The Consumer Protection Act, 1986

This Act was introduced to safeguard the interests of ordinary consumers in their daily transactions like the buying of goods or hiring of services. Some of the rights that are protected include the right to information about the goods o services, the right not to be given defective goods, unfair trade practices, faulty services, exploitation etc. A consumer has been defined  as any person who either buys goods or hires or avails of any services. This definition has been expanded by the courts and now it includes amongst others, medical patients in government and private hospitals, persons allotted houses by the government etc.

To fulfill the objects of the Act the Central Government has established the Central Consumer Protection Council, and the State governments have established the District forums and the State Consumer protection Council in their respective states. A complaint may be made by either the consumer, the government, a recognised consumer society or by one or more consumers having a common interest,  within two years of the grievance arising.

A few instances when such a complaint may be made include losses caused to a consumer as a result of unfair trade practice, defect in goods, deficiency in services, charging in excess of price displayed etc. Once the complaint has been received the other party will be asked to give their version of the case. If the matter pertains to defective goods, the same may be sent to a laboratory for testing. If it relates to a service matter then both parties shall be asked to produce evidence in support of their claims. If the authority is convinced that the complaint is valid then it may order the producer to remove the defect, replace the goods, return the price paid by the consumer, or pay an amount to the consumer as
compensation for any loss or injury suffered. An appeal may be made against such orders to the next highest authority If a trader or any person against whom an order has been made, fails to comply with the order then they may be fined or imprisoned. On the other hand if a complaint is found to be frivolous or malicious then the complainant may be fined.
One of the major developments in the Consumer protection Act has been with respect to whether services provided by the medical profession, especially when it is a free service as in the case of government hospitals can fall under the act. It had been argued that technically such professions do not provide any contracts ‘for services’. The courts however keeping in mind the fact that the Act was intended to protect consumers have held that all professional services whether free or paid for would render a person a consumer under the Act.
The procedures under the Act and under the Commissions are relatively simpler and more informal than under normal litigation. In fact any consumer can appear before the commission and need not even hire a lawyer to argue one’s case. Despite the simple procedures there have not been too many consumer cases in India unlike the United States where the courts are filled with consumer grievances.  One of the reasons for this fact has been the lack of adequate consumer awareness of their rights in India and the seemingly intimidating structure of courts and the legal profession. However to its credit, it must be said the Consumer Protection Act remains one of those rare laws which allows for a speedy and simple protection of the rights of ordinary people, and judicious use of the same would foster a greater consumer movement in India in this age where the market is flooded with more products but not necessarily more information.

URL:http://www.indianrailways.gov.in/RPF/Files/law/BareActs/consumer1986.htm#a