The Consumer Protection Act, 1986: Objectives and Coverage
The Consumer Protection Act, 1986
Introduction
The earlier principle of “Caveat Emptor” or “let the buyer beware” which was prevalent has given way to the principle of “consumer is king”. The origins of this principle lie in the fact that in today’s mass production economy, where there is little contact between the producer and consumer, often sellers make exaggerated claims through advertisements, which they do not intend to fulfill. This leaves the consumer in a difficult position with very few opportunities for redressal. The need to recognize and enforce the rights of consumers is being understood and several laws have been made for this purpose. In India, we have the Indian Contract Act, the Sales of Goods Act, the Dangerous Drugs Act, the agricultural Produce (Grading and Marketing) Act, Prevention of Food Adulteration Act, the Standards of Weights and Measures Act, the Trade and Merchandise Marks Act, etc, which to some extent protect consumer interests. However, these laws require the consumer to initiate action by way of a civil suit, which involves lengthy legal process proving to be too expensive and time consuming for lay consumers. Therefore, the need for a simpler and quicker redressal to consumer grievances was felt and accordingly, it led to the legislation of the Consumer Protection Act, 1986.
2. Extend and Coverage of the Act
The salient features of the act are summed up as under:-
The act applies to all goods and services unless specifically exempted by the Central Government.
• It covers all the sectors whether private, public or cooperatives.
• The provisions of the Act are compensatory in nature.
3. Object of the Consumer Protection Act, 1986
The main objectives of the Act are:
i. To provide better protection to consumers. Unlike existing laws, which are punitive or preventive in nature?
ii. The Act is intended to provide simple, speedy and inexpensive redressal to consumer’s grievances, and award
Introduction
The earlier principle of “Caveat Emptor” or “let the buyer beware” which was prevalent has given way to the principle of “consumer is king”. The origins of this principle lie in the fact that in today’s mass production economy, where there is little contact between the producer and consumer, often sellers make exaggerated claims through advertisements, which they do not intend to fulfill. This leaves the consumer in a difficult position with very few opportunities for redressal. The need to recognize and enforce the rights of consumers is being understood and several laws have been made for this purpose. In India, we have the Indian Contract Act, the Sales of Goods Act, the Dangerous Drugs Act, the agricultural Produce (Grading and Marketing) Act, Prevention of Food Adulteration Act, the Standards of Weights and Measures Act, the Trade and Merchandise Marks Act, etc, which to some extent protect consumer interests. However, these laws require the consumer to initiate action by way of a civil suit, which involves lengthy legal process proving to be too expensive and time consuming for lay consumers. Therefore, the need for a simpler and quicker redressal to consumer grievances was felt and accordingly, it led to the legislation of the Consumer Protection Act, 1986.
2. Extend and Coverage of the Act
The salient features of the act are summed up as under:-
The act applies to all goods and services unless specifically exempted by the Central Government.
• It covers all the sectors whether private, public or cooperatives.
• The provisions of the Act are compensatory in nature.
3. Object of the Consumer Protection Act, 1986
The main objectives of the Act are:
i. To provide better protection to consumers. Unlike existing laws, which are punitive or preventive in nature?
ii. The Act is intended to provide simple, speedy and inexpensive redressal to consumer’s grievances, and award