CH.
12 CONSUMER PROTECTION
• Protecting consumers from unpair trade practices, adopted by the producers and/or sellers of goods
and services is termed as consumer protection. It not only includes educating consumers about their
rights and responsibilities, but also helps in getting their grievances redressed.
o Importance of consumer protection from consumers point of view
• 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.
• Unorganised Consumers: In India consumers are still unorganised and there is lack of consumer
organisations also, thus consumer protection is required.
• 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.
o Importance of Consumer Protection from the Point View of Business
• Long term business interest: It is always in the interest of the business to keep its customer
satisfied; Global competition could be win only after satisfying customers. Satisfied customers lead
to repeat sales and help in increasing customer base of business.
• 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 & misleading advertising, hoardings black marketing etc.
• Business uses society’s resources: Every business uses the resources of the society and thus it is
their responsibility to work in the interest of the society.
• Social Responsibility: A business has social responsibilities towards various groups like owner,
workers, government, customers etc. Thus, customers should be provided qualitative goods at
reasonable prices.
• Government Intervention: If a business engages in any form of unfair trade practices, then
government take action against it, which adversely affect its goodwill.
➢ A consumer is said to be the king of the market therefore, the earlier approach Caveat Emptor (Let the
buyer beware) has been changed to Caveat Venditor (Let the seller beware). It means that, because of
the fast-growing competition in the market, some businesses are involved in unfair trade practices and
exploit customers, from which the customers need protection.
✓ CONSUMER PROTECTION ACT, 1986 (CPA, 1986): Consumer protection Act 1986 was introduced to
make consumers aware about their rights and to give them legal protection.
• According to the Consumer Protection Act 2019, a Consumer is a person who buys any goods or
avails any services for a consideration
o Rights of a Consumer- Consumer protection Act, 1986 has provided six rights to the consumer,
which are as follows;
1. Right to Safety: Consumers must be protected against hazardous goods/services that may harm life
or property (should use ISI marked electric products). This ensures both present and long-term
safety needs are met.
2. Right to be informed: Consumers have the right to know the quality, quantity, purity, price, and
standards of products/services. Manufacturers must disclose this information on labels/packages to
prevent unfair trade practices.
3. Right to choose: Consumer has a right to choose any product out of the available products as per
his own decision/liking.
4. Right to be heard: Consumers can voice complaints, represent their interests, and be assured their
concerns will be considered. Companies must have complaint cells, and consumers also have
representation in policy-making bodies.
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
/ compensation for any loss.
6. Right to consumer education: Consumers have the right to gain knowledge and skills to make
informed choices and safeguard their interests. The government promotes this through education in
schools/universities, media campaigns, and awareness programs.
o Responsibilities / Duties of a Consumer
1. Consumer must exercise his right: Consumer must be aware of their rights with regard to the
product or services they buy from the market.
2. Consumer must be a cautions consumer: While buying a product or services, a consumer should
read labels carefully to learn about its every minute detail.
3. Consumer must file a complaint in an appropriate forum in case of any shortcoming in
product/service availed.
4. Consumer must insist on cash memo; i.e. a proof of purchase & required to file a complaint.
5. Consumer must bring the discrepancy in the advertisement to the notice of the sponsor.
6. Consumer must be a quality conscious: He should ask/look for ISI mark on electric goods. FPO mark
on food products, Hall mark on jewellery etc.
This mark is for consumer durable
ISI goods, electronic items, kitchen
appliances, etc.
This mark is for agricultural
AGMARK
commodities and live stock products.
BIS Mark
This mark is for gold jewellery.
(Hallmark)
ECO This mark is for environmentally friendly
MARK products.
FPO Mark This mark is for food products.
o Who can File a Complaint under the Consumer Protection Act, 2019
1. A consumer; or any voluntary consumer association registered under any law for the time being
in force; or
2. The Central Government or any State-Government; or
3. The Central Authority; or
4. One or more consumers, where there are numerous consumers having the same interest; or
5. In case of death of a consumer, his legal heir or legal representative; or
6. In case of a consumer being a minor, his parent or legal guardian
o Against whom a complaint can be filed?
1. In case of any defective good supplied, a complaint can be filed against the manufacturer o seller
or
2. For a deficient service rendered, a complaint can be filed against the provider of services.
➢ Redressal Agencies or Three-Tier Grievances Machinery under the Consumer Protection Act
1. District Commission
• Composition: President (District Court judge – working/retired) + 2 members, appointed by
State Govt.
• Jurisdiction: Complaints of goods/services up to ₹1 crore.
• Appeal: To State Commission within 45 days.
2. State Commission
• Composition: President (High Court judge – working/retired) + 2+ members, appointed by
State Govt.
• Jurisdiction: Complaints between ₹1 crore – ₹10 crores.
Appeal: To National Commission within 30 days (by depositing 50% of fine).
3. National Commission
• Composition: President + 4 members (1 woman compulsory), appointed by Central Govt.
• Jurisdiction: Complaints of above ₹10 crores.
• Appeal: To Supreme Court within 30 days (by depositing 50% of fine).
➢ Remedies/Reliefs Available to Consumers
• Removal of defects in goods/services.
• Replacement of defective goods with new ones.
• Refund of the price or service charges paid.
• Removal/withdrawal of hazardous goods from the market.
• Compensation for loss/injury due to negligence.
• Stopping unfair/restrictive trade practices and preventing repetition.
• Ceasing manufacture or supply of hazardous goods/services.
• Awarding punitive damages (extra compensation in serious cases).
• Payment of adequate costs to the consumer.
• Stopping misleading advertisements.
• Declaring unfair contracts null and void.
• Prohibiting sale of hazardous goods.
• Compensation under product liability and ceasing sale of hazardous goods by
manufacturers/retailers.
➢ Role of Consumer Organisations & NGOs
1. Motivate consumers to demand quality-certified products (Agmark, Hallmark, etc.).
2. File cases in consumer courts for public interest, especially for villagers.
3. Conduct comparative testing of products in labs and publish results for consumers.
4. Assist government in resolving consumer exploitation cases and awareness programs.
5. File complaints in consumer courts on behalf of consumers.
6. Provide legal advice, aid, and assistance to consumers.
7. Encourage consumers to protest against unfair trade practices and exploitation.
8. Impart knowledge of consumer problems, rights, responsibilities, and remedies via publications.
9. Organise workshops, seminars, and training programs to educate the public/villagers about rights.