CONSUMER AWARENESS AND PROTECTION

COM1FM105(3)
 MODULE 1
INTRODUCTION TO CONSUMER PROTECTION

Consumer Protection
Consumer protection refers to safeguarding consumers from manufacturers
or sellers that engage in anti-consumer trade activities. Exploitative and unfair
trading practices, such as defective and dangerous items, adulteration, false and
misleading advertising, hoarding, and black marketing, expose consumers to
dangers. As a result, effective consumer protection against such acts is required.

Importance of Consumer Protection

A.From Consumer’s Point of View

1. Consumer Ignorance: The majority of consumers are unaware of their
rights and remedies, and as a result, they are constantly exploited.
Consumer protection is required to protect consumers from such
exploitative practices.
2. Widespread Exploitation of Consumers: Consumers are abused on a
huge scale through a variety of unfair trade practices, and consumer
protection is necessary to safeguard them.
3. Unorganized Consumers: Consumers in India are still unorganised, and
there are few consumer organisations that would advocate for them.
B.From Business Point of View
1. Business utilises societal resources: Every business utilises societal
resources, and it is their job to operate in the society's best interests.
2. Long-term business interests: It is in the business's best interests to keep
its customers happy. Customers must be satisfied in order to win the
global competition. Satisfied consumers lead to repeat purchases, which
helps to expand the company's customer base.
3. Government Intervention: If a firm engages in any type of unfair
commercial practices, the government will take action against it, harming
the company's reputation.
4. Social Responsibility: A business has social duties to a variety of
stakeholders, including owners, employees, the government, and
customers. As a result, shoppers should be able to purchase high-quality
goods at affordable pricing.
5. Moral Justification: Any firm has a moral obligation to behave in the
best interests of its customers and prevent exploitation and unfair trade
practices such as faulty and unsafe products, adulteration, false and
misleading advertising, hoardings, black marketing, and so on.
Role of NGO’s and Consumer organizations:
There are a number of NGO’s and consumer organizations active in India who
are working for consumer protection. Their roles involve:
 Raising awareness of consumer rights among the general public.
 Educating consumers through periodicals and other publications.
 Providing consumers with legal help, such as legal counsel.
 Filing complaints on behalf of consumers in competent consumer tribunals.
 Inspiring consumers to take action against unfair business practices.
 Taking the initiative to file cases on behalf of consumers in consumer
courts.
List of Consumer Organisations and Non-Governmental
organisations (NGOs) working to defend and promote consumers' interests.

 Consumer Coordination Council, Delhi

 Common Cause, Delhi
  Voluntary Organisation in Interest of Consumer Education (VOICE),
Delhi
 Consumer Education and Research Centre (CERC), Ahmedabad
 Consumer Protection Council (CPC), Ahmedabad
 Consumer Guidance Society of India (CGSI), Mumbai
 Mumbai Grahak Panchayat, Mumbai
 Karnataka Consumer Service Society, Bangalore

 Consumers’ Association, Kolkata

 Consumer Unity and Trust Society (CUTS), Jaipur

Consumer Awareness
 Consumer awareness is the knowledge and understanding of consumer
rights and responsibilities, as well as the information available about
products and services. It's important for consumers to be aware so they can
make informed decisions and protect themselves from unfair practices.It
includes the following:
 Product information: Knowing the quality, quantity, price, and other
details of a product
 Consumer rights: Understanding the rights consumers have, such as the
right to information, the right to choose, and the right to safety
 Consumer education: Learning how to be an informed consumer
throughout life
 Redressal: Knowing how to seek redressal if a consumer is treated unfairly
or exploited.
Consumer awareness refers to the combination of the following :
(i) The knowledge of the product purchased by the consumers in terms of its
quality. For example, the consumer should know whether the product is
good for health or not, whether the product is free of creating any
environmental hazard or not etc.
(ii) The education about the various types of hazards and problems associated
with marketing of a product - For example, one way of marketing a
product is advertisement through newspapers, television etc. Consumers
should have proper education about the bad effects of advertisement. They
must also verify the contents of the advertisement.
(iii) The knowledge about ‘Consumer Rights’ - This means that, first, the
consumer must know that he/she has the right to get the right kind of
product. Secondly, if the product is found out to be faulty in some manner,
the consumer should have knowledge of claiming compensation as per the
law of the land.
(iv) The knowledge about consumer’s own responsibilities- This implies that
consumers should not indulge in wasteful and unnecessary consumption.
Some ways to increase consumer awareness include:
 Educating consumers about their rights
 Publishing materials to promote consumer awareness
 Encouraging consumers to participate in activities to resolve disputes
 Studying legal remedies and suggesting new measures for consumer
protection
 Bringing together consumers, traders, and policymakers to exchange
information
 Organizing seminars, workshops, and group discussions

