Consumer Protection Act 1986, Objectives, Central Council, State Council

Consumer Protection Act of 1986 was enacted in India to safeguard consumer rights and interests, providing a legal framework to address consumer grievances and enforce fair practices. This Act established redressal mechanisms, including Consumer Courts at the district, state, and national levels, offering consumers a fast, efficient, and affordable way to resolve disputes against unfair or restrictive trade practices.

Objectives of the Consumer Protection Act, 1986:

• Protect Consumer Rights:

Act aims to safeguard consumers from exploitation and unfair trade practices, providing a secure platform to uphold their rights.

• Encourage Fair Practices:

By regulating trade practices, the Act discourages deceptive advertising, adulteration, and misleading labeling, promoting ethical business practices.

• Promote Consumer Awareness:

Act encourages awareness by educating consumers about their rights, empowering them to make informed choices and stand up for justice.

• Provide Redressal Mechanism:

Act establishes a simple, fast, and cost-effective dispute resolution mechanism at different administrative levels, from district to national, for handling consumer complaints.

• Compensate for Deficiencies in Services and Goods:

It enables consumers to seek compensation for substandard goods and services, including defective products, inadequate services, or unfair practices.

• Prevent Exploitation:

The Act addresses various forms of consumer exploitation, ensuring businesses maintain quality standards and fair pricing.

Consumer Protection Councils under the Act:

The Consumer Protection Act, 1986, introduced three main Consumer Protection Councils: the Central Council, the State Council, and the District Council. Each Council has specific responsibilities and organizational structures aimed at protecting and promoting consumer rights.

Central Consumer Protection Council

Establishment: The Central Consumer Protection Council (Central Council) is set up by the Central Government to promote and protect consumer rights at the national level.

Objectives: The Central Council is primarily concerned with safeguarding the rights of consumers, ensuring that these rights are implemented and respected nationwide. It addresses consumer issues and creates awareness among the public.

Composition:

• The Central Council is headed by the Minister of Consumer Affairs, who acts as its Chairman.
• Other members include representatives from various sectors such as trade, industry, and consumer organizations, as well as members of Parliament and government officials.
• The Council can also appoint subject experts to advise on specific issues.

Functions:

• Promoting Consumer Rights: The Council promotes six fundamental consumer rights, including the right to be protected, informed, and heard, among others.
• Advising on Consumer Policies: The Council advises the government on policy matters related to consumer protection and laws.
• Creating Consumer Awareness: It undertakes initiatives to create widespread consumer awareness and addresses issues through public outreach programs.

State Consumer Protection Council

Establishment: Each state government is responsible for establishing a State Consumer Protection Council (State Council) to focus on state-specific consumer issues.

Objectives: The State Council’s role mirrors that of the Central Council but on a smaller scale, focusing on protecting and promoting consumer rights within the state.

Composition:

• The State Council is chaired by the State Minister in charge of consumer affairs.
• Members include representatives from the government, consumer organizations, trade, industry, and occasionally members of the state legislature.

Functions:

• Addressing State-Specific Consumer Issues: The State Council addresses consumer grievances and issues that are specific to the state, such as local trade malpractices.
• Policy Recommendations: The State Council provides recommendations to the state government on matters related to consumer protection and necessary legal amendments.
• Promoting Consumer Education: It supports state-wide initiatives to educate consumers about their rights and available grievance redressal mechanisms.

District Consumer Protection Council

While the District Council is less prominent compared to the Central and State Councils, it operates at the district level to address consumer issues specific to local areas. Each district may have representatives that coordinate with state authorities, ensuring that consumer issues are addressed even at a grassroots level.

Rights Covered Under the Consumer Protection Act, 1986

The Act ensures six key consumer rights:

1. Right to Safety: Protection from hazardous goods and services.
2. Right to be Informed: Accurate information on goods and services, including labeling and pricing.
3. Right to Choose: Access to a variety of goods and services at competitive prices.
4. Right to be Heard: Representation in decision-making processes that affect consumers.
5. Right to Redressal: Compensation or corrective measures in case of harm caused by unfair practices.
6. Right to Consumer Education: Information and programs to educate consumers on their rights and responsibilities.

Consumer Dispute Redressal Forums:

The Act also established a three-tiered structure for addressing consumer disputes:

• District Consumer Disputes Redressal Forum (District Forum):

Handles claims up to a specified monetary limit, offering a local platform for dispute resolution.

• State Consumer Disputes Redressal Commission (State Commission):

Addresses claims beyond the District Forum’s jurisdiction and appeals against its decisions.

• National Consumer Disputes Redressal Commission (National Commission):

Handles cases beyond the State Commission’s financial jurisdiction and appeals against state decisions.

Amendments and Evolution of the Act

Since its inception in 1986, the Consumer Protection Act has been amended to keep up with the changing consumer landscape, ensuring continued relevance. The Consumer Protection Act, 2019 replaced the 1986 Act, broadening its scope by introducing newer frameworks such as online dispute resolution, stricter penalties, and more transparent processes to address grievances more effectively.