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CH - 12 CONSUMER PROTECTION CHAPTER SUMMARY

Concept and Importance of Consumer Protection

1. Consumer Protection: Consumer protection means the act of protecting the consumers
against unscrupulous, exploitative and unfair trade practices of manufacturers, traders and
service providers.
2. Importance of Consumer Protection
o Educating consumers about their rights and responsibilities, and
o Getting their grievances redressed
3. From the Point of View of Consumers
o Consumer Ignorance
o Unorganised Consumers
o Widespread Exploitation of Consumers
4. From the Point of View of Business
o Long-term Interest of Business
o Business Uses Society's Resources
o Social Responsibility
o Moral Justification
o Government Intervention

The Consumer Protection Act, 1986

This Act seeks to protect and promote the interests of consumers through speedy and
inexpensive redressal of their grievances.

1. Concept of Consumer: Consumer is a person who buys any product or avails of any service
for a consideration.
2. Rights of Consumers: The rights of consumers are:
3. Consumer Responsibilities: The responsibilities of the consumers are: A consumer
o must be aware of the variety of goods and services available.
o must buy standardised goods only.
o must collect sufficient information about the product intended to purchase.
o must read and follow manufacturer's instructions while using the product.
o must check the product ingredients, MRP and manufacturing and expiry dates.
o must obtain the Cash Memo.
o must file a complaint in the appropriate consumer forum if the product fails to meet
expectations.
o must form consumer organisation.
o Thrust save the environment.
grievances.
o Right to Safety
o Right to Choose
o Right to Seek Redressal
o Right to be Informed
o Right to be Heard
o Right to Consumer Education

Some Key Questions:

Who Can File Complaint:

A complaint in a consumer court can be filed by:

Any consumer, one or more consumers on behalf of numerous consumers having the same interest, legal
heir or representative of a deceased consumer, any registered consumers' association, and the Central
Government or any State Government.

Redressal Machinery: Legal Redressal Agencies under Consumer Protection Act:

District Forum at district level to hear complaints of the value of up to 20 lakh.
State Commission in each state to hear appeals against consumer forum and new complaints of the
value of more than X 20 lakh but less than 1 crore.
National Commission at the Centre for the whole country to hear appeals against state
commissions and new complaints of the value of above 1 crore.

Remedies Available to Consumers under the Consumer Protection Act, 1986

o To remove defect in goods or deficiency in services.
o To replace goods with new goods of similar description free from any defect.
o To refund the price paid for the product or the charges paid for the service.
o To pay compensation to the consumer for any loss or injury suffered owing to negligence of
the opposite party.
o To discontinue unfair trade practices or restrictive trade practices or not to repeat them.
o Not to offer hazardous goods for sale.
o To withdraw hazardous goods on sale.
o To cease manufacture of hazardous goods and to desist from offering services which are
hazardous in nature.
o To pay such sum for compensating loss or injury to a large number of consumers who are
not conveniently identifiable.
o To issue corrective advertisement to neutralise the effect of misleading advertisement at the
cost of opposite party.
o To pay adequate cost to the appropriate party.

Role of Consumer Organisations and NGOs

In India, a number of consumer organisations and NGOs help to protect and promote the interest
of consumers. They
o educate consumers about their rights and responsibilities by organising seminars, workshops
and training programmes.
o encourage consumers to protest strongly and take action against unfair trade practices.
o publish journals, etc., to impart knowledge about consumer problems, relief available and
other matters of interest.