Fundamental consumer rights and responsibilities

Consumer Rights
1. Right to Safety: Consumers have the right to be safeguarded against items
and services that are harmful to their health and well-being. The consumers
are righteous to get quality products, and they can also demand quality
assurance from the seller for the same. Such as ISI, FPO, AGMARK,
Hallmark etc are quality marks for industrial items, food products,
agricultural products, gold respectively.
2. Right to be Informed: Before purchasing a product, the consumer has the
right to get complete information about it, regarding the quality, quantity,
ingredients, purity, price etc.
3. Right to Choose: Consumers have the right to choose any product from the
available options based on their own preferences. Hence no seller has the
right to influence the consumer into purchasing a certain product through
unacceptable means
4. Right to Seek Redressal: If a product or service fails to meet the consumer's
expectations or is dangerous, the consumer has the right to seek redressal.
The consumer may be entitled to a replacement or repair of the problem, as
well as reimbursement for any losses.
5. Right to Consumer Education: Consumers have the right to learn and be
well-informed throughout their lives. He should be informed of his rights
and remedies in the event that the goods or service does not meet his
expectations. The Indian government has integrated consumer education in
school curriculum and is using the media to educate consumers about their
rights. For example, efforts like Jaago Grahak Jaago is one such measure to
educate the consumers
6. Right to be Heard: The consumer has the right to provide his opinion
regarding the product and services, as well as he has the right to to be heard
in such cases. Hence the consumer has a right to file a complaint if he thinks
that his rights have been violated. Also various consumer cells have been
opened up in India so as to provide them the right to be heard.
Consumer Responsibilities
Consumers have the following responsibilities:
 Be knowledgeable: Be knowledgeable about the numerous items on the
market so that you can make an informed and educated decision.
 Standardised products: Purchase just standardised products to ensure
quality. Look for the ISI mark on electrical goods, the FPO label on food
products, and the Hallmark on jewellery, among other things.
 Follow Instructions: Follow the product's instructions and learn about the
hazards linked with it, then use it safely.
 Cautious Purchasing: Carefully read labels for information on prices, net
weight, manufacturing, expiration dates, and so on.
 Assert Yourself: Assert yourself to guarantee that you obtain a fair
bargain, and fair price of the product.
 Honesty: Be truthful in interactions and buy only legal goods and services,
thus, discouraging buying from sellers who follow unethical methods such
as black marketing and hoarding.
 Cash Memo: When purchasing products or services, request a cash memo.
This will serve as proof of the transaction.
 Consumer Societies: Establish consumer societies that will actively
participate in consumer education and protection.
  Take action whenever needed: In the event of a defect in the quality of
items purchased or services received, file a complaint with an appropriate
consumer forum. Even if the sum involved is modest, don't hesitate to take
action.
 Avoid Littering: Respect and value the environment, and avoid any
activity that would adversely affect it.
Ethical considerations in consumer behaviour

Ethical considerations in consumer behavior play a crucial role in

shaping the relationship between businesses and their customers. It
involves examining the moral implications of marketing strategies,
product development, and overall business practices.
1. Transparency and Truthfulness: Businesses should prioritize
transparency in their communication with consumers. Providing accurate
and honest information about products and services builds trust and
fosters long-term relationships. For example, a company that clearly
discloses the ingredients of its products and any potential side
effects demonstrates ethical behavior.
2. Fair Pricing: ethical consumer behavior also involves fair pricing
practices. Businesses should avoid price gouging or deceptive pricing
strategies that exploit consumers. Offering competitive prices that reflect
the value of the product or service is essential for maintaining ethical
standards.
3. Sustainable Practices: With growing concerns about environmental
sustainability, consumers are increasingly conscious of the impact their
purchases have on the planet. Ethical considerations in consumer
behavior include supporting businesses that prioritize sustainable
practices, such as using eco-friendly materials, reducing waste, and
promoting recycling initiatives.
4. Social Responsibility: Consumers are becoming more aware of the
social impact of their purchasing decisions. Ethical consumer behavior
involves supporting businesses that demonstrate social responsibility,
such as those that prioritize fair trade, support local communities, or
contribute to charitable causes. For instance, a company that donates a
portion of its profits to a charitable organization aligns with ethical
consumer values.
5. Consumer Privacy: Respecting consumer privacy is another
important ethical consideration. Businesses should handle customer
data responsibly, ensuring that personal information is protected and
used only for legitimate purposes. Implementing robust data protection
measures and obtaining informed consent from consumers are crucial
steps in maintaining ethical standards.
6. Avoiding Manipulative Tactics: Ethical consumer behaviour
discourages the use of manipulative tactics to influence purchasing
decisions. Businesses should refrain from employing misleading
advertising, false claims, or psychological manipulation techniques.
Instead, they should focus on providing accurate information
and empowering consumers to make informed choices.

