Consumer Protection Act,1986
Act No : 68
Section :
Definitions.
2. Definitions. (1) In this Act, unless the context otherwise
requires,--
2*[(a) "appropriate laboratory" means a laboratory or orga-
nasation--
(i) recognised by the Central Government;
(ii) recognised by a State Government, subject to
such guidelines as may be prescribed by the Central Govern-
ment in this behalf; or
(iii) any such laboratory or organisation established
by or under any law for the time being in force, which is
maintained, financed or aided by the Central Government or a
State Government for carrying out analysis or test of any
goods with a view to determining whether such goods suffer
from any defect;]
3*[(aa) "branch office" means--
(i) any establishment described as a branch by the
opposite party; or
(ii) any establishment carring on either the same or
substantially the same activity as that carried on by the
head office of the establishment;]
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1 The provisions of Chapters I, II and IV of this Act came in
to force in the whole of India expect the State of Jammu & Kashmir on
15-4-1987: vide notification No. S.O. 390 (E), dated 15-4-1987,
Gazette of India, Extraordinary 1987, Part II, section 3 (ii).
The provisions of Chapter III of this Act came in to force in
the whole India except the State of Jammu & Kashmir on 1-7-1987: vide
Notification No. S.O. 568 (E), dated 10.6.87, Gazette of India
Extraordinary, 1987, part II, Section 3 (ii).
2 Subs. by Act 50 of 1993, s. 2 (w.e.f. 18-6-1993).
3 Ins. by s. 2, ibid.
1325
(b) "complainant" means--
(i) a consumer; or
(ii) any voluntary consumer association registered
under the Companies Act, 1956 (1 of 1956) or under any
other law for the time being in force; or
(iii) the Central Government or any State Government,
who or which makes a complaint;
1*[(iv) one or more consumers, where there are nume-
rous consumers having the same interest;]
(c) "complaint" means any allegation in writing made by a
complainant that--
2*[(i) an unfair trade practice or a restrictive trade
practice has been adopted by any trader;]
(ii) 2*[the goods bought by him or agreed to be bou-
ght by him] suffer from one or more defects;
(iii) 2*[the services hired or availed of or agreed to
be hired or availed of by him] suffer from deficiency in
any respect;
(iv) a trader has charged for the goods mentioned in
the complaint a price in excess of the price fixed by or
under any law for the time being in force or displayed on
the goods or any package containing such goods;
1*[(v) goods which will be hazardous to life and safety
when used, are being offered for sale to the public in con-
travention of the provisions of any law for the time being
in force requiring traders to display information in regard
to the contents, manner and effect of use of such goods],
with a view to obtaining any relief provided by or under this
Act;
(d) "consumer" means any person who,--
(i) buys any goods for a consideration which has been
paid or promised or partly paid and partly promised, or
under any system of deferred payment and includes any user
of such goods other than the person who buys such goods for
consideration paid or promised or partly paid or partly
promised, or under any system of deferred payment when such
use is made with the approval of such person, but does not
include a person who obtains such goods for resale or for
any commercial purpose; or
(ii) 2*[hires or avails of] any services for a conside-
ration which has been paid or promised or partly paid and
part by promised, or under any system of deferred payment
and includes any beneficiary of such services other than
the person who 2*[hires or avails of] the services for
consideration paid or promised, or partly paid and partly
promised, or under any system of deferred payment, when such
services are availed of with the approval of the first
mentioned person.
1*[Explanation.-- For the purposes of sub-clause (i), "commercial
purpose" does not include use by a consumer of goods bought and used
by him exclusively for the purpose of earning his livelihood, by
means of self-employment;]
(e) "consumer dispute" means a dispute where the person
against whom a complaint has been made, denies or disputes the
allegations contained in the complaint.
(f) "defect" means any fault, imperfection or shortcoming in
the quality, quantity, potency, purity or standard which is
required to be
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1 Ins. by Act 50 of 1993, s. 2 (w.e.f. 18-6-1993).
2 Subs. by s. 2, ibdi. (w.e.f. 18-6-1993).
1326
maintained by or under any law for the time being in force or
1*[under any contract, express or implied or] as is claimed by
the trader in any manner whatsoever in relation to any goods;
(g) "deficiency" means any fault, imperfection, shortcoming
or inadequacy in the quality, nature and manner of performance
which is required to be maintained by or under any law for the
time being in force or has been undertaken to be performed by a
person in pursuance of a contract or otherwise in relation to any
service;
(h) "District Forum" means a Consumer Dispute Redressal
Forum estalished under clause (a) of section 9;
(i) "goods" means goods as defined in the Sale of Goods Act,
1930 (3 of 1930);
(j) "manufacturer" means a person who--
(i) makes or manufactures any goods or parts thereof;
or
(ii) does not make or manufacture any goods but
assembles parts thereof made or manufactured by others and
claims the end-product to be goods manufactured by himself;
or
(iii) puts or causes to be put his own mark on any
goods made or manufactured by any other manufacturer and
claims such goods to be goods made or manufactured by
himself.
