Chapter

11

Consumer
Protection
 CONSUMER PROTECTION
Consumer is said to be the king in
a free market economy

The earlier approach of “Caveat emptor” (let the buyer

beware) has been changed to “Caveat venditor” (let
the seller beware)
 CONSUMER PROTECTION
With the growing competition and to push up
the sales, businessmen indulge in exploitative
and unfair trade practices

It includes the supply of defective and unsafe products,

adulteration, false and misleading advertising,
hoarding, black marketing etc., so there arises the
need for providing protection to consumers
Consumer - Definition
Consumer Protection Act, 1986 defines
a consumer is an individual or
organization who buys goods and
services for a consideration
 I m p o r t a n c e of
Consumer
Protection
( C o n s u m e r s Point of
Vie w )
Importance of Consumer Protection in Consumers Point of View

1. Consumer ignorance
In usual practice, consumers are innocent and
ignorant about their rights and relief against
unfair trade practices

Consumer protection protects them

through consumer
Importance of Consumer Protection in Consumers Point of View

2. Un-organized consumers
Consumers need to be organized in the
form of consumer organizations which
would protect their interest
Importance of Consumer Protection in Consumers Point of View

3. Consumer exploitation
Consumers need protection against unfair trade
practices like defective and unsafe products,
black marketing, hoarding, adulteration etc.
 Importance of Consumer Protection
in Consumers Point of View
1. Consumer ignorance

2. Un-organized consumers

3. Consumer exploitation
 I m p o r t a n c e of
Consumer
Protection
( B u s i n e s s P o i nt of
Vie w )
Importance of Consumer Protection in Business Point of View

1. Long term interest of business

Satisfied customers only provide repeat sales,
but also give good feedback to the prospective
customers
This will help to increase sales
Importance of Consumer Protection in Business Point of View

2. Use of resources from the society

As the business makes use of society’s
resources, it has the obligation to give
reasonable return to the nation and its
people
Importance of Consumer Protection in Business Point of View

3. Social responsibility
A business has social responsibilities towards
different groups like shareholders, employees,
etc.
Therefore it should not be an exploiter but
must be a servant
Importance of Consumer Protection in Business Point of View

4. Moral justification
It is the moral duty of any business to
protect the interest of
consumers

Exploitative, and unfair trade practices must be

avoided
Importance of Consumer Protection in Business Point of View

5. Government intervention

A business engaging in any form of

exploitative trade practices would invite
government intervention
Importance of Consumer Protection
in Business Point of View
1 Long term interest of business

2 Use of resources from the society

3 Social responsibility

4 Moral justification

5 Government intervention
C o m m o n Unfair
Trade
P ra ctices
 Common Unfair Trade Practices

1. Adulteration
 Common Unfair Trade Practices

2. Black marketing
 Common Unfair Trade Practices

3. False Weights
 Common Unfair Trade Practices

4. Poor Quality
 Common Unfair Trade Practices

5. Exorbitant Prices
 Common Unfair Trade Practices

6. Misleading Advertisement
 Common Unfair Trade Practices

7. Duplication of Brands
 Common Unfair Trade Practices

1.Adulteration
2.Black marketing
3.False weights
4.Poor quality
5.Exorbitant price
6.Misleading advertisement
7.Duplication of brands
Consumer
Rights
 Consumer Rights
1. Right to safety
Consumers have the right to be protected
against the goods which are hazardous to
health and safety

Manufacturing defects in
electrical goods, pressure
cookers etc. may endanger
the life of consumers
 Consumer Rights
2. Right to be informed
It implies that the producer should disclose
all the facts regarding his
products

