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319el24 PDF
319el24 PDF
Marketing
Notes
24
CONSUMER PROTECTION
W e buy a variety of goods and services in our day-to-day life. Whatever we buy we
pay for it and derive satisfaction from its consumption and use. But sometimes we
do not feel satisfied with the product we buy. This may be on account of poor quality of
the product, overcharging by the shopkeeper, lower quantity of contents, misleading
advertisement, and so on. Should we allow these practices to continue? Obviously not;
then is there any remedy for such malpractices? The answer lies in the concept and practice
of consumer protection, the rights and responsibilities of consumers, legal provisions and
mechanism for settlement of consumer grievances. In this lesson, let us know details about
all these points.
OBJECTIVES
After studying this lesson, you will be able to:
• state the meaning of consumer;
• explain the concept of consumer protection;
• outline the need for consumer protection;
• describe the rights and responsibilities of consumers;
• state the main provisions of Consumer Protection Act; and
• outline the machinery for settlement of consumer grievances.
(a) For the purpose of goods, a consumer means (i) one who buys
any goods for consideration; and (ii) any user of such goods
other than the person who actually buys it, provided such use is
made with the approval of the buyer.
(The expression ‘consumer’ does not include a person who
obtains such goods for resale or for any commercial purpose.)
(b) For the purpose of services, a consumer means (i) one who hires
any service or services for consideration; and (ii) any beneficiary
of such service(s) provided the service is availed with the
approval of such person.
(j) Supply of inferior services i.e., quality of service lower than the quality agreed upon.
The above instances show the exploitation of consumers in the context of goods and
services. In a democratic nation like India, should we allow this to happen? So the measures
Notes
adopted by the government or non-government organisations (NGOs) for safeguarding
the interests of the consumers constitute consumer protection.
Examples of Consumer Exploitation in India
• The after sales service provider of the television set charged Rs
200 as service charge though he repaired the set within the
warranty period.
• The tickets issued to different passengers on the same day for
the same journey showed the same seat number.
• Penalty of Rs. 50 was charged by SBI after issuing the cheque
book to the customer showing that the balance available in the
account was less than the minimum required balance for issue of
cheque book.
• The supply of cooking gas cylinder to the consumers is found to
be underweight.
level. These are known as District Forum, State Consumer Disputes Redressal
Commission (State Commission) and National Consumer Disputes Redressal
Commission (National Commission). Any individual consumer or association of
consumers can lodge a complaint with the District, State or National level forum, Notes
depending on the value goods and claim for compensation. The main objective of
these forums is to provide for a simple, speedy and inexpensive redressal of consumers’
grievances. The Act as amended in 2002 also provides for setting up of Consumer
Protection Council at district, state and national level for promotion and protection
of the rights of the consumers as laid down in Section 6 of the Act. The councils are
required to give wide publicity to the rights of consumers, the procedures for filling
complaints by them and provide inputs to consumer movement in the country.
(d) Awareness Programme
To increase the level of awareness among the consumers the Government of India 15 March: World
has initiated various publicity measures. It regularly brings out journals, brochures, Consumer Rights
booklets and various posters depicting the rights and responsibilities of consumers, Day
redressal machineries etc. It observes World Consumer Rights Day on 15 March
24 December:
and National Consumer Day on 24 December. Several video programmes on National Consumer
consumer awareness are broadcasted through different television channels. Similarly, Day
audio programmes are also broadcasted through All India Radio and FM channels.
The poster and slogan competition on consumer protection are also organised at
various level. To encourage the participation of public in the field of consumer
protection the Government has also instituted National Awards to the persons who
have done outstanding work in this field.
(e) Consumer Organisations
Consumer organisations have been active all over the world to promote and protect
consumer interests. A number of such organisations have also been set up in recent
years in different parts of India. It is felt that neither it is possible to discipline all
members of the business community through moral sanctions and a code of fair business
practices nor can administrate orders and legislative provisions to ensure consumer
protection without the active involvement of consumer associations. Now with an
increasing number of consumer organisations involved in consumer protection, the
consumer movement is getting a foothold in India and helping individuals to seek
quick and adequate redressal of their grievances. Look at the box for some of such
consumer organisations.
Consumer Organisations
Some of the important Consumer Organisations that have been playing an
active role in taking up consumer cause are:
§ CERC (Consumer Education and Research Centre), Ahmedabad
§ VOICE (Voluntary Organisation in the Interest of Consumer
Education), New Delhi
(d) price charged in excess of the price (i) fixed by or under the law for the time being in
force, (ii) displayed on the goods or the package, (iii) displayed in the price list, or
(iv) agreed between the parties; and
(e) goods or services which are hazardous or likely to be hazardous to life and safety Notes
when used.
