PTER 12: CONSUMER PROTECTIOI Consumer Protection has a wide agenda. It not only includes educating consumers about their rights and responsibilities, but also helps in getting their grievances redressed ‘THE CONSUMER PROTECTION ACT, 1986 The Consumer Protection Act (CPA) seeks to protect and promote the consumers’ interest through speedy and inexpensive redressal of their grievances. ‘The Act confers certain rights to consumers with a view to empowering them and to protect their interests. CONSUMER RIGHTS Q) Explain the following consumer rights 1. Right to Safety: The consumer has a right to be protected against goods and services which are not harmful or hazardous to life and health. For eg,, electrical appliances which are manufactured with substandard products or do not follow the safety standards might cause serious injury. Thus, consumers are educated that they should use and purchase electrical appliances which have ISI marked as this would be an assurance of such products meeting quality specifications. 2. Right to be informed: The consumer has a right to have complete information about the product he intends to buy including its ingredients, date of manufacture, price, quantity, directions for use, etc. It is because of this reason that the legal framework in India requires the manufactures to provide such information on the package and label of the products. 3, _Right to Choose: The consumer has the freedom to choose from a variety of products at competitive prices. This implies that the marketers should offer a wide variety of products in terms of quality, brand, prices, size, etc. and allow the consumer to make a choice from amongst these.4, Right to be heard: The consumer has a right to file a complaint and to be heard in case of dissatisfaction with a good or a service. It is because of this reason that many enlightened business firms have set up their own consumer service and grievance cells. Many consumer organisations are also working towards this direction and helping consumers in redressal of their grievances. 5. Right to seek Redressal: The consumer has a right to get relief in case the product or service falls short of his expectations. The Consumer Protection Act provides a number of reliefs to the consumers like replacement of the product, removal of defect in the product, compensation paid for any loss or injury suffered by the consumer, etc. Right to Consumer Education: The consumer has a right to acquire knowledge and to be a well- informed consumer throughout life. He should be aware about his rights and the reliefs available to him in case of a product or service falling short of his expectations. Many consumer organisations and some enlightened businesses are taking an active part in educating consumers. The Consumer Protection Act gives consumers the rights and empowers them to fight against any exploitative and unfair trade practices adopted 2 by sellers. Relief Available Q) State the reliefs available to a consumer under the consumer protection act. Ans: If the consumer court is satisfied about the genuineness of the complaint, it can issue one or more of the following directions to the Opposite party. (i) To remove the defect in goods or deficiency in service. (ii) To replace the defective product with a new one, free from any defect. (iii) To refund the price paid for the product, or the charges paid for the service.(iv) To pay a reasonable amount of compensation for any loss or injury suffered by the consumer due to the negligence of the Opposite party. (¥) To pay punitive damages in appropriate circumstances. (vi) To discontinue the unfair/ restrictive trade practice and not to repeat it in the future. (vil) Not to offer hazardous goods for sale. (vill) To withdraw the hazardous goods from sale. (ix) To cease manufacture of hazardous goods and to desist from. offering hazardous services. (x) To pay any amount (not less than 5% of the value of the defective goods or deficient services provided), to be credited to the Consumer Welfare Fund or any other organisation/person, to be utilised in the prescribed manner (xi) _ Toissue corrective advertisement to neutralise the effect of a misleading advertisement. (xii) To pay adequate costs to the appropriate party. CONSUMER RESPONSIBILITIES q) State the responsibilities of a consumer. Ans) a consumer should keep in mind the following responsibilities while purchasing, using and consuming goods and services. (i) Be aware about various goods and services available in the market so that an intelligent and wise choice can be made. (ii) _ Buy only standardised goods as they provide quality assurance. Thus, look for ISI mark on electrical goods, FPO mark on food products, Hallmark on jewellery etc. (iii) Learn about the risks associated with Products and services, follow manufacturer’ instructions and use the products safely. (iv) Read labels carefully so as to have information about prices, net weight, manufacturing and expiry dates, etc. (v) Assert yourself to ensure that you get a fair deal. (vi) Be honest in your dealings. Choose only from legal goods and services and discourage unscrupulous practices like black- marketing, hoarding etc. (vil) Ask for a cash memo on purchase of goods or services. This