ANSWER SHEET OF CONSUMER

PROTECTION ASSIGNMENT

Question no 1 Briefly describe any one ADR mechanism for out of court settlement of
consumer disputes.

Answer =

One of the ADR mechanisms used for out-of-court settlement of consumer disputes is
arbitration. Let me explain:

• Arbitration: In arbitration, the parties involved in a dispute agree to resolve their

issues with binding effect through a private process. Instead of going to a national
court of law, they appoint a neutral third party (an arbitrator) who acts in a judicial
manner. The arbitrator makes a decision in private, and this decision is legally binding
on both parties. Arbitration is commonly used in civil, commercial, industrial, and
family disputes. It offers a less formal, less expensive, and less time-consuming
alternative to traditional court trials. Parties can reach innovative solutions that a court
may not be legally permitted to enforce. By opting for arbitration, parties can save
time, money, and maintain more control over the outcome of their dispute1.

Question no 2 Who can file a complaint under the CPA, 1986 and on what ground can he
do so.

Answer=

Under the Consumer Protection Act, 1986 (CPA), several parties have the right to file a
complaint. Let’s explore who these parties are and the grounds on which they can file
complaints:

1. Consumers: Any individual who purchases goods or avails services for personal use
or self-employment qualifies as a consumer under the CPA. This includes both paid
and partially paid transactions1.
2. Voluntary Consumer Associations: Recognized consumer associations, whether or
not the aggrieved consumer is a member of the association, can file complaints on
behalf of consumers12.
3. Government Authorities:
o Central Government or State Government: They have the authority to file
complaints on behalf of consumers.
o Legal Heirs or Representatives: In case of the death of a consumer, their
legal heir or representative can file a complaint12.
 4. Multiple Consumers with Similar Interests: When numerous consumers share the
same interest or grievance, they can collectively file a complaint1.

Grounds for Filing a Complaint:

Consumers can file complaints based on various grounds, including but not limited to:

• Deficiency in Service: When a service provider fails to meet the expected standards
or obligations.
• Unfair Trade Practices: Such as misleading advertisements, false claims, or
deceptive practices.
• Defective Goods: Products that do not meet quality standards or are unsafe.
• Overcharging: Charging more than the reasonable price for goods or services.
• Negligence: Instances where the service provider or seller is negligent in their duty.
• Unjust Enrichment: When a business gains unfairly at the consumer’s expense.

Where to File a Complaint:

The CPA provides different forums for filing complaints based on the claim value:

• District Consumer Disputes Redressal Forum (DCDRF): For claims up to twenty

lakhs.
• State Consumer Disputes Redressal Commission (SCDRC): For claims exceeding
twenty lakhs but within one crore.
• National Consumer Disputes Redressal Commission (NCDRC): For claims
exceeding one crore1.

Remember that it is not compulsory to engage a lawyer to file a case, and the fees charged are
nominal based on the claim value1.

Question no 3 What kind of agreement are presumed to have in appreciable adverse effect on
competition in India?

Answer

In India, agreements that are presumed to have an appreciable adverse effect on

competition fall under the purview of the Competition Act, 2002. Let’s delve into the
specifics:

1. Horizontal Agreements: These are agreements where enterprises engage in identical

or similar trade of goods or services. When these enterprises collude to distort
 competition in the markets, such agreements are presumed to have an adverse effect
on competition and are void1.
2. Vertical Agreements: These involve relationships between entities at different levels
of the supply chain (e.g., manufacturers, distributors, retailers). If such agreements
limit or control production, supply, markets, technical development, investment,
or provision of services, they are also presumed to adversely impact competition
and are considered void2.

Remember, these presumptions are essential for safeguarding fair competition and preventing
anti-competitive practices within India.

Question no 4 Write a short note on

1. Role of Supreme court under CPA.

2. national consumer helpline.

3. product testing

Answer

Here’s a brief note on each of the topics:

1. Role of Supreme Court under CPA: The Supreme Court plays a crucial role in
interpreting the Consumer Protection Act (CPA), ensuring that consumer rights are
protected. It has been observed that the CPA is a social benefit legislation, and the
Supreme Court has adopted a constructive approach in favor of consumers1. The apex
court has affirmed that homebuyers purchasing flats from builders are considered
consumers, thus extending the scope of the CPA to include real estate transactions2.
The Supreme Court’s judgments under the CPA guide the lower consumer courts and
set precedents for future cases3.
2. National Consumer Helpline: The National Consumer Helpline (NCH) is a
government initiative to help consumers resolve their grievances. It operates a toll-
free number and provides a platform for consumers to register complaints about
defective products, inefficiency in services, and unfair trade practices. The helpline is
available on all days except national holidays and aims to guide consumers on their
rights and remedies available under the CPA4.
3. Product Testing: Product testing, also known as consumer testing or comparative
testing, is a process where products are evaluated for their performance, quality, and
consumer acceptance. This process is crucial for companies to understand how their
target market would react to a product before its launch. Product testing can involve
sending free trial products to selected individuals and requesting their candid
 feedback. It helps in identifying potential market success and areas for improvement
before a product reaches the broader market5.

