What was the Need of Consumer Protection Act? Before the enactment of The Consumer Protection Act, 1986, there was no specified platform for the consumer to get their disputes resolved, as such the market scenario was a considered as a sellers market. The general principle of caveat emptor was followed. Consumers had a very limited …
Before the enactment of The Consumer Protection Act, 1986, there was no specified platform for the consumer to get their disputes resolved, as such the market scenario was considered as a seller's market. The general principle of caveat emptor was followed. Consumers had a very limited scope of their grievances resolved and they were dependent on the mercy of the seller or the service provider. With the passage of time, the need and demand of a consumer favoring laws led to the enactment of Consumer Protection Act, 1986 and with the enactment of this Act the trend shifted from caveat emptor to caveat venditor meaning seller beware.