CONSUMER PROTECTION

SUNIL PANDA COMMERCE CLASSES

PART 1
XII BUSINESS STUDIES
TERM 2

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Consumer protection refers to protecting the interest of
consumer

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 ( Importance ) from consumer point of view

• Consumer ignorance

• Unorganised consumer

• Widespread exploitation of consumers

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 (Importance ) from business point of view

• Long term interest of business

• Businessman use society resources
• Social responsibility
• Moral/ Ethical justification
• Government intervention
• Consumer is purpose of business

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 Legal Protection to consumer (By govt. of India)
The consumer protection Act 1986 (COPRA):- This was the most
important step taken by a govt. to protect the interest of consumer. The
provision of act came into force 1 July 1987.
The main features of this act are:-
i) This act provides various Right and Responsibilities to consumer
ii) It provides safeguard to customer against defective goods, deficