The term consumer has been defined in clause (d) of section 2(1) of the 1986 Act. The definition of a consumer has a very wide scope and practically includes any person who pays money as the price or cost of goods and services.
The provisions of this Act apply to the purchase of goods as well as services. The goods are those which are manufactured or produced and sold by wholesalers or retailers to consumers. The services include, inter alia, transport, telephone, housing, electricity, insurance, medical treatment and banking.
The definition of the term "service" is very wide and includes all types of services except those services which do not cost anything or which are rendered under a contract of personal service.
The Act guarantees to every consumer 6 basic rights:
The right to be protected against marketing of goods or services which are hazardous to life and property.
Many cases of the violation of this right are seen in the healthcare and pharmaceutical industry. Bound by the mores of a largely agrarian way of life, most people in India fall prey to the marketing ploys of companies that sell cheap products without paying any heed to the quality of the goods.
To be informed about the quality, quantity, potency, purity, standard and price of goods or services so as to protect the consumers against unfair trade practices .
In India, most people rely on the word of mouth while determining whether a product would be suitable for them or not. As a result, they often do not have clear and credible information about the reliability, quality, durability, etc of most commodities.
-The right to be assured, wherever possible, access to goods and services at competitive prices.
-The right to be heard and to be assured that their grievances will receive due consideration.
-the right to seek redressal against unfair trade practices or restrictive trade practices or unscrupulous exploitation of consumers.
-Right to consumer education.
The Consumer Protection Act provides for a 3-tier structure for resolving consumer disputes.
These quasi-judicial bodies have been set up at the district, state and national level in order to deal with consumer cases in a comparatively inexpensive, effective and efficacious manner.
They are called the District Forums, the State Consumer Disputes Redressal Commissions and the National Consumer Disputes Redressal Commission respectively.
A consumer can file a complaint in the consumer court against any deficient service, defective good or unfair trade practice adopted by any trader. The Consumer Protection Act explicitly states that a complaint must be filed within two years from the date on which the cause of action arises.
As per the Act, if the cost of goods or services and compensation asked for is up to 20 lakh rupees, the case can be filed in the concerned District Forum. Similarly, if the amount is between 20 lakhs and one crore, the case has to be filed in the State Commission and if the amount is more than one crore rupees, then the case must be filed in the National Commission.
At present, there are 629 District Forums and 35 State Commissions with the National Consumer Disputes Redressal Commission (NCDRC) in New Delhi. 7
The Forum/Commission can grant relief to the complainant in the following ways:
A. It can order the seller to remove/replace the defects/ deficiencies in goods and services;
B it can direct the seller to refund the entire amount paid by the buyer;
C It can direct the seller to pay a fixed amount of compensation for loss/injury suffered by the complainant;
D It can order the seller to immediately discontinue the unfair/restrictive trade practice;
E The license of the seller can also be cancelled in extreme cases.
Rights of Consumers:
Consumer Courts:
12