would serve as a proof of the purchase made(viii) File a complaint in an appropriate consumer forum in case of a shortcoming in the quality of goods purchased or services availed. Do not fail to take an action even when the amount involved is small. (ix) Form consumer societies which would play an active part in educating consumers and safeguarding their interests. (x) _ Respect the environment. Avoid waste, littering and contributing to pollution. REDRESSAL AGENCIES UNDER CONSUMER PROTECTION ACT ee THE THREE TIER REDRESSAL MECHANISIM INCLUDES: -— NATIONAL COMMISION -highest level to settle disputes as per Consumer protection Act. STATE COMMISION DISTRICT FORUM. If the consumer is not happy with the order of the court then it has to make appeal in the next level within 30 days from the date of the judgement. Procedure adopted when a complaint is received is the product is sent to the laboratory for testing and the results are awaited .the judgement is passed " based on the reports. : ion of Appointment of Compensation ts Eien Mendes hined tt ed District President and 2other By State Government Upto%20 lakhs In State Commission Forum members (one should bea woman) State President and 2other By State Government Exceeds €20 In National Commission members (one should lakhs butless Commission beawoman) than &1 crore National President and minimum By Central Exceeding 1 In Supreme Court Commission other members (one Government crore (only if matters of should bea woman) orginal urstiction)* aeho is a consuy Consumer: A ‘consumer’ is generally understood as a person who uses or consumes goods or avails of any service. Under the Consumer Protection Act, a consumer is defined as: (a) Any person who buys any goods for a consideration, which has been paid or promised, or partly paid and partly promised, or under any scheme of deferred payment. It includes any user of such goods, when such use is made with the approval of the buyer, but does not include a person who obtains goods for re-sale or any commercial purpose (b) It includes any beneficiary of services when such services are availed of with the approval of the person concerned, but does not include a person who avails of such services for any commercial purpose. Who can file a complaint? A complaint before the appropriate consumer forum can be made by: Any consumer; Any registered consumers’ association; The Central Government or any State Government; One or more consumers, on behalf of numerous consumers having the same interest; and (v)_ Alegal heir or representative of a deceased consumer.achieve consumer awareness, 3 paprennised| Consumers ‘onsumers need to ge : eres ora isations Coa Ge themselves into powerful 3. Widespread exploitation of Cons promote their own interests. With growing competition and desire to eam quick engage in exploitative and unfair trad ica ee ae The consumers needs protection i Era y practices adopted by sellers, against exploitive and unfair trade From Business Point of View 1, Long term interest of business Q Business firms should aim at long term profit maximisation through customer satisfaction. Satisfied customers not only lead to repeat sales but also provide good feedback to prospective customers. 2. Business Uses Society’s resources O Business organisation use resources which belong to the society. © thus they have a responsibility to supply products and render such services which are in public interest and would not impair public confidence in them. 3.Social Responsibility 1 Business organisation make money by selling goods and providing services to consumers. Thus consumers form an important group among the many other stakeholders, their interest has to be taken care of. 4. Moral Justification O It is the moral duty of any business to t and avoid any form of their exploitation ‘ake care of consumer's interestO Thus a business must avoid unscrupulous, exploitative and unfair trade practices like defective and unsafe products, adulteration, false and misleading advertising etc. ‘ a 5. Government Intervention © A business engaging in any form of exploitative trade practices Would invite government intervention or action a Thus it is advisable that business organisations voluntarily resort to such Beare where the customers need and interests will well be taken care of. Role of Consum nisations and NG! 1. Educating the general Public about consumer rights by organising training programmes, seminars and workshops 2. Publishing periodicals and other publications to impart knowledge about consumer problems, legal reporting, reliefs available and other matters of interest 3. Carrying out comparative testing of consumer products in accredited laboratories to test relative qualities of competitive brands and publishing the test results for the benefit of consumers 4. Encouraging consumers to strongly protest and take an action against unscrupulous, exploitative and unfair trade practices of sellers 5. Providing legal assistance to consumers by way of providing aid, legal advice etc. in seeking legal remedy 6. Filing complaints in appropriate consumer courts on behalf of the consumers 7. Taking an initiative in filing cases the general public, not for any individual. in consumer courts in the interest of