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Unit 16: The Consumer Protection Act

Objectives Notes

After studying this unit, you will be able to:

Define important terms related to consumer
Explain rights of consumers
Analyze the remedies available for consumer

Introduction

In the earlier unit, you came to know about the law of contacts of sale. In this unit you will study
about the Consumer Protection Act.
The Consumer Protection Act, 1986 was born. It is described as a unique legislation of its kind
ever enacted in India to offer protection to the consumers. The Act is claimed to have been
designed after an in-depth study of consumer protection laws and arrangements in UK, the USA,
Australia and New Zealand. The main objective of this Act is to provide better protection to the
consumers. Unlike other laws, which are punitive or preventive in nature the provisions of this
Act are compensatory in nature. The Act intends to provide simple, speedy and inexpensive
redressal to the consumers’ grievances.

16.1 Important Terms

The Preamble to the Act spells out its objects in the following words: “An Act to provide for
better protection of the interests of consumers and for that purpose to make provision for the
establishment of consumer councils and other authorities for the settlement of consumers’
disputes and for matters connected therewith.”
Thus, the objects of the Consumer Protection Act are:
1. To provide for better protection of interests of consumers.

2. In order to meet the aforesaid objective, to provide for the establishment of consumer
councils and other authorities
3. To empower the Consumer Councils and other authorities to settle consumers’ disputes
and matters connected therewith.
Other salient features of the Act are:

1. It applies to all goods and services unless specifically exempted by the Central
Government.
2. It covers all sectors whether private, public or co-operative.

3. It confers certain rights on consumers.
4. It envisages establishment of consumer protection councils at the Central and State levels
whose main object shall be to promote and protect the rights of the consumers.
5. The provisions of this Act are in addition to and not in derogation of the provisions of any
other Act.

Note The Act in terms of geographical application extends to the whole of India
except the State of Jammu and Kashmir [S.1(2)]. Further, it applies to all goods and services,

unless otherwise expressly notified by the Central Government.

LOVELY PROFESSIONAL UNIVERSITY 153