Consumer

Protection
-

• As a result of this, consumers may be

exposed to risks due to unsafe products-
that is, he may be cheated, may have to
pay a higher price etc.

• Thus; there is a need to provide adequate

protection to consumers against such
practices
Importance of Consumer Protection

(from Consumer’s point of view)

1. Consumers Ignorance: Majority of

consumers are not aware of their rights
and reliefs available to them as a result of
which they are exploited. In order to save
consumers from exploitation, consumer
protection is needed.
2. Unorganized Consumers: In India
consumers are still unorganized and there
is lack of consumer organizations also,
thus consumer protection is required.

3. Widespread Exploitation of
Consumers: Consumers are exploited on
large scale by means of various unfair
trade practices and consumer protection is
required to protect them from exploitation.

From the point of Business

1. Long term Business Interest: It is
always in the interest of the business to
keep its customer satisfied. Global
competition could be won only after
satisfying customers. Satisfied customers
lead to repeat sales and help in increasing
customer base of business.
2. Moral Justification: It is the moral
duty of any business to take care of
consumer interest & avoid any form of
their exploitation & unfair trade practices
like defective & unsafe products,
adulteration, false and misleading
advertising, hoardings, black marketing
etc.

3. Business uses Resources of

Society: Every business uses the resources
of the society and thus it is their
responsibility to work in the interest of the
society.

4. Social Responsibility: A business has

social responsibilities towards various
groups like owners, workers, government,
customers etc. Thus, customers should be
provided qualitative goods at reasonable
prices.

5. Government Intervention: If a
business engages in any form of unfair
trade practices then government takes
action against it, which adversely affects
its goodwill.

CONSUMER PROTECTION ACT,

1986 (CPA, 1986)

1. Set up to protect and promote consumer

interests thro a speedy and inexpensive
redressal of grievances.

2. Recognizes consumer rights

Redressal agencies– set up a three-tier

agency to address consumer grievances.

Scope of the act-

It is applicable to all types of undertaking:

• Large and small scale

• Private, public and co-operative sector

• Manufacturer or trader

• Firms supplying goods as well as

services

Meaning of Consumer

1. Any person who buys any goods for a

consideration. It includes any user of such
goods with the approval of the buyer. But
it does not include a person who obtains
goods for resale or any commercial
purpose.

2. Any person who avails any services for

a consideration. It includes any beneficiary
of such services but it does not include a
person who avails such service for any
commercial purpose.

Rights of a Consumer

Consumer Protection Act, 1986 has

provided six rights to the consumers,
which are as follows:

1. Right to Safety: Consumer has the right

to be protected against products, &
services which are hazardous to health &
life (should use ISI marked electronic
device.
2. Right to be Informed: Consumer has
right to have complete information about
the product before buying it.

3. Right to choose: Consumer has a right

to choose any product out of the available
products as per his own decision making.

4. Right to be heard: Consumer has the

right to file a complaint to be heard in case
of dissatisfaction with goods or services
(use of grievance cell)

5. Right to Seek Redressal: Consumer

has the right to get relief in case the
product or service falls short of his
expectations or is dangerous. He may be
provided with replacement/removal of
defect or compensation for any loss.
Various redressal forums are set up by the
Govt. at National and State level.

6. Right to consumer
education: Consumer has the right to
acquire knowledge nd to be well informed
throughout life. He should be made aware
of his rights and reliefs available to him in
case of the product or service falls short of
his exceptions.

The Govt. of India has included consumer

education in the school curriculum & is
making use of media to make consumers
aware of their rights.

Responsibilities/Duties of a Consumer

Consumer Responsibilities:

1. Ask for a cash memo

• On purchase of goods or services. This

would serve as a proof of the purchase
made.

2. Be aware

• About various goods and services

available in the market so that an
intelligent and wise choice can be made.

3. Buy only standardized goods

• As they provide quality assurance. Thus,

look for ISI mark on electrical goods, FPO
mark on food products, Hallmark on
jewelry etc.

4. Follow manufacturer‘s instructions

• Learn about the risks associated with

products and services, and use the
products safely.

5. Read labels carefully

• So as to have information about prices,

net weight, manufacturing and expiry
dates, etc.

6. Assert yourself

• To ensure that you get a fair deal.

7. Be honest in your dealings.

• Choose only from legal goods and

services and discourage unscrupulous
practices like blackmarketing, hoarding
etc.

8. File a complaint in an appropriate

consumer forum
• In case of a shortcoming in the quality of
goods purchased or services availed. Do
not fail to take an action even when the
amount involved is small.
9. Form consumer societies

• Which would play an active part in

educating consumers and safeguarding
their interests.

10. Respect the environment.

• Avoid waste, littering and contributing to

pollution.
THE SALIENT FEATURES AND
PROVISIONS OF CONSUMER
PROTECTION ACT,1986
Who Can File A Complaint Under CPA,
1986

A complaint before the appropriate

consumer forum can be made by:

1. Any consumer.

2. Any registered consumer association.

3. The central or state government.

4. One or more consumers on behalf of

numerous consumers having same interest.

