Lab Unit 4
Lab Unit 4
Zakir Patel, Prof, Naran Lala College of Commerce & Management, Navsari
UNIT 4
INTRODUCTION
Consumer is a person who buys goods or services for personal use, not for resale.
Consumer Protection Act was framed in 1986 and 2019.
It protects consumers from unfair practices by businesses. Example: If a company sells you
a defective product, you have the right to complain and seek a remedy.
The Act protects consumers from unethical practices like selling duplicate goods or
overcharging. Example: A shop cannot legally charge more than the Maximum Retail Price
(MRP) printed on products.
DEFINITIONS
Dr. Zakir Patel, Prof, Naran Lala College of Commerce & Management, Navsari
Dr. Zakir Patel, Prof, Naran Lala College of Commerce & Management, Navsari
Dr. Zakir Patel, Prof, Naran Lala College of Commerce & Management, Navsari
Dr. Zakir Patel, Prof, Naran Lala College of Commerce & Management, Navsari
Dr. Zakir Patel, Prof, Naran Lala College of Commerce & Management, Navsari
Dr. Zakir Patel, Prof, Naran Lala College of Commerce & Management, Navsari
(i) the right to be protected against the marketing of goods, products or services which
are hazardous to life and property;
(ii) the right to be informed about the quality, quantity, potency, purity, standard and
price of goods, products or services, as to protect the consumer against unfair trade
practices;
(iii) the right to be assured, wherever possible, access to a variety of goods, products or
services at competitive prices;
(iv) the right to be heard and to be assured that consumer's interests will receive due
consideration at appropriate fora;
(v) the right to seek redress against unfair trade practice or restrictive trade practices or
unscrupulous exploitation of consumers; and
(vi) the right to consumer awareness;
Dr. Zakir Patel, Prof, Naran Lala College of Commerce & Management, Navsari
Dr. Zakir Patel, Prof, Naran Lala College of Commerce & Management, Navsari
d. any loss of consortium or services or other loss resulting from a harm referred to in
sub- clauses (i) or (ii) or (iii),
The above does not include any harm caused to a product itself or any damage to the
property on account of breach of warranty conditions or any commercial or economic loss,
including any direct, incidental or consequential loss.
23. Design:
Regarding Product, Design means the intended or known physical and material
characteristics of such product and includes any intended or known formulation or content
of such product and the usual result of the intended manufacturing or other process used
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CONSUMER RIGHTS
1. Right to Safety
The Right to Safety means that consumers have the right to be protected from products
and services that can harm their health or safety.
It is the responsibility of manufacturers and service providers to ensure that their products
are safe for use.
This right is especially important when it comes to goods like electrical appliances, food,
and pharmaceuticals, where safety is a critical concern.
Example: Rita buys a new blender from a local store. After a few uses, she notices that the
blender heats up excessively and emits a burning smell. Concerned about her safety, Rita
stops using the blender and contacts the manufacturer. The manufacturer has to replace
the blender or fix the defect to ensure Rita’s safety.
2. Right to Information
The Right to Information empowers consumers to be fully informed about the products
and services they purchase.
This includes details such as the quality, quantity, potency, purity, standard, and price.
Consumers can make informed decision if they have access to accurate information and
protects them from being misled by false or incomplete information.
Example: When you buy a packaged food item, the label should provide clear information
about the ingredients, nutritional content, expiry date, and price. For instance, if you're
purchasing a bottle of juice, the label should indicate whether it contains added sugars,
preservatives, and the exact quantity in milliliters.
3. Right to Choose
The Right to Choose ensures that consumers have access to a variety of goods and services
at competitive prices.
It prevents businesses from creating monopolies or engaging in restrictive trade practices
that limit consumer choice.
Consumers should be free to select products and services based on their preferences and
not be forced into a particular option.
Example: Neha wants to buy toothpaste. She finds three different brands on the shelf,
each offering different benefits like whitening, cavity protection, and herbal ingredients.
Neha selects the one that best matches her preferences, exercising her right to choose.
4. Right to Be Heard
The Right to Be Heard means that consumers have the right to voice their complaints and
concerns about products or services.
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Dr. Zakir Patel, Prof, Naran Lala College of Commerce & Management, Navsari
Dr. Zakir Patel, Prof, Naran Lala College of Commerce & Management, Navsari
Businesses and relevant authorities are required to address these complaints and take
necessary action.
The Consumer Protection Act provides a mechanism for consumers to file complaints with
consumer dispute redressal forums if their issues are not resolved satisfactorily.
