CONSUMER PROTECTION
MEANING:- Consumer protection refers to all those activities that safeguard
against anti-consumer trade practises of producers and traders.
NEED FOR CONSUMER PROTECTION:-
1. Consumer is the purpose of business: In order to satisfy and retain
customers, businesses must provide goods and services of the right quality
and quantity and at the right prices.
2. Business is a means of human welfare: It cannot survive and grow
unless consumers and other people are served well.
3. Multiple objectives: Profit making cannot be the sole objective of
business. As a part of society business is expected to take care of the
interests of all sections of society including consumers.
4. Growth with social justice: Growth with social justice is the aim of our
country. India's Constitution describes that the country is a socialist and
secular democratic republic. Consumer protection is in accordance with the
Directive Principles of State Policy laid down in our Constitution.
5. Stakeholder approach:Business must protect the interests of all the
stakeholders including customers.
6. Responsibility with power: It is the responsibility of business to use its
power in such a way that the interests of society in general and consumers
in particular are not damaged.
7. Theory of trusteeship: According to Mahatma Gandhi, businessmen are
trustees of the society's wealth. They should use this wealth for the benefit
of people.
8. Business ethics: Business without moral values cannot be tolerated for
long in any civil society.
9. Self-interest: Moreover, the government has enacted laws to protect the
interest of consumers. Business firms which violate these laws are likely to
lose customers and goodwill forever. It is, therefore, in the interest of
business itself to protect the rights of consumers.
RIGHTS OF CONSUMERS:-
1. Right to safety: This is the right to be protected against the marketing
of goods which are hazardous to life and property.There are various risks
involved in the consumption and use of products, such as food, drugs, toys,
electrical appliances, etc.For example, artificial colours in food products can
damage the liver. Therefore, responsibility for their safety should be fixed on
producers and distributors.
2. The Right to be Informed: The consumer has the right to be informed
about the quality, quantity, potency, purity, standard and price of the goods
he intends to purchase. It is the responsibility of the manufacturer and
distributor to give complete informations about (a) the product including its
ingredients, date of manufacture, technical specifications, etc. (b) the
precautions, if any, to be taken in the use and maintenance of the
product,(c) strength, durability, serviceability and reuse value of the
product, (d) the side effects and risks in the use of the product, etc. Such
information would enable the consumer to intelligently exercise his
decisions to buy a product. The right to information is meant to protect the
consumer from deceptive advertising, misleading labelling and warranties,
etc.
3. The Right to Choose: This means the seller should not use aggressive
selling techniques to sell the product to the consumer. There should be
freedom to choose from alternative products. This requires free competition
in the market.
4. The Right to be Heard: The consumer has a right to register his
dissatisfaction and get his complaint heard at appropriate forums.
5. The Right to Seek Redressal: It means the right to get claims and
complaints settled against manufacturers or sellers due to unfair trade
practices and exploitation by them. The product must be repaired, replaced
or taken back by the seller. The right to seek redressal will reduce
post-purchase doubts and grievances of consumers.
6. The Right to Consumer Education: The consumer must be made aware
of his rights and the remedies available to them.
CONSUMER RESPONSIBILITIES:-
(i) Exercise the rights: Consumers must be aware of their own rights. They
must exercise these rights while purchasing products and services from the
markets.
(ii) Ask for full information: Before buying a product or service, consumers
must ask for complete information about the quality, utility, price, etc. This
will ensure right purchase decisions. The consumers should not depend
entirely on the seller.
(iii) Be quality conscious: Consumers must look for quality certification
marks like ISI, Agmark, FPO, Woolmark, Pure Cotton, etc. while making
purchases. This will help to eradicate the problems of adulteration and
spurious products.
(iv) Insist on cash memo: A seller is bound to give cash memo. Consumers
need a cash memo as a proof of purchase for claiming compensation against
defects in the goods purchased. Moreover, by insisting on cash memo
consumers can ensure that the Government does not lose sales tax revenue.
