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FW 6 X MJD Ps FYRKp 1 WL QCe
FW 6 X MJD Ps FYRKp 1 WL QCe
FW 6 X MJD Ps FYRKp 1 WL QCe
CONSUMER
CHAPTER – 7
CONSUMER PROTECTION
Consumer lead to repeat sales and thus helps in increasing
A consumer is generally understood as a person who uses customer base of the business.
consumer goods or avails any service. (ii) Business uses Resources of Society: Every
Consumer Protection business uses the resources of the society and
It means protecting consumer from the clutches of fraud thus it is their responsibility to work in the
producers or sellers. The producer should produce goods society’s interest.
keeping in mind the requirements of consumers and satisfy (iii) Social Responsibility: A business has social
the consumer but it is observed that this obligation is responsibilities towards various groups like
neglected by some businessmen and they are involved in the owners, workers, government, customers etc.
unfair practices such as supply of substandard quality, Thus, customers should be provided with quality
adulteration, etc. So there is need for consumer protection. goods at reasonable prices.
Hence consumer protection means protecting the interest of (iv) Moral Justification: It is the moral duty of any
consumer. business to act in favour of consumer’s interest &
IMPORTANCE OF CONSUMER PROTECTION avoid any form of exploitation & unfair trade
(A) From Consumer’s point of view practices like defective & unsafe products,
(i) Consumers Ignorance: Majority of consumers adulteration, false and misleading advertising,
are not aware of their rights and reliefs available hoardings, black marketing etc.
to them as a result of which they are continuously (v) Government Intervention: If a business
exploited. In order to save consumers from engages in any form of unfair trade practices
exploitation, consumer protection is needed. then government takes action against it, which
(ii) Unorganized Consumers: In India consumers will adversely affect the goodwill of the company.
are still unorganized and there is lack of (vi) Consumer is Purpose of Business: The basic
consumer organizations, which would act in their purpose of business is to create more and more
interests. customers and retain them and businessmen can
(iii) Widespread Exploitation of Consumers: create more customers only by satisfying the
Consumers are exploited on a large scale by customers and protecting the interests of
means of various unfair trade practices and consumer. The customer is the foundation of
consumer protection is required to protect them business.
from exploitation. Who Can File a Complaint?
(B) From the point of view of Business (i) A consumer.
(i) Long term Business Interest: It is always in the (ii) Any registered consumer association.
interest of the business to keep its customer (iii) The Central Government or any State Government.
satisfied. Global competition could be won only (iv) One or more consumers, on behalf of numerous
after satisfying customers. Satisfied customers consumers having the interest.
(v) A legal heir or representative of a decreased consumer.
Three Tier Judicial Machinery to Provide Protection to rights because above three rights are meaningless if
Consumers the consumer does not have right to file the complaint.
(i) District forum (v) Right to seek redressal: Consumer has the right to
(ii) State commission get relief in case the product or service falls short of
(iii) National commission consumers expectations or is dangerous. The
Consumer Rights consumer may be provided with
(i) Right to safety: Consumer has the right to be protected replacement/removal of defect or compensation for
against products, & services which are hazardous to any loss.
health & life. E.g. ISI certification for electronic items. (vi) Right to consumer education: Consumer has the
This right is important for safe and secure life. This right right to acquire knowledge and to be well informed
includes interest consumer for consumer’s long interest throughout life. He should be made aware of his rights
as well as for their present requirement. Sometimes the and reliefs available to him in case of the product or
manufacturing defects in pressure cookers, gas cylinders service falls short of his exceptions. The Govt. of India
and other electrical appliances may cause loss of life, has included consumer education in the school
health and property of consumers. This right to safety curriculum and is making use of mass media to make
protects the consumers from sale of such hazardous consumers aware of their rights. To promote
goods and services. awareness, Indian Government has taken several
measures like campaign of ‘Jago Grahak Jago’, etc.
Many consumer organisations and reputed firms are
also taking an active part in educating consumers.
Consumer Responsibilities
(i) Consumer must exercise his right: Consumer must
be aware their own rights. These rights are right to
safety, right to be informed, right to choose, right to be
heard, right to seek redressal and right to consumer
education. They must exercise this right while buying
products and services.