MODULE 2
THE CONSUMER PROTECTION LAW IN INDIA

The United Nations Guidelines on Consumer Protection

The United Nations Guidelines for Consumer Protection are a valuable
set of principles that set out the main characteristics of effective consumer
protection legislation, enforcement institutions and redress systems.
Furthermore, the Guidelines assist interested Member States in
formulating and enforcing domestic and regional laws, rules and
regulations that are suitable to their economic, social and environmental
circumstances; they also help promote international enforcement
cooperation among Member States and encourage the sharing of
experiences in consumer protection.
The Guidelines were first adopted by the General Assembly in resolution
39/248 of 16 April 1985, later expanded by the Economic and Social
Council in resolution 1999/7 of 26 July 1999, and revised and adopted by
the General Assembly in resolution 70/186 of 22 December 2015.
UN Guidelines On Consumer Protection
A.National policies for consumer protection: Member States should work
towards ensuring that consumer protection enforcement agencies have the
necessary human and financial resources to promote effective compliance and to
obtain or facilitate redress for consumers in appropriate cases.
B.Physical safety: Member States should adopt or encourage the adoption of
appropriate measures, including legal systems, safety regulations, national or
international standards, voluntary standards and the maintenance of safety
records to ensure that products are safe for either intended or normally
foreseeable use.
C.Promotion and protection of the economic interests of consumers: Member
States should seek to enable consumers to obtain optimum benefit from their
economic resources. They should also seek to achieve the goals of satisfactory
production and performance standards, adequate distribution methods, fair
business practices, informative marketing and effective protection against
practices which could adversely affect the economic interests of consumers and
the exercise of choice in the marketplace.
D.Standards for the safety and quality of consumer goods and services:
Member States should, as appropriate, formulate or promote the elaboration and
implementation of standards, voluntary and other, at the national and
international levels for the safety and quality of goods and services and give them
appropriate publicity.
E.Distribution facilities for essential consumer goods and services:. Member
States should, where appropriate, consider: (a) Adopting or maintaining policies
to ensure the efficient distribution of goods and services. (b) Encouraging the
establishment of consumer cooperatives and related trading activities, as well as
providing information about them, especially in rural areas.
F.Dispute resolution and redress: Member States should encourage the
development of fair, effective, transparent and impartial mechanisms to address
consumer complaints through administrative, judicial and alternative dispute
resolution, including for cross-border cases.
G.Education and information programmes: Member States should develop or
encourage the development of general consumer education and information
programmes.
H.Promotion of sustainable consumption: Sustainable consumption includes
meeting the needs of present and future generations for goods and services in
ways that are economically, socially and environmentally sustainable.
I.Electronic commerce: Member States should work towards enhancing
consumer confidence in electronic commerce by the continued development of
transparent and effective consumer protection policies, ensuring a level of
protection that is not less than that afforded in other forms of commerce.
J.Financial services: Member States should adopt measures to reinforce and
integrate consumer policies concerning financial inclusion, financial education
and the protection of consumers in accessing and using financial services.
K.Measures relating to specific areas: Member States should give priority to
areas of essential concern for the health of the consumer, such as food, water,
pharmaceuticals, energy and public utilities, and also address the specificities of
tourism.
Consumer Protection Act, 2019
The new Consumer Protection Act was passed by Parliament in 2019. It came
into force in July 2020 and replaced the Consumer Protection Act, 1986.
Consumer Protection Act, 2019 is a law to protect the interests of the consumers.
This Act provides safety to consumers regarding defective products,
dissatisfactory services, and unfair trade practices.
The basic aim of the Consumer Protection Act, 2019 is to save the rights of the
consumers by establishing authorities for timely and effective administration and
settlement of consumers’ disputes.
Who is a Consumer?
A Consumer is a person who purchases a product or avails a service for a
consideration, either for his personal use or to earn his livelihood. The
consideration may be: Paid or Promised or Partly paid and promised to paid . It
also includes a beneficiary of such goods/services when such use is made with
the approval of such person.Buying goods/ hiring services includes offline or
online transactions through electronic means or by teleshopping or direct selling
or multi-level marketing.
Who is not a Consumer?
A person is not a consumer if he/she:
 purchases any goods or avails any service free of charge;
 purchases a good or hires a service for commercial purpose;
 avails any service under contract of service.
What are Goods?
"Goods" means every kind of movable property and includes "food" as defined
in clause (j) of sub-section (1) of section 3 of the Food Safety and Standards Act,
2006;
The term ‘goods’ under this Act has the same meaning as under the sale of goods
Act. Accordingly it covers all types of movable property other than money and
includes stocks and shares, growing crops, etc.
What is a Defect?
“Defect” means any fault, imperfection or shortcoming in the quality, quantity,
potency, purity or standard which is required to be maintained by or under any
law for time being in force or under any contract, express or implied, or as is
claimed by the trader in any manner whatsoever in relation to any goods.
What are Services?
“Service” means service of any description which is made available to potential
users and include, but not limited to, the provision of facilities in connection with
banking, financing, insurance, transport, processing, supply of electrical or other
energy, board or lodging or both, housing construction, entertainment,
amusement or the purveying of news or other information, but does not include
the rendering of any service free of charge or under a contract of personal
services.
What is Deficiency in Service?
"Deficiency" means any fault, imperfection, shortcoming or inadequacy in the
quality, nature and manner of performance which is required to be maintained by
or under any law for the time being in force or has been undertaken to be
performed by person in pursuance of a contract or otherwise in relation to any
service and includes:
(i) any act of negligence or omission or commission by such person
which causes loss or injury to the consumer; and
(ii) deliberate withholding of relevant information by such person to
the consumer.

