Consumer Protection Councils

Wednesday, December 8, 20 1
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OBJECT OF THE ACT
 The act is basically passed to protect the interest
of the consumers.
 In order to protect the interest of the
consumers, to make provision for establishing
necessary consumer councils and other
authorities.
 It intend to seek speed and simple redressal to
consumer disputes through quasi-judicial
machinery set-up at district, state and central
levels.
 It awards compensation to consumer on the
basis of merit of each case.
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CONSUMER [sec2(1)(d)]
CONSUMER IS ANY PERSON WHO
 Buys any goods for a consideration or heirs/avails of any
services for a consideration is a consumer.
 Any user of the goods with the approval of the person
who has purchased the goods for consideration is also a
consumer.
 A person hiring or availing of any services for
consideration is no doubt a consumer, but any person
who is beneficiary of such services with the consent or
approval of the original consumer is also a consumer.
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 To become a consumer, there must be a
consideration when he buys goods. Such
consideration must have actually been paid or
promised or partly paid and partly promised.
 Any person claiming himself/ as a consumer
must satisfy two important consideration besides
the others which are as follows:
1. The service or services must have
been render to him and
2. He must paid or promised to pay the
consideration for the same.
 The intention of a person purchasing the goods
or hiring the services must be consumption not
for sale.
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PERSON [sec2(1)(m)]
A PERSON INCLUDE
1. A firm whether registered or not
2. A Hindu undivided family.
3. A co-operative society.
4. Every other association of person whether
register under the societies Reg. Act 1960
 Consumer need not be an individual to get
protection under this act it includes the above
person also.
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GOODS [sec 2(1)(i)]
 Means goods as defined in the sale of
GOODS ACT 1930.
The subject matter of the contract of sale
must be available property or goods. The
transactions which involve buying and
selling of immovable property are
regulated by the transfer of property Act.
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SERVICES [sec 2(1)(o)]
 Means service of any description which is made available
potential users. The services related to banking,
financing, insurance ,transport ,processing , supply of
electricity, lodging and boarding etc but it does not
include rendering of any service free of charge or under
a contract of personal services.
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 It implies that services must be of
commercial nature i.e. they must be
rendered on payment .
 Even the professional services are
included.
 Even the beneficiaries of the services are
included though they are not directly
hirer’s provided they use the service with
the approval of the concerned consumers.
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TRADER [sec2(1)(q)]
MEANS
 Sells goods or distribute any goods for
sale.
 Any manufacture of goods selling the
same.
 Any packer either sells or distribute goods
in package form.
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MANUFACTURER [sec 2(1)(f)]
MEANS
 Makes or manufacturer any goods or part
thereof.
 Does not make or manufacture any goods
but assembles part thereof made or
manufactured by others.
 Put or causes to be put his own mark on
goods made or manufactured by any other
manufacture.
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CONSUMER DISPUTE [sec 2(1)(e)]
If there is any dispute between the
consumer and manufacturer or trader, as
the case may be the consumer gets the
right to seek remedy or filing the
complaint under the act. The consumer
redressal forum is a statutory body under
the consumer protection act.
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COMPLAINT [sec 2(1)(c)]
 Complaint means any allegation in writing made by
a complaint that
complaint
Unfair trade Restrictive trade

Defective goods
practice practice
 A consumer seeking redressal of his complaint

under this act has to file separate allegation for
separate disputes.
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COMPLAINANT [sec 2(1)(b)]
Complainant
A consumer
A voluntary ass.
Central govt. /
State govt.
One or more
consumer
Legal hirers or
representative
Any public cause can be take by an association in the

form of public
Wednesday,
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interest litigation.
December 8, 20 14
RESTRICTIVE TRADE PRACTICE
sec 2(1)(nnn)
MEANS
 delay beyond the period agreed to by a
trader in supply of such goods or in

providing the service which has led or is
likely to lead to rise into price.
 Regarding the condition precedent to
buying ,hire or availing of other goods or

