ANGELS ARC SENIOR SECONDARY SCHOOL, KAYAMKULAM

BUSINESS STUDIES NOTES Grade XII

Chapter -12 CONSUMER PROTECTION

CONSUMER PROTECTION :

Consumer protection refers to protection of consumers from unscrupulous,

exploitative, and unfair trade practices of manufacturers, traders, sellers and service
providers. Consumer protection not only includes educating consumers about their
rights and responsibilities. But also helps in getting their grievances redressed.

IMPORTANCE OF CONSUMER PROTECTION

Consumer Protection has a wide agenda. It not only includes educating

consumers about their rights and responsibilities, but also helps in getting their
grievances redressed. It not only requires a judicial machinery for protecting the
interests of consumers but also requires the consumers to get together and form
themselves into consumer associations for protection and promotion of their
interests

From Consumers’ point of view:

The importance of consumer protection from the consumers’ point of view can
be understood from the following points:

(i) Consumer Ignorance: In the light of widespread ignorance of consumers about their
rights and reliefs available to them, it becomes necessary to educate them about the
same so as to achieve consumer awareness.
(ii) Unorganised Consumers: Consumers need to be organised in the form of consumer
organisations to protect and promote the interests of consumers.
(iii) Widespread Exploitation of Consumer : Consumers might be exploited by unscrupulous,
exploitative and unfair trade practices like defective and unsafe products, adulteration,
false and misleading advertising, hoarding, black-marketing etc. Consumers need
protection against such malpractices of the sellers.

From the point of view of Business

(i) Long-term Interest of Business: Enlightened businesses realise that it is in their long-term
interest to satisfy their customers. Satisfied customers not only lead to repeat sales but
also provide good feedback to prospective customers and thus, help in increasing the
customer -base of business. Thus, business firms should aim at long-term profit
maximisation through customer satisfaction.
(ii) Business uses Society’s Resources: Business organisations use resources which belong
to the society. They, thus, have a responsibility to supply such products and render
such services which are in public interest and would not impair public confidence in
them.
(iii) Social Responsibility: A business has social responsibilities towards various interest
groups. Business organisations make money by selling goods and providing services to
consumers. Thus, consumers form an important group among the many stakeholders of
business and like other stakeholders, their interest has to be well taken care of.
(iv) Moral Justification: It is the moral duty of any business to take care of consumer’s
interest and avoid any form of their exploitation. Thus, a business must avoid
unscrupulous, exploitative and unfair trade practices like defective and unsafe
products, adulteration, false and misleading advertising, hoarding, black marketing etc.
(v) Government Intervention: A business engaging in any form of exploitative trade
practices would invite government intervention or action. This can impair and tarnish
the image of the company. Thus, it is advisable that business organisations voluntary

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 THE CONSUMER PROTECTION ACT, 1986

The Consumer Protection Act (CPA) seeks to protect and promote the
consumers’ interest through speedy and inexpensive redressal of their grievances. The
scope of the Act is very wide. It is applicable to all types of undertakings, big and small,
whether in the private or public sector, or in the co-operative sector, whether a
manufacturer or a trader, and whether supplying goods or providing services.

CONSUMER

Consumer Protection Act defines a consumer and who can file a complaint
under the Consumer Protection Act. Consumer: A ‘consumer’ is generally understood as
a person who uses or consumes goods or avails of any service. Under the Consumer
Protection Act, a consumer is defined as:

A. Any person who buys any goods for a consideration, which has been paid or promised,
or partly paid and partly promised, or under a 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 any commercial purpose.
B. Any person who hires or avails of any service, for a consideration which has been paid or
promised, or partly paid and partly promised, or under any system of deferred
payment. It includes any beneficiary of services when such services are availed of with
the approval of the person concerned, but does not include a person who avails of such
services for any commercial purpose

Who can file a complaint ?:

A complaint before the appropriate consumer forum can be made by:

(i) Any consumer can file a complaint on his/her own and does not need the services of
advocate/ professionals;
(ii) Any registered consumers’ association;
(iii) The Central Government or any State Government;
(iv) One or more consumers, on behalf of numerous consumers having the same interest;
and
(v) A legal heir or representative of a deceased consumer.
(vi) In case of a consumer being a minor, his parent or legal guardian.