Explanation.--Where a manufacturer despatches any goods or
part thereof to any branch office maintained by him, such branch
office shall not be deemed to be the manufacturer even though the
parts so despatched to it are assembled at such branch office and
are sold or distributed from such branch office;
1*[(jj) "member" includes the President and a member of the
National Commission or a State Commission or a District Forum,
as the case may be;]
(k) "National Commission" means the National Consumer
Disputes Redressal Commission established under clause (c) of
section 9;
(l) "notification" means a notification published in the
Official Gazette;
(m) "person" includes,--
(i) a firm whether registered or not;
(ii) a Hindu undivided family;
(iii) a co-operative society;
(iv) every other association of persons whether
registered under the Societies Registration Act, 1860 (21 of
1860) or not;
(n) "prescribed" means prescribed by rules made by the State
Government, or as the case may be, by the Central Government
under this Act;
1*[(nn) "restrictive trade practice" means any trade prac-
tice which requires a consumer to buy, hire or avail of any goods
or, as the case may be, services as a condition precedent for
buying, hiring or availing of other goods or services;]
(o) "service" means service of any description which is made
available to potential users and includes the provision of
facilities in connection with banking, financing, insurance,
transport, processing, supply of electrical or other energy,
board or lodging or both, 1*[housing construction,] enter-
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1 Ins. by Act 50 of 1993, s. 2 (w.e.f. 18-6-1993).
1327
tainment, amusement or the purveying of news or other
information, but does not include the rendering of any service
free of charge or under a contract of personal service;
(p) "State Commission" means a Consumer Disputes Redressal
Commission established in a State under clause (b) of section 9;
(q) "trader" in relation to any goods means a person who
sells or distributes any goods for sale and includes the
manufacturer thereof, and where such goods are sold or
distributed in package form, includes the packer thereof;
1*[(r) "unfair trade practice" means a trade practice which,
for the purpose of promoting the sale, use or supply of any goods
or for the provision of any service, adopts any unfair method or
unfair or deceptive practice including any of the following prac-
tices, namely:-
(1) the practice of making any statement, whether
orally or in writing or by visible representation which,-
(i) falsely represents that the goods are of a
particular standard, quality, quantity, grade,
composition, style or model;
(ii) falsely represents that the services are of
a particular standard, quality or grade;
(iii) falsely represents any re-built,
second-hand, renovated, reconditioned or old goods
as new goods;
(iv) represents that the goods or services have
sponsorship, approval, performance, characteristics,
accessories, uses or benefits which such goods or
services do not have;
(v) represents that the seller or the supplier
has a sponsorship or approval or affiliation which
such seller or supplier does not have;
(vi) makes a false or misleading representation
concerning the need for, or the usefulness of, any
goods or services;
(vii) gives to the public any warranty or guara-
ntee of the performance, efficacy or length of life
of a product or of any goods that is not based on an
adequate or proper test thereof:
Provided that where a defence is raised to the
effect that such warranty or guarantee is based on
adequate or proper test, the burden of proof of such
defence shall lie on the person raising such
defence;
(viii) makes to the public a representation in a
form that purports to be--
(i) a warranty or guarantee of a product or
of any goods or services; or
(ii) a promise to replace, maintain or rep-
air an article or any part thereof or to repeat
or continue a service until it has achieved a
specified result,
if such purported warranty or guarantee or promise
is materially misleading or if there is no reasona-
ble prospect that such warranty, guarantee or pro-
mise will be carried out;
(ix) materially misleads the public concerning
the price at which a product or like products or
goods or services, have been or are, ordinarily sold
or provided, and, for this purpose, a representa-
tion as to price shall be deemed to refer to the
price at which the product or goods or services has
or have been sold by sellers or provided by
suppliers generally in the relevant market unless
it is clearly specified to be the price at which the
product has been sold or services have been
provided by the person by whom or on whose behalf
the representation is made;
(x) gives false or misleading facts disparaging
goods, services or trade of another person.
Explanation.-- For the purposes of clause (1), a
statement that is--
(a) expressed on an article offered or displ-
ayed for sale, or on its wrapper or container; or
(b) expressed on anything attached to, inserted
in, or accompanying, an article offered or displayed
for sale, or on anything on which the article is
mounted for display or sale; or
(c) contained in or on anything that is sold,
sent, delivered, transmitted or in any other manner
whatsoever made available to a member of the public,
shall be deemed to be a statement made to the public by,
and only by, the person who had caused the statement to
be so expressed, made or contained;
(2) permits the publication of any advertisement whether in any
newspaper or otherwise, for the sale or supply at a bargain price, of
goods or services that are not intended to be offered for sale or
supply at the bargain price, or for a period that is, and in quanti-
ties that are, reasonable, having regard to the nature of the market
in which the business is carried on, the nature and size of business,
and the nature of the advertisement.
Explanation.-- For the purposes of clause (2), "bargaining price"
means--
(a) a price that is stated in any advertisement to be a
bargain price, by reference to an ordinary price or otherwise,
or
(b) a price that a person who reads, hears or sees the adver-
tisement, would reasonably understand to be a bargain price
having regard to the prices at which the product advertised or
like products are ordinarily sold;
(3) permits--
(a) the offering of gifts, prizes or other items with the
intention of not providing them as offered or creating impression
that something is being given or offered free of charge when it
it is fully or partly covered by the amount charged in the
transaction as a whole;
(b) the conduct of any contest, lottery, game of chance or
skill, for the purpose of promoting, directly or indirectly, the
sale, use or supply of any product or any business interest;
(4) permits the sale or supply of goods intended to be used, or
are of a kind likely to be used, by consumers, knowing or having
reason to believe that the goods do not comply with the standards
prescribed by competent authority relating to performance, composition
contents, design, constructions, finishing or packaging as are
necessary to prevent or reduce the risk of injury to the person using
the goods;
(5) permits the hoarding or destruction of goods, or refuses to
sell the goods or to make them available for sale or to provide any
service, if such hoarding or destruction or refusal raises or tends
to raise or is intended to raise, the cost of those or other similar
goods or services.
(2) Any reference in this Act to any other Act or provision
thereof which is not in force in any area to which this Act applies
shall be construed to have a reference to the corresponding Act or
provision thereof in force in such area.
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