Keep Away from Children

Information as to the quantity, quality, price, date of
manufacture, ingredients, precautions of use etc.
should be given
 Consumer Rights
3. Right to choose
It implies that consumer has the chance to
choose from the alternatives, the producer
should not take away the right through
aggressive selling techniques
 Consumer Rights
4. Right to be heard
Every consumer would like to be assured
that complaints or grievances regarding
a product or service will be considered
 Consumer Rights
5. Right to seek redressal
When the consumers are cheated or
exploited they have the right to get
compensation
 Consumer Rights
6. Right to consumer education
A consumer can get protected against fraud and
malpractices only with the help of knowledge and
proper education, he should know the rights and
remedies available to him
It is possible only with proper consumer
education
 Consumer Rights
1. Right to safety
2. Right to be informed
3. Right to choose
4. Right to be heard
5. Right to seek redressal
6. Right to consumer education
 Consumer
R e s p o nsibilit
ies
 Consumer Responsibilities
1. Awareness about goods and services
Awareness about various goods and
services available in the market, so that
an intelligent and wise choice can be
made
 Consumer Responsibilities
2. Exercise the right
Consumers must be aware of their own
rights with regard to the products or
services they buy from the market

They should exercise their rights whenever

 Consumer Responsibilities
3. Cautious consumer
Before purchasing, the consumer should insist on
getting complete information on quality, quantity,
price, utility etc. of the goods
 Consumer Responsibilities
4. Filing complaints
Sometimes, consumers ignore the
deception (dishonesty) of traders
believing that the loss is small

This attitude encourages corrupt business practices to

continue
 Consumer Responsibilities
5. Quality conscious
While making purchases, he should look for
quality certification
BIS Hallmark – Jewellery
Agmar – Agricultural
k ISI Products
FPO –
– Industrial
Fruit Products
Products
Order (Food Safety in Fruit
Products such as Jams, Pickles,
Fruit drinks etc.)

Only products having ISI, Agmark, BIS, ISO etc.

should be purchased
 Consumer Responsibilities
6. Understand the risks
Consumer should understand the risks
associated with the products and follow
strictly the instructions
 Consumer Responsibilities
7. Be honest
Go in for only legal goods and
services and discourage illegal
marketing
No Petrol
 Consumer Responsibilities
8. Insist on cash memo
If there is any defect in the goods purchased and
the consumer has to make a complaint, the cash
memo must be produced as proof of purchase

A seller is bound to give cash

 Consumer Responsibilities
9. File complaints
Consumer should file complaints if any in
appropriate consumer forum, even if the
amount involved is very small

Complai
nt
 Consumer Responsibilities
10. Educate consumers
Consumer should take initiative to
educate consumers about
their rights
Consum
er
Rights
 Consumer Responsibilities
1. Awareness about goods and services
2. Exercise the right
3. Cautious consumer
4. Filing complaints
5. Quality conscious
6. Understand the risks
7. Be honest
8. Insist on cash memo
9. File complaints
10. Educate consumers
Way s and M e a n s
of C o n s u m e r
Protection
W a y s a n d M e a n s of C o n s u m e r
Protection
1. Self regulation by business
Firms with social commitment follow ethical
standards and good practices in serving
the customers

Such firms have set up their customer service and

grievance cells to redress the grievances of
W a y s a n d M e a n s of C o n s u m e r
Protection
2. Business Associations
Federation of Indian Chambers of Commerce,
(FCCI),
Confederation of Indian Industries (CII), etc. lay
down their code of conduct for their members
to deal with consumers
W a y s a n d M e a n s of C o n s u m e r
Protection
3. Consumer awareness
A consumer aware of his rights will be in a
position to raise his voice against unfair
trade practices

Jago Grahak Jago is a consumer

awareness programme from
Ministry of Consumer Affairs,
Government of India.
W a y s a n d M e a n s of C o n s u m e r
Protection
4. Consumer organizations
These organizations can take necessary
steps to eliminate consumer exploitation
and force the business firms to avoid
unfair trade practices
W a y s a n d M e a n s of C o n s u m e r
Protection
5. Government
Government is always protecting the interest of
consumers by implementing rules and
regulations in the form of various laws and Acts