CONSUMER RIGHTS
The Consumer Protection Act provides for six rights of consumers. The consumer
protection councils set up under the Act are intended to promote and protect the
various rights of consumers. These rights include the following:
1. Right to Safety: The consumer has a right to be protected against goods and
services which are hazardous to life and health. For instance, electrical appliances
which are manufactured with substandard products or do not conform to the safety
norms might cause serious injury. Thus, consumers are educated that they should use
electrical appliances which are ISI marked as this would be an assurance of such
products meeting quality specifications.
2. Right to be Informed: The consumer has a right to have complete information
about the product he intends to buy including its ingredients, date of manufacture,
price, quantity, directions for use, etc. It is because of this reason that the legal
framework in India requires the manufactures to provide such information on the
package and label of the product.
3. Right to Choose: The consumer has the freedom to choose from a variety of
products at competitive prices. This implies that the marketers should offer a wide
variety of products in terms of quality, brand, prices, size, etc. and allow the consumer
to make a choice from amongst these.

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 4. Right to be Heard: The consumer has a right to file a complaint and to be heard in
case of dissatisfaction with a good or a service. It is because of this reason that many
enlightened business firms have set up their own consumer service and grievance cells.
Many consumer organisations are also working towards this direction and helping
consumers in redressal of their grievances.
5. Right to seek Redressal: The consumer has a right to get relief in case the
product or service falls short of his expectations. The Consumer Protection Act provides
a number of reliefs to the consumers including replacement of the product, removal of
defect in the product, compensation paid for any loss or injury suffered by the
consumer, etc.
6. Right to Consumer Education: The consumer has a right to acquire knowledge
and to be a well- informed consumer throughout life. He should be aware about his
rights and the reliefs available to him in case of a product or service falling short of his
expectations. Many consumer organisations and some enlightened businesses are
taking an active part in educating consumers in this respect. The Consumer Protection
Act by conferring these rights on the consumers empowers them to fight against any
unscrupulous, exploitative and unfair trade practices adopted by sellers.
CONSUMER RESPONSIBILITIES
A consumer should keep in mind the following responsibilities while purchasing, using
and consuming goods and services.
(i) Be aware about various goods and services available in the market so that an
intelligent and wise choice can be made.
(ii) Buy only standardised goods as they provide quality assurance. Thus, look for ISI
mark on electrical goods, FPO mark on food products, Hallmark on jewellery etc.
(iii) Learn about the risks associated with products and services, follow
manufacturer’s instructions and use the products safely.
(iv) Read labels carefully so as to have information about prices, net weight,
manufacturing and expiry dates, etc.
(v) Assert yourself to ensure that you get a fair deal
(vi) Be honest in your dealings. Choose only from legal goods and services and
discourage unscrupulous practices like black-marketing, hoarding etc.
(vii) Ask for a cash memo on purchase of goods or services. This would serve as a
proof of the purchase made.
(viii) File a complaint in an appropriate consumer forum in case of a shortcoming in
the quality of goods purchased or services availed.
(ix) Form consumer societies which would play an active part in educating consumers
and safeguarding their interests.
(x) Respect the environment. Avoid waste, littering and contributing to pollution.

REDRESSAL AGENCIES UNDER THE CONSUMER PROTECTION ACT

For the redressal of consumer grievances, the Consumer Protection Act provides for
setting up of a three –tier enforcement machinery at the District, State, and the
National levels, known as: -
The District Consumer Dispute Redressal Forum – ‘District Forum’ - Set up by state
govt concerned
State Consumer Disputes Redressal Commission - ‘State Commission’ -Set up by state
govt. concerned
The National Consumer Disputes Redressal Commission. – ‘The National Commission’.
The National Commission is set up by the Central Government,
The Figure on redressal agencies shows the hierarchical structure of this three-tire
machinery.

