Meaning And Need Of Consumer Protection

The Consumer Protection Act,1986 (COPRA)was an Act of

theParliament of India enacted in 1986 to protect the interests
of consumers in India . Consumer protection is the practice of
safeguarding buyers of goods and services, and the public,
against unfair practices in the marketplace. Consumer
protection measures are often established by law. Such laws
are intended to prevent businesses from engaging in fraud or
specified unfair practices in order to gain an advantage over
competitors or to mislead consumers. above. It provides for the
setting up of a three- tier quasijudicial machinery. This
machinery has been authorised to provide time- bound relief to
consumers. The term “consumer” has been defined in Section 2
(1) (d) of the Consumer Protection Act, 1986 as: “any person
who buys any goods for consideration or hires/ avails any
services for consideration which has been paid or promised, or
partly paid or partly promised, or under any system of deferred
payment. The term includes any other beneficiary of such
services with the approval of the first mentioned person. But a
consumer does not include a person who avails of such services
for any commercial Purpose
Need For Consumer Protection
1. Consumer is the purpose of business: The basic purpose of
business is to create and satisfy consumers. In the modern
concept of marketing consumer is treated as the king. They are
the foundation of business and the reason for its existence.
2. Business is a means of human welfare:Business exists to
serve humans and is not an end in itself. Its existence depends
if the consumer is served well, only then can it survive and
grow.
3. Multiple objectives: Profit making cannot be the sole
objective of business. Since business is a part of the society it is
expected to take care of interests of all the sections of the
society.
4. Responsibility with power: Business exercises considerable
power and influence over society. It creates and moulds food,
dress habits and life styles. It is the responsibility of the
business to use its power in the interest of the society.
5. Theory of trusteeship: According to Mahatma Gandhi,
businessmen are trustees of the society’s wealth. They should
use this wealth for the benefit of the people. The consumer is
not dependent on business rather he is the purpose of
business. He is not an outside but a part of the business.
6. Business ethics: Leading business houses all over the world
have been founded on ethical values and have followed high
standards of ethics. Business without moral values cannot be
tolerated in the society hence consumer protection is an ethical
obligation.
7. Self-interest: The business must provide quality goods and
become consumer oriented to survive competition locally and
internationally. The government has framed laws, the violation
of which will reflect badly on business.
Rights Of A Consumer Essentially there are seven major
consumer rights:-
1. The Right to Safety This is the right to be protected against
the marketing difficulty due to any reason. Consumers must
have assurance regarding quality, reliability and performance.
There are so many common household items now available to
consumers that contain potentially harmful substances. For
example, artificial colours in food products can damage the
liver. With the advancement of science and technology.
Consumer products have become highly complex and intricate.
Therefore, responsibility for their safety should be fixed on
producers and distributors.
2. Right to be informed: The consumer has the right to be
informed about the quality, quantity, potency, purity, standard
and price of the goods he intends to purchase. It is the
responsibility of the manufacturer and distributor to give
complete information about (a) the product including its
ingredients, date of manufacture, technical specifications, etc.
(b) the precautions, if any, to be taken in the use and
maintenance of the product, (c) strength, durability,
serviceability and reuse value of the product, (d) the side
effects and risks in the use of the product, etc. Such
information would enable the consumer to intelligently exercise
his decisions to buy a product. The right to information is meant
to protect the consumer from deceptive advertising, misleading
labelling and warranties, etc.
3. The Right to Choose: The consumer competitive prices. This
means should be assured access to a variety of goods the seller
should not use aggressive selling techniques to sell the product
to the consumer. There should be freedom to choose. This
requires free competition in the market. If enough varieties of
products at competitive from alternative products. Prices are
available in the market, consumers have the opportunity to
make a free choice.
4. The Right to be heard: The consumer has a right to register
his dissatisfaction and get his complaint heard at appropriate
forums. This right includes the right to make protest and to
representation in the government and in other policy making
bodies. The above three rights are meaningless without the
right to be heard. Therefore, grievances and claims of
consumers must be heard and considered.
