What Is Consumer Protection Act Of India?

In essence, this law passed some two decades ago is enforced in the interest of the welfare of citizens in India. In addition to protecting the health and financial interests of consumers, the law also provides for agencies to hear and settle claims.

When the act was first passed, the plan was to establish hearing officer systems at several different levels. While these semi-official courts are not part of the established judiciary, the officers can provide relief and hand out penalties for violation of the Consumer Protection Act.

The philosophy behind the law is, according to legal analysts, is prevention. That is, the act tries to prevent consumers from being unfairly exploited by businesses and individuals. Councils made up of consumers and their chosen representatives work with the guidelines of this law to hear and settle disputes.

Some observers note that this act differs from some past laws of India in that it provides specifically for compensation to the consumer. This method of settlement is a change from the traditional act of fining or otherwise punishing the business or agency that caused the problem. In fact, the law was changed slightly, seven years after its passage, to extend its powers.

Areas of regulation in the Consumer Protection Act that focus on hazards to health and personal property are at the top of the law’s priority list. Some of the terms used during hearings and settlements are: purity, price, quality, quantity etc. The law also specifies the consumer’s right to be heard in an appropriate setting. In addition, the act lists consumer education as very important, so as to prevent future disputes.

The structure of the hearing system, taken directly from the law itself, includes “redressal forums” at the district, state and national levels. If the issue reaches the national level, the settlement generally involves higher cost/compensation issues that haven’t been settled at the level closer to home.

The Consumer Protection Act in India does not distinguish between public and private entities, and does not necessarily overrule other applicable laws. Not only that, but the law is very specific about who the consumer is when goods are at the heart of the matter as opposed to who the consumer is when services are at issue. This means that an individual who purchases goods with the intent to resell them is not a consumer according to the definitions in the 1986 act.

For the purpose of defining a service consumer, the law extends relief to the actual purchaser and to any other “beneficiary” of the service.

The Consumer Protection Act of India is also quite specific about what a complaint is, under the law’s definitions. First and foremost, the complaint must be made in writing and should concern an unfair action by a business or individual acting in a commercial setting. Defects in goods or unsatisfactory service can be the subject of written complaints, as can excessively high charges for goods or services.

Consumers are not charged a fee for filing such complaints. Decisions may involve complete removal of any defect in a product and replacement of the product. Refunds are specifically provided for in the law.

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