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CHAPTER 5 :CONSUMER PROTECTION
It is said that the consumer is a . . . . . KING!
BUT . . . IS THAT REALLY…
TRUE ???
MANUFACTURERSWith help of
Resort to practices like
CHARGING EXCESSIVELY HIGH !!!
PVR MOVIE TICKETS @ ₹350
POPCORN ₹150 !
SAMSOSA ₹ 50 !??
AQUAFINA ₹ 40 !
SUBSTANDARD GOODS
CARTELS
HOARDING
And may take advantage of innocent and ignorant consumers
Hence arises the need for
Consumer protection
WHO IS A CONSUMER ?
Any person who consumes or uses any commodity or
service available from natural source or through the
market is known as a consumer. The word ‘consumer’ is
derived from Latin word “consumere” which means ‘to
eat or drink’.
IMPORTANCE OF CONSUMER PROTECTION
1. Ignorance Of ConsumersThe consumers get exploited due to
their ignorance about their rights,
product detail, price etc. The
consumers get cheated because
they lack complete knowledge.
For e.g.: Shopkeepers may even sell
off some expired goods to illiterate
and ignorant customers.
2. Market dominated by sellers : If the market is dominated by the
sellers, then they take all the
decisions which favor them.
The sellers do not give preference
to consumer welfare. Consumer
has to accept the terms as decided
by sellers. The transactions
invariably benefit the sellers,
manufacturers and other
middlemen.
3. Participation of consumers is lacking :
Many decisions directly affecting
consumer’s interest are taken
without their or their organizations’
consent. The decisions taken by the
association of sellers or traders are
generally one sided where the
consequences of the decision on
the consumers are not considered
at all.
4. Overall Rate Of Consumption has increased : The population as well as an
increase in overall standard of
living of people has resulted in
increase in consumption. To satisfy
huge demand, it is necessary for
manufacturers to undertake large
scale production. This has resulted
in increased prices, more variety,
exploitation, unfair trade practices
etc.
5. Required information is not easily available:
In the modern world , the distance between
the consumer and the manufacturer is vast.
It is impossible to get information from
manufacturers directly. The consumer relies
more on advertisements of the products,
other’s experiences or on trial and error
method to decide about the product. As a
result, his chances of getting exploited are
high.
6. Tendency of consumers : It is a normal tendency of consumers
to rush to shopping outlets where
high rate of discount is provided on
goods. Most of the consumers get
attracted to cheap products,
schemes, discounts, sale etc.
However, sellers may sell sub-
standard goods in such cases. As a
result, the consumer may get
exploited and he may not even come
to know about it.
7. Attitude of Consumers One of the biggest reasons of exploitation of consumers is their attitude. Most consumers have a “chalta hain” attitude due to which even if they are exploited, they will not complain or act against it. The sellers therefore take advantage of this situation and continue to exploit the consumer. For e.g.: A consumer may sometime get a tshirt which has a small hole in it but then he may not complain to the seller regarding the same.
8. Nature of Products :
Due to complicated
manufacturing processes and
the technical knowledge
involved, consumers are unable
to judge the quality or safety
aspects of a product. The
producers take advantage of this
situation and try to exploit
consumers.
9. Consumers are unorganized :
Sellers & traders have their own
associations. However,
consumers do not have any
union. They are unorganized
and are not united. Bargaining
power is always with a stronger
group and hence a single
consumer cannot fight an entire
association.
To sum up … What is the importance of consumer protection
Ignorance of Consumers
Market dominated by sellers
Participation of consumers is lacking
Overall rate of consumption has increased
Required information is not easily available
Tendency of consumers
Attitude of consumers
Nature of Products
Consumers are unorganized
Rights of consumers
9 points
Right to Redressal
The right enables a consumer to seek redressal against unfair trade practices or exploitation.
This right assures proper legal recourse to attend to a consumer’s complaint and get it redressed (solved).
PRICE QUALITYPURITY
Right to Information
Right to Information helps consumer in selecting the right product and take more informed decision. It assures safety of the consumer and the product both.
Right to Protect Against Spurious Goods
Companies cannot advertise about cigarettes or liquor
The right protects the consumers against marketing of spurious and hazardous goods which pose a danger to public health and life.
Right to be Heard
Every consumer has the right to file a complaint and be heard about
Right to Protect Against Unfair Trade Practices
This right offers protection to consumers against any kind
of unfair trade practices.
Right to safety
INGREDIENTS
If the product is hazardous in nature then detailed
information should be given about its inherent
danger and safe mode of handling. It should also
contain the consequences that would occur if it is not
used correctly.
Right to choose
Right to Choose enables a
consumer to select a
suitable product from
among the available
variety in the market at a
competitive price.
Right to healthy environment
Right to live in a healthy and pollution free environment in the present as well as in the future.
Right to education
The government, media and NGO’s can play a major role in educating consumer.
To sum up… The Rights of a Consumer
RIGHT TO REDRESSAL
RIGHT TO INFORMATION
RIGHT TO PROTECT AGAINST SPURIOUS GOODS
RIGHT TO BE HEARD
RIGHT TO PROTECTED AGAINST UNFAIR TRADE PRACTICES
RIGHT TO SAFETY
RIGHT TO CHOOSE
RIGHT TO HEALTHY ENVIROMENT
RIGHT TO EDUCATION
In short , RIGHTS CHE
Products & services used are
not produced in an
environment that harms
others
1.Social Concern:
Responsibilities of a consumer
2.ACTIVE/ALERT
A consumer has to be assertive and ensure that he gets a
fair deal.