These notes provide a snapshot of the roles and functions of the Supreme Court under the
CPA, the National Consumer Helpline, and the process of product testing. For more detailed
information, you may refer to the provided citations.

Question no 5 "Customer satisfaction is a key in building long term relationship by marketers". In

light of this statement comment on why a satisfied customer is important for any marketer. By giving
suitable examples discuss the form of complaint received by business and how consumer can make
their complaints heard to them?

Answer

Customer satisfaction is a critical factor for marketers, and here’s why:

1. Smarter Marketing Decisions:

o Satisfied customers provide valuable insights. By understanding their
preferences, pain points, and expectations, marketers can tailor their strategies
effectively.
o Example: An e-commerce company analyzes customer feedback to optimize
its product recommendations, leading to higher conversion rates.
2. Competitive Edge:
o Satisfied customers become loyal advocates. Their positive experiences
differentiate your brand from competitors.
o Example: A hotel with exceptional service receives glowing reviews,
attracting more guests and outshining other hotels.
3. Churn Prevention:
o Satisfied customers are less likely to switch to competitors. Retaining existing
customers is more cost-effective than acquiring new ones.
o Example: A telecom provider offers personalized discounts to long-term
subscribers, reducing churn rates.
4. Word-of-Mouth Referrals:
o Happy customers recommend your business to others. Positive word-of-mouth
spreads organically.
o Example: A satisfied restaurant diner tells friends about the delightful meal,
bringing in new patrons.
5. Identifying Areas of Improvement:
o Customer feedback highlights weaknesses. Addressing these areas enhances
overall performance.
o Example: An airline receives complaints about delayed flights, prompting
them to improve punctuality.
6. Online Reputation Protection:
o Satisfied customers leave positive reviews, bolstering your online image.
Negative reviews can harm your brand.
 o Example: A tech company promptly resolves customer issues, maintaining a
positive reputation online.

Now, let’s discuss common forms of complaints received by businesses:

1. Product/Service Quality Issues:

o Customers complain about defective products, poor service, or unmet
expectations.
o Example: A smartphone manufacturer receives complaints about
malfunctioning screens.
2. Billing and Pricing Disputes:
o Customers express dissatisfaction with incorrect charges, hidden fees, or
pricing discrepancies.
o Example: A cable TV provider faces complaints about unexpected billing
increases.
3. Customer Service Problems:
o Complaints related to rude staff, unresponsive helplines, or unresolved issues.
o Example: An internet service provider receives complaints about long wait
times for technical support.
4. Delivery and Shipping Delays:
o Customers express frustration when orders arrive late or get lost.
o Example: An online retailer deals with complaints about delayed package
deliveries.
5. Website/App Issues:
o Complaints about website glitches, checkout errors, or confusing navigation.
o Example: An e-commerce platform addresses user complaints about a clunky
mobile app.

How can consumers make their complaints heard?

• Direct Communication: Contact customer support via phone, email, or live chat.
• Social Media: Post complaints on social platforms, tagging the company.
• Online Reviews: Leave feedback on review sites or the company’s website.
• Consumer Forums: Participate in online forums to share experiences.
• Regulatory Agencies: Lodge complaints with relevant authorities if necessary.

Remember, a satisfied customer is an asset, while an unsatisfied one can impact your
business. Listening to complaints and taking corrective action is essential for long-term
success!

Question no 6 Who can file a complaint under the consumer protection act, 1986? What actions
can be taken by a consumer court in case of frivolous and vexatious complaints? Also mention a
leading case on medical negligence decide by the supreme court /National Commission under the
consumer protection act, 1986?
Answer

Under the Consumer Protection Act, 1986, any person who falls within the definition of a
“consumer” can file a complaint. A consumer is someone who:

• Buys goods or services for personal use.

• Uses goods or services with the consent of the buyer.
• Receives goods or services as a gift or prize.

The Act establishes Consumer Disputes Redressal Agencies at three levels:

1. District Forum: Handles complaints up to a specified value.

2. State Commission: Deals with appeals against District Forum decisions and
complaints exceeding the District Forum’s jurisdiction.
3. National Commission: Hears appeals against State Commission decisions and cases
involving substantial amounts.

