Consumer Protection Act, 1986

The Consumer Protection Act, 1986 (COPRA)  was an Act by the Parliament of India elected to protect the interests of consumers in India. It was replaced by the Consumer Protection Act, 2019. It was made for the establishment of consumer councils and other authorities for the settlement of consumer's grievances and matters connected with it. The act was passed in Assembly in October 1986 and came into force on December 24, 1986.

History of the Act
The industrial revolution and the development in international trade and commerce has led to the vast expansion of business and trade, as a result of which a variety of consumer goods have appeared in the market to cater to the needs of the consumers and a host of services have been made available to the consumers like insurance, transport, electricity, housing, entertainment, finance and banking. A well organised sector of manufacturers and traders with better knowledge of markets has come into existence, thereby affecting the relationship between the traders and the consumers making the principle of consumer sovereignty almost inapplicable. The advertisements of goods and services in television, newspapers and magazines influence the demand for the same by the consumers though there may be manufacturing defects or imperfections or short comings in the quality, quantity and the purity of the goods or there may be deficiency in the services rendered. In addition, the production of the same item by many firms has led the consumers, who have little time to make a selection, to think before they can purchase the best. For the welfare of the public, the glut of adulterated and sub-standard articles in the market have to be checked. In spite of various provisions providing protection to the consumer and providing for stringent action against adulterated and sub-standard articles in the different enactments like Code of Civil Procedure, 1908, the Indian Contract Act, 1872, the Sale of Goods Act, 1930, the Indian Penal Code, 1860, the Standards of Weights and Measures Act, 1976 and the Motor Vehicles Act, 1988, very little could be achieved in the field of Consumer Protection. Though the Monopolies and Restrictive Trade Practices Act, 1969 arid the Prevention of Food Adulteration Act, 1954 have provided relief to the consumers yet it became necessary to protect the consumers from the exploitation and to save them from adulterated and sub-standard goods and services and to safe guard the interests of the consumers. In order to provide for better protection of the interests of the consumer the Consumer Protection Bill, 1986 was introduced in the Lok Sabha on 5th December, 1986.

Significance of the Act
This Act is regarded as the 'Magna Carta' in the field of consumer protection for checking unfair trade practices, ‘defects in goods’ and ‘deficiencies in services’ as far as India is concerned. It has led to the establishment of a widespread network of consumer forums and appellate courts all over India. It has significantly impacted how businesses approach consumers and have empowered consumers to a greater extent.

Consumer Protection Council
Consumer Protection Councils are established at the national, state and district level to increase consumer awareness. They guide consumers on how to file cases in the Consumer Disputes Redressal Commissions.

Various Consumer Organizations
To increase the awareness of consumers, there are many consumer organization and NGOs that have been established. Consumer Guidance Society of India (CGSI) was the first consumer organization established in India in 1966; It was followed by many others such as:


 * Consumer Education And Research Centre (Gujarat)
 * Bureau Of Indian Standards
 * Federation Of Consumer Organization In Tamil Nadu
 * Mumbai Grahak Panchayat
 * Consumer Voice (New Delhi)
 * Legal Aid Society (Kolkata)
 * Akhil Bhartiya Grahak Panchayat
 * The Consumers Eye India.
 * United India Consumer's Association.
 * All India Consumer Welfare Council (AICWC)

Consumer Disputes Redressal Agencies

 * District Consumer Disputes Redressal Commission (DCDRC): Also known as the "District Commission" is established by the State Government in each district of the State. The State Governments may establish more than one District Forum in a district. It is a district-level court that deals with cases valuing up to inr 10000000.
 * State Consumer Disputes Redressal Commission (SCDRC): Also known as the "State Commission" established by the State Government in the State. It is a state-level court that takes up cases valuing less than inr 100000000
 * National Consumer Disputes Redressal Commission (NCDRC): Established by the Central Government. It deals with matters of more than ₹100 million.

Objectives of the central council
The objectives of the Central Council are to promote and protect the rights of the consumers such as:-
 * 1) The right to be protected against the marketing of goods and services which are hazardous to life and property.
 * 2) The right to be informed about the quality, quantity, potency, purity, standard and price of goods or services, as the case may be to protect the consumer against unfair trade practices;
 * 3) The right to be assured, wherever possible, access to a variety of goods and services at competitive prices ;
 * 4) The right to be heard and to be assured that consumer's interest will receive due consideration at appropriate forums;
 * 5) The right to seek redressal against unfair trade practices or restrictive trade practices or unscrupulous exploitation of consumers
 * 6) The right to consumer education...

Jurisdiction of District Forum

 * 1) Subject to the other provisions of this Act, the District Forum shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed does not exceed rupees one crore.
 * 2) A complaint shall be instituted in a District Forum within the local limits of whose jurisdiction:-
 * a) – the opposite party or each of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides or carries on business or has a branch office or personally works for gain, or
 * b) – any of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides, or carries on business or has a branch office, or personally works for gain, provided that in such case either the permission of the District Forum is given, or the opposite parties who do not reside, or carry on business or have a branch office, or personally work for gain, as the case may be, acquiesce in such institution; or
 * c) – the cause of action, wholly or in part, arises.

Consumer courts do not have jurisdiction over matters where services or goods were bought for a commercial purpose.

Jurisdiction of State Commission
Subject to the other provisions of this Act, the State Commission shall have jurisdiction:-
 * a) to entertain :
 * i) complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees one crore but does not exceed rupees ten crore; and
 * ii) appeals against the orders of any District Forum within the State; and
 * b) to call for the records and pass appropriate orders in any consumer dispute

Jurisdiction of National Commission

 * (a) to entertain—


 * (i) complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees ten crore; and


 * (ii) appeals against the orders of any State mayor; and


 * (b) to call for the records and pass appropriate orders in any consumer dispute which is pending before or has been decided by any State Commission. However, the Supreme Court of India has held that the jurisdiction of National Commission under Revision Jurisdiction is very limited and can only be exercised when State Commission exceeds its jurisdiction, fails to exercise its jurisdiction or there is material illegality in the order passed by State Commission.