Also it provides a three tier system of District Forum, State

Commission and the National Commission for redressal of
consumer grievances
W a y s a n d M e a n s of C o n s u m e r
Protection
1. Self regulation by business
2. Business Associations
3. Consumer awareness
4. Consumer organizations
5. Government
 W h o c a n a fi le a
c o m p l a i n t u n d e r the
Act?
W h o c a n a fi le a c o m p l a i n t u n d e r
t he A c t ?
1.A consumer.
2.Any voluntary consumer omplai
C
nt
association. 3.The Central
Government.
4.The State Government.
5.One or more consumers, where there are
numerous consumers having the same
interest.
6.A legal heir or representative of a deceased
Against Whom a Complaint can be
fi l e d
1. In case of any defective goods supplied, a complaint
can be filed against the manufacturer or seller or
dealer. (Defect means any fault, imperfection or
shortcoming in quality, quantity or purity of goods.)
2. For any deficiency in services
rendered, a complaint can be filled omplai
C
nt
against the provider of the services.
(Defect means any fault, imperfection
or shortcoming in quality, quantity or
purity of services.)
Who are not considered as a consumer under Consumer
Proctection Act 2019?

Following persons are not considered as Consumer under

Consumer Protection Act 2019:
National
1. The person who obtain goodsCommission
for re-sale.
2. The person who uses the goods without the approval of the
buyer.
3. The person who avails of the services without the approval of
the hirer.
4. The person who obtains goods without any consideration.
5. The person who hires or avails of any services without any
consideration.
 Relief T h r o u g h
Redressal
Agencies
 Relief T h r o u g h R e d r e s s a l
Agencies
a. Removal of defects or deficiency in services.
b. To replace the defective products with the new one free
from any defect.
c. To refund the price paid for the product or the charges paid
for the services.
d. To pay a reasonable amount of compensation for any loss or
injury suffered by the consumer due to negligence of the
opposite party.
e. No to offer hazardous goods for sale.
f. To withdraw hazardous goods from market.
 Relief T h r o u g h R e d r e s s a l
Agencies
g. To discontinue unfair/restricitive trade practice and not to
repeat it in the future.
h. To cease manufacturer of hazardous goods and to desist
from offering hazardous services.
i. Compensate for any loss or injury suffered by consumer
under product liability action and withdraw hazardous
products form being offered for sale etc.
j. District Commission, State Commission & National
Commission have power to declare a contract null and void, if
it is unfair.
 Relief T h r o u g h R e d r e s s a l
Agencies
k. Payment of adequate cost to grieved party.
l. To cease and desist from issuing any misleading
advertisement.
 Redressal
Agencies
under
th e C PA 1 9 8 6
R e d r e s s a l A g e n c i e s u n d e r t he
C PA 1 9 8 6
There is a three-tier grievance redressal
system for enforcement of the rights of
the consumers

National Commission

State

Commission
R e d r e s s a l A g e n c i e s u n d e r t he
C PA 1 9 8 6
District
forum
●
Established by
State Govt.
●
In all the
districts
●
Complaints up
R e d r e s s a l A g e n c i e s u n d e r t he
C PA 1 9 8 6
State
Commission
●
Established by
State Govt.
●
In all the States
●
Complaints up
to 1 crore
R e d r e s s a l A g e n c i e s u n d e r t he
C PA 1 9 8 6
National
Commission
●
Established by
Central Govt.
●
Only at national
level
●
Complaints
above 1 crore
NationalCommission

New Delhi
 R o l e of C o n s u m e r
Organisations and
NGOs
 R o l e of C o n s u m e r O r g a n i s a t i o n s a n d
NGOs

1. Bringing out brochures, Journals etc.

2. Accelerating consumer awareness.

3. Collecting data of products and testing.

4.Arranging talks, seminars, workshops and

conferences on problems of consumers and
finding solutions.
 R o l e of C o n s u m e r O r g a n i s a t i o n s
and NGOs
5.Encouraging consumers for boycotting
goods which are defective and bad
quality.

6. Filing suits on behalf of consumers.

7. Investigating into problems of

consumers.

8.Resisting against price rigging

 R o l e of C o n s u m e r O r g a n i s a t i o n s a n d
NGOs

9.To produce films on food adulteration, misuse of

drugs and cosmetics.

10.To educate women regarding consumerism.

11.To help business to standardize their products.

12.Helping schools to start consumer education.