CONSUMER RESPONSIBILITIES
Consumer responsibilities refer to the duties and obligations that consumers while making
purchasing decisions;
1. Informed Decision-Making:
Consumers have a responsibility to make informed and reasonable choices when
purchasing goods and services. This involves conducting research, reading product labels,
and seeking information to ensure that their choices meet their needs and expectations.
2. Being Cautious:
Consumers should exercise caution and due diligence when making purchases. This
includes being wary of deals that seem too good to be true, verifying the credibility of
sellers and service providers, and avoiding potentially fraudulent or unscrupulous business
practices.
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Dr. Zakir Patel, Prof, Naran Lala College of Commerce & Management, Navsari
Dr. Zakir Patel, Prof, Naran Lala College of Commerce & Management, Navsari
5. Seeking Redressal:
When consumers face problems or grievances with products or services, they have a
responsibility to seek redress in a lawful and timely manner. This includes filing complaints
with appropriate consumer dispute redressal forums, seeking refunds, repairs, or
replacements, and cooperating with investigations.
6. Consumer Education:
Consumers should take advantage of educational resources and information available to
them to better understand their rights and responsibilities as consumers. Being aware of
their rights and the legal avenues for redress is an important aspect of responsible
consumer behavior.
A. CONSTITUTION [SEC: 4]
1. The Central Government shall establish (by notification) a Central Consumer Protection
Council from the date as given in the notification. It is also known as Central Council.
The Central council shall have the following members (not more than 150);
a. Minister of Consumer Affairs in Central Government shall be the Chairman of the
Council.
b. Minister of State –Consumer affairs
c. Minister of Consumer Affairs in every State.
d. 8 members of Parliament – 5 from Loksabha and 3 from Rajyasabha
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Dr. Zakir Patel, Prof, Naran Lala College of Commerce & Management, Navsari
Dr. Zakir Patel, Prof, Naran Lala College of Commerce & Management, Navsari
3) Composition of Members:
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Dr. Zakir Patel, Prof, Naran Lala College of Commerce & Management, Navsari
Dr. Zakir Patel, Prof, Naran Lala College of Commerce & Management, Navsari
The objects of every District Council are to render advice on promotion and protection of
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Consumer Rights under this Act within the District (Section 9).
Dr. Zakir Patel, Prof, Naran Lala College of Commerce & Management, Navsari
Dr. Zakir Patel, Prof, Naran Lala College of Commerce & Management, Navsari
NATIONAL COMMISSION
1. COMPOSITION:
The National Commission shall consist of;
- The Judge of Supreme Court shall be the President of National Commission. The
appointment of the President shall be made after consulting Chief Justice of India.
- Members shall not be less than 4. At least 1 of the 4 members shall be woman. There shall
not be more than 50% of members from law background. Their qualifications must be;
o Not less than 35 years of age
o Possess a Bachelor’s degree from a recognised University.
o Experience of at least 10 years in solving problems related to economics, law,
commerce, accounts, industry etc.
2. JURISDICTION:
- The National Commission shall
o Take the complaint of any goods and services for which the claim is more than Rs 1
Crore
o Take the appeals against the State commission
o Call for the records and pass appropriate orders in case where State Commission
has not performed its functions properly.
- The National Commission has the power to review any order made by it, if it finds
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Dr. Zakir Patel, Prof, Naran Lala College of Commerce & Management, Navsari
Dr. Zakir Patel, Prof, Naran Lala College of Commerce & Management, Navsari
STATE COMMISSION
1. COMPOSITION
The State Commission shall consist of;
o The Judge of High Court (of State) shall be the President of State Commission.
o The appointment of the President shall be made after consulting Chief Justice of
India.
o Members shall not be less than 4. At least one of the 4 members shall be a woman.
o There shall not be more than 50% of members from law background.
o Their qualifications must be;
Not less than 35 years of age
Possess a Bachelor’s degree from a recognised University.
Experience of at least 10 years in solving problems related to economics,
law, commerce, accounts, industry etc.
2. POWERS
3. JURISDICTION
Dr. Zakir Patel, Prof, Naran Lala College of Commerce & Management, Navsari
Dr. Zakir Patel, Prof, Naran Lala College of Commerce & Management, Navsari
DISTRICT COMMISSION
COMPOSITION
JURISDICTION
- Under section 12 and 13 of the Consumer Protection Act, it is clearly mentioned about the
procedure that would be followed by a District Forum while dealing with a compliant.
- A complaint may be for services or goods.
- If any consumer feels cheated and deceived by unfair trade practices, can lodge a
complaint against the deceiving firm in the Consumer Forum within whose jurisdiction all
the opposite parties reside or run the business.
- Whole procedure has been mentioned in Chap no. 1 of CPA.
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Dr. Zakir Patel, Prof, Naran Lala College of Commerce & Management, Navsari