Q3. What is meant by consumer Protection?

Explain the rationale of

Consumer Protection in India.
Consumer protection is a group of laws and organizations designed to ensure the
rights of consumers as well as fair trade, competition and accurate information in
the marketplace. The laws are designed to prevent businesses that engage in fraud
or specified unfair practices from gaining an advantage over competitors. They
may also provide additional protection for those most vulnerable in society.
Consumer protection laws are a form of government regulation, which aim to
protect the rights of consumers. For example, a government may require businesses
to disclose detailed information about productsparticularly in areas where safety
or public health is an issue, such as food. Consumer protection is linked to the idea
of consumer rights, and to the formation of consumer organizations, which help
consumers make better choices in the marketplace and get help with consumer
complaints.
Other organizations that promote consumer protection include government
organizations and self-regulating business organizations such as consumer
protection agencies and organizations, the Federal Trade Commission,
ombudsmen, Better Business Bureaus, etc.
Consumer protection implies assurance against anti-consumer trade practices by
the producers or traders. Anti-consumer trade practices include adulteration, substandard quality, fractional weights and measures, overcharging, misleading,
claims in advertisements, etc. Naturally, curbing such practices through legislative
and other measures and taking action against the procedures and traders indulging
in such practices is the essence of consumer protection.
In India, the Consumer Protection Act 1986 differentiates the consummation of a
commodity or service for personal use or to earn a livelihood. Only consumers are
protected as per this act and any person, entity or organization purchasing a
commodity for commercial reasons are exempted from any benefits of this act.[5]

Importance of Consumer Protection:

The Consumer Protection Act, 1986:

The C.P.A. was passed by the Parliament in 1986 and it came into force from 1987.
Its purpose is to protect consumers against defective goods, unsatisfactory services,
unfair trade practices, etc.
The Act provides for three tier machinery consisting of District Forum, State
Commission and National Commission within a given time frame for disposal of
cases. It also provides for the formation of consumer protection councils in every
state.
The consumers can file their complaints at the appropriate forum for quick
redressal. The complaint may relate to defective refrigerator or T.V. set, nonfunctional telephone, lack of due car? In medical treatment and so on. It can be
filed against the manufacturer, selling organization or the person who provides the
goods and services for a price. Any service or product given free of change is not
covered by the Act.
Rationale of Consumer Protection:
The government policy of economic liberalization since 1991 has brought
welcome changes for the consumers. Entry of private sector including
multinational corporations into the production of goods and services has turned
sellers market into buyers market in many areas. The buyer, for example, has now
a wide choice in goods like two-wheelers, cars, refrigerators, T.V., cell phones,
computers, etc.
But still, the consumer cant be considered free from the malpractices of the
dishonest producers and traders. The rationale of consumer protection lies in the
need of saving the consumer from the unfair trade practices and exploitation by the
producers and traders.
Some of the unfair practices that justify governments role in consumer
protection are as follows:
(i) The traders may sell goods that do not conform to the claimed standards of
quality, size, weight, design, etc.
(ii) The traders may supply inferior or duplicate products to the consumers.

(iii) The goods supplied to the consumers may not be safe for human consumption
or use.
(iv) The producers may advertise a low price for the goods on offer. But when one
goes to purchase the goods, he ends up paying more than the advertised price
because it did not include the price of accessories or other things that are necessary
to use the goods.
(v) The consumers may find goods weighing less than the quantity printed on the
package. Producers escape responsibility by claiming that the package indeed
contained the printed quantity at the time of packing and the loss could be in
transit.
(vi)The producers may cause ecological and environmental hazards for the
consumers and society by causing water, air and noise pollution.
(vii) Some producers promote goods that are injurious to public health through
surrogate advertising. For instance advertisement of a Soda brand may be carried
out to promote the sale of liquor with the same brand name.
The consumer seeks protection, advice and information when his rights are
adversely affected. The shift from buyer beware to seller beware has increased the
role of Government in promoting the consumers right to safety, the right to be
informed, the right to choose, the right to be heard, the right to redressal and the
right to represent.