service.
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UNFAIR TRADE PRACTICE [sec
2(1)(r)]
MEANS
 A trade practice which for the purpose of promoting the
sale, use or supply of any goods or for the provisions of any
service, adopt any unfair namely.
1. Falsely represent that the goods are of a particular

standard quality, quantity, grade, compensation, style or
model.
2. Makes the false or misleading representation concerning

the need for, or the usefulness of any goods or services.
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 Gives false warranty or guarantee about the
performance, length of life of a product with any
proper test.
 Publication of any advertisement for the sale or supply
at a bargaining price.
 Sale or supply of goods which do not comply any of
the standard prescribed by the competitive authorities.
 Hoarding or destruction the goods or refusing to sell
goods with a view to raise the price.
 Represents that the seller or the supplier has a
sponsorship or approval which such seller does not
have.
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 Materially misleads the public concerning the
price at which a products has been sold
Gives false or misleading facts disparaging the
goods, services or trade of another person.
Publicationof any advertisement whether in any
newspaper or otherwise,for the sale or supply at a
bargaining price.
Bargaining price means
a. A price that is stated in any advertisement to
be a bargain price reference to ordinary price.
b. A price which the person hears/sees the
advertisement, would reasonably understand to
be bargain price.
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CONSUMER
PROTECTION
COUNCILS
sec(4 to 8)
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CONSTITUTION OF THE CENTRAL
COUNCIL [SEC(4)]
 The central government, in order to carry
out the provision of sec 4, has to establish
central council consisting of 150 members.
 The minister in-charge of department of
civil supplier shall be the chairman of
central council.
 The minister of state or Dy. Minister in the
department of civil supplies who shall be
the vice-chairman.
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 The minister of state in-charge of
consumer affairs in states.
 Eight members of parliament
5 Lok sabha
3 Rajya sabha
 The secretary of the National
commissioner for scheduled caste and
scheduled tribe.
 Representation of the central government
department and autonomous organization
-:should not exceed 20
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 Representation of the consumer
organization or consumer -:not less than
35
 Representation of women -:not less than
10
 Representation of farmer, trader-:less
than 20
 Person capable of representing consumer
 The secretary in-charge shall be the
member-secretary of the central council.
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 The term of central council is 3 years.
 If any member wants to resign, he may do
so by writing to chairman.
 In order to suggest the working of the
council, the central government from
amongst the members of the
council-:standing working group-:not less
than 30 members.
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PROCEDURE FOR MEETING OF
THE CENTRAL COUNCILS[sec(5)]
 Central council meet at least once every
year. It shall make clear the time, place
and the procedure of its meeting.
 Meeting of the central council be
prescribed by the chairman in his absence
the vice-chairman.
 Not less than 10 days from the date of
issue –meeting shall be called.
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 Notice shall specify the day, place and
hour of the meeting.
 The preceding of meeting shall be valid
not with standing any vacancy in the
constitution of council.
 The resolution passed shall be
recommendatory.
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OBJECTS OF THE CENTRAL
COUNCILS
 To promote and protect the interest of the
consumer.
Right such as
 The right to be protected against the
goods which are hazardous to life and
property.
 About the quality, quantity, purity,
potency, standard and price of goods.
 Access to a variety goods and services.
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 Right to seek redressal against unfair
practice
 The right to consumer protection.
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THE STATE
CONSUMER
PROTECTION
COUNCILS
[sec(7 to 8)]
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MEMBERS OF THE STATE
CONSUMER COUNCILS
 The minister in-charge of consumer affairs
in the state government who shall be
chairman.
 Such member of other official or non-
official member represent such as
prescribed by state government.
 Such number of other official or non-
official, not exceeding ten as prescribed by
central government.
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TIME PLACE ETC OF THE
MEETING
 The state central protection council shall
meet as and when necessary but not less
than two meetings in every one year, and
it shall meet such time and place as the
chairman may think fit.
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OBJECT OF THE STATE
COUNCIL
 The main object of every state council
shall be to promote and protect within the
state the rights of the consumer.
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THE DISTRICT CONSUMER
PROTECTION COUNCILS
District consumer protection council consist of-
 The collector of the district, who shall be its
chairman.
 Such number of other official and non-official as
the state government prescribes.

