What are the causes of consumer exploitation?

1. Illiteracy and Ignorance: Consumers in India are mostly illiterate and ignorant. They do
notunderstand their rights. A system is required to protect them from unscrupulous
businessmen.
2. Unorganised Consumers: In India consumers are widely dispersed and are not
united. Theyare at the mercy of businessmen. On the other hand, producers and traders are
organized andpowerful.
3. Spurious Goods: There is increasing supply of duplicate products. It is very difficult for
anordinary consumer to distinguish between a genuine product and its imitation. It
is necessaryto protect consumers from such exploitation by ensuring compliance with
prescribed norms of quality and safety.
4. Deceptive Advertising: Some businessmen give misleading information about quality,
safetyand utility of products. Consumers are misled by false advertisement and do not know
the realquality of advertised goods. A mechanism is needed to prevent misleading
advertisements.
5. Malpractices of Businessmen: Fraudulent, unethical and monopolistic trade practices on
thepart of businessmen lead to exploitation of consumers. Consumers often get defective,
inferiorand substandard goods and poor service. Certain measures are required to protect
theconsumers against such malpractices.
6. Freedom of Enterprise: Businessmen must ensure satisfaction of consumers. In the longrun,
survival and growth of business is not possible without the support and goodwill of consumers.
If business does not protect consumers' interests, Government intervention andregulatory
measures will grow to curb unfair trade practices.
7. Legitimacy for Existence: Business exists to satisfy the needs and desires of [Link]
are produced with the purpose of selling them. Goods will, in the long run, sell onlywhen they
meet the needs of consumers.
8. Trusteeship: Businessmen are trustees of the society's wealth. Therefore, they should usethis
wealth for the benefit of people.
Some common ways by which consumers are exploited by manufacturers and traders are
givenbelow :Underweight and Under-measurements :
The goods being sold in the market aresometimes not measured or [Link]-
standard Quality : The goods sold
are sometimes of sub-standard [Link] of consumables beyond their expirydates and
supply of deficient or defectivehome appliances are generally theregular grievances of
[Link] Prices : Very often the traders charge
a price higher than the prescribed [Link] Articles : In the name of
genuine parts or goods, fake or duplicateitems are being sold to the [Link]
and Impurity : In costly edible
items, such as oil, ghee and spices,adulteration is made in order to earnhigher profits. This
causes heavy loss tothe customers; they suffer from monetaryloss as well as spoil their
[Link] of Safety Devices : Electronic goods,electrical devices or other appliancesproduced
locally, lack the requiredinbuilt safeguards. This causes accidentsto the [Link]
Scarcity : In order to amass
illegitimate profit, businessmen createartificial scarcity by hoarding. They sellit at the later stage
at higher [Link] or Incomplete Information : Sellers
easily mislead consumers by givingwrong information about a product, itsprice, quality,
reliability, life cycle, expirydate, durability, its effect on health,environment, safety and
security,maintenance costs involved, and termsand conditions of purchase. Cosmetics,drugs
and electronic goods are commonexamples where consumers face
[Link] after-sale Service : Many
of the high cost durable items, such aselectrical or electronic equipments, homeappliances and
cars, need adequateafter-sale care. The suppliers do notprovide the satisfactory after -
saleservices despite the necessary [Link] Behaviour and Undue Conditions :
In matters like LPG gas connection, fixingof a new telephone line, procurement of licensed
items, etc., consumers are oftenharassed and undue conditions are putbefore them.

What is the Consumer Protection Act?

The Consumer Protection Act, implemented in 1986, gives easy and fast
compensation to consumer grievances. It safeguards and encourages
consumers to speak against insufficiency and flaws in goods and services.
If traders and manufacturers practice any illegal trade, this act protects their
rights as a consumer. The primary motivation of this forum is to bestow aid
to both the parties and eliminate lengthy lawsuits.

This Protection Act covers all goods and services of all public, private, or
cooperative sectors, except those exempted by the central government.
The act provides a platform for a consumer where they can file their
complaint, and the forum takes action against the concerned supplier and
compensation is granted to the consumer for the hassle he/she has
encountered.
Consumer Rights and Responsibilities:
The Rights of the Consumer

 Right to Safety- Before buying, a consumer can insist on the quality and
guarantee of the goods. They should ideally purchase a certified product like
ISI or AGMARK.
 Right to Choose- Consumer should have the right to choose from a variety
of goods and in a competitive price.
 Right to be informed- The buyers should be informed with all the necessary
details of the product, make her/him act wise, and change the buying
decision.
 Right to Consumer Education- Consumer should be aware of his/her rights
and avoid exploitation. Ignorance can cost them more.
 Right to be heard- This means the consumer will get due attention to
express their grievances at a suitable forum.
 Right to seek compensation- The defines that the consumer has the right to
seek redress against unfair and inhumane practices or exploitation of the
consumer.

The Responsibilities of the Consumer

 Responsibility to be aware – A consumer has to be mindful of the safety

and quality of products and services before purchasing.
 Responsibility to think independently– Consumer should be well
concerned about what they want and need and therefore make independent
choices.
 Responsibility to speak out- Buyer should be fearless to speak out their
grievances and tell traders what they exactly want
 Responsibility to complain- It is the consumer’s responsibility to express
and file a complaint about their dissatisfaction with goods or services in a
sincere and fair manner.
 Responsibility to be an Ethical Consumer- They should be fair and not
engage themselves with any deceptive practice.

