Consumer Protection Act, 1986

The Consumer Protection Act, 1986 (COPRA) was a major law passed by the Parliament of India to safeguard the interests of consumers. Before this Act, consumer rights in India were weak, and consumers were often exploited by manufacturers, traders, and service providers. COPRA established a complete legal framework to protect consumers and created special bodies to resolve consumer disputes quickly and effectively. In 2019, this Act was replaced by the Consumer Protection Act, 2019, but the 1986 law laid the foundation for modern consumer rights in India.

History of the Act

For a long time, consumer rights in India were ignored. Consumers frequently faced problems such as defective products, unfair prices, misleading advertisements, and poor service. There was no simple or affordable method for consumers to seek justice.

To solve this problem, the Government of India introduced the Consumer Protection Act, 1986, which became the first comprehensive law in the country dedicated to protecting consumers. This Act is often called the “Magna Carta of consumer protection in India” because it brought a major change in how businesses treated buyers.

Significance of the Act

The Act made it possible for ordinary consumers to raise complaints without needing expensive lawyers or long court procedures. It targeted:

  • Unfair trade practices
  • Defects in goods
  • Deficiencies in services

It set up a large network of consumer forums and appellate commissions across the country. These bodies made justice accessible, inexpensive, and time-bound. The Act significantly changed the way companies interacted with consumers and empowered people with rights and remedies.

Consumer Protection Councils

The Act created Consumer Protection Councils at three levels:

  1. National Consumer Protection Council
  2. State Consumer Protection Council
  3. District Consumer Protection Council

These councils were established to spread awareness, educate consumers, and guide them on how to file cases in consumer courts. They also worked to promote and protect consumer rights at national, state, and district levels.

Consumer Organizations in India

Several consumer organizations and NGOs support consumer awareness and protection. The earliest among them was the Consumer Guidance Society of India (CGSI), founded in 1966. Many other organizations followed, such as:

  • Consumer Education and Research Centre (Gujarat)
  • Bureau of Indian Standards (BIS)
  • Federation of Consumer Organisations, Tamil Nadu
  • Mumbai Grahak Panchayat
  • Consumer Voice (New Delhi)
  • Legal Aid Society (Kolkata)
  • Akhil Bharatiya Grahak Panchayat
  • The Consumers Eye India
  • United India Consumer’s Association
  • All India Consumer Welfare Council (AICWC)
  • Consumer Protection Council, Tamil Nadu

These groups help consumers fight unfair practices and educate them about their rights.

Consumer Disputes Redressal Agencies (Consumer Courts)

The Act established a three-tier system of consumer courts:

1. District Consumer Disputes Redressal Commission (DCDRC) – District Commission

  • Established by the State Government in each district.
  • Can hear cases where the value of goods/services and compensation claimed does not exceed ₹10 million (₹1 crore).
  • State governments may set up more than one district commission in a district.

2. State Consumer Disputes Redressal Commission (SCDRC) – State Commission

  • Established by each State Government.
  • Handles cases where the value of goods/services claimed is more than ₹1 crore but not more than ₹10 crore.
  • Hears appeals against orders of District Commissions.
  • Can call for records of any consumer dispute handled by a District Commission.

3. National Consumer Disputes Redressal Commission (NCDRC)

  • Established by the Central Government.
  • Handles cases where the value of goods/services claimed exceeds ₹10 crore.
  • Hears appeals against orders of State Commissions.
  • Can examine records of cases decided by State Commissions.
  • The Supreme Court has clarified that NCDRC’s revision powers are limited. It may intervene only if the State Commission:
    • exceeded its jurisdiction,
    • failed to exercise its jurisdiction, or
    • committed a major legal error.

Important Note

Consumer courts do not handle cases where goods or services were purchased for commercial purposes.

Objectives of the Central Consumer Protection Council

The Central Council aims to promote and protect consumer rights, which include:

  1. Right to safety – protection against hazardous goods and services.
  2. Right to be informed – consumers must know the quality, quantity, purity, standard, and price of products to protect themselves from unfair practices.
  3. Right to choose – access to a variety of goods and services at competitive prices.
  4. Right to be heard – consumer interests must be considered at proper forums.
  5. Right to seek redressal – compensation against unfair or restrictive trade practices or exploitation.
  6. Right to consumer education – awareness of consumer rights and responsibilities.

Jurisdiction of Consumer Courts

District Forum Jurisdiction

The District Forum can entertain complaints where:

  • Total value of goods/services and compensation claimed is not more than ₹1 crore.
  • Complaint can be filed where:
    • All opposite parties reside or do business,
    • At least one opposite party resides or does business (with Forum’s permission),
    • The cause of action arises (fully or partly).

State Commission Jurisdiction

  • Can hear:
    • Complaints involving more than ₹1 crore but less than ₹10 crore.
    • Appeals against District Forum orders.
  • Can review records and pass orders in disputes handled by District Commissions.

National Commission Jurisdiction

  • Can hear:
    • Complaints involving more than ₹10 crore.
    • Appeals against State Commission orders.
  • Can call for records of cases decided by State Commissions.
  • Revision power is limited, as clarified by the Supreme Court.