1. District Forum: The District Forum consists of a President and two other
members, one of whom should be a woman. They all are appointed by the State
Government concerned. A complaint can to be made to the appropriate District Forum

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when the value of the goods or services in question, along with the compensation
claimed, does not exceed Rs. 20 lakhs. On receiving the complaint, the District Forum
shall refer the complaint to the party against whom the complaint is filed. If required,
the goods or a sample thereof, shall be sent for testing in a laboratory. The District
Forum shall pass an order after considering the test report from the laboratory and
hearing to the party against whom the complaint is filed. In case the aggrieved party is
not satisfied with the order of the District Forum, he can appeal before the State
Commission within 30 days of the passing of the order.
2. State Commission: Each State Commission consists of a President and not less
than two other members, one of whom should be a woman. They are appointed by the
State Government concerned. A complaint can to be made to the appropriate State
Commission when the value of the goods or services in question, along with the
compensation claimed, exceeds Rs. 20 lakhs but does not exceed Rs. 1 crore. The
appeals against the orders of a District Forum can also be filed before the State
Commission. On receiving the complaint, the State Commission shall refer the
complaint to the party against whom the complaint is filed. If required, the goods or a
sample thereof, shall be sent for testing in a laboratory. The State Commission shall
pass an order after considering the test report from the laboratory and hearing to the
party against whom the complaint is filed. In case the aggrieved party is not satisfied
with the order of the State Commission, he can appeal before the National Commission
within 30 days of the passing of the order.
3. National Commission: The National Commission consists of a President and at
least four other members, one of whom should be a woman. They are appointed by the
Central Government. A complaint can to be made to the National Commission when the
value of the goods or services in question, along with the compensation claimed,
exceeds Rs. 1 crore. The appeals against the orders of a State Commission can also be
filed before the National Commission. On receiving the complaint, the National
Commission shall refer the complaint to the party against whom the complaint is filed. If
required, the goods or a sample thereof, shall be sent for testing in a laboratory. The
National Commission shall pass an order after considering the test report from the
laboratory and hearing to the party against whom the complaint is filed. An order
passed by the National Commission
in a matter of its original jurisdiction is appealable before the Supreme Court.

Relief Available
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, free from any defect.
3. To refund the price paid for the product, or the charges paid for the service.
4. To pay a reasonable amount of compensation for any loss or injury suffered by
the consumer due to the negligence of the opposite party.
5. To pay punitive damages in appropriate circumstances.
6. To discontinue the unfair/ restrictive trade practice and not to repeat it in the
future.
7. Not to offer hazardous goods for sale.
8. To withdraw the hazardous goods from sale.
9. To cease manufacture of hazardous goods and to desist from offering hazardous
services.
10. 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
organisation/person, to be utilised in the prescribed manner.
11. To issue corrective advertisement to neutralise the effect of a misleading
advertisement.

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12. To pay adequate costs to the appropriate party. Bring out some decided cases
where a complaint was filed in a consumer court for defective goods and deficient
services.

ADDITIONAL NOTES
REDRESSAL MACHINERY UNDER CONSUMER PROTECTION ACT 2019
District consumer dispute redressal commission: -
 The state Govt shall establish this commission to be known as District
commission, in each district of the state.
 Each District Commission shall consist of –
a. A president and
b. Not less than two and not more than such number of members as
may be prescribed, in consultation with the Central Government
 The District Commission will entertain complaints where value of
goods and services does not exceed Rs. 1 crore
 Any person aggrieved by an order made by the District Commission
may prefer an appeal against such order to the state commission on
the grounds of facts or law within a period of 45 days from the date
of the order
State Consumer Dispute Redressal Commission:-
 The State Government shall , by notification , establish a State Consumer
Disputes Redressal Commission , to be known as the State commission in the
state.
 Each State Commission shall consist of : -
a. a president and;
b. not less than four or not more than such number of members as may be
prescribed in consultation with the central Govt
 the State commission shall have jurisdiction to entertain complaints where the
value of the goods or services paid as consideration , exceeds Rs. 1 crore , but
not exceed Rs. 10 crores.
 Any person aggrieved by an order made by the State Commission may prefer an
appeal against such order to the national Commission with in a period of 30 days
from the date of the order

