Gaurav Malik, MBA-IB, SEC-A
Consumer protection
Introduction and meaning
Consumer protection refers to protecting the interest of consumers. An analysis of marketing
Management has made it clear that consumer is a king pin in the market. The producer should
produce goods keeping in mind the requirements of consumers and satisfy the consumer but
it is observed that this obligation is neglected by some businessmen and they are involved in
unfair trade practices such as supply of substandard quality, adulteration etc. So there is need
for consumer protection. hence consumer protection means protecting the interest of
consumers.
Importance of consumer protection
Consumer protection is very wide. It includes rights , responsibilities and various remedies
Available to consumers. It is not only beneficial for consumers but it is equally important for
businessmen also.
Importance from consumers point of view:
1. Consumer ignorance - consumer protection provides information to the ignorant
consumers regarding rights and remedies available to them. It spreads awareness so
that consumers can know about the various redressal agencies where they can
approach to protect their interests.
2. Unorganised consumers - in developing countries like India, consumers are not
organised. There are very few consumer organizations which are working to protect
the interests of consumers. Consumer protection encourages establishment of more
consumer organizations. Consumer protection provides power and rights to these
organizations as these organisations can file case on behalf of the customers.
3. Widespread exploitation of consumers - although nowadays consumer is the King pin
of market but then also there is a lot of exploitation of consumers as business menus
various unfair trade practices to cheat and exploit consumers. Consumer protection
provides safeguard to consumers from such exploitation.
Importance from businessmen’s point of view :
Businessman cannot survive for a long time by ignoring the interest of customers. They have
to give do importance to customers if they want to prosper in competitive market. Consumer
protection provides following benefits to businessmen:
1. Long term interest of business - After the liberalization and globalization the level of
competition has increased so much that not only internal business but also
international business has to face competition. In the race of competition the
businessman can win and capture a big share in the market only when they are able to
satisfy its customers by designing the products keeping in mind the requirement of
customers. The businessman who ignore the interest and satisfaction of customers
lose there goodwill and clients. So it is in the interest of business itself to keep its
customers satisfied.
2. Businessman uses society’s resources - Businessmen use the resources of society.
They earn profit by supplying goods and services to the members of society so it must
do something for the society. Businessmen are merely trustee of resources, they must
use these resources for the benefit of consumers.
3. Social responsibilities - A businessman has social obligations towards various groups
and customers. it is the responsibility of businessmen to provide quality goods at
reasonable price pulse up consumer protection guides businessmen to provide social
responsibilities.
4. Moral/ethical justification - Traditionally ethics was part of profession only, but
today ethics are playing a very important role in business also. the ethics or moral
values practiced by the businessman adds glory to businessman. In today's
environment business without ethical value is not more than a criminal activity and no
civil society can tolerate and allow the existence of unethical business.
The Consumer Protection Act 1986 :
The enactment of Consumer Protection Act 1986 was one of the most important steps taken
to protect the interest of the consumers. The provision of act came into force from July 1,
1987. The main features of this act are:
1. This act has provided various rights and responsibilities to consumers.
2. It provides safeguard to consumers against defective goods, deficient, services, unfair
trade practices and other forms of they are exploitation.
3. The act has provided 3 tier redressal agencies where consumer can file complaints.
These are district forum, state Commission and National Commission.
Objects of the act:
The objects of the act are as follows:
1. Better protection of interests of consumers
- the act seeks to provide for better protection of the interests of consumers. For that
purpose, the act makes provision for the establishment of Consumer Councils and
other authorities for the settlement of consumer disputes.
2. Protection of rights of consumers:
- The right to be protected against the marketing of hazardous goods and services.
- The right to be informed about the quality, quantity and purity standards.
- The right to be assured, wherever possible, access to goods and services at
competitive prices.
- The right to be heard at appropriate forums.
- The right to seek redressal against unfair trade practices.
- The right to consumer education.