Actions taken by consumer courts in case of frivolous or vexatious complaints include:

• Dismissal: If a complaint lacks merit or is filed with malicious intent, the court can
dismiss it.
• Penalties: The court may impose penalties on complainants who file baseless
complaints.

Now, let’s discuss a significant case related to medical negligence under the Consumer
Protection Act. One such case is “V. P. Shantha vs. Indian Medical Association”. In this
landmark judgment, the Supreme Court held that medical professionals can be held liable for
negligence under consumer protection laws. The court emphasized the duty of care owed by
doctors to their patients and established that medical services fall within the purview of
consumer rights1.

Question no 7 The Bureau of Indian Standard act 2016 establishes by the national standard body of
India". Comment by mentioning the rule of BIS in formulating National standard and give a brief note
about the various conformity assessment scheme by BIS?

Answer

The Bureau of Indian Standards (BIS), established under the BIS Act, 2016, serves as
India’s national standards body. Its primary role is to facilitate the harmonious development
of standardization, conformity assessment, and quality assurance for goods, articles,
processes, systems, and services. Let’s delve into the specifics:

1. Formulating Indian Standards:

o BIS formulates Indian Standards across various technology areas and service
sectors (excluding drugs and pharmaceuticals).
o The process involves consultation with stakeholders such as consumers,
manufacturers, government bodies, technologists, scientists, and testing
laboratories through duly constituted committees12.
2. Conformity Assessment Scheme:
o BIS employs a conformity assessment scheme to ensure compliance with
established standards. Here are the key aspects:
▪ Indian Standards: These serve as benchmarks for quality, safety, and
performance. BIS develops and publishes these standards.
▪ Prohibition and Authorization: Unauthorized publication,
reproduction, or recording of standards without BIS authorization is
prohibited.
▪ Grant of Licenses or Certificates: BIS grants licenses or certificates
of conformity to products that meet specified standards.
▪ Standard Mark Certification: BIS certifies the Standard Mark for
jewellers and sellers of specific goods.
▪ Compulsory Use of Standard Mark: The Central Government can
mandate the use of the Standard Mark for certain products.
▪ Obligations: License holders, sellers, and manufacturers must adhere
to BIS requirements.
▪ Import and Sale Restrictions: Certain goods cannot be imported,
sold, or exhibited without the Standard Mark.
▪ Assaying and Hallmarking Centers: These centers determine the
purity of precious metal articles and apply hallmarks.
▪ Penalties and Offences: BIS enforces penalties for contravention and
ensures action against non-conforming goods32.

In summary, BIS plays a crucial role in maintaining quality, safety, and standardization
across diverse sectors, contributing to India’s economic well-being and consumer protection4.

Question no 8During the present covind-19 locked on situation in India, List down the common
problems faced by the ruler and urban consumers. Also, evaluate this impact on your consumer
rights.

Answer

Certainly! Let’s delve into the challenges faced by both rural and urban populations in India
during the COVID-19 lockdowns, along with an assessment of its impact on consumer rights.
 1. Urban Challenges:
o Poor Infrastructure and Service Delivery: Indian cities struggled with
inadequate infrastructure and service delivery during the pandemic. For
instance, in densely populated slums, social distancing and frequent
handwashing were difficult due to overcrowded living conditions and limited
access to water. Informal settlements became hotspots for infections1.
o Lack of Data for Informed Policy-Making: The absence of comprehensive
data hindered effective decision-making. Cities need robust data systems to
address urban challenges and allocate resources efficiently.
o Vulnerable Groups’ Lack of Agency: Despite their significant role in
economic growth, vulnerable populations (such as low-income migrants and
slum dwellers) lacked agency. Their voices were often unheard in policy
discussions1.
2. Rural Challenges:
o Healthcare Access: During the lockdowns, 83% of participants reported
difficulty accessing healthcare services. Additionally, 17% faced challenges in
obtaining medicines2.
o Economic Impact: 59% of respondents experienced income loss, 38% lost
jobs, and 28% reduced their fruit and vegetable consumption due to economic
hardships2.
o Supply Chain Disruptions: Panic buying led to shortages of essential
supplies, putting pressure on grocers and supply chains3.
3. Impact on Consumer Rights:
o Right to Health: The pandemic highlighted the importance of accessible
healthcare. Ensuring healthcare services reach all citizens, especially
vulnerable groups, is crucial for safeguarding consumer rights.
o Right to Information: Access to accurate data is essential for informed
decision-making. Strengthening data collection and transparency can empower
consumers.
o Right to Safety: Supply chain disruptions affected availability and
affordability of essential goods. Consumer rights include access to safe and
quality products.
o Right to Redress: Consumers facing economic hardships need mechanisms
for seeking redress and support during crises.