5. The Right to Seek Redressal: It means the right to get claims
and complaints settled against manufacturers or sellers due to
unfair trade practices and exploitation by them. The consumer
has been granted the right of redress if the performance,
quality, etc., of a product is unsatisfactory. The product must be
repaired, replaced or taken back by the seller. The right to seek
Redressal will reduce post-purchase doubts and grievances of
consumers.
6. The Right to Consumer Education: The consumer must be
made aware of his rights and the remedies available to him.
This will help to make consumers conscious and protect
themselves against frauds by businessmen. An ignorant
consumer cannot escape cheating and may not come forward
to seek Redressal against malpractices by sellers.
7. The Right to Healthy Environment: Consumers have the right
to be protected against environmental pollution so as to
improve the quality of life. This right includes protection against
degradation of environment. Non-renewable resources of the
country need to be conserved for future generations
Duties Of A Consumer They are :-
1. Exercise the rights: Consumer must be aware of their own
rights. They must exercise these rights while purchasing
products and services from the market.
2. Ask for full information: Before buying a product or a service,
consumers must ask for full information about the quality,
utility, price. This will ensure right purchase decision.
3. Be quality conscious: Consumers must look for quality
certification marks like ISI, Agmark, FPO, etc. while making
purchases. This will help reduce the problem of adulteration
and spurious products 4. Insist on cash memo: A seller is bound
to give cash memo. Consumers need cash memo as a proof of
purchase for claiming compensation against defective products.
Also, with the help of cash memo we can ensure that the
government does not lose sales tax revenue.
5. Don’t get carried away by advertisements: Advertisements
often exaggerate the utility of goods and services. Therefore,
they should compare the uses of substitute products.
6. File complaints: When a consumer ignores the exploitation by
traders, he is encouraging them to exploit further. The
consumer should file a complaint for redressal of grievances.
CONSUMER PROTECTION ACT, 2019
The Consumer Protection Bill, 2019 has been passed by the Lok
Sabha on Jul 30, 2019,
and Rajya Sabha passed on Aug 06, 2019. This bill was
introduced in the parliament
by the Minister of Consumer Affairs, Food and Public
Distribution, Mr. Ram Vilas
Paswan. The new Consumer Protection Act, 2019 came into
force on 20th July
2020 and it will empower consumers and help them in
protecting their rights through
its various notified rules and provisions. Consumer Protection
Act, 2019 is a law to
protect the interests of the consumers. This act was inevitable
to resolve a large
number of pending consumer complaints in consumer courts
across the country. It
has ways and means to solve the consumer grievances
speedily.The basic aim of the Consumer
Protection Act, 2019 to save the rights of the consumers by
establishing authorities for timely and
effective administration and settlement of consumers’ disputes.
Case Study 4:-Pepsi asked to compensate
consumer
Parties Involved:- Pepsico India Holdings Private Limited vs.
Mr.Rajesh Rajan
Held In:- District Forum and then appealed in State
Commission of Gujarat.
Details :-
Rajesh Rajan purchased a bottle of Pepsi from a local store in
Ahmedabad in August
2008, but he found a gutka pouch inside the bottle. He dashed
off a legal notice to the
company accusing it of deficiency in service that could cause
health hazard for
consumers. The multinational giant even replied to the notice,
but a year later. Rajan
approached a Consumer Dispute Redressal Forum, Ahmedabad
(rural) and demanded
Rs 5 lakh from the company towards compensation. During the
hearing, the
consumer forum sent the sample to the Ahmedabad Municipal
Corporation's
laboratory for analysis. After hearing the case, the consumer
forum asked the
company to return the amount of Rs 8 back to Rajan. Besides,
the forum also asked
the company to pay Rs 4,000 towards compensation for
causing mental torture and
towards litigation cost. Rajan was not happy with the amount.
He moved Gujarat
state's Consumer Dispute Redressal Commission and
complained that Rs 4,008 was
too meager an amount towards compensation, particularly
when he had spent Rs 500
after sample testing. He also argued that the company should
be fined in the manner
that sets an example in the society that those who are deficient
in service should be
taught a lesson.
Rights Violated :-
The Right To Safety Is Violated In this Case Study. This is the
right to be
protected against the marketing difficulty due to any reason.