 Not less than two meeting shall be held in every
year.
 It shall meet at such time an place within the
district.
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OBJECT
 To protect the interest of
the consumer within the
district.
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CONSUMER DISPUTES
REDRESSAL AGENCIES
 District forum ---established by the state
govt.in each district of the state.
 State Commission --- established by the
state govt. in the state
 National Commission --- established by the
central govt.
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District Forum
COMPOSTION –SEC 10
JURISDICTION –SEC 11
MANNER OF MAKING COMPLAINTS-SEC12
PROCEDURE OF COMPLAINTS—SEC13
FINDINGS—SEC14
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District forum
President Two other member’s
 President shall has been a district judge.

 Members
 One shall be women.
 Shall not less than 35 years of age.
 Bachelor degree.
 Have knowledge and experience of 10 years
in economics, law, industry. etc.
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 Person shall be disqualified
 Insolvent
 Insolvent
 Unsound mind
 Dismissed
 After
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APPONITMENT OF MEMBERS
OF THE DISTRICT FORUM—
SEC10(1-A)
 The president of the state commission
-:chairman
 Secretary of the law department-:member
 Secretary in-charge of the department
-:member
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HOLDING OF OFFICE BY A
MEMBER OF THE DISTRICT
FORUM—SEC 10(2)
 Every member shall hold the office for the term
of 5 years-: up to age of 65 years.
 A member shall be eligible for re-appointment
for another-:5 years.
 The salary of the members of district forum shall
be prescribed by the state government.
 The appointment shall be whole-time on the
recommendation of the president of the state
government.
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JURISDICTION OF DISTRICT
FORUM [sec11]
Monetary Territorial
 Claim should not exceed  At a place where each or
twenty lakhs. opposite parties reside
 Is based on the relief or,
claimed by the  They carry on the
complainant . business or,
 At a place where cause
of action arise.
If 2 or more district forums have jurisdiction on, a

complaint can be filled in
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MANNER OF MAKING
COMPLAINT [sec 12]
 A complaint, in relation to any goods sold
or delivered or agreed to be sold or
delivered or any service provides or
agreed to be provided may be filed with
the district forum.
 By the consumer.
 Any voluntary ass consumer.
 One or more consumer.
 The central or state government.
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PROCEDURE ON ADMISSION OF
COMPLAINT—SEC13
 DISTRICT FORUM-:on admission of a complaint
it relates to any goods.
 Refer a copy of the admitted complaint, within
21 days from the date of its admission to the
opposite party directing him to give his say
within a period of 30 days or extended period
not exceeding 15 days.
 The opposite party shall give his say within the
stipulated time, if he fails to do so, the district
forum shall proceed to settle the dispute.
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 If there is a defect in the goods-which
cannot be determined without proper
analysis, the district forum shall obtain a
sample of the goods from the complaint.
 Refer the sample to the appropriate
laboratory.
 It shall report its findings within 45 days of
the receipt of the reference.