Spurious goods and services

 Spurious goods and services are products or services that are falsely
claimed to be genuine. Spurious goods are often of inferior quality and
infringe upon the trademarks and copyrights of legal owners of the
original goods.
They can also include:
 Goods that are imitative of real, original.
 Services that are claimed to be free of charge or under a contract of
personal service
 Adopting deceptive practices in the provision of goods or services
What is Unfair Trade Practice?
An “unfair trade practice” means a trade practice, which, for the purpose of
promoting any sale, use or supply of any goods or services, adopts unfair
method, or unfair or deceptive practice. Some of these practices include:
1. False Representation.
 When goods and services are not of stated standard, quality or grade;
 When second hand, renovated goods are sold as new ones;
 When the seller does not have the required sponsorship, approval,
affiliation;
 When goods and service do not have the claimed use, usefulness or
benefit;
 When products / services do not have the claimed warranty / guarantee;
 When the price of product or service is misleading.
2. False and Misleading Advertisement of selling at Bargain price.
3. Offering gifts, prizes, etc. to lure customers with no intention of
providing them Selling goods which do not fall within the safety
standards set up by competent authority.
4. Hoarding or destroying goods with the intention of raising the cost of
these or similar goods manufactured in greater number so as to
manipulate higher prices and
5. Manufacturing or offering spurious goods or adopting deceptive practices
in the provision of services.
6. Not issuing bill or cash memo or receipt for the goods sold or services.
7. refusing, after selling goods or rendering services, to take back or
withdraw defective goods or discontinue deficient services and to refund
consideration paid.
8. disclosing to other person any personal information given in confidence
by the consumer.
What is Restrictive Trade Practice?
“Restrictive Trade Practice” means a trade practice which tends to bring
about manipulation of price or conditions of delivery or to affect flow of
supplies in the market relating to goods or services in such a manner as to
impose on the consumers unjustified costs or restrictions and shall include:
(a) Delay beyond the period agreed to by a trader in supply of such goods or
in providing the services which has led or is likely to lead to rise in the price;
(b) any trade practice which requires a consumer to buy, hire or avail of any
goods or, as the case may be, services as condition precedent to buying,
hiring or availing of other goods or services;