(ii) Right to be informed: Consumer has right to have (ii) Consumer must be conscious: The consumer must
complete information about the product before buying ask for complete information about the quality, utility,
it. He has the right to get information about the quality, quantity, price, etc. before buying it. Thus, he should
quantity, purity and price of goods and services so as not purchase blindly.
to protect himself against the abusive and unfair trade
(iii) Consumer must be quality cautious: The consumer
practices. The producer must supply all the relevant
should buy only standardised products as they
information at a suitable price.
provide quality assurance. While purchasing goods,
(iii) Right to choose: Consumer has a right to choose any the consumer must look for standards quality
product out of the available products as per his/ her certification marks like ISI, Agmark, Hallmark, FPO,
own interests. The right to choose means an assurance etc. This will help to eradicate the problems of
of availability, ability and access of variety of products adulteration and spurious products.
and services at competitive price and competitive
(iv) Beware of False Advertisement: Consumers should
price means just or fair price. The producer or supplier
not believe in advertisements blindly because
or retailer should not force the customer to buy a
advertisements often exaggerate the quality or
product of specific brand. Consumer must be free to
features of goods and services. Therefore, they should
choose the most suitable product from his point of
compare the details of the product given in the
view.
advertisement with the actual product. Any
(iv) Right to be heard: Consumer has the right to file a discrepancy or difference should be brought to the
complaint to be heard in case of dissatisfaction with notice of the sponsor of the advertisement.
goods or services (use of grievance cell). Many reputed
(v) Insist on cash memo: A consumer must ask for a cash
firms have set up their own consumer service and
memo on purchase of goods and services as it serves
grievance cell to listen the consumer’s complaints and
as a proof of purchase at the time of filling of
take appropriate steps to redress their grievances.
complaint. No seller can deny to give a cash memo.
This right of is of greater importance of the first three
Infact a seller is bound to give a cash memo even if Redressal Agencies
buyer does not ask for it. 1. DISTRICT FORUM
(vi) Consumer should Knowledge about Market: District forum are set up in each district by the state
Consumers should be aware about various goods and concerned. The important features are:
services available in market so that an intelligent and (a) It consists of a President and two members, one
of whom should be a woman, duly appointed by
wise choice can be made.
State Government
(vii) Filing Complaint: The consumer must file a complaint (b) It can receive consumer complaints of not more
in an appropriate consumer forum in case of any than ₹1 crores value.
defect in the product or deficiency availed. When a (c) On receiving the complaint, the district forum
consumer ignores his exploitation by traders, he shall refer the complaint to the opposite party
encourages corrupt business practices. Therefore, concerned and send the sample of goods for
consumers should lodge complaints for redressal if testing in a laboratory.
their genuine grievances. The consumer even for a (d) The district forum after being satisfied that goods
small loss should not hesitate to move to the are defective or there is some unfair trade
appropriate authority but should not exaggerate the practice can issue an order to opposite party
loss or defect of goods. directing him to either replace or return the price
(viii) Consumers must be honest: A consumer should be or pay compensation. In case the aggrieved party
honest in his dealings. He should purchase only legal is not satisfied with the order of district forum.
He can appeal before state forum within 30 days
goods and services and discourage unfair trade
of passing an order.
practices like black marketing, hoarding etc.
(ix) Form Consumer Organisations: Consumers should 2. STATE COMMISSION
form consumer organisation to educate consumers It is set up in each state by the government concerned.
and safeguard their interests. The salient features are:
(a) Each commission consists of a president and it
(x) Save Environment: Consumer should save the least 2 members appointed by state Government.
environment by avoiding waste, littering, and (b) Complaints of at least ₹1 crore but not more than
contribution to pollution. ₹10 crores can be filed with state commission.
Relief Available (c) On receiving the complaint, the state commission
(i) Removal of defects from the goods can also refer the complaint to opposite party and
(ii) Replacement of the goods send the goods for testing in laboratory.
(iii) Refund of the price paid (d) The state commission after being satisfied can
(iv) Compensation of loss or injury suffered order to opposite party to either replace or repay
(v) Removal of deficiency in service or pay compensation. In case the aggrieved party
(vi) Discontinuance of unfair trade practices is not satisfied, they can appeal before national
(vii) Stopping the sale of hazardous goods commission within 30 days of passing an order.
(viii) Withdrawal of hazardous goods from market 3. NATIONAL COMMISSION
It is setup by Central Govt. The provisions of act are:
THE SALIENT FEATURES AND PROVISIONS OF (a) It consists of a President and at least 4 members
CONSUMER PROTECTION ACT,2019 appointed by Central Government.
Who Can File a Complaint Under CPA, 2019 (b) All complaints are pertaining to goods and
A complaint before the appropriate consumer forum can be services of value more than ₹10 crore can be filed
made by: with national commission.
1. Any consumer. (c) On receiving the complaint, the national
2. Any registered consumer association. commission can also refer it to opposite party and
3. The central or state government. send goods for testing.
4. One or more consumers on behalf of numerous (d) The National Commission has the power to issue
consumers having same interest. orders for replace mentor removal and to pay the
5. A legal heir or representative of a deceased consumer. compensation for loss.
REDRESSAL AGENCIES UNDER CONSUMER PROTECT (e) Any person who is aggrieved by the order of the
ACT, 2019 National Commission can appeal against such
For the redressal of consumer grievances the act provides a order to the Supreme Court within 30 days of
three–tier machinery as: passing the order.
Marks Indicating quality in different products
ISI: On consumer durable products, electronic items, etc.
AGMARK: On agricultural commodities and live stock
product.