As we move forward, addressing these challenges and promoting inclusivity will be vital for
building resilient cities and protecting consumer rights in India12.

Question no 9 Buying of previous jewellery is generally considered out auspicious in India, whether
for weddings, festivals, or as an investment Considering that a major part of the jewellery marketing
and unorganised sector, describe the significant initiative taken by the department of consumer affair
to promote and protect interest of such consumers.

Answer
 The Department of Consumer Affairs in India has undertaken several significant initiatives
to promote and protect the interests of consumers, especially in the context of jewelry. Here
are some notable efforts:

1. Generic Gold Jewellery Marketing Campaign:

o In 2021, the World Gold Council (WGC) and the Gem and Jewellery
Export Promotion Council (GJEPC) joined forces to promote gold jewelry
in India.
o Under this strategic partnership, both organizations jointly funded a multi-
media marketing campaign aimed at increasing awareness, relevance, and
adoption of gold jewelry among Indian consumers, particularly millennials
and Gen Z.
o The campaign focused on making gold jewelry more contemporary and
desirable, tapping into consumers’ desire for self-expression and prestige.
o The goal was to shift the perception of gold jewelry from being associated
solely with traditional occasions to being relevant for various life-worthy
moments1.
2. Hallmarking of Gold Jewelry:
o The introduction of gold hallmarking has been a significant step to protect
consumer interests.
o Since April 2000, gold jewelry certification (popularly known as hallmarking)
has been implemented on a voluntary basis.
o This scheme provides third-party assurance to consumers regarding the
purity and quality of gold.
o Consumers can now make informed choices based on standardized markings
that indicate the fineness of gold2.
3. Integrated Grievance Redress Mechanism (INGRAM):
o The Department of Consumer Affairs launched the INGRAM portal to bring
together all stakeholders, including consumers, government agencies, private
companies, regulators, and ombudsmen.
o This platform facilitates efficient grievance resolution by streamlining
communication and coordination among various entities3.
4. Focus on Quality and Consumer Rights:
o The department aims to strengthen the five pillars of consumer rights:
awareness, choice, safety, information, and redressal.
o Initiatives include proposed decriminalization of the Legal Metrology Act,
E-commerce Rules, and a relentless focus on quality assurance4.

These initiatives collectively contribute to safeguarding consumer interests, enhancing

transparency, and ensuring that the jewelry industry aligns with evolving consumer
preferences.
Question no 10 Advertisement of food high in salt, sugar or fat in social media and other new-age
media platform need to be regulated. Do you agree? Why? Suggest by yourself the most suitable
measured in this regard.

Answer

The regulation of food advertisements, especially those promoting products high in salt,
sugar, or fat (HFSS), is a topic of significant importance. Let’s delve into this issue:

1. Agreement:
o I agree that regulating HFSS food advertisements is crucial. Here’s why:
▪ Health Impact: Excessive consumption of HFSS foods is linked to
various health issues, including obesity, diabetes, and cardiovascular
diseases.
▪ Vulnerable Audiences: Children and adolescents are particularly
susceptible to the influence of food marketing. Exposure to HFSS
advertisements can shape their dietary preferences and habits.
▪ Public Health: By curbing HFSS advertising, we can contribute to
public health goals and reduce the burden of diet-related diseases.
2. Suitable Measures:
o Restrictions on Timing and Content:
▪ Time Slots: Limit HFSS advertisements during children’s
programming hours when young audiences are most exposed.
▪ Content Guidelines: Enforce clear guidelines on the content of HFSS
ads, ensuring they do not mislead consumers or glamorize unhealthy
eating.
o Digital Platforms and Social Media:
▪ Targeted Ads: Regulate targeted HFSS ads on social media platforms,
considering their prevalence among young users.
▪ Influencer Marketing: Monitor influencer endorsements of HFSS
products, especially when aimed at children.
o Healthier Alternatives Promotion:
▪ Subsidies: Encourage the promotion of healthier food options by
providing subsidies or tax incentives to manufacturers.
▪ Price Reduction: Lower the prices of nutritious foods to make them
more accessible.
o Collaboration with Industry:
▪ Voluntary Measures: Encourage industry self-regulation by
collaborating with food manufacturers to voluntarily limit HFSS
advertising.
▪ Transparency: Ensure transparency in industry practices and monitor
compliance.
In summary, a comprehensive approach involving regulatory restrictions, industry
cooperation, and promotion of healthier alternatives can effectively address the impact of
HFSS food advertising on public health.1234