5. A legal heir or representative of a

deceased consumer.
Complaints can be filed and
compensation claimed w.r.t:

• Fraudulent practices by traders and

manufacturers

• Defective goods
• Deficiency in services in connection with
9 services such as banking, transportation,
insurance, supply of electricity and gas,
house construction, medical service

REDRESSAL AGENCIES UNDER

CONSUMER PROTECT ACT, 1986

For the redressal of consumer grievances

the act provides a three–tier machinery as:
1. DISTRICT FORUM

District forum are set up in each district by

the state concerned. The important features
are:

(a) It consists of a President and two

members, one of whom should be a
woman, duly appointed by State Govt.

(b) It can receive consumer complaints of

not more than Rs. 20 lakhs value.
(c) On receiving the complaint, the district
forum shall refer the complaint to the
opposite party concerned and send the
sample of goods for testing in a laboratory.

(d) The district forum after being satisfied

that goods are defective or there is some
unfair trade practice can issue an order to
opposite party directing him to either
replace or return the price or pay
compensation.

In case the aggrieved party is not satisfied

with the order of district forum. He can
appeal before state forum within 30 days
of passing an order.

2. STATE COMMISSION
It is set up in each state by the govt.
concerned. The salient features are:

(a) Each commission consists of a

president and it least 2 members appointed
by state Govt.

(b) Complaints of at least Rs. 20 lakhs but

not more than 1 crore can be filed with
state commission.

(c) On receiving the complaint, the state

commission can also refer the complaint to
opposite party and send the goods for
testing in laboratory.

(d) The state commission after being

satisfied can order to opposite party to
either replace or repay or pay
compensation. In case the aggrieved party
is not satisfied, they can appeal before
national commission within 30 days of
passing an order.

3. NATIONAL COMMISSION

It is setup by Central Govt. The provisions

of act are:

(a) It consists of a President and at least 4

members appointed by Central Govt.

(b) All complaints are pertaining to goods

and services of value more than Rs. 1
crore can be filed with national
commission.
(c) On receiving the complaint, the
national commission can also refer it to
opposite party and send goods for testing.

(d) The National Commission has the

power to issue orders for replace mentor
removal and to pay the compensation for
loss.

REMEDIES AVAILABLE TO
CONSUMERS

• Remove defect in goods and deficiency

in services.

• Replace defective goods with one with

no defects

• Refund price paid

• Pay a reasonable amount
of compensation for any loss or injury
suffered.

• Pay punitive damages in appropriate

circumstances.

• Discontinue unfair/restrictive trade

practice

• Not to offer hazardous goods and

services for sale

• Withdraw hazardous goods from sale

• Cease manufacturing hazardous goods

• Pay an amount to consumer welfare

fund/ person (not less than 5%) to be
utilized in the prescribed manner

• Issue corrective advertisement to

neutralize the effect of misleading ads.

• Pay adequate costs to parties.

CONSUMER AWARENESS

Some important consumer organization

and NGO’s engaged in protecting
consumer interests are:

1. Consumer coordination council, Delhi.

2. Voluntary organization in Interest of

Consumer Education, Delhi.
3. Mumbai Grahak Panchayat, Mumbai.
4. Consumer Association, Kolkata.

5. Consumer Unity and Trust Society

Jaipur.

Role of Consumer organizations and

NGO’s

1. Educating the general public about

consumer rights by organizing training
programmes, seminars and workshops.

2. Publishing periodical & other

publications to educate consumers.
3. Providing legal assistance to consumers
by providing legal advice etc.

4. Producing films or cassettes on food

adulteration, misuse of drugs etc.
5. Filing complaints in appropriate
consumer courts on behalf of consumers.

6. Encouraging consumers to take on

action against unfair trade practices.

7. Taking an initiative in filing cases in

consumer courts on behalf of consumers.

Ways and Means of Consumer

Protection

1. Self Regulation by Business:

• It is in the long-term interest of

businesses to serve the customers well.

• Socially responsible firms follow ethical

standards and practices in dealing with
their customers.

• Many firms have set up their customer

service and grievance cells to redress the
problems and grievances of their
consumers.

2. Business Associations:

• Examples of associations of trade,

commerce and business – Federation of
Indian Chambers of Commerce of India
(FICCI) and Confederation of Indian
Industries (CII)

• They have laid down their code of

conduct which lay down for their members
the guidelines in their dealings with the
customers.
3. Consumer Awareness:

• A consumer, who is well informed about

his rights and the reliefs available to him,
would be in a position to raise his voice
against any unfair trade practices or
unscrupulous exploitation. • This enables
them to understand their responsibilities
and to safeguard their interests.

4. Consumer Organizations’:

• Force business firms to avoid

malpractices and exploitation of
consumers.

5. Government:

• The most important of these regulations

is the Consumer Protection Act, 1986. The
Act provides for three-tier machinery at
the district, state and national levels for
redressal of consumer grievances.