services Consumer of goods Important features of definition of consumer of goods are as follows:1) Buying Goods for consideration:- Consumer buyer ,i.e. a person who buy goods for personal use, must buy goods from a business seller, i.e. trader or manufacturer for a consideration which has been paid or partly paid. Term Goods include every kind of movable property other than actionable items and money. Goodwill, trademark, copyright, stocks and shares etc. are all example of Goods. 2) User of goods with the approval of buyer: - A person who even if is not a buyer of goods but uses those goods with approval of its buyer is also a consumer. Illustration:- A purchases a car. And his family member B is using that car with the permission of A.B had some complaint regarding the car so B sued the seller. Seller argued that since B has not bought the car he is not the consumer .But Delhi state consumer dispute redressal commission held that since B was using the car with the permission of A therefore B is also the consumer under the Act (Dinesh Bhagat Vs Bajaj Auto Ltd.) 3) Goods should not be purchased for resale or any commercial purpose:-

If a person buys goods for Resale or any commercial purpose he/she cannot be regarded as consumer under this Act. Illustration: - Suppose there is s trust that runs a diagnostic centre for providing services like X-Ray, CT scan etc. at discounted prices. But it was found that only 10% of the patients were given free services while other patients were charged at par with market price. So it was held that trust used machines for commercial purpose so Trust cannot be regarded as consumer under this Act (Kalpavraksha Charitable Trust vs Toshniwal Brothers) 4) Person buying goods for self-employment is a consumer:If a person buys goods for a) his personal use b) Exclusively for earning his livelihood by means of self-employment Then he is regarded as a consumer under this Act. Illustration:- Suppose P is an eye surgeon and purchases a machine from S for his private nursing home found the machine to be defective so P sued S. S argued that since P is not personal consumer of the machine but using it for his private clinic. Therefore he is using it for commercial purpose hence cannot be regarded as consumer under this Act. But National commission rejected Ss contention and held that even though P was not the using the machine for his personal use but since he was using the machine exclusively for earning his livelihood as a means of self-employment therefore P is a consumer under consumer protection Act.

Consumer of services Important features of definition of consumer of services are as follows:-

1) Hiring of services for consideration: - Person availing the services, to classify as a consumer under this Act. , must pay consideration to service provider. However consideration need not be paid immediately. But if services are availed without any consideration, the person availing the services is not a consumer. Illustration: - A goes to doctor for treating his fever. Doctor charges him a fee of Rs. 100 for treatment. Since A is paying for the services of the doctor he is a consumer under this Act. Illustration: - A goes to doctor for treating his fever. But doctor, being his friend, does not charge him for treatment. Since A is not paying for the services of the doctor A is not a consumer under this Act.

2) Beneficiary of services is also a consumer:- A beneficiary of services ,who might have not hired the services, is also regarded as consumer provided the beneficial use is made with approval of the person who has hired the services. Illustration: - A takes his wife W, who is suffering from fever, to a doctor D for treatment. Doctor charges Rs. 100 for treatment and a pays this fee to the doctor. So here A Is hirer of services because he has made a payment for the doctors services and W is the beneficiary of doctors services. Since W has availed the services of doctor with the approval of A, therefore under Consumer Protection Act. Bothe A and B are consumers.

3) Services should not be availed for any commercial purpose: - A person availing services for commercial purpose, even though he has paid the consideration is not regarded as consumer under consumer protection Act.