Consumer Protection SAHAY Institute 2nd book

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1. Explain the concept of Consumer Protection; It refers to providing protection to consumers
against unscrupulous, exploitative and unfair trade practices of traders, manufacturers and
service providers. It has a wide agenda. It aims at:
 Educating consumers about their rights and responsibilities.
 Providing speedy and inexpensive redressal of their grievances.

The Consumer Protection Act (CPA) provides safeguards to consumers against defective goods, deficient
services and unscrupulous, exploitative and unfair trade practices of sellers. The act provides certain
rights to consumers with a view to empowering them to fight against such malpractices.

Scope of the consumer protection Act, 2019: It is applicable to all types of undertakings, big or small,
whether in the private or public sector or in the cooperative sector, whether a manufacturer or a trader,
and whether supplying goods or providing services.

2. Define the term ‘Consumer’, according to consumer protection act

According to consumer protection Act, 1986, A consumer is defined as Any person who buys any goods
for a consideration, which has been paid or promised, or partly paid and partly promised, or under any
scheme of deferred payment. It includes any user of such goods, when such use is made with the
approval of the buyer, but does not include a person who obtains goods for re-sale or for any
commercial purpose.

3. Explain some points of Importance of Consumer Protection:

From the point of view of Business:

1. Long term interest of business: Business firms can capture big market share only when they are able
to satisfy their customers by providing quality products at reasonable prices, giving after-sales
services and avoiding unfair trade practices. Satisfied customer not only lead to repeat sales but also
provide good feedback.

2. Business Uses Society’s resources: Business uses various resources which belong to the society.
Thus, it becomes the responsibility of business to provide better facilities to society.

3. Government Intervention: By ignoring consumer’s interest, business is almost inviting government

intervention. Government intervention in defence of consumer’s interest is certainly a setback for
any firm. This would tarnish the image of the company.

4. Moral Justification: It is the moral duty of any business to take care of consumer’s interest and
avoid any form of their exploitation and unfair trade practices like defective and unsafe products,
adulteration, false and misleading advertising, hoarding, black-marketing etc.
Consumer Protection SAHAY Institute 2nd book
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5. Social responsibility: Business organizations earn profits by selling goods and providing services to
consumers. Thus, consumers form an important group and like other stakeholders, their interest
should be well taken care of.

From the point of Consumer:

1. Consumer Ignorance: Consumers are ignorant about their rights and reliefs available to them.
Therefore, it becomes necessary to educate them about the same so as to achieve consumer
awareness. For example, the department of consumer’s affairs launched multi-media campaign
under the brand name of ‘Jago Grahak Jago’ to spread awareness and educate consumer against
exploitation of seller.

2. Unorganized Consumers: In India, we do have consumer organizations which are working for
consumer protection. Still adequate protection required to be given to consumers till these
organizations become powerful enough to protect and promote the interest of the consumer. For
example, Consumer in the rural area may not have access of information about consumer
organization so they will need consumer protection.

3. Widespread exploitation of consumers: Consumers might be exploited by unfair trade practices.

Consumers need protection against such malpractices of the seller. For example, many sellers for
their short term gain may supply defective or adulterated goods or mislead through false
advertisements. Consumer protection protects consumers from such malpractices.

Rights of consumer:

1. Right to Safety: Every consumer has a right to be protected from such goods and services which
may be hazardous to life and health. To protect consumers, the government has enacted regulations
under which goods must acquire necessary certification to ensure that they conform to the
prescribed quality. The consumer affairs department works towards educating consumers about the
importance of quality certifications.

2. Right to be informed: It is the right of every customer to have complete information about the
product he or she intends to purchase. To ensure that consumers are well informed, the legal
framework in India requires every manufacturer to give all details related to the product on the
package and label of the product. For example, you will find information about ingredients used to
produce the product, directions to use and manufacturer’s address on the package and date of
manufacturing and expiry, batch number, quantity and maximization retail price on the label of the
product.

3. Right to choose: The consumer has freedom to choose from a variety of products available at
competitive prices. Various sellers offer variety of similar products in different brands, quality, prices
Consumer Protection SAHAY Institute 2nd book
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and sizes to provide consumers the opportunity to purchase products according to their choice. For
example, you have the right to choose your sports shoes from a variety of brands available in the
market.

4. Right to be heard: The consumer has a right to file a complaint and to be heard in case he or she is
not satisfied with the goods purchased or services received the department of consumer is entitled
to reliefs like replacement of the product, removal of the defect, and compensation in case of
physical injury or mental stress.

5. Right to seek redressal: The consumer protection Act provides consumers the right to get relief if
the product purchased does not meet the expected standard. The consumer is entitled to reliefs like
replacement of the product, removal of the defect, compensation in case of physical injury or
mental stress. For example, if you purchase a mobile phone and it does not function properly then
you have the right to get it replaced or exchanged.