Before any sample test-:district forum require
the complaint to the credit of the forum such
fees as may be specified.
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 District forum shall remit the amount
deposited to the appropriate laboratory to
carry out the analysis.
 District forum shall forward a copy of the
report along with remarks to the opposite
party.
 If any parties have disputes regarding
correctness it shall give in writing to the
district forum.
 District forum shall give reasonable
opportunity to both the party.
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 Every complaint shall be accompanied by
the prescribed amount of fee.
 It shall be decided with 21 days from the
date on which the complaint was received
(admissibility).
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POWERS OF DISTRICT FORUM
 To produce or allowed to be examined the
books, accounts, documents,
commodities.
 To furnish to an officer, such information
as may be required.
 To authorize an officer to search any
premises may seize the books, papers,
documents, etc.
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FINDING OF DISTRICT FORUM
 If the district forum is satisfied that the goods,
complained suffer from any defects such as
 To remove the defect pointed out by laboratory.
 To replace the goods with new goods.
 To discontinue the unfair trade practice.
 To withdraw the hazardous goods from being offered
for sale.
 To correct the misleading advertisement.
 To provide adequate cost to parties.
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JURISDICTION OF STATE
COMMISSION [sec 17]
JURISDITION OF STATE
COMMISSION
Supervisory
monetary appellate revisional
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 Complaints where the value of the goods
or service exceeds rupees 20 lakhs but
does not exceed rupees one crore.
 Appeals against the orders of any district
forum with in the state.
 If it appears to the state govt. that the
district forum has failed to excuse its
jurisdiction illegally it will call for the
records and pass appropriate orders.
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Tettortorial jurisdicate
 The opposite party or each of the party
resides.
 They actually and voluntarily resides or
carries on business.
 The cause of action arose.
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PROVISION RELATING TO
TRANSFER OF CASES
 Transfer of cases (sec 17-A)-:the state
council may at any stage transfer any
complaint pending before the district
forum to another district to another district
forum within the state.
 Circuit benches-:the state council
ordinarily function in the state capital but
may perform its function at such other as
the state government notifies.
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APPEALS TO THE STATE
COMMISSION
 It shall make an appeal within a period of
30 days.
 He can make an appeal after the expiry of
30 days if there was an sufficient cause.
 No appeal shall be entertainment unless
the appellant deposit 50% of the amount
or 25000 which is less.
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STATE COMMISSION
Composition of the state commission
 A person who is or has been a judge of a high
court, appointed by the state government
who shall be its president.
 Not less than 2, members, and one of who
shall be a woman, qualification.
 Not less than 35 years of age.
 Posses a bachelors degree.
 Have adequate knowledge of at least 10 years in

