THE
(Pb. Act II of 2005)
C O N T E N T S
Sections
Part I
PRELIMINARY
1. Short title and commencement.
2. Definitions.
3. Act not in derogation of any other law.
Part II
LIABILITY ARISING FROM
DEFECTIVE PRODUCTS
4. Liability for defective products.
5. Defective in construction or composition.
6. Defective in design.
7. Defective because of inadequate warning.
8. Defective because of non-conformity to express warranty.
9. Proof of manufacturer’s knowledge.
10. Restriction on grant of damages.
11. Duty of disclosure.
12. Prohibition on exclusions from liability.
Part III
LIABILITY ARISING OUT
OF
DEFECTIVE AND FACULTY
SERVICES
13. Liability for faulty or defective services.
14. Standard of provision of services.
15. Restriction on grant of damages.
16. Duty of disclosure.
17. Prohibition on exclusions from liability.
Part IV
OBLIGATIONS OF
MANUFACTURERS
18. Prices to be exhibited at the business place.
19. Receipt to be issued to the purchaser.
20. Return and refund policy.
Part V
UNFAIR PRACTICES
21. False, deceptive or misleading representation.
22. Prohibition on bait advertisement.
Part VI
THE POWERS OF THE
AUTHORITY
23. Powers of Authority.
23-A. Powers of Government.
Part VII
CONSUMER PROTECTION
COUNCIL
24. Consumer Protection Council.
Part VIII
DISPOSAL OF CLAIMS AND
ESTABLISHMENT OF
CONSUMER COURTS
25. Filing of Claims.
26. Establishment of Consumer Courts.
27. Jurisdiction of Consumer Courts.
28. Settlement of Claims.
29. Settlement of pretrial stage.
30. Procedure on receipt of complaint.
31. Order
of
32. Penalties.
33. Appeal.
34. Finality of Order.
35. Dismissal of frivolous or vexatious claims.
Part IX
MISCELLANEOUS
36. Aid
to the
37. Immunity.
38. Power to make rules.
39. Power to remove difficulties.
[1]THE
(Pb. Act II of
2005)
[
An Act to provide for protection and promotion of the
rights and interests of the consumers.
Preamble.– Whereas, it is
expedient to provide for protection and promotion of the rights and interests
of the consumers, speedy redress of consumer complaints and for matters
connected therewith;
It is hereby enacted as
follows:-
Part I
PRELIMINARY
1. Short title, extent and commencement.– (1) This Act may be called the Punjab
Consumer Protection Act 2005.
(2) It shall extend to the whole of the Province of the
(3) It shall come into force at once.
2. Definitions.– In this Act, unless
there is anything repugnant in the subject or context,–
(a) “Act”
means the Punjab Consumer Protection Act 2005;
(b) “Authority” means the District Coordination Officer of the district
concerned [2][or any other officer
as may be notified by the Government];
(c) “consumer” means a person or entity who–
(i) buys or obtains on lease any product for a consideration and includes any user of such product but does not include a person who obtains any product for resale or for any commercial purpose; or
(ii) hires
any services for a consideration and includes any beneficiary of such services;
Explanation:-
For the purpose of
sub-clause (i), “commercial purpose” does not include use by a consumer of
products bought and used by him only for the purpose of his livelihood as a
self-employed person.