(c) Appeal: If a consumer is not satisfied by the decision of the District forum, he can
challenge the same before the State Commission, within 30 days of the order.
2. State Commission
Notes
This is established by the state governments in their respective states.
(a) Composition: The State Commission consists of a President and not less then two
and not more than such number of members as may be prescribed, one of whom
shall be a women. The Commission is headed by a person of the level of High Court
judge.
(b) Jurisdiction: A written complaint can be filed before the State Commission where the
value of goods or services and the compensation claimed exceeds Rs. 20 lakh but
does not exceed Rs. One crore.
(c) Appeal: In case the aggrieved party is not satisfied with the order of the State
Commission he can appeal to the National Commission within 30 days of passing of
the order.
3. National Commission
The National commission was constituted in 1988 by the central government. It is the
apex body in the three tier judicial machinery set up by the government for redressal of
consumer grievances. Its office is situated at Janpath Bhawan (Old Indian Oil Bhawan), A
Wing, 5th Floor, Janpath, New Delhi.
(a) Composition: It consists of a President and not less than four and not more than such
members as may be prescribed, one of whom shall be a woman. The National
Commission is headed by a sitting or retired judge of the Supreme Court.
(b) Jurisdiction: All complaints pertaining to those goods or services and compensation
whose value is more than Rs. one crore can be filed directly before the National
Commission.
(c) Appeal: An appeal can be filed against the order of the National Commission to the
Supreme Court within 30 days from the date of order passed.
It may be noted that in order to attain the objects of the Consumers Protection Act, the
National Commission has also been conferred with the powers of administrative control
over all the State Commissions by calling for periodical returns regarding the institution,
disposal and pending of cases and issuing instructions for adoption of uniform procedures,
etc.
24 B
1. (a) the relevant laws which are aimed at preventing unfair trade practices
(b) the ways and means which dishonest traders and producers may adopt to deceive
Notes
the consumers,
(c) the procedure to be followed by consumers while making complaints.
2. (a) Right to safety
(b) Right to be informed
(c) Right to be heard
(d) Right to choose
(e) Right to consumer education
24 C
2. (a) Lok Adalat
(b) Awareness Programme
(c) Redressal Forums
(d) Public Interest Litigation
(e) Public Interest Litigation
24 D
2. (a) Yes (b) Yes (c) No (d) Yes (e) No
24 E
1. (a) High Court Judge
(b) District Judge
(c) Supreme Court Judge
2. (a) National Commission (b) National Commission
(c) State Commission (d) District Forum
(e) State Commission
DO AND LEARN
Find out from persons in your family and of your locality about the products that they have
bought and are using, like groceries, clothing and durable goods like Radio, T.V., Cycle,
Scooter etc.
Make a list of about 10 such products and also note down against each item, after asking
these people, the problems that they face in using these products (safety hazard, poor
quality, not durable, etc.)
Identify which of their rights as consumers are violated as a result of each of these problems.
Also, mention how these problems could have been avoided through responsible consumer
behaviour by these people?
ROLE PLAY
Two friends, Gopal and Jaggu had gone to the market to buy the medicine for the ailing
Notes mother of Gopal. Jaggu is student of Business Studies, while Gopal is working as a computer
operator. Read the conversation between them as given below:
Gopal : Jaggu, please come immediately to my house.
Jaggu : Why? What happened! What is the urgency?
Gopal : My mother is not well.
Jaggu : Don’t worry, I am coming right now. In the mean time call the doctor.
Gopal : Yes, I will do that.
The doctor pays a visit and prescribes certain medicine.
Jaggu : What did the doctor say?
Gopal : He says it is typhoid and gave the prescription for medicines.
Jaggu : Okay, let us go and get the medicine.
Gopal : (to the shopkeeper) Sir, please give me all the medicine written here.
Shopkeeper : Here is medicine, do you want the cash memo.
Gopal : No, I don’t want the cash memo. I know you very well!
Jaggu : No don’t do that. It is important to collect the cash memo even if you
know him well.
Gopal : But why?
Jaggu explained to Gopal about the importance of Cash memo and other responsibilities
of a consumer. Put yourself in place of Jaggu and your friend in place of Gopal and continue
the conversation.
Chapter at a Glance