6.
7. Right to Consumer Education: The consumer has the right to have knowledge and be well informed
at all times about various products available in the market. He or she should also be aware of
consumer rights and reliefs available in case products fall short of their expectations or do not
conform to the users mentioned on the package of the product.

Responsibilities of consumer:

1. A consumer must buy only standardized goods as they provide quality assurance. For example, he or
she should look for ISI mark on electrical goods.
2. The consumer must learn about the risks associated with products and services.
3. The consumer must ask for a cash memo on purchase. This would serve as a proof of purchase.
4. The consumers should read labels carefully.
5. A consumer must file a complaint in a appropriate consumer otherwise it would encourages corrupt
business practices to continue.
6. A consumer must be honest in his or her dealings, he or she must choose only from legal goods and
services.

Reliefs and Remedies of consumer:

If the consumer court is satisfied about the genuineness of the complaint, it can issue one or more of
the following directions to the opposite party.

1. To remove the defect in goods or deficiency in service.

2. To replace the defective product with a new one.
3. To refund the price paid for the product.
 Consumer Protection SAHAY Institute 2nd book
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4. To pay a reasonable amount of compensation for any loss or injury suffered by the consumer due to
negligence of the opposite party.
5. To discontinue the unfair trade practice.
6. Not to offer hazardous goods for sale.
7. To withdraw the hazardous goods from sale.
8. To cease manufacture of hazardous goods and to desist from offering hazardous services.
9. To pay any amount (not less than 5% of the value of the defective goods or deficient services
provided) to be credited to the consumer welfare fund or any other person.
10. To issue corrective advertisement to neutralize the effect of a misleading advertisement.

4. Who can file a complaint under the consumer protection Act, 2019?
1. Any Consumer.
2. Any registered consumer’s association.
3. The Central Government or any state Government.
4. One or more consumers on behalf of numerous consumers having the same interest.
5.
6. A legal representative of a deceased consumer.

5. Against whom a complaint can be filed?

1. The seller, manufacturer or dealer of goods which are defective.
2. The provider of services if they are deficient in any manner.

Redressal Agencies under the consumer Protection Act 2019

DISTRICT FORUMS STATE COMMISSION NATIONAL COMMSION

District Forums are set up in each district The state commissions are set up in each The National Commission is set up by
by the state Government concerned. state by the state Government. central Government.
It consists of a president and two other Each State Commission consists of a The National Commission consists of a
members, one of whom should be a president and not less than two other president and at least four other
woman, they all are appointed by the members, one of whom should be a members, one of whom should be a
state government concerned. woman. They are appointed by the state woman. They are appointed by the
Government concerned. central Government.
A complaint can be made to the A complaint can be made to the A complaint can be made to the National
appropriate District Forum when the appropriate state Commission when the Commission when the value of the goods
value of the goods or services in value of the goods or services in or services in question, along with the
question, along with the compensation question, along with the compensation compensation claimed, exceeds 10 crore.
claimed, does not exceed 1 crore claimed, exceeds 1 Crore but does not The appeals against the orders of a state
exceed 10 crore. The appeals against the Commission can also be filed before the
orders of a district Forum can also be National Commission.
filed before the state commission.
The District Forum shall pass an order The State Commission shall pass an order The National Commission shall pass an
after considering the test report from the after considering after considering the order after considering the test report
laboratory and hearing the party against test report from the laboratory and from the laboratory and hearing the
 Consumer Protection SAHAY Institute 2nd book
8920056770, 9971954874
whom the complaint is filed. hearing the party against whom the partly against whom the complaint is
complaint is filed. filed.

In case the aggrieved party is not satisfied In case the aggrieved party is not satisfied Only those appeals where the value of
with the order of the District Forum, he with the order of the state Commission, goods and services in question, along
or she can appeal before the state he or she can appeal before the National with the compensation claimed,
Commission within 45 days of the passing Commission within 30 days of the passing exceeded 1 crore and where the
of the order. of the order. aggrieved party was not satisfied with the
order of the National Commission, can be
taken to the supreme court of India.

Non- Government Organization:

There are many consumer organizations and NGO’s established in India to protect and promote
consumer’s interest.

Role of NGO’s

1. Educating the general public about consumer rights through training programmes, seminars and
workshops.
2. Publishing periodicals, articles or other publications to impart knowledge about various consumer
problems, legal options or reliefs available, cases filed an important judgments or any other matter
of interest to consumer.
3. Conducting comparative testing of consumer products in accredited laboratories to test relative
qualities of competing brands.
4. Encouraging consumers to strongly protest and take an action against unscrupulous, exploitative
and unfair trade practices of sellers.
5. Producing films on food adulteration, misuse of drugs and cosmetics etc.