(d) “damage” means all damage caused by a product or service including
damage to the product itself and economic loss arising from a deficiency in or
loss of use of the product or service;
(e) “entity”
means an organization that has a legal identity apart from its members;
(f) “Government”
means the Government of the
(g) “laboratory” means a laboratory established or recognized by the
Provincial Consumer Protection Council and includes any such laboratory or
organization established by or under any law for the time being in force, which
is maintained, financed, aided or recognized by the Government for carrying out
analysis or test of any goods with a view to determining whether such goods
suffer from any defect;
(h) “manufacturer”
includes a person or entity who–
(i) is
in the business of manufacturing a product for purposes of trade or commerce;
(ii) labels a product as his own or who otherwise presents himself as
the manufacturer of the product;
(iii) as a seller exercises control over the design, construction or
quality of the product that causes damage;
(iv) assembles a product by incorporating into his
product a component or part manufactured by another manufacturer; and
(v) is a seller of a product of a foreign manufacturer and assumes or
administers warranty obligations of the product, or is affiliated with the
foreign manufacturer by way of partial or complete ownership or control; or
modifies or prepares the product for sale or distribution;
(i) “manufacturing a product” means producing, fabricating, constructing, designing, remanufacturing, reconditioning or refurbishing a product;
(j) “product” has the same meaning as assigned to the word “goods” in the Sale of Goods Act, 1930, and includes products which have been subsequently incorporated into another product or an immovable but does not include animals or plants or natural fruits and other raw products, in their natural state, that are derived from animals or plants;
(k) “services” includes the provision of any kind of facilities or advice or assistance such as provision of medical, legal or engineering services but does not include–
(i) the
rendering of any service under a contract of personal service;
(ii) the rendering of non-professional services
like astrology or palmistry; or
(iii) a service, the essence of which is to deliver judgment by a court
of law or arbitrator;
(l) “reasonably anticipated alteration or modification” means a change in a product that a product manufacturer should reasonably expect to be made by an ordinary person in the same or similar circumstances and a change arising from ordinary wear or tear, but does not include–
(i) changes
to or in a product because the product does not receive reasonable care and
maintenance; or
(ii) alteration, modification or removal of an
otherwise adequate warning; or
(iii) the failure of the seller to provide an adequate warning to the
consumer where the same had been provided by the manufacturer and he could do
no more; and
(m) “reasonably anticipated
use” means a use or handling of a product that the product manufacturer should
reasonably expect of an ordinary person in the same or similar circumstances.
3. Act not in derogation of any other law.– The provisions of this
Act shall be in addition to and not in derogation of the provisions of any
other law for the time being in force.
Part II
LIABILITY ARISING FROM DEFECTIVE PRODUCTS
4. Liability for defective products.– (1) The manufacturer of a product shall be
liable to a consumer for damages proximately caused by a characteristic of the
product that renders the product defective when such damage arose from a
reasonably anticipated use of the product by a consumer.
(2) A product shall be defective only if–
(a) it
is defective in construction or composition as provided in section 5;
(b) it
is defective in design as provided in section 6;
(c) it
is defective because an adequate warning has not been given as provided in
section 7; and
(d) it
is defective because it does not conform to an express warranty of the manufacturer
as provided in section 8.
5. Defective
in construction or composition.– A product shall be defective in
construction or composition if, at the time the product was manufactured, a
material deviation was made from the manufacturers’ own specifications, whether
known to the consumer or not.
6. Defective in design.– (1) A product
shall be defective in design if, at the time the product left its
manufacturer’s control–
(a) there
existed an alternative design for the product that was capable of preventing
the damage to a consumer; and
(b) the
likelihood and gravity of damage outweighed the burden on the manufacturer of
adopting such alternative design and any adverse effect of such alternative
design on the utility of the product.
(2) When the manufacturer has used reasonable care to provide adequate
warning to the users or handlers of the product, it shall be considered in
evaluating the likelihood of damage arising from the design of a product.
7. Defective because of inadequate warning.– (1) A product shall be
defective if an adequate warning about the product that it possessed a
characteristic that could cause damage, has not been provided at the time the
product left its manufacturer’s control or the manufacturer has failed to use
reasonable care to provide an adequate warning of such characteristic and its
danger to users and handlers of the product:
Provided
that a manufacturer shall not be required to provide an adequate warning about
his product when–
(a) the
ordinary user or handler of the product could know, with the ordinary knowledge
common to the community, that the product has dangerous characteristics which
could cause damage; or
(b) the
user or handler of the product already knows or should be reasonably expected
to know that the product has characteristics which were dangerous and could
cause damage.
(2) A manufacturer of a product who, after the product has left his
control, acquires knowledge about the dangerous characteristics of the product
that could cause damage, or who would have acquired such knowledge had he acted
as a reasonably prudent manufacturer, shall be liable for damage caused by his
subsequent failure to use reasonable care to provide an adequate warning of
such characteristic and its danger to users and handlers of the product.
8. Defective because of non-conformity to express warranty.– A product shall be defective when it does
not conform to an express warranty made at any time by the manufacturer about
the product if the express warranty has induced the claimant to use the product
and the claimant’s damage was proximately caused because the express warranty
was untrue.