Consumers must
have assurance regarding quality, reliability and
performance.Therefore,
responsibility for their safety should be fixed on producers and
distributors.

Outcome :-
The commission asked the company to pay Rs 20,000 to Rajan
towards
compensation and Rs 2,000 towards litigation cost. Earlier this
year, the
Consumer Dispute Redressal Forum, Ahmedabad (rural) asked
this
company to deposit Rs 20,000 with the State Consumer Welfare
Fund after
its soft drink was found contaminated.. The multi-national giant
has been
asked to deposit the amount with the State Consumer Welfare
Fund.After
hearing the case and perusal of documents in the form of
certificates issued
by public health laboratory on examination of the food item,
the consumer
court concluded that it was unfair trade practice and deficiency
in service
on part of the company. Besides, the company has been asked
to pay Rs
3,000 to the complainant towards mental harassment.The court
also asked
the company to return Rs 15 to the complainant with 8%
interest
Case Study 3:-Om Prakash v. Reliance
General Insurance (2017)
Parties Involved:- Om Prakash v. Reliance General Insurance
Held In:- State Commission and then at the appealed National
Commission which further led to an appeal in the Supreme
Court New
Delhi.
Details :-
In the case, the Appellant insured his truck with the
Respondent. The
Appellant’s vehicle was stolen and consequently, an FIR was
also lodged. The
theft of the vehicle had taken place on 23.03.2010, the FIR was
lodged on
24.03.2010 and the claim petition with the Respondent
company was filed on
31.03.2010. On lodging the insurance claim, the Investigator
appointed by the
Respondent confirmed the factum of theft and consequently,
the Corporate
Claims Manager approved an amount of Rs.7,85,000/- for the
said claim of the
appellant. Thereafter, the Appellant made several requests to
the respondent,
seeking speedy processing and disposal of his insurance claim.
However, on
non-payment the Appellant served a legal notice to the
Respondent but the
Respondent repudiated the Appellant’s insurance claim citing
breach of
condition of terms of Insurance by the Appellant. The impugned
term beingi.e. immediate information to the Insurer about the
loss/theft of the vehicle.
Aggrieved by the aforesaid, the Appellant filed complaint before
the, District
Consumer Disputes Redressal Forum (‘District Forum’), seeking
a direction to
the respondent-company for payment of claim amount with an
interest @ 18%
per annum, along with compensation of Rs.1,00,000/-.
However, the District
Forum dismissed the complaint of the appellant. The Appellant
met with a
similar fate in State Commission as well as National
Commission, wherein his
appeals were dismissed.In the instant case, the Appellant
approached the
Supreme Court against National Commission’s order and
challenged the
legality and correctness of the said order.
Rights Violated :- The Right To Seek Redressal Is Violated In this
Case Study.It means the right to get
claims and complaints settled against manufacturers or sellers
due to unfair trade
practices and exploitation by them. The consumer has been
granted the right of
redress if the performance, quality, etc., of a product is
unsatisfactory
Outcome :-
The Supreme Court allowed the Appellant’s appeal and made
the following observations:
• That truck-driver, had filed an affidavit before the District
Forum stating that the owner of
the truck had reached the place of occurrence of theft and on
lodging complaint the Police
had asked him and the Appellant to stay with them in order to
help them for tracing out the
truck. Thus, the Appellant was busy with the Rajasthan Police in
searching the vehicle and
returned to his village on 30.03.2010.
• The Court in the aforesaid context noted that it is common
knowledge that a person who lost
his vehicle may not straightaway go to the Insurance Company
to claim compensation. At
first, he will make efforts to trace the vehicle. It is true that the
owner has to intimate the
insurer immediately after the theft of the vehicle. However,
thiscondition should not bar
settlement of genuine claims particularly when the delay in
intimation or submission of
documents is due to unavoidable circumstances.
• The Court also observed that an Insurance company shall
reject claim on valid grounds.
Rejection of the claims on purely technical grounds in a
mechanical manner will result in
loss of confidence of policy-holders in the insurance industry. If
the reason for delay in
making a claim is satisfactorily explained, such a claim cannot
be rejected on the ground of
delay. It is also necessary to state here that it would not be fair
and reasonable to reject
genuine claims which had already been verified and found to
be correct by the Investigator.
