m Consumer & Consumer Protection

m Parties to Consumer Protection

m History & Growth of Consumer Protection
m Consumer Protection : Why and how
m Consumer Duties & Responsibilities
m Consumer Protection : Indian Scenario
m How are Indian consumers exploited
m Legal protection to consumers
Consumer Protection Act
m Institutional Arrangements under COPRA
m Consumer Protection (Amendment) Act 2002
m Roles and Initiatives of Voluntary Organization
m A Consumer is any person who, a firm, Hindu undivided
family(HUF), cooperative, or association which :
½ Ôuys and any goods for a consideration which has been fully or
partly paid for, with a purpose that does not include resale or any
commercial purpose.
½ Hires or avails of any services for a consideration which has been
fully or partly paid for, with a purpose that does not include free
service or services under a personal contract.

Consumer Protection refers to the steps necessary to

be taken or measures required to be accepted to
protect consumers from business malpractices.
m Role of Consumers who should take care of their own
interest & protect themselves from market malpractices
m Role of Ôusinesspersons Producers, distributors ,
dealers , wholesalers & retailers should pay due
attention to consumer rights in their own interest
m Role of Government whose responsibility is to ensure
the general interest of society . Representations of
consumer groups should be associated with policy-
making bodies set up by governments at the centre &
the states.
m Genesis & growth of consumer movement can be traced
to consumer-related awareness in the US in first half of
20th century
m Ralph Nader¶s contribution to consumer protection-
´consumer advocate´
m Ôefore 1965,car safety standards very low
m Ôased on Ralph¶s book , the US Congress passed the
Traffic & Motor Vehicle Safety Act of 1966
m The quality of life for Americans improved in environment
, healthcare , insurance , etc.
m Consumers should assert their rights
m Right to safety
m Right to be informed
m Right to choose
m Right to be heard
m Right to seek redressal
m Right to consumer education
m UN report(1988)stresses consumer rights must be defended
through
m Strict standards for consumer safety & health
m Product labeling about the content& proper use of products & their
environmental & social impact
m Information & awareness campaigns about potential hazard, such as
smoking & improper use of feeding formula for infants
m Substantiate the complaint.
m Listen to the seller.
m Cooperate with the seller if needed.
m Avoid inconvenience to others.
m Do not personalize issues.
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m Not lend self to others.
m Ôe well informed.
m Understand the grievance redressal process.
m Avoid impulsive buying.
m Ôuy goods from authorized agents.
m Spate of consumer-related legislations
m MRTP Act 1970
m Prevention of Food Adulteration Act 1954
m Essential Commodities Act 1955
m Prevention of Ôlack-marketing & Maintenance of Supplies of Essential
Commodities Act 1980
m Sale of Goods Act 1930
m Packaged Commodities Order , Price & Stock Display Order ,
Consumer Protection Act1986,etc.
m Multiplicity of laws for trade regulation & consumer protection
has caused confusion among consumers
m Weak implementation with unfair & exploitative practices in
the Indian market
Mismatch between disadvantaged consumers & better organized
suppliers
m Exorbitant prices of products and services.
m Deceptive selling practices.
m False and misleading advertisements.
m Defective quality, higher prices.
m Sale of hazardous products to ignorant consumers.
m Suppression of material information.
m False product differentiation.
m Producers/ sellers¶ collusion.
m Supply of adulterated and substandard products.
m Cheating consumer by giving lesser quantity for the price.
m Dishonored guarantees and warranties.
m Poor redressal of customers¶ genuine grievances.
m Creating a scare out of scarcity.
m Making consumer buy unwanted goods.
m Misleading representation on utility of products.
m Manipulating condition of delivery.
m Customers pay for numerous intermediaries.
m Fall in prices- Never passed to consumers.
m Ôuying unaffordable goods.
m Advertisement cost.
m Counterfeits constitute substantial quantity of goods in
store shelves.
m Hoarding and Ôlack-Marketing.
m Tie-In-Sales.
m Gifts for products/services.
m Agricultural Products (Grading and Marketing) Act 1937
m Industries (Development and Regulations)Act 1951
m Prevention of Food Adulteration Act 1954.
m Essential Commodities Act1955.
m The Standards of Weights and Measures Act 1956.
m Monopolies and Restrictive Trade Practices Act 1969.
m Prevention of Ôlack-marketing and Maintenance of Essential
Supplies Act 1980.
m Consumer Protection Act 1986.
m The Consumer Protection Act,1986(COPRA) conferred a legal
right to the individual consumer to seek legal redress or recover
costs & damages for injury or loss suffered by him as a result of
faulty , defective goods & services
m The ³six rights¶ of the consumer enunciated under Section6 of
the COPRA
m Eligibility to file a claim.
m Limitations.
m Major changes by the Amendment Act
m Compensation amounts hiked for District , State & National Commission
m Setting up of benches & increasing the number of members in the National
& State Commissions , etc.
m In case of absence of the incumbent president of the District
Forum, the selection commission or National commission, a
provision introduced in the Amendment Act empowers the
senior member to act as president of the respective bodies.
m Minimum qualifications have been prescribed for members of
all consumer court.
m Consumer Protection Council
½ Central Council
½ State Consumer Protection Council