9. Proof of manufacturer’s knowledge.– (1) Notwithstanding
anything contained in section 6, a manufacturer of a product shall not be
liable for damage proximately caused by a characteristic of product’s design if
the manufacturer proves that at the time the product left his control–
(a) he
did not know and, in the light of the then existing and reasonably available
scientific and technological knowledge, could not have known the design
characteristic that caused the damage or the danger of such characteristic; or
(b) he
did not know and, in the light of the then existing and reasonably available
scientific and technological knowledge, could not have known of the alternative
design identified by the consumer under section 6 (1); or
(c) the
alternative design identified by the consumer under section 6 (1) was not
feasible in the light of the then existing and reasonably available scientific
and technological knowledge or then existing economic practicality.
(2) Notwithstanding anything contained in section
7(1) or 7(2), a manufacturer of a product shall not be liable for damage if the
manufacturer proves that, at the time the product left his control, he did not
know and, in the light of the then existing and reasonably available scientific
and technological knowledge, could not have known of the characteristic that
caused the damage or the danger of such characteristic.
10. Restriction on grant of damages.– Where the consumer has not suffered any damage from the product except
the loss of utility, the manufacturer shall not be liable for any damages
except a return of the consideration or a part thereof and the costs.
11. Duty of disclosure.– (1)
Where the nature of the product is such that the disclosure of its component
parts, ingredients, quality, or date of manufacture and expiry is material to
the decision of the consumer to enter into a contract for sale, the
manufacturer shall disclose the same.
(2) Notwithstanding anything contained in sub-section (1), the
Government may, by general or special order, require such disclosure in any
particular case.
12. Prohibition on exclusions from liability.– The liability of a
person by virtue of this part to a consumer who has suffered damage shall not
be limited or excluded by the terms of any contract or by any notice.
Part III
LIABILITY ARISING OUT OF
DEFECTIVE AND FAULTY SERVICES
13. Liability for faulty or defective services.– A provider of services shall be liable to a
consumer for damages proximately caused by the provision of services that have
caused damage.
14. Standard of provision of services.– (1). Where the standard of provision of a
service is regulated by a special law, provincial or federal, the standard of
services shall be deemed to be the standard laid down by such special law.
(2) Where the standard of a service has not been provided for in any
law or by the professional or trade body concerned, the standard shall be that
which at the time of the provision of the service, a consumer could reasonably
expect to obtain at that time in
15. Restriction on grant of damages.– Where the consumer has not suffered any damages from the provision of
service except lack of benefit, the service provider shall not be liable for
any damages except a return of the consideration or a part thereof and the
costs.
16. Duty of disclosure.– (1) Where the nature of
the service is such that the disclosure of the capabilities or qualifications
of the provider of the service or the quality of the products that he intends
to use for provision of the service is material to the decision of the consumer
to enter into a contract for provision of services, the provider of services
shall disclose the same.
(2) Notwithstanding anything contained in sub-section (1), the
Government may, by general or special order, require such disclosure in any
case.
17. Prohibition on exclusions from liability.– The liability of a
person by virtue of this Part to a person who has suffered damage shall not be
limited or excluded by the terms of any contract or by any notice.
Part IV
OBLIGATIONS OF MANUFACTURERS
18. Prices to be exhibited at the business place.– Unless a price
catalogue is available for issue to customer, the manufacturer or trader shall
display prominently in his shop or display-centre a notice specifying the
retail or wholesale price, as the case may be, of every goods available for
sale in that shop or display-centre.
19. Receipt to be issued to the purchaser.– Every manufacturer or
trader who sells any goods shall issue to the purchaser a receipt showing –
(a) the date of sale;
(b) description of goods sold;
(c) the quantity and price of the goods; and
(d) the name and address of the seller.
20. Return and refund policy.– Return and refund policy of a seller shall be disclosed to the buyer
clearly before the transaction is completed by means of a sign at the point of
purchase.
