The Punjab Consumer Protection Act 2005
The Punjab Consumer Protection Act 2005
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[1]
THE PUNJAB CONSUMER PROTECTION ACT 2005
(Pb. Act II of 2005)
[25 January 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 Punjab.
(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;
[2]
(b) “Authority” means the District Coordination Officer of the district concerned [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 Punjab;
(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
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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.
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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
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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.
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(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 Consumer Court set up under this Act.
26. Establishment of Consumer Courts.– (1) The Government shall, by notification, establish one or
[4]
more separate Consumer Courts [for an area, comprising one or more districts] to exercise jurisdiction
and powers under this Act.
[5]
(2) A Consumer Court shall consist of a District Judge [or an Additional District Judge] to be appointed
by the Government in consultation with the Lahore High Court.
[6]
(3) The terms and conditions of service of [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 Consumer Court shall
have jurisdiction to entertain complaints within the local limits of whose jurisdiction–
(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 Consumer Court unless the consumer or the Authority has
given notice under sub-section (1) and provides proof that the notice was duly delivered but the
manufacturer or service provider has not responded thereto.
(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 Consumer Court shall pass an order in terms of the settlement:
Provided that notwithstanding anything contained in any other law for the time being in force, the
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party refusing the offer of settlement shall pay actual costs of litigation, including lawyer’s fees, in case the
final order of the Consumer Court is passed against that party:
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 Consumer Court may decide the dispute on the basis of the evidence relating to the
accepted industry standards and by inviting expert evidence in this regard;
(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 Consumer Court shall, if the claim relates to any services,–
(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):
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Provided that the personal presence of the claimant before the Consumer Court shall not be required
till the defendant has put up appearance before it.
(5) The Consumer Court shall decide the claim within six months after the service of summons on
the respondent.
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 Consumer Court may file an appeal in the
Lahore High Court within 30 days of such order.
34. Finality of Order.– Every order of the Consumer Court, if no appeal has been preferred against
such order under the provisions of this Act, shall become final.
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 Consumer
Court in the performance of its functions under this Act.
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.
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[1]
This Act was passed by the Punjab Assembly on 13 January 2005; assented to by the Governor of the Punjab on 19 January 2005; and,
was published in the Punjab Gazette (Extraordinary), dated 25 January 2005, pages 2565 to 2573.
[2]
Inserted by the Punjab Consumer Protection (Amendment) Act 2006 (XI of 2006).
[3]
Inserted by the Punjab Consumer Protection (Amendment) Act 2006 (XI of 2006).
[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”.
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