The National Consumer Disputes Redressal Commission

 The Central Govt shall establish a National Consumer Disputes Redressal
Commission, to be known as the National Commission
 The National Commission shall consist of;
a. A president and:
b. Not less than four and not more than such number of members as may be
prescribed.
 The National Commission shall have the jurisdiction to entertain complaints where
the value of the goods or services paid as consideration exceeds Rs. 10 crores.
Appeals against the orders of any State Commission can also be filed in the
National Commission
Any person , aggrieved by an order made by the National Commission may prefer an
appeal against such order to the Supreme Court within the period of 30 days from the
date of the order.

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IMPORTANT QUESTIONS
1. Bajaj Auto Ltd. purchased machinery for Rs. 5 crores from Priya Ltd. and found it
defective. Despite many complaints the defect was not rectified. Suggest Bajaj Auto
Ltd. the appropriate forum to file their complaint in the three-tier machinery under the
Consumer Protection Act.
Ans. National Commission
2. Rahu Bali purchased a flat for Rs. 50 Lakhs and found it different from what was
agreed. He wants his money back. Suggest him the appropriate authority to file his
complaint in the three-tier machinery under the Consumer Protection act, 1986. Ans.
State Commission Q. 6. Anurag bought an electric iron form a reputed showroom of a
manufacturing company but it caused electric shock to his wife while she was using it.
Anurag claimed a compensation of Rs. 15 Lakhs. Where can he file his claim?
Ans. District Forum
3. Deepak purchased a book from a book-seller and got the cash memo of Rs. 400
which he paid for the book. Later, he found that the actual price of the books is Rs. 380
but the book-seller has put a sticker of Rs. 400 on the original price. Can Deepak
recover the extra money that he paid? What other options are available to him against
book-seller?
Ans. Deepak is a responsible consumer since he has got the cash memo for the book
he purchased. Cash memo is the proof of purchase. A consumer must have the cash
memo to file a complaint in a consumer court. In this case, the book-seller has charged
for the book a price in excess of the list price. So, Deepak can recover the extra money
he paid (Rs. 20) from the book-seller. Alternatively, Deepak can file complaint against
the book-seller in a consumer court if he does not get back Rs. 20 from the book-seller.
If the consumer court is satisfied about the genuineness of the complaint, it can issue
the following directions to the bookseller. 1. To refund the price paid for the book (Rs.
400). 2. To pay adequate costs to Mr. Deepak, which he incurred for filing the
complaint. 3. To discontinue the unscrupulous, exploitative and unfair trade practices
and not to repeat in the future.

