Consumer Protection

Consumer Protection:

Introduction: In modern marketing, consumer is considered as the king and success of business depends upon the satisfaction of consumer. But in reality, the consumers are exploited and cheated by producers due to the following facts:

·         Producers are organised and have huge resources at their disposal. They intend to earn maximum profit in the shortest possible ways.

·         Consumers are ignorant, illiterate or semi literate and lack unity among them.

·         Consumers can be exploited in many ways like misleading advertisement, unsafe products, underweighing, overcharging, fake discounts, hoarding, black marketing, creating monopolies, restricting output, spreading false rumours, etc

Hence, consumers should be protected from such illegal trade practices of producers and traders.

Need for consumer protection:

Consumers need to be protected on account of the following reasons:

1.      Consumer is the purpose of business: Success and survival of business depends upon the satisfaction and faith of the consumer in the products and services provided by business. Hence business must provide quality goods at reasonable price.

2.      Growth with social justice: We are a secular country and growth with social justice is the cornerstone of our economic philosophy. Exploitation of consumers is against the directive principles of State Policy laid down in our Indian Constitution.

3.      Multiple objectives:  Business works for all stakeholders – consumers, shareholders, employees, government, and the public. Therefore it cannot just make profit by ignoring the interest of the all of these stakeholders. For the survival and growth of business it must work for the interest of the stakeholders in general and consumers in particular.

4.      Self interest:

·         Due to liberalization and globalization, firms have to compete with multinationals. Unless they become customer oriented and provide right quality, quantity and price they cannot satisfy a customer and without customer satisfaction no business can survive for long and will be out beaten by competition from multinationals.

·         Moreover, Government has enacted laws to protect the interest of the consumers. Hence if a firm violates the laws they are likely to lose their goodwill and clients permanently.

5.      Ethical obligations:  Firms that adapt ethical values, attain good reputation in the business world. Business without ethical values is nothing but a criminal activity and no civil society will tolerate a business without ethical values for long.

6.      Power Centre: Business has considerable influence over the society and Government. It creates and change the food habits, fashion and life styles of people. Therefore, it must show responsibility to use its power in such a way that the interest of the society and the consumers are not damaged.

Rights of Consumers : learn from book

Explain any six ways and means of consumer protection followed in India –

The following are some of the ways and means of consumer protection followed in India:

1.      Lok Adalats: 

·         The Consumer can approach the Adalat with his grievance. The issue is discussed and decision is taken on the spot. This saves time and money

·         Lok Adalat has become a speedy, effective and economical redressal system.

·         Indian Railways, Delhi Transport Corp, Delhi Development Authority, Delhi Vidhyut Board, etc hold Lok Adalat from time to time to sort out problems faced by users.

2.      Publicity Measures: 

·         the Government uses various channels like Radio, Doordarshan to spread awareness through short messages, films and doucmentaries.

·         15th March is celebrated as World Consumer Right Day all over the world ever year.

·         In 1995 this day was organized at Vigyan Bhawan, New Delhi.

·         In addition, the Ministry with the help of DAVP undertook a massive outdoor publicity program such as displaying hoardings, banners, bus panels, etc.

3.      Public Interest Litigation: (Under what circumstances can a public interest litigation be filed?

The Indian legal system does not provide legal services to large segments of the population such as the poor, environmentalists, consumers, minorities, etc. Thus the Public Interest Litigation legally represents such groups with the result that any individual or organization can approach the court for remedial action for effective implementation of the law, environmental protection or any other social evils like bonded labour, etc.

4.      Environmentally Friendly Products:

·         The Ministry of Environment and Forests has introduced an “Eco-Mark” scheme. It is a label that has a symbol of an earthen pitcher. If this label appears on a product, it means that the manufacturer has satisfied the conditions laid down regarding the production processes and used environmental friendly materials.

·         This scheme has been started with consumer items like soap, detergents, paints, food items, edible oil, etc.

·         This scheme is consumer oriented so that people manufacture, use and dispose off products which are least harmful to the environment.

5.      Redressal Forums & Consumer Protection Councils:

Under the Consumer Protection Act 1986 a judicial machinery such as the District Forums, State and National Commissions have been set up to provide speedy, effective and economical redressal of consumer grievances and disputes.

6.      National Youth Award on consumer protection:

To encourage consumers and youths to participate in the field of consumer protection, every year the Union Ministry gives two national awards – National Award on Consumer Protection and National Youth Award on Consumer Protection. The Ministry also gives a National Woman Award to involve women in outstanding work in the field of consumer protection.

7.      Consumer Welfare Fund :

The Revenue Department of the Union Ministry of Finance has passed the Central excise and Customs laws (Amendment) Act 1991. According to this Act, a consumer welfare fund is created and the excess amount of excise/custom duties which is not refundable to manufacturers or importers is credited into this fund and used for:

·Promoting the welfare of the consumers.

·Community based rural awareness projects

·Setting up a consumer guidance bureau to handle complaints, counseling and guidance

Setting up consumer product testing laboratories

The following topics are also required to learnt:

1.      Consumer Protection Act, 1986 – Meaning and remedies available under the Act

2.      Salient Features of the Consumer Protection Act

3.      Who is a Consumer?

4.      Who is not a Consumer?

5.      Who can file a complaint?

6.      Provision of Redressal Procedure Under the Consumer Protection Act:

You may learn the following three level of consumer protection from the book from the book, however, just for the sake of convenience, the following is the comparative statement

	District forum	State Commission	National Commission
Set up by	Established by the State Government	Set up by the State Government	Set up by the central Government
Constitution	Consists of one chairman and two members appointed by the State Government	Consists of One President, who is or has been the judge of the High Court and two members, appointed by the state Govt.	Consist of a President, who is currently the judge of supreme court and four other members appointed by the Central govt.
Value of Complaints	Can receive complaints where the value of goods and services or the amount of compensation claimed is less than Rs. 20 lakhs	>Can receive complaints where the value of goods and services or the amount of compensation claimed is more than Rs. 20 lakhs but less than 100 lakhs	>Can receive complaints where the value of goods and services or the amount of compensation claimed is more than 100 lakhs
Appeal		>The appeals against the order of any District Forms can also be filed before the state commission	>The appeals against the order of any of the state commission can also be filed before the National commission.
Who can file complaint	The consumer himself or any recognised consumer association.	The consumer himself or any recognised consumer association.	The consumer himself or any recognised consumer association.
Procedure for redressal	On receiving the complaint, the District Forum shall refer the complaint to the opposite party- seller, producer or the any organisation. The sample of goods are sent for testing in laboratory.	On receiving the complaint, or the appeal , the State Commission shall refer the complaint to the opposite party- seller, producer or the any organisation. The sample of goods are sent for testing in laboratory.	On receiving the complaint, or the appeal , the State Commission shall refer the complaint to the opposite party- seller, producer or the any organisation. The sample of goods are sent for testing in laboratory.
Action	The District Forum after being satisfied that the goods are defective or there is some unfair trade practice, can issue an order to the opposite party directing him to either resolve the defect or replace the goods, or return the price paid or pay compensation to the consumer for loss or injury etc.	The State Commission after being satisfied that the goods are defective or there is some unfair trade practice, can issue an order to the opposite party directing him to either resolve the defect or replace the goods, or return the price paid or pay compensation to the consumer for loss or injury etc.	The National Commission after being satisfied that the goods are defective or there is some unfair trade practice, can issue an order to the opposite party directing him to either resolve the defect or replace the goods, or return the price paid or pay compensation to the consumer for loss or injury etc.