(v) Don't get carried away by advertisements: Advertisements often
exaggerate the utility of goods and services. Therefore, they should compare
the uses of alternative products given in advertisements. The sponsor of the
advertisement should be informed of discrepancy, if any.
(vi) File complaints: When a consumer ignores his exploitation by traders,
he encourages corrupt business practices. Therefore, consumers should file
complaints for redressal of their genuine grievances.
METHOD OF CONSUMER PROTECTION:-
1. Self-Regulation by Business (Self-help): Business community can
itself ensure consumer protection through self-discipline. Businesses
should adopt a code of conduct so as to behave in a more responsible
manner. They should formulate and apply consumer- oriented
marketing.
2. Consumer Awareness:- The consumer himself must be alert and well
informed and protect their own rights by speaking and acting against
all forms of exploitation.
3. Consumer Associations:- Consumer associations and
non-government organisations can educate and awaken consumers.
4. Government Control:- All the wings of the government, legislature,
judiciary, and executive can assist in consumer production.
MEASURES PROVIDED BY THE GOVERNMENT FOR PROTECTING
CONSUMERS IN INDIA:-
1. Publicity:- All India radio and Doordarshan telecast regular
programmes on consumer protection. World consumer rights day is
celebrated on 15th March every year.
2. Awards:- Government of India offers awards to youth and women in
order to encourage their participation in consumer protection.
3. Environment friendly products:- an equal marks scheme has been
introduced to motivate manufacturers and importers to reduce the
impact of products on the environment. Under the scheme produce
producers are authorised to use the Ecolab on products, which satisfy
the prescribed condition.
4. Consumer welfare fund:- The Government of India has created a
fund for the welfare of consumers. This fund is to be utilised on
consumer education, training, and research in consumer education,
setting up counselling guidance, and complaint handling facilities.
5. Lok Adalats :- In a Lokanath, the grieved consumer can directly
present his grievance. Delhi development authority, Delhi transport
Corporation, Mahanagar Nigam Ltd and Indian Railways organised
Lok Adalat from time to time.
6. Public Interest litigation:- Any individual or organisation can file
writ petition in the court in the interest of a week, individual or group,
which may not be able to seek legal remedy on his own.
7. Consumer redressal forums:- The consumer protection act, 1986
provides a judicial machinery for redressal of consumer grievances.
CONSUMER PROTECTION ACT, 1986
Remedies available to an aggrieved consumer are:-
A) Removal of defects in goods or deficiency in service
B) Replacement of defective goods with new goods of similar similar
description
C) Refund of price by the seller
D) Payment of compensation by seller for any loss suffered by the
consumer
E) Withdrawal of hazardous goods from the market
F) Discontinuance of unfair and restrictive trade practices.
● The consumer protection act makes provision for the setting up of the
following authorities:-
District commission:- The important features of district commission are:-
1. Each district forum consists of a chairman and two members
appointed by the state government. It has the powers of a civil court
for enquiring into any complaint that is summoning and enforcing
attendance of witnesses, examining them on oath, receiving
documents, evidence, etc.
2. A district forum can receive consumer complaints where the value of
goods or services and the compensation claimed is not more than Rs
25 lakhs, (1cr - 2019) and (not more than 50 lakh - 2021)
3. The complaint can be filed by consumer to Home goods are sold or
services rendered or any recognised consumer association
4. An appeal against the order of the district forum can be filed to the
state commission within 30 days.
State commission:- The consumer protection act lays down the working of
a state commission as under:-
1. The state commission shall consist of a president who either is or has
been a judge of a High Court and two other members
2. Only these complaints can be filed where the value of goods or
services and compensation claimed is more than ₹50,00,00 but not
more than 2CR. (2019 - more than 1cr and less than 10CR) and
(2021-more than 50CR and less than 2CR)
3. The state commission is required to refer the complaint to the
opposite party concerned and send the sample of goods for testing in a
laboratory if necessary.
4. The state commission after being satisfied that the goods were
defective can issue an order, directing the opposite party to either
remove the defect or replace the good or return the price paid or pay
compensation to the consumer for loss or injury.