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4. What kind of cases can be filed in a State Commission? (NCERT)
Ans ;refer notes
5. Explain the redressal mechanism available to consumers under the Consumer
Protection Act, 1986 (NCERT )
Ans: refer notes
PREVIOUS YEAR QUESTIONS:
1. State any two reliefs that the Consumer court can grant to consumers in case of
genuine complaints in each of the following cases. :
a. Diya was charged more than the printed MRP for a bottle of water.
b. Clara was sold a car with a defective engine
c. Antony suffered injury while using newly bought defective electric heater.
(2017) (6m) Ans:
a. Relief that the Consumer Court can grant to Diya are:
i. To refund the price paid
ii. To discontinue the unfair /restrictive trade practice and not to repeat the same in
future
b. Reliefs available to Clara are:
i. To remove the defects in engine
ii. To replace the defective engine with a new one, free from the defect
iii. To refund the price paid
c. Relief available to Antony are:
i. To remove the defects in electric heater
ii. To replace the defective electric heater with a new one, free from the defect
iii. Refund the price paid
iv. To pay reasonable amount of compensation for any loss or injury suffered by the
consumer
2. Himanshu purchased a new car from ‘Galaxy Motors’ for Rs. 25 lakhs. He was
offered free insurance for the first servicing to be availed after the car had covered
5,000 km, 10,000 km and 15,000 km, respectively. When Himanshu took the car for the
first free servicing, he was told that the car was not new and first service had already
been availed on this car. He felt cheated and filed a complaint in the State Commission.
Being not satisfied with the decision of the State Commission, after two months he
decided to file an appeal against it. Can Himanshu appeal against the decision of the
state Commission? Give reason in support of your answer. (2016)(3m)
Ans. No, Himanshu will not be able to appeal further against the decision of State
Commission in the National Commission. This is because two months have already
passed and the appeal had to be filed within 30 days of the passing of the order by
State Commission.
3. In one of the cases, the Goa State Commission held that “The Consumer
Protection Act is not for entertaining or compensation speculative transactions or
losses”. It held that compensation cannot be given under the Consumer Protection Act
to those involved in sale and purchase of shares, which are commercial transactions.
The order follows an appeal by a Mumbai – based stock broker India Infoline Limited
against an order of the Goa district Consumer Forum. Initially, the judgment of the Goa
District Consumer Forum had awarded damages to Panaji-resident Varman Nagesh who
had lost money in share trading through a stock broker India Infoline Limited. In context
of the above case:
1. Why do ‘commercial transactions’ not fall under the purview of ‘consumer’ under the
Consumer Protection Act?
2. Why do you think that the above-mentioned case was initially filed in the Goa
District Forum by Varman Nagesh?
3. Where do you think Varman Nagesh could have filed a further appeal in case, he was
not satisfied with the judgment passed about his case by the Goa State Commission?
(2016 )(5m)

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 Ans. 1. Under the Consumer Protection Act, a ‘consumer’ is generally understood as a
person who uses or consumes goods or avails of any service. However, a person who
buys goods for commercial purpose or resale will not be considered to be a consumer
. 2. Presuming that the value of the securities, along with the compensation claimed,
did not exceed Rs. 20 Lakhs, the above-mentioned case was initially filed in the Goa
District Forum by Varman Nagesh.
3. If, Varman Nagesh was not satisfied with the order of the State Commission, he
could have filed an appeal before the National Commission within 30 days
4. Prakhar purchased an ISI mark electric iron from Bharat Electricals. While using it,
he found that it was not working properly. He approached the seller and complained
about the same. The manufacturer refused to replace and Bharat Electrical decided to
file a complaint in the consumer court. Can Bharat Electricals do this? Why? Also
explain who is a consumer as per Consumer Protection Act, 1986.
Ans. No, Bharat Electricals will not be able to file a complaint under Consumer
Protection Act 1986 because according to this act a person is not deemed to be a
customer if he buys goods for resale or commercial purpose.
Under the Consumer Protection Act 1986,consumer can be defined as : (refer notes)
1. Your mother purchased a washing machine for Rs. 10000 from an authorized
dealer of the manufacturer with an oral guarantee that the machine will be replaced
with a new one if any of its parts becomes defective within 3 months from the date of
purchase. The motor of the machine was burnt within 15 days of its purchase. On
complaining, the seller refused to replace the machine. Name the redressal agency
under the Consumer Protection Act where your mother can file the complaint
2. Anita purchased a book from Satish Book Store. While reading the book, she
found that sixteen pages were missing. She approached the seller of the book and
complained about the missing pages. The seller promised that if the publisher was
ready to change the book, he would change the same. After a week, the seller informed
Anita that the publisher had refused to change the book. Where can Anita file a
complaint against the seller of the book? Give reason in support of your answer. Also
explain who is a consumer as per “Consumer Protection Act 1986”.
IMPORTANT QUESTIONS: -
1. To publish a magazine under the title ‘Gyan Jagran’ is an example of which right?
Ans: Right to consumer education
2. Identify the right of consumer highlighted in the below statement
‘it is clearly stated in the legal framework of India that the information regarding the
product , its content , date of manufacturing, expiry etc. should be printed on the
package’ Ans: Right to be
informed
3. The business firms to set up their own consumer service and grievance cell.
Identify the consumer rights
Ans: Right to be heard
4. ‘Due to the ignorance of consumers about their rights they are exploited in the
market’ . briefly describe various consumer rights as per Consumer Protection
Act1986in the light of above statement.
Ans; Refer notes.
5. What do you meant by AGMARK and BIS
Ans: AGMARK is a certification mark employed on agricultural products in India.,
assuring that they confirm to a set of standards approved by the Directorate of
Marketing and Inspection, an agency of Govt of India?
BIS (the Bureau of Indian Standards) is the national standards body of India working
under the ministry of human affairs , food and public distribution of Govt of India, which
came in to effect on 23rd December 1986
6. What are the responsibilities of a consumer (NCERT)?
7. Explain the rights and responsibilities of a consumer (NCERT)
Ans: refer notes