m Three-Tier Consumer Dispute Redressal System

½ District Forums
½ State Consumer Dispute Redressal Commission
½ National Commission
½ Qualification of members, term of office, remuneration,
½ jurisdiction, procedure for filing complaints & setting disputes , powers
& appeals
m ÔIS develops need-based standards with a certification
mark scheme
m ÔIS certification mandatory for 131 items such as LPG
cylinders, steel products, food colours , etc. & 246
pesticides
m Standard of Weights and Measures.
 Consumer Associations or Councils.
 Consumer Cooperatives.
 Coordination at the National Level.
 Other Initiatives to Promote Consumer Protection
m National Awards
m Publicity Measures.
m Customer Service Department of RÔI.
³A consumer is the most important visitor on our
premises. He is not dependent on us, we are on
him. He is not an interruption to our work; he is the
purpose of it. We are not doing a favor to a
consumer by giving him an opportunity. He is
doing us a favor by giving us opportunity to serve
him´

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m An advertisement which is potentially misleading
or literally false is deceptive.
m Potentially misleading ads are difficult to evaluate
because miscomprehension may often occur.
(An advertisement issued by the Government of
India in public interest)

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m Inadequate awareness
m Ôurden on law and order machinery ± additional
load
m Delays in the judicial system
m Deficiency in existing laws
- Not cognizable
- Punishments are not enough
 The Act provides following remedies to an aggrieved
consumer:
m Removal of defects in goods or deficiency in service.
m Replacement of defective goods with new goods of similar
description which shall be free from any defect.
m Return of price paid by the consumer.
m Payment of compensation for any loss or injury suffered by
the consumer.
m Discontinue the restrictive, or unfair trade practice, and not
to repeat it.
m Withdraw the hazardous goods from being offered for sale
and not to offer them for sale.
m Provide for adequate cost to the aggrieved party.
National Commission
(for claims exceeding
Rs20 lakhs)

State commission
(for claims between Rs
5& 20 lakh )

District Forum
(claims upto Rs 5
lakhs)
m Invariably, consumers are a vulnerable lot for
exploitation, more so in a developing country with the
prevalence of mass poverty and illiteracy. India too is no
exception to it. Instances like overcharging, black
marketing, adulteration, lack of proper services in trains,
telecommunication, water supply, airlines, etc are not
uncommon here. From time to time, the government has
attempted to safeguard consumer's interests through
legislations and the CPA 1986 is considered as the most
progressive statute for consumer protection. Procedural
simplicity and speedy and inexpensive redressal of
consumer grievances as contained in the CPA are really
unique and have few parallels in the world.
m Implementation of the Act reveals that interests of
consumers are better protected than ever before.
However, consumer awareness through consumer
education and actions by the government,
consumer activists, and associations are needed
the most to make consumer protection movement
a success in the country.
m Make the forums more consumer friendly
m Initiate action against beauracrats and red ± tapism
m Regular product testing
m Free legal counseling
m Conduct workshops in schools, colleges, villages, offices, etc.
m Research on issues on consumer concerns
m Publish regular articles on current scenarios
m Strict norms for advertisements and their promises
m The brand ambassadors should be equally held liable if the
brand they promote fails to keep up with its claims
m Routine inspection of plant, storage, manufacturing, logistics and
distribution and upload of data for public usage
m MIS information upload for public usage