CONSUMER PROTECTION ACT, 1986

An Act to ensure better safeguarding of the consumers’ interests and to establish provisions for the creation of consumer councils and other bodies for resolving consumer disputes, along with related matters

Be it enacted by Parliament in the thirty-seventh year of the Republic of India as follows-

Section 1 Short title, extent and application

1. This Act may be referred to as the Consumer Protection Act 1986.
2. It applies throughout India, excluding the State of Jammu and Kashmir.
3. It shall take effect on such date as the Central Government may designate by notification, with different dates potentially assigned for various States and for different sections of this Act.
4. Unless otherwise explicitly stated by the Central Government through notification, this Act shall be applicable to all goods and services.

2.   AIMS AND OBJECTIVES OF THE ACT

The Consumer Protection Act, 1986 was instituted following a significant consumer protection initiative. Based on the report from the Secretary General on Consumer Protection dated 27 May 1983, the United Nations Economic and Social Council advised that the global governments should formulate, enhance, and execute a cohesive consumer protection strategy while considering the guidelines provided therein. The governments were also tasked with establishing sufficient infrastructure, including organizations and financial resources, to develop, implement, and oversee consumer protection policies.

The launch of new products in developing regions was meant to be evaluated against local conditions, considering the current production, distribution, and consumption trends relevant to the particular country or region. In light of the consumer movement and international commitments for safeguarding consumer rights, provisions within the Act have been established with the purpose of interpreting the applicable law sensibly and achieving the aims defined in the Act. A rational perspective rather than a technical interpretation is the requirement of the law.

As stated in the Preamble of the Act, the legislation was established, ‘to provide for the protection of the interests of consumers. ‘The choice of the term ‘protection’ is crucial to understanding the intentions of the Act’s creators.

The legislature has been careful not only to define ‘complaint,’ ‘complainant,’ and

‘consumer’ but also to specify in detail what constitutes unfair trade practices by offering an extensive definition in clause (r),

In addition to defining ‘defect’ and ‘deficiency’ in clauses (f) and (g), which allow a consumer to approach the Commission. Consequently, the Act seeks to safeguard a consumer’s economic interests as they are comprehended in a commercial context as a buyer of goods and, more broadly, as a user of services.

It marks a significant milestone in the history of socio-economic law and is aimed at accomplishing public welfare

Quality of materials: The CPA can pertain to the quality of materials utilized in construction.

Property properties: The CPA can be relevant if the characteristics of the infrastructure differ from what was guaranteed in the agreement.

Untimely delivery: The CPA can be applicable if possession of the house is granted later than what was assured.

Incomplete construction: The CPA can be invoked if the construction remains unfinished. Land allotment: The CPA can be utilized if a government authority assigns land.

Consumer forums: The CPA offers a method for consumers to lodge complaints with Consumer Forums, which are capable of providing compensation to consumers.

Real Estate Regulatory Authority (RERA): The Supreme Court has determined that homebuyers are allowed to initiate a case under the CPA even if the project is registered with RERA. According to the introduction of the Act, the Act was established ‘to provide for the protection of the interests of consumers.’

The use of the term ‘protection’ is crucial for grasping the authors’ intentions behind the Act. The legislature not only assures the definitions of ‘complaint,’ ‘complainant,’ and ‘consumer’ but also offers a detailed account of what constitutes an unfair trade practice by providing a comprehensive definition in clause (r) and clarifying ‘defect’ and ‘deficiency’ through clauses (f) and (g), enabling consumers to address the Commission.

Consequently, the Act seeks to protect the economic interests of consumers as identified in a commercial context as buyers of goods and generally as users of services. It signifies an important achievement in the field of socio-economic regulation, oriented towards improving public welfare. Every consumer has unique rights that this Act is designed to uphold. For example[1], each consumer has the right to be informed about the quality, quantity, potency, purity standard, and price of goods; the right to be protected from the sale of goods that could threaten life and property; the right to access a variety of goods at competitive prices; the right to receive consumer education; the right to have their voices heard with the guarantee that consumer interests will be acknowledged at relevant forums; and ultimately, the right to seek redress against unfair trade practices or the unethical exploitation of consumers. The Supreme Court has ruled that the aim of the Consumer Protection Act is to improve the safeguarding of consumer interests and to assist in the formation of consumer councils and other bodies intended to address consumer disputes and related matters.

3. OBJECTS OF THE ACT- The objectives of the Central Council shall be to promote and protect consumer rights, including,- (a) The right to be safeguarded against the marketing of goods [and services] that pose threats to life and property. (b) The right to be informed about the quality, quantity, potency, purity, standard, and price of goods [or services, as relevant] to protect the consumer from unfair trade practices; (c) The right to be assured, whenever possible, access to a variety of goods and services at competitive prices; (d) The right to be heard and to be ensured that consumer interests will be taken into account at suitable forums; (e) The right to seek remedies against unfair trade practices [or restrictive trade practices] or unethical exploitation of consumers; and (f) The right to consumer education.

[1] SCC Online Supreme Court Expands The Scope of Section 35(1)(a) of the Consumer Protection Act 1986 Fox Mandal Concurrent Remedies under RERA and Consumer Protection Act Lawyers and Legal Services Not Subject to Consumer Protection- Indian Law Offices