Part V
UNFAIR PRACTICES
21. False, deceptive or misleading representation.– No person shall make a false, deceptive or
misleading representation that–
(a) the
products are of a particular kind, standard, quality, grade, quantity,
composition, style or model;
(b) the
products have particular history or particular previous use;
(c) the
services are of a particular kind, standard or quality;
(d) the
services are provided by a person having a requisite skill or qualification or
experience;
(e) the
products were manufactured, produced, processed or reconditioned at a
particular time;
(f) the
products or services have any sponsorship, approval, endorsement, performance,
characteristics, accessories, uses or benefits;
(g) the
products are new or reconditioned or have been in use for a particular period
of time only;
(h) the
seller or producer of products or provider of services has any sponsorship,
approval, endorsement or affiliation;
(i) the
products or services are necessary for somebody’s well being;
(j) concerns
the existence, exclusion or effect of any condition, guarantee, right or remedy;
and
(k) concerns
the place of origin of products.
22. Prohibition on bait advertisement.– (1) No person shall, in trade, advertise or
supply at a specified price products or services which that person–
(a) does
not intend to offer for supply; or
(b) does
not have reasonable grounds for believing that they can be supplied at that
price for a period that is, and in quantities that are, reasonable having
regard to the nature of the market in which the person carries on business and
the nature of the advertisement.
(2) Any person who has advertised products or
services for supply at a specified price shall offer such products or services
for supply at that price for a period that is, and in quantities that are
reasonable having regard to the nature of the market in which the person
carries on business and the nature of the advertisement.
Part VI
THE POWERS OF THE AUTHORITY
23. Powers of Authority.– (1) Any person may file a complaint for violation of the provisions of
sections 11, 16, 18 and 19 before the Authority who, on being satisfied that
such is the case, fine the violator that may extend to fifty thousand rupees
and which may be recovered as arrears of land revenue.
(2) The Authority may file a claim for declaring
a product defective under sections 4, 5, 6, 7 or 8 or a service as faulty or
defective under section 13 without proof of any damage actually suffered by a
consumer but likely to be suffered keeping in view the general standard of that
service.
(3) The Authority may file a claim before the Consumer Court for
declaring any act on the part of any person as being in contravention to Part
IV of this Act without proof of any damage actually suffered but likely to be
suffered due to the said contravention.
(4) The Authority on receipt of a complaint or a
reference from the Consumer Protection Council or on his own motion, may hold
an inquiry as to defects in products or services or practices which contravene
any of the provisions of this Act. No prior notice shall be required to be
given to a manufacturer or provider of services for the purposes of holding an
inquiry.
(5) The Authority, while holding an inquiry, may
direct the police or any other officer or authority of the Government to gather
such evidence as it deems necessary or to perform function in accordance with
law which have an impact on the inquiry.
(6) The Authority may delegate his powers under this Act through a
notification to any officer of the Government with its prior approval.
(7) Any person aggrieved by the order passed under
sub-section (1) may file an appeal before the Government within thirty days of
such order.
[3][23-A. Powers of Government.– (1) The
Government may, by general or special order and subject to such conditions as
may be prescribed, exercise all or any of the powers conferred upon the
Authority under this Act except the power of imposition of fine under section
23(1).
(2) The Government may, from time to time, issue
directions to the Authority with regard to the performance of the functions of
the Authority under this Act.
(3) The Government may, at any stage, modify or
set aside any order or action of the Authority subject to such condition or
conditions as it may deem fit.]
Part VII
CONSUMER PROTECTION COUNCIL
24. Consumer Protection Council.– (1) The Government shall set up a Consumer Protection Council in the
Province.
(2) The Government may set up Consumer Protection Councils in one or
more districts which shall report to the Provincial Consumer Protection
Council.
(3) The Consumer Protection Councils shall have
such other functions as may be assigned to them by the Government by
notification in the official Gazette.
(4) The Provincial Consumer Protection Council shall gather such
information and data as may be necessary in order to remove unreasonably
dangerous products and faulty and defective services from trade or commerce.
(5) Each Consumer Protection Council shall have an adequate
representation of consumers and associations of trade, industry and services,
as the case may be, duly registered under
the law for the time being in force; provided that the representation of
consumers on the Council, other than any ex-officio members, shall not be less
than fifty per cent of its total membership.