Also Read: Important Questions for Consumer Protection

How to File a Complaint?

  Within two years of purchasing the product or services, the complaint should
be filled.
 In the complaint, the consumer should mention the details of the problem.
This can be an exchange or replacement of the product, compensation for
mental or physical torture. However, the declaration needs to be reasonable.
 All the relevant receipts, bills should be kept and attached to the complaint
letter.
 A written complaint should be then sent to the consumer forum via email,
registered post, fax or hand-delivered. Acknowledgement is important and
should not be forgotten to receive.
 The complaint can be in any preferred language.
 The hiring of a lawyer not required.
 All the documents sent and received should be kept.

What Is the Consumer Protection

Act?
The Consumer Protection Act, 1986 is an act that
provides for the establishment of a consumer protection
authority and lays down certain provisions relating to
unfair trade practices, product liability, and guarantees as
well as certain other matters. The Act was enacted on 30
December 1986. It came into force on 1 April 1987.

It provides victims with several rights including:

 Right to disclosure – Businesses must disclose every

fact about their products or services before enrolling
someone in a sales program or offering them a product
or service.
 Right to cancel – Consumers have the right to cancel an
agreement within 30 days without penalty if they find
 out information about the product after making the
purchase that could have reasonably led them to
believe it will not meet their needs.
 Right to redress – Victims can seek relief such as
monetary compensation, replacement goods or
services, and attorney’s fees.

The act has been amended many times over the years to
keep up with the changing needs of consumers. The most
recent amendment was in 2016 when it was made illegal
for businesses to charge customers for services they
didn’t ask for.

Advantages of the Consumer Protection Act

The Consumer Protection Act, 1986 (“CPA”) is a statute
that prohibits unfair trade practices in the marketplace. It
also provides assistance to consumers who have been
wronged by such violations. The CPA covers both goods
and services.

Some of the most important advantages of the consumer

protection act include:
 A consumer may claim damages or compensation if
he/she has suffered loss or damage as a result of unfair
business practices by an individual or company.
 It gives individuals the right to receive a refund for an
item that has not fulfilled their expectations.
 It protects consumers from being taken advantage of
during negotiations by requiring companies to disclose
all fees and charges upfront.

Learn How to file consumer complaint in India

Disadvantages of the Consumer Protection
Act
The Consumer Protection Act in India has numerous
restrictions and drawbacks, which are listed in this
article.

1. Only services for which a particular payment has been

made are covered under the consumer protection act.
However, it does not protect medical professionals, or
hospitals, and covers cases when this act does not
apply to free medical care.
2. This act does not apply to mandatory services, such as
water supply, that are provided by state agencies.
3. Only two clauses related to the supply of hazardous
materials are covered by this act. Consumer redress is
not given any power by the consumer protection act.
4. The consumer protection act focuses on the supply of
ineffective products, but there are no strict regulations
for those who produce it.
Implications of Consumer Protection Act
The Consumer Protection Act, 2013 was enacted to give
consumers a fair deal and to protect them from harmful
business practices. This act establishes rules that
businesses must follow in order to stay legal and
compliant with the law. Among other things, this act
prohibits companies from making false or misleading
claims about their products or services, charging
excessive fees for services such as cancellation or repair,
using unfair methods of marketing (such as spamming),
and more.

There are many different types of unfair trade practices

under the CPA, but they all fall into one of four categories

 misrepresentation
 false advertising
 failure to deliver on time
 unconscionable terms.
How Can Businesses Comply With the
Consumer Protection Act
Here are the main goals of the Consumer
Protection Act:
1. It wants businesses to be honest and straightforward
with their customers
2. It wants companies to operate within reasonable
boundaries so that consumers are not hurt by their
actions.

By following these guidelines closely, businesses can

avoid any negative publicity or lawsuits – both of which
would undoubtedly harm their bottom line.

Consumer Protection Act for E-Commerce

The consumer protection act (CPA) rules for online e-
commerce in India are fairly complex and need to be
followed carefully if the company wants to avoid any legal
issues. Here is a quick overview of the most important
points:

 The company must provide full and accurate product

information on your website. This includes the brand,
model, color, size, weight, etc.
 They must make it easy for shoppers to return products
they don’t like or find defective. Include clear
instructions on how to do so, as well as a process for
resolving complaints should they arise.
 Processing and delivery within a reasonable timeframe
must be ensured. Failures to meet these guidelines can
lead to lawsuits filed by consumers against your
business.
Conclusion
The battle for consumer rights is never-ending. That’s
why it is so important to know what Consumer Protection
Act does, and how you can use it in your [Link] are
many advantages and disadvantages of the Consumer
Protection Act but it protects consumers from unfair
practices by businesses selling their goods and services.
In case a business violates the law, then customers can
file a complaint with local authorities and also seek legal
aid if they are financially unable to do that. Thus, it
becomes even more crucial for businesses to follow the
rules of this act as they have severe consequences–both
legally as well as financially. Our expert team
at Vakilsearch can help your business stay compliant
with the consumer protection act in order to avoid
complications later on.