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 PREVIOUS YEAR QUESTIONS :
1. Which right of consumer provides safety to consumers against deficient services?
(2010) (1m)
Ans: right to safety
2. Why should a consumer look for ISImark on electrical goods? ((1)
Ans: consumer should look for ISI mark on electrical goods because it gives an
assurance that the product meets quality certifications.
3. Explain in brief any six rights of consumers as provided under the Consumer
Protection Act , 1986 (6m)
Ans: refer notes
4. Describe the following rights of consumers:
a. Right to be informed
b. Right to seek redressal
c. Right to choose (3m)
Ans: Refer notes
5. Consumer also have some responsibility while purchasing and consuming goods
and services. do you agree with this? State any four responsibility in this regard
(5m)
Ans: Refer notes
6. Archana is a pure vegetarian . she went to a popular food chain shop and asked
for a packaged Biriyani. while eating the same she noticed that it has some non-
vegetarian content. Neither the advertisement nor the label on the packaging showed
that the product had non -vegetarian content. Identify and explain the consumer right
which Archana can claim for compensation as per the provisions of Consumer
Protection Act Ans: right to seek redressal (Give explanation)
7. Mrs. Madhvi sent a jacket to a laundry shop in January . jacket was purchased at a
price of Rs. 4500 she had previously sent the jacket for dry cleaning with Shine Dry
Cleaners and the jacket was cleaned well. However, she noticed that her jacket white
discoloration marks when she collected the jacket this time . on informing the dry
cleaners , Mrs. Madhavi received a letter confirming that discoloration indeed appeared
after the jacket was dry cleaned . she contacted the dry cleaners’ multiple times and
requested for compensation for discoloured jacket but to no avail. Up on consumer
court’s intervention, Shine Dry Cleaners agreed to compensate Rs. 2500 to Mrs.
Madhavi for the discoloured jacket.
a. Which right was exercised by Mrs. Madhavi at the first instance?
b. Name and explain the right which helped Mrs. Madhavi to avail the compensation.
c. State which consumer responsibility has been fulfilled by Mrs. Madhavi in the
above case. ( (4m)
Ans: a. right to be heard
b. right to seek redressal : the consumer has a right to get relief in case the
product or service falls short of his expectation.
c. the consumer responsibility which has been fulfilled by Mrs. Madhavi is file a
complaint in an appropriate consumer forum in case of a short coming in the quality of
goods purchased or service availed.
1. Write the ways in which consumers are exploited by traders.
Ans: ways by which consumers are exploited by traders are:
a. Defective and unsafe product
b. Adulteration
c. False and misleading advertisement
d. Hoarding
e. Black marketing
2. Explain the importance of consumer protection from the point of view of a business
(NCERT)
Ans: Refer notes