Part VIII
DISPOSAL OF CLAIMS AND
ESTABLISHMENT OF CONSUMER COURTS
25. Filing of Claims.– A claim for damages
arising out of contravention of any provisions of this Act shall be filed
before a
26. Establishment of Consumer Courts.– (1) The Government shall, by notification, establish
one or more separate Consumer Courts [4][for an area, comprising one or more
districts] to exercise jurisdiction and powers under this Act.
(3) The terms and conditions of service of [6][the District Judge or the Additional
District Judge] appointed under sub-section (2) shall be such as may be
prescribed.
27. Jurisdiction of Consumer Courts.– Subject
to the provisions of this Act, the
(a) the
defendant or each of the defendants, where there are more than one, at the time
of filing of the claim, actually and voluntarily resides or carries on business
or personally works for gain; or
(b) any
of the defendants where there are more than one, at the time of the filing of
the claim, actually and voluntarily resides, or carries on business, or
personally works for gain; provided that in such a case the permission is
granted by the Consumer Court or the defendants who do not reside, or carry on
business, 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.
28. Settlement of Claims.– (1) A consumer who has suffered damage, or Authority in other cases,
shall, by written notice, call upon a manufacturer or provider of services that
a product or service is defective or faulty, or the conduct of the manufacturer
or service provider is in contravention of the provisions of this Act and he
should remedy the defects or give damages where the consumer has suffered
damage, or cease to contravene the provisions of this Act.
(2) The manufacturer or service provider shall, within fifteen days of
the receipt of the notice, reply thereto.
(3) No claim shall be entertained by a
(4) A claim by the consumer or the Authority shall be filed within
thirty days of the arising of the cause of action:
Provided
that the Consumer Court, having jurisdiction to hear the claim, may allow a
claim to be filed after thirty days within such time as it may allow if it is
satisfied that there was sufficient cause for not filing the complaint within
the specified period:
Provided further that such
extension shall not be allowed beyond a period of sixty days from the expiry of
the warranty or guarantee period specified by the manufacturer or service
provider and if no period is specified one year from the date of purchase of
the products or providing of services.
29. Settlement at pretrial stage.– Any party to the
dispute may, at the pretrial stage, make a firm written offer of settlement
stating the amount offered for settlement and if the offer is accepted by the
opposing party, the
Provided
that notwithstanding anything contained in any other law for the time being in
force, the party refusing the offer of settlement shall pay actual costs of
litigation, including lawyer’s fees, in case the final order of the
Provided further that the
court’s approval regarding settlement shall be required in the following
matters–
(i) claims
of a minor;
(ii) claims
of a legally incapacitated person; and
(iii) claims
involving collective rights.
30. Procedure on receipt of complaint.– (1) The Consumer Court shall, on receipt of
a claim if it relates to any products,–
(a) forward
a copy of the claim to the defendant mentioned in the claim directing him to
file his written statement within a period of fifteen days or such extended
period not exceeding fifteen days;
(b) where
the defendant, on receipt of claim referred to him under clause (a), denies or
disputes the allegations contained in the claim, or omits or fails to present
his case within the time specified, as the case may be, the Consumer Court
shall proceed to settle the consumer dispute in the manner specified hereafter;
(c) where
the claim alleges that products are defective and do not conform to the
accepted industry standards, the
(d) where
the dispute cannot be determined without proper analysis or test of products,
the Consumer Court shall obtain sample of the products from the complainant,
seal it and authenticate it in the manner prescribed and refer the sample to a
laboratory along with a direction to make analysis or test, whichever may be
necessary, with a view to finding out if such products suffer from any defect
and to report its findings to the Consumer Court within a period of thirty days
of the receipt of the reference or within such period as may be extended, not
exceeding fifteen days by the Consumer Court; and
(e) the
Consumer Court may require the claimant to deposit to the credit of the
Consumer Court such fees as may be specified, for payment to the laboratory for
carrying out the necessary analysis or test and the fee so deposited by the
claimant shall be payable by the defendant if the test or analysis support the
version of the claimant.