In view of the aforesaid, the Supreme Court held that the
National Commission was not justified in
rejecting the claim of the appellant without considering the
explanation for the delay. The Court
also held that the claimant was entitled for a sum of
Rs.50,000/- towards compensation.
The Court directed the Respondent company to pay a sum of
Rs. 8,35,000/- to the Appellant along
with interest @ 8% per annum from the date of filing of the the
claim petition till the date of
payment.
Case Study 2:-Removal of ladder of an aircraft while
disembarking by the passenger Parties Involved:- Indian Airlines
vs. Dr. Jiteshwar Ahir [First Appeal No. 270 of 1994 decided on
28.2.1996 (NCDRC)] Held In:- State Commission and then at the
appealed National Commission. Details :- When the
complainant-passenger occupied his seat in the aircraft, an
announcement was made that his luggage was lying on the
ground unidentified and that he should disembark to identify
his luggage. According to the complainant he moved towards
the rear door, and finding that the step ladder was attached to
the aircraft door, he stepped out on to the staircase but before
he could actually put his entire body weight on the staircase
the ladder was suddenly removed as a result of which he fell
down on the ground and sustained bodily injuries which was
reported to be about 10 percent. As against the complainant’s
claim of Rs. 10 lakhs the airlines was willing to pay Rs. 40,000
as compensation which according to them was the maximum
statutory liability of the Corporation under the Carriage by Air
Act, 1972. Rights Violated :- The Right To Safety Is Violated In
this Case Study. This is the right to be protected against the
marketing difficulty due to any reason. Consumers must have
assurance regarding quality, reliability and
performance.Therefore, responsibility for their safety should be
fixed on producers and distributors.
Outcome :- The State Commission, after examining witnesses
and the medical boards report held that there was dangerous
deficiency in service and having regard to the expert opinion
and other medical reports, it ordered payment of compensation
of Rs. 4 lakhs and Rs. 1 lakh for mental agony and distress plus
costs.In appeal by the Corporation, the National Commission,
upholding the State Commissions order, held that in terms of
regulations relied upon by the appellant Corporation, if it was
proved that the accident caused to the complainant had
resulted in a permanent disablement, incapacitating him from
engaging in or being occupied with his usual duties or his
business or occupation, the liability could not exceed Rs. 5
lakhs. This case related to the incapacity and permanent
disability to the extent of 10 per cent and, therefore, the
compensation could not exceed Rs. 5 lakhs. The State
Commissions assessment of compensation of Rs. 4 lakhs was
justified, considering the age of the complainant (37 years) at
the time of accident and his having lost earning capacity. The
State Commission was also right in awarding compensation of
rupees one lakh for the complainants mental suffering and
agony as well as feeling of inferiority in social relationships
Conclusion & Learning Outcome
The Consumer Protection Act,1986 (COPRA) was an Act of the
Parliament of India enacted in 1986 to protect the interests of
consumers in India. Consumer protection is the practice of
safeguarding buyers of goods and services, and the public,
against unfair practices in the marketplace. Consumer
protection measures are often established by law. Such laws
are intended to prevent businesses from engaging in fraud or
specified unfair practices in order to gain an advantage over
competitors or to mislead consumers. above. It provides for the
setting up of a three tier quasi-judicial machinery. This
machinery has been authorized to provide time bound relief to
consumers. The Consumer Protection Bill, 2019 has been
passed by the Lok Sabha on Jul 30, 2019, and Rajya Sabha
passed on Aug 06, 2019. This bill was introduced in the
parliament by the Minister of Consumer Affairs, Food and Public
Distribution, Mr. Ram Vilas Paswan. The new Consumer
Protection Act, 2019 came into force on 20th July 2020 and it
will empower consumers and help them in protecting their
rights through its various notified rules and provisions. This
project helped me understand the importance of consumer
protection in the consumer market where large-scale profit
oriented multinational companies can often exploit the society
and its resources. I was also able to analyse several real-life
cases where consumers had been exploited and had to be
protected by government laws/policies.