UPSC » UPSC CSE Study Materials » General Awareness » Consumer Protection Act 1986 History

Consumer Protection Act 1986 History

Consumer Protection Act, 1986 was introduced to protect consumers’ rights and interests. Read on to know about the Objective of this Act, the Jurisdiction of the National Commission and the Jurisdiction of the District Forums.

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

Objective 

The Consumer Protection Act 1986 was introduced to protect consumers’ rights and interests. Consumer Protection Authorities were established across 3 tiers-Central consumer protection authority, 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

Consumer Protection Act 1986 established the central consumer protection authority.The Central Council met whenever necessary, with at least one meeting in a year. 

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

  • Present or former Supreme Court Judge appointed by the Central Government, shall be its President.
  • Not more and not less than 4 members, one of whom shall be a woman. They must not be less than 35 years of age.
  • 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 

  • Appeals against the orders of any State Commission.
  • 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 state Government.

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

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 no 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.
  • 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 

  • 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. 

Rights of the consumers 

Right to safety

  • The right to be safeguarded against the marketing of goods and the delivery of services that are hazardous to life and property exists for consumers who use different commodities and services in their daily lives.
  • Producers must adhere to all applicable safety standards and regulations to the letter and spirit. Pressure cookers, for example, should be equipped with a safety valve.

Right to be informed

  • Consumers have a right to be informed about the specifics of the goods and services that they purchase, and they should be (for example ingredients used, price, batch number, date of manufacture, expiry date, and the address of the manufacturer).
  • Consumers can then file a complaint and request reimbursement or a replacement if the goods turn out to be defective in any way when compared to the information provided.

Right to seek redressal

  • If a consumer suffers any harm, he or she has the right to demand compensation, which is determined by the severity of the harm.
  • In some cases, the consumer can register a complaint with the proper consumer forum on his or her own, either with or without the assistance of attorneys.

Right to represent

  • Consumer Protection Councils provide information to customers on how to submit claims in the consumer court system. 
  • Frequently, they are also called upon to represent individual customers in consumer courts. 
  • They also receive financial assistance from the government in order to raise awareness among the general public.

Right to consumer education

  • When we, as consumers, become aware of our rights when purchasing a variety of goods and services, we will be better able to discriminate and make informed decisions.
  • To do so, one must first acquire the knowledge and skills necessary to become a well-informed customer.
  • Following the passage of the Consumer Protection and Fair Trading Act (COPRA), distinct Consumer Affairs Departments in both the federal and state governments were established in order to raise consumer awareness.

Conclusion

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 3-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.

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

faq

Frequently asked questions

Get answers to the most common queries related to the UPSC Examination Preparation.

When was the 1986 Act amended?

Ans. Consumer Protection Act 1986 was amended thrice-1991, 1993, and 2002. It has been replaced by the Consu...Read full

How many chapters did the 1986 Act have?

Ans. Consumer Protection Act 1986 had 4 chapters dealing with product liability and rights of consumers....Read full

How do appeals work under the National Commission?

Ans. Grievance caused by an order of the National Commission is open to appeal in the Supreme Court within 3...Read full

How do appeals work under State Commissions and District Forums?

Ans. Grievances caused by an order of the State Commission are open to appeal to the National Commi...Read full

What are the penalties prescribed under The Consumer Protection Act 1986?

Ans. Punishments can include imprisonment for a term not less than 1 month, extendable to 3 years. Fine shal...Read full