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3. Who can file a complaint under consumer protection Act? (NCERT)
Ans: Refer notes
4. ‘Grahak Shakti’ and NGO organized a workshop to discuss various issues relating to
consumers. During the discussion, one of the members drew attention towards
exploitation of consumers due to defective and unsafe products, adulteration, black
marketing, hoarding, etc. To this another member argued that consumers themselves
are responsible as they do not raise collective voice against the exploitation. The
Chairperson of the organisation was of the opinion that it was also the duty of the
businessman to take care of the interests of various stakeholders. Business
organizations earn money by selling goods and services to consumers. So, the interests
of the stakeholders have to be well taken care of. State three points that highlight the
need for consumer protection as discussed in ‘Grahak Shakti’s’ workshop.
(3marks)

Ans. i) Widespread exploitation of consumers

ii) Unorganised consumers
iii) Social responsibility (explain)

1. Sudha was having stomach ache. She approached a reputed nursing home for diagnosis.
She was detected with stone problem and suggested to undergo surgery. During
operation due to excessive anesthesia she went into coma. The doctor blamed her
medical condition to wash away his hands. Looking at her serious condition, Sumit, her
husband was forced to sign papers taking all the responsibility for the outcomes. She
was shifted to ICU. The ICU expenses were exorbitant. Soon, Simit was finding it difficult
to fund her ventilator and other medical expenses. He did not know whom to approach
for negligence on the part of the doctor. He tried to contact some of the NGOs. As the
case has to be filed against the most reputed doctor and nursing home, nobody came
forward to help him. Explain the importance of consumer protection from the point of
view of Sudha and Sumit.
(3marks)
Ans. The importance of consumer protection from the point of view of Sudha and
Sumit are:
i) Consumer ignorance
ii) Unorganised consumers
iii) Widespread exploitation of consumers
2. Prakhar purchased an ISI mark electric iron from ‘Bharat Elecrericals’.
While using he found that it was not working properly. He approached the seller
andcomplained for the same. the seller satisfies Prakhar by saying that he will ask t
he manufacturer to replace this iron. The manufacturer refused to replace and
Bharat Electricals decided to file a complaint in the consumer court.
a) Can ‘Bharat Electricals’ file a complaint in the consumer court against the
manufacturer of the electric iron? Give reason in support of your answer.
b) Who can file a complaint as per the provisions of the Consumer Protection Act
Ans: a) No, ‘Bharat Electricals’ cannot file a complaint in the consumer court against
the manufacturer of the electric iron since Bharat Electricals is not a consumer.
As per the provisions of the Consumer Protection Act, 2019, definition of a consumer
does not include a person who obtains goods for resale or any commercial purpose.
b. Refer notes
3. Tanya purchased some household goods from a ‘General store’. After reaching home
she found a face cream which she had not billed for. After checking the date of expiry
and other details, she started using it. Her face burnt due to the use of the cream.
Where should Tanya file a complaint? Justify. Under Consumer Protection Act, 1986 who
can file a complaint? (5m)
Ans. Tanya cannot file a complaint in any consumer court since she does not have the
proof of purchase, i.e., cash memo. She did not fulfill her responsibility of an honest

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 consumer. She should have gone back to the general store to get its billing. Under the
Consumer Protection act, 1986, any of the following can file a complaint:( refer notes)
4. Akhil, a consumer purchased medicines without noticing the date of expiry. He also did
not obtain the cash memo. Do you think he will be able to protect himself by the loss
caused due to expired medicine? Give reasons to support your answer.
(3m)
Ans. Akhil will not be able to protect himself by the loss caused due to expired medicine
because he did not fulfill his responsibility on the following grounds:
1. He did not read the labels of the packet of medicines. He did not notice the date of
expiry. A consumer should always read labels carefully to have information about
prices, net weight, manufacturing and expiry dates, etc.
2. He did not obtain the cash memo from the seller. Cash memo is a proof of purchase
and it is a must for filing a complaint in appropriate consumer court.

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