The Act postulates establishment of Central Consumer Protection Council and the State Consumer Protection Councils for the purpose of spreading consumer awareness. Central Council is headed by Minster, incharge of the Consumer Affairs in the Central Government and in the State it is the Minister incharge of the Consumer Affairs in the State Government who heads State Council.

The District Consumer Forums are headed by the person who is or has been or is eligible to be appointed as a District Judge, the State Commissions are headed by a person who is or has been a Judge of High Court, the National Commission is headed by a person who is or has been a Judge of Supreme Court. 

Consumer Courts are Courts set up by the government to provide protection and relief to four categories of consumers, viz.: 

• Persons who have purchased goods for consideration which are found to suffer from one or more defects;
• Persons who have suffered loss or damage as a result of any unfair trade practice adopted by any trader;
• Persons who have purchased goods and have been overpriced for it;
• Persons who have hired any paid service, which is found to be deficient in any respect.

The remedies that can be sought in a consumer complaint are: To remove the defect from the goods/ service in question; or

• To replace the goods which is free from any defect; or
• To return the price charges paid by you; and
• To compensate you for loss or injury that you may have suffered due to the defective product / service;
• To discontinue the unfair trade practice or the restrictive trade practice or not to repeat them.

To provide cheap, speedy and simple redressal to consumer disputes, Consumer Forum is set up at different levels :

• District Consumer Disputes Redressal Forum
• State Consumer Disputes Redressal Commission
• National Consumer Disputes Redressal Commission

The enactment of the Consumer Protection Act, 1986 was an important milestone in the history of the consumer movement in the country. The Act was made to provide for the better protection and promotion of consumer rights through the establishment of Consumer Councils and quasi-judicial machinery.

Under the Act, consumer disputes redressal agencies have been set up throughout the country with the District Consumer Forum at the National level to provide simple, inexpensive and speedy justice to the consumers with the complaints against defective goods, deficient services and unfair and restrictive trade practices. The Act was also amended in the years 1991 and 1994 to make it more effective and purposeful.