(2) The
(a) forward
a copy of such claim to the defendant directing him to file his written
statement within a period of fifteen days or such extended period not exceeding
fifteen days as may be granted by the Consumer Court; and
(b) on
receipt of the written statement of the defendant, if any, under clause (a),
proceed to settle the dispute on the basis of evidence produced by both the
parties:
Provided that if the
defendant does not deny or dispute the allegations made in the complaint or
fails to present his case within the specified period, the dispute shall be
settled on the basis of the evidence brought by the claimant.
(3) For the purposes of this section, the Consumer Court shall have the
same powers as are vested in civil court under the Code of Civil Procedure,
1908 (Act XX of 1908), while trying a suit, in respect of the following
matters, namely:-
(a) the
summoning and enforcing attendance of any defendant or witness and examining
him on oath;
(b) the
discovery and production of any document or other material object which may be
produced as evidence;
(c) the
receiving of evidence on affidavits;
(d) issuing
of any commission for the examination of any witness; and
(e) any
other matter which may be prescribed.
(4) Every proceeding before the Consumer Court
shall be deemed to be a judicial proceeding within the meaning of sections 193
and 228 of the Pakistan Penal Code 1860 (Act XLV of 1860), and section 195 and
Chapter XXXV of the Code of Criminal Procedure, 1898 (Act V of 1898):
Provided that the personal
presence of the claimant before the
(5) The
31. Order of Consumer Court.– If, after the
proceedings conducted under this Act, the Consumer Court is satisfied that the
products complained against suffer from any of the defects specified in the
claim or that any or all of the allegations contained in the claim about the
services provided are true, it shall issue an order to the defendant directing
him to take one or more of the following actions, namely:-
(a) to
remove defect from the products in question;
(b) to
replace the products with new products of similar description which shall be
free from any defect;
(c) to
return to the claimant the price or, as the case may be, the charges paid by
the claimant;
(d) to
do such other things as may be necessary for adequate and proper compliance
with the requirements of this Act;
(e) to
pay reasonable compensation to the consumer for any loss suffered by him due to
the negligence of the defendant;
(f) to
award damages where appropriate;
(g) to
award actual costs including lawyers’ fees incurred on the legal proceedings;
(h) to
recall the product from trade or commerce;
(i) to
confiscate or destroy the defective product;
(j) to
remedy the defect in such period as may be deemed fit; or
(k) to
cease to provide the defective or faulty service until it achieves the required
standard.
32. Penalties.– (1) Where
a manufacturer fails to perform or in any way infringes the liabilities
provided in sections 4 to 8, 11, 13, 14, 16, 18 to 22, he shall be punished
with imprisonment which may extend to two years or with fine which may extend
to hundred thousand rupees or with both in addition to damages or compensation
as may be determined by the court.
(2) Where a defendant or the claimant fails or
omits to comply with any order made by the Consumer Court, such defendant or the claimant shall be
punishable with imprisonment for a term not less than one month which may
extend to three years, or with fine not less than five thousand rupees which
may extend to twenty thousand rupees or with both.
33. Appeal.– Any
person aggrieved by any final order of the
34. Finality of Order.– Every order of the
35. Dismissal of frivolous or vexatious claims.– Where a claim is found to be frivolous or
vexatious, the Consumer Court shall dismiss the claim and impose fine on the
claimant up to an amount not exceeding ten thousand rupees for having willfully
instituted a false claim and shall award appropriate compensation to the
defendant from the amount of fine so realized.
Part IX
MISCELLANEOUS
36. Aid to the Consumer Court.– All agencies of the Government shall act in aid of the
37. Immunity.– No suit, prosecution or other legal proceedings
shall lie against any functionary under this Act, acting under the direction of
the Consumer Council or the Government for anything which is in good faith done
or intended to be done under this Act.
38. Power to make rules.– The Government may, by
notification in the official Gazette, make rules for carrying out the purposes
of this Act.
39. Power to remove difficulties.– If any difficulty arises in giving effect to any of the provisions of
this Act, the Government may make such order, not inconsistent with the
provisions of this Act, as may appear to it to be necessary or expedient for
removing such difficulty.
[1]This Act was passed by the
Punjab Assembly on
[2]Inserted by the
[3]Inserted by the
[4]Substituted for the words “in each district” by the Punjab Consumer Protection (Amendment) Act 2006 (XI of 2006).
[5]Inserted ibid.
[6]Substituted ibid., for the words “the District Judges”.