economics, law, commerce, industry public.
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 50% of the members shall be having judicial
back ground.
 Disqualification.
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SALARY
 The salary and other terms and conditions
of the members of the state commission
shall be prescribed by the state
government.
 It shall hold the office for the term of 5 years
up to the age of 67 years.
 Any member may give the registration to the
state government.
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SALARIES,HONORARIUM AND
OTHER ALLOWANCES OF THE
PRESIDENT AND MEMBERS OF
THE NATIONAL COUNCIL
 The president shall be entitled to salary, allowance as
are available to a sitting judge of the state council shall
receive a consolidated honorarium of 10,000 per month
per day of sitting.
 The president and the members shall be entitled to
traveling and daily allowances on official tour.
 They shall also be entitled to conveyance allowance of
150 Rs. Per day of its sitting or sum of 1500 per month.
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TERMS AND CONDITIONS OF
THE PRESIDENT AND MEMBERS
 Before appointment -:national council have to
take an undertaking that he will not have any
such finance or other interest.
 Every member shall hold for the term of 5 years
or up to the age of 70 years.
 Resignation shall be given to the central
government
 Casual vacancy or resignation shall be filled by
fresh appointment.
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 When president is unable to discharge the
functions owing to absence, illness, he
shall discharge the function of the
president until the new president is
appointed.
 The president or any member cease to
hold the office after his
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PROVISIONS RELATING TO
APPEALS TO THE NATIONAL
COMMISSION [sec 19]
 It may prefer an appeal against such
order of state council within a period of
30 days.
 No appeal by a person, who is required
to pay an amount or unless the
appellant has deposited 50% of the
amount or Rs. 35,000 which is less.
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HEARING OF APPEAL [sec19-A]
 An appeal filed before the state
commission or national council shall be
heard as expeditiously as possible and
family disposed of the appeal within a
period of 90 days.
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NATIONAL COMMISSION
Composition
 A person who is judge of the state council to
be nominated by the chief justice of India
-:chairman.
 The secretary in the department of legal
affairs in the government of India-:member.
 Secretary of the department dealing with
consumer affairs in the government-:member.
 Not less than four member-:and one of whom
shall be women.
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REMOVAL OF THE PRESIDENT
OR OTHER MEMBERS FROM
THE OFFICE
 Has become physically or mentally
incapable.
 Remain absent in 3 consecutive sittings
except for reasons beyond his control etc.
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JURISDICTION OF THE
NATIONAL COMMISSION
 Monetary jurisdiction:- where the value of goods
and services exceeds one crore
 Appellate jurisdiction:-National council has a
power to entertain appeals against the order of
any state commission.
 Supervisor and revisional jurisdiction:-National
council has the jurisdiction to call for the records
which are pending or which has failed to
exercise a jurisdiction so rested or with material
irregularity.
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POWERS AND PROCEDURE
APPLICABLE TO THE NATIONAL
COUNCIL [sec 22]
 To review any orders when there is an
error apparent on the face of records.
 Power to set aside export orders.
 Transfer of cases.
 Circuit benches-:
 It shall ordinarily function at new Delhi and it
might perform its function at such other place
as central government notifies.
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CONTENT OF A COMPLAINT
 It shall be in person or his agent or sent
by registration post addressed to the
national commission.
 The name, description and address of the
complaint and the opposite party.
 Time and place it arose.
 Documents in support of the allegations
contained in the complaint.
 Relief that the complaint.
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APPEARANCE OF THE PARTIES
BEFORE THE NATIONAL
COUNCIL [sec 14(3)]
 Complainant or his agents fails to appear
before the national council, the national
council may either dismiss the complaint
or decide it on merit.
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TIME LIMIT FOR DECIDING THE
COMPLAINT
 It shall decide the complaint within 3
months from the date of notice received
where the complaint does not require any
analysis or testing of commodities.
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ORDERS BY THE NATIONAL
COMMITION
 It shall issue orders to the opposite party
and direct it on them.
 Where the orders of the national
commission has been affirmed by the
state council, be published in the official
gazette.
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RULES RELATING TO THE
PROCEDURE FOR HEARING
THE APPEAL BY THE NATIONAL
COUNCIL
 Memorandum shall be presented by
appellant or his agent.
 Memorandum shall be in legible
handwriting under distinct heads, the
ground of appeal shall be narrative.
 It shall be accompanied by a certified copy
of the state commission and such other
documents.
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 If the appeal is after the period of limitation it
shall mention its reason.
 The appellant shall submit 6 copies of the
memorandum.
 On the date of hearing if the appellant or his
agent fails to appear, the national council may
either dismiss or shall proceed export.
 The appellant shall not urge or he heard of any
ground which are not put in the memorandum.
Commission shall deciding shall not on
any rely on other ground other than
memorandum.
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 The national council can adjourn the
appeal, but not more than one
adjournment shall be given, it shall decide
the appeal within 90 days from the first
date of hearing.
 The order is communicated to the parties
free of cost.
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SITTING OF THE NATIONAL
COUNCIL AND SIGNING OF
ORDERS
 It shall be conducted by the president or
the senior most member and atleast two
members together.
 Every order shall be signed by the
president or the senior most member and
at least two member, if there is difference
of opinion the majority will prevail.
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PROVISION OF APPEAL TO THE
SUPREME COURT
 It shall make an appeal to the supreme
court against the order of national council
within 30 days from the date of the order.
 Unless the person deposit 50% of the
amount or Rs 50,000 which is less.
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Consumer Protection Councils

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Wednesday, December 8, 20 1

Unfair trade Restrictive trade

 A consumer seeking redressal of his complaint

Any public cause can be take by an association in the

trader in supply of such goods or in

buying ,hire or availing of other goods or

1. Falsely represent that the goods are of a particular

2. Makes the false or misleading representation concerning

the state government prescribes.

President Two other member’s

 President shall has been a district judge.

If 2 or more district forums have jurisdiction on, a

the receipt of the reference.

 Have adequate knowledge of at least 10 years in

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