12 H

CHAPTER-12

Consumer Protection

   Concept and Importance of Consumer Protection and Consumer Protection Act, 1986

Ø Importance/Need of Consumer Protection :

(i)     From the point of view of consumer :

(a)  Consumer ignorance.

(b)  Unorganised consumers.

(c)  Widespread exploitation of consumers.

(ii)   From the point of view of business :

(a)  Long-term interest of business.

(b)  Business uses society’s resources.

(c)  Social responsibility.

(d)  Moral justification.

(e)  Government intervention.

Ø Consumer Protection Act, 1986 :

(i)     Consumer Rights :

(a)  Right to Safety : against goods and services hazardous to life.

(b)  Right to be Informed : of true, accurate and adequate information about a product.

(c)  Right to Choose : from a variety of products at competitive rates.

(d)  Right to be Heard : by filing complaints if dissatisfied.

(e)  Right to Seek Redressal : get relief or compensation against exploitation.

(f)   Right to Consumer Education : to become a well-informed consumer.

(ii)   Consumer Responsibilities :

(a)  Be aware about the variety of goods and services available.

(b)  Ensure quality certification marks.

(c)  Use products safely.

(d)  Read labels carefully.

(e)  Obtain cash memo.

(f)   File a complaint when required.

(g)  Form consumer organisation.

(h)  Save the environment.

(i)    Get a fair deal.

(iii) Reliefs available :

(a)  Removal of defects.

(b)  Replacement of goods.

(c)  Compensation for loss or injury suffered.

(d)  Refund of prices and punitive damages.

(e)  Issue corrective advertisement.

(f)   Withdrawal of hazardous goods from sale.

(g)  Cease manufacturing of hazardous goods.

(h)  Contribution in consumer welfare fund.

(i)    Discontinue unfair trade practice.

Ø Redressal agencies under the Consumer Protection Act :

(i)     District Forum :

(a)  Consists of one President and two other members.

(b)  Appointed by the concerned State Government.

(c)  For disputes upto `20 lakh.

(d)  If unsatisfied by the decision of the District Forum, a consumer can approach in the State Commission within 30 days of passing of the order.

(ii)   State Commission :

(a)  Consists of one President and two other members.

(b)  For disputes from `20 lakh to `1 crores.

(c)  Appointed by the concerned State Government.

(d)  If unsatisfied, appealable in the National Commission within 30 days of passing of the order.

(iii) National Commission :

(a)  Consists of one President and four other members.

(b)  For disputes exceeding `1 crores.

(c)  Appointed by the Central Government.

(d)  If unsatisfied by the decision of the National Commission, the consumer can appeal in the Supreme Court about a matter falling in its original jurisdiction.

(e)  In all other cases, the order of National Commission is final and cannot be challenged further.

  Role of Consumer Organisations and Non-Governmental Organisations (NGOs)

Ø Role of Consumer Organisations and NGOs : These are non-profit organisations which aims at protection and promotion of the interest of the consumers.

Ø Several functions are as follows :

(i)         Educating the general public about consumer rights by organising training programmes, seminars and workshops.

(ii)       Publishing periodicals and other publications to impart knowledge about the consumer problems.

(iii)     Carrying out comparative testing of consumer products in the accredited laboratories.

(iv)     Encouraging consumers to strongly protest and take action against the unfair trade practices.

(v)       Providing legal assistance to the consumers.

(vi)     Filing complaints in appropriate consumer courts on behalf of the consumers.

(vii)   Taking an initiative in filing cases in the interest of the general public.

Ø Important Consumer Organisations and NGOs :

(i)         Consumer Coordination Council, Delhi.

(ii)       Common Causes, Delhi.

(iii)     Voluntary Organisation in Interest of Consumer Education (VOICE), Delhi.

(iv)     Consumer Education and Research Centre (CERC), Ahmedabad.

(v)       Consumer Protection Council (CPC), Ahmedabad.

(vi)     Consumer Guidance Society of India (CGSI), Mumbai.

(vii)   Mumbai Grahak Panchayat, Mumbai.

(viii) Karnataka Consumer Service Society, Bangalore.

(ix)     Consumers Association, Kolkata.

(x)       Consumer Unity and Trust Society (CUTS), Jaipur.

  

Know the Terms

Ø Consumer Protection : It refers to the act of providing adequate protection to the consumers against the unscrupulous, exploitative and unfair trade practices of producers and traders.

Ø Consumer : Consumer is a person who uses the consumer goods or avails of any service.

Ø Caveat emptor : Let the buyer beware.

Ø Caveat venditor : Let the seller beware.

Ø Standardised marks : Quality assurance marks.

            Punitive damages : Punishable dama