Consumer protection

Consumer Protection

Learning Objectives

After completing the study of this chapter, students should understand the following:

• 15.1 Need for Consumer Protection

• 15.2 Rights of Consumers

• 15.3 Consumer Responsibilities

• 15.4 Methods of Consumer Protection

• 15.5 Consumer Protection Act, 1986

• 15.6 Consumer Protection Act, 2019

• 15.7 Role of Consumer Organisations and NGOs

The modern marketing concept treats the consumer as paramount, emphasizing that businesses must strive for consumer satisfaction. However, consumers often face exploitation due to ignorance, lack of unity, misleading advertisements, and low-quality products. Unscrupulous businesses may engage in practices such as adulteration and overcharging, leading to a breach of consumers' basic rights.

15.1 Need for Consumer Protection

Consumer protection is essential for several reasons:

1. Consumer-Centric Business: Business fundamentally exists to serve consumers, necessitating that products are offered in the right quality, quantity, and at fair prices to ensure satisfaction and loyalty.

2. Human Welfare: Businesses support human welfare and should aim to serve consumers effectively to sustain growth and existence.

3. Multiple Objectives: Business goals extend beyond profit-making; they must also serve society's interests, particularly those of consumers.

4. Social Justice: The aim of growth with social justice aligns with India's constitutional directives, promoting consumer rights as a priority.

5. Stakeholder Responsibilities: Businesses have a duty to protect the interests of all stakeholders, including consumers, employees, public, and government.

6. Power and Responsibility: Businesses hold significant societal influence and must wield their power ethically, ensuring that consumer interests are prioritized.

7. Theory of Trusteeship: Following Mahatma Gandhi's philosophy, businesses should act as trustees of society's wealth, where consumer interests take precedence.

8. Business Ethics: Ethical values are crucial for business sustainability; businesses neglecting ethical standards risk losing consumer trust.

9. Self-Interest: Competitive pressures and governmental regulations necessitate businesses to prioritize consumer quality and service to maintain market presence.

15.2 Rights of Consumers

The Consumer Protection Act outlines specific rights for consumers:

1. Right to Safety: Protection against hazardous goods and services. Consumers should expect products not to pose health risks or safety issues (e.g., properly sealed gas cylinders).

2. Right to be Informed: Ensures consumers are adequately informed about products, allowing them to make educated choices. This includes detailed information about product quality, price, and potential risks.

3. Right to Choose: Consumers should have access to diverse products without pressure from sellers, enabling free competition.

4. Right to be Heard: Consumers have the right to express their grievances and be assured that complaints will be taken seriously by relevant authorities.

5. Right to Seek Redressal: Entitles consumers to remedies for unfair trade practices, assurance of product replacement, repair, or compensation for defective products.

6. Right to Consumer Education: Consumers must understand their rights and remedies available to guard against exploitation.

7. Right to a Healthy Environment: Consumers are entitled to protection from environmental pollution that affects their quality of life.

Consumer Rights at a Glance

• Safety: Protection from hazardous products.

• Information: Knowledge about product quality & price.

• Choice: Access to varied products.

• Heard: Representation in grievance forums.

• Redressal: Remedy against exploitation.

• Education: Awareness of consumer rights.

• Healthy Environment: Right to a pollution-free environment.

15.3 Consumer Responsibilities

Consumer protection is a shared duty, requiring consumers to take responsibility as well:

1. Exercise Rights: Be aware and actively use one’s consumer rights during purchases.

2. Demand Information: Request complete product details before buying, ensuring informed decision-making.

3. Quality Consciousness: Seek certification marks to assure product quality (e.g., ISI, Agmark).

4. Request Cash Memo: Obtain proof of purchase to facilitate potential refunds or repairs.

5. Evaluate Advertisements: Critically assess ads instead of trusting them blindly.

6. File Complaints: Report exploitation by businesses to encourage transparency and good practices.

15.4 Methods of Consumer Protection

1. Self-Regulation: Businesses can protect consumer rights by adopting ethical conduct and establishing codes of conduct.

2. Consumer Awareness: Being informed and proactive against exploitation helps protect consumer rights.

3. Consumer Associations: These organizations unite consumers for advocacy and education.

4. Government Control: Legislative measures, public campaigns, and awareness programs promote consumer protection efforts.

15.5 Consumer Protection Act, 1986

This Act aims to protect consumer rights and provides mechanisms for redressal through:

• District Forum: Handles complaints within a certain monetary limit, ensuring quick resolutions.

• State Commission: Addresses appeals from District Forums and manages higher-value complaints.

• National Commission: The highest body for consumer grievances, dealing with significant claims and operating on a national level.

15.6 Consumer Protection Act, 2019

This updated Act broadens the scope of consumer protection, addressing issues like e-commerce, product liability and enhancing redressal mechanisms. Key features include:

• Greater emphasis on consumer education and more stringent penalties for violations.

• Streamlined complaint handling processes and the introduction of alternative dispute resolution mechanisms.

15.7 Role of Consumer Organisations and NGOs

Consumer organizations and NGOs play a crucial role in consumer education, advocacy, and legal assistance, thereby enhancing consumer protection efforts. They can:

• Organize campaigns and workshops to educate consumers.

• Conduct product testing and share findings with the public.

• Provide legal assistance and act on behalf of consumers in complaints.