5. Any person who is aggrieved by the order of the state commission can
appeal against such order to the National commission within 30 days.
National commission:- The salient features and provisions of the act
pertaining to the national commission are given below:-
1. It shall consist of a president who is or has been a judge of the
Supreme Court and four other members appointed by the central
government.
2. All complaints pertaining to those goods or services and
compensation, whose value is more than 2CR can be filed. (2019-
above 10CR) and (2021-above 2CR)
3. The national commission shall have the same powers as that of a civil
court in dealing with cases and follow the procedures prescribed by
the central government
4. An appeal against the order of the national commission can be filed to
the Supreme Court within 30 days.
WHO IS A CONSUMER?
A consumer is defined as a person who buys any good or a service for a
consideration. It does not include a person who obtains a good for resale or
a good or service for commercial purpose or obtained free.
WHO CAN FILE A COMPLAINT?
The following can file a complaint under the act:-
1. A consumer
2. Any volunteer consumer association registered under the complaints
act 1956, or under any other law for the time being in force
3. The central government or any state government
4. One or more consumers
5. In case of death of a consumer is legal hair or representative
AGAINST WHOM THE COMPLAINT CAN BE FILED?
1. Trader
2. Manufacturer
3. Supplier
CONSUMER PROTECTION ACT, 2019
● The consumer protection act 2019 comes into force from 20 July
2020.
Establishment of the CCPA:- The CCPA will protect, protect, promote, and
enforce the rights of the consumers. The CCP will regulate cases related to
unfair trade practices, misleading advertisements and violation of consumer
rights.
Duties of the CCPA:-
1. Conduct investigations into violations of consumer rights and institute
complaints
2. Order recall of unsaved goods and services
3. Order discontinuance of unfair trade practises and misleading
advertisements
4. Impose penalties on manufacturers of misleading advertisements
Rules on e-commerce and unfair trade practises:- The government
government will notify the consumer protection rules 2020 under the act
whose board provisions are given below:-
● E-commerce entities are required to provide information to consumers
relating to return. Refund exchange warranty and guarantee delivery
and shipment. Modes of payment, grievance, redressal mechanism,
payment method, security of payment, methods, chargeback options,
and country of origin.
● The consumer protection rules 2020 are mandatory and are not
advisory
Product liability:-
A product manufacturer or service provider or product seller will be held
responsible to compensate for injury or damage caused by defective product
or deficiency and services. Basis for product liability action:
1. Manufacturing defect
2. Design defect
3. Deviation from manufacturing specifications
4. Not conforming to express warranty
5. Service provided quality, imperfect or deficient
Punishment for manufacturer or sale of adulterated or fake goods:-
● In case of the first conviction, a competent court may suspend any
licence issued to the person for a period of up to 2 years, and in case
of second or subsequent conviction may cancel the licence
permanently.
Alternate dispute resolution mechanism or mediation:-
● A complaint will be referred by a consumer commission for mediation
wherever scope for early settlement exits and parties agree for it
● The mediation will be held in the mediation cells, which will be
established under the aegis of the consumer commissions
● There will be no appeal against settlements through mediation
Simplification of the consumer dispute adjudication process:-
1. Empowering the state and district commissions to review their own
order
2. Enabling a consumer to file complaints electronically and in consumer
commissions that have jurisdiction over the place of his residence
3. Would you conferencing for hearing and deemed admissibility of
complaints
Other rules and regulations:-
1. As per the consumer dispute redressal commission rules, there will be
no fee for filing cases up to ₹5,00,000
2. The credit of the amount due to unidentifiable consumers will go to
the consumer welfare fund
3. The bill replaces the consumer protection act of 1986
ROLE OF CONSUMER ORGANISATION AND NGOS :-
1. Making consumers aware of their rights and responsibilities
2. Educating consumers about the remedies available to them for
protecting their rights
3. Arranging talks, seminars, conferences, and workshops on issues
concerning consumers
4. Organising exhibitions on adulterated products
5. Filing, suits, complaints and writ petitions before the courts on behalf
of consumers