EG: CHECKING THE EXPIRY DATE BEFORE BUYING
3.Value before buying
(Critical Awareness):
MUMBAI: In a sluggish property market,
British bank Standard Chartered has sold a
sea-facing duplex apartment in the Samudra
Mahal building at Worli in Mumbai for Rs 40
crore.
The deal works out to Rs 1,10,000 per sq ft.
4.Environmental Concern :
The consumer should recognize his individual and collective responsibility to conserve natural resources.
Has to ensure that the goods and services he uses do not harm the environment.
5.UNITY
The consumers should organize themselves and work for the welfare of all consumer.
6.SUSTAINABLE CONSUMPTION
The consumer should consume only as per his requirement. He should ensure that he actually requires a particular product and only then buy it.
Consumer should take care of……………………
Before buying :• Planning in advance• Enquire about past performance of product
or service.• Enquire about part performance of the
product seller or service provider• Go through product reviews in newspaper
and websites
While buying :• Asking for demonstration about how to operate or use the product.
• Enquiring about after sales service and ensuring availability & contact details of service centre.
• Insisting on approved sale bill with all details of product.
• Getting a signed warranty / guarantee card from the dealer and reading the contents therein.
After buying :• Using products as per instructions given in
user manual.• Storing the product as mentioned on the
cover or manual.• Keeping bills and guarantee card safely.• In case of a fault inform the dealer or service
centre.• Seek immediate redressal if there is a
deficiency in product
Ways and means of consumer protection
LOK ADALAT Lok Adalat is referred to as People’s Court.
Mock court held by State Authority, District Authority, Supreme Court Legal Service Committee, High Court Legal Service Committee or Taluka Legal Service Committee.
Established by the government to settle disputes by compromise
Lok Adalat accepts pending cases from regular courts which can be settled by compromise only if 1. Both parties agree to transfer the case to Lok Adalat or2. One party makes an application and the court sees any chance of compromise.
PUBLIC INTEREST LITIGATION
Ways and means of consumer protection
This scheme enables any person in the interest of the public to approach a court of law.
A PIL is not for individual interest but for the benefit of a particular group
Redressal Forums
Ways and means of consumer protection
AWARENESS PROGRAMMES
This awareness is done by journals, newspapers, magazines, advertisements etc.
Besides, various consumer related programmes are telecasted on various radio and TV channels.
The society observes 15th March, World Consumer Rights Day and 24th December, National Consumer Day as consumer awareness days.
Consumer Organisations: The consumer organizations
also help the consumers to fight for their rights through campaigning, lobbying and through protests.
Thus, they strengthen the consumer movement.
CONSUMER WELFARE FUND
This fund is created by Department of Revenues.
It provides monetary assistance to the consumer movement especially in rural areas.
These funds are used for consumer education, guidance, complaint redressal etc.
Legislative Measures
Various acts have been passed by the Govt. of India However, the Consumer Protection Act of 1986 has proved to be a boon for consumers
because under this Act they can file a suit against any manufacturer or seller in case of loss due to fault in their product or service.
Consumer Awareness and Legal Redressal
Three tier quasi-judicial consumer disputes Redressal Machinery• District forum• State commission • National commission
District Forum State Commission National CommissionMeaning It is a consumer dispute
redressal forum working at district level
It is a consumer dispute redressal forum working at state level
It is a consumer dispute redressal forum working at national level
Established by State Government State Government Central GovernmentComposition President + 2 Members
(Min)President + 2 Members (Min)
President + 4 Members (Min)
Qualification of President
Who is or has been or is qualified to be a District judge.
Who is or has been a judge of a high Court.
Who is or has been a judge of the Supreme Court.
Duration / Tenure
Term of 5 years or upto age of 65 whichever is earlier.
Term of 5 years or upto the age of 67 whichever is earlier.
Term of 5 years or upto the age of 70 years whichever is earlier.
Monetary Jurisdiction
Value of goods or services and the compensation claimed is less than Rs. 20 Lacs.
Value of goods or services and the compensation claimed is more than Rs. 20 Lacs but less than Rs. 1 crore.
Value of goods or services and the compensation claimed is more than Rs. 1 Crore.
Area It covers a particular district
It covers a particular state
It covers the entire country.
Nature of Complaints
Only original complaints can be entertained
Original Cases + Appeals against orders of District Forum + Supervisory / Revisional
Original Cases + Appeals against orders of State Forum + Supervisory / Revisional + Improper jurisdiction
Comparative analysis of District forum, State commission and National commission
Role of NGOs
CONSUMER ORGANIZATIONS ????? Consumer Organisations are voluntary groups of people who work for a cause of
protecting consumers from harmful products, wrongful representation, pollution etc.
Their main objective is to establish consumer rights.
Consumer organizations are a category of NGOs who work for protecting consumers.
The word NGO itself suggests that they are not connected to the government or any political party. NGOs are non-profit organization.
NGOs have their own rules and principles. They do not have any statutory powers. However, they are a strong support group for the consumers.
NGOs also help to create awareness about consumer rights and assist consumers taking legal action against producers or sellers who are much bigger and stronger than individual consumers.
EXAMPLES OF NGOs1. Consumer Unity & Trust society2. Consumer Guidance Society of India3. Mumbai Grahak Panchayat4. Consumer’s Association of India
FUNCTIONS PERFORMED BY NGOs To undertake various programmes
To guide consumers
To represent a consumer
Make suggestions and recommendations
Publish periodicals, bulletins
Testing of consumer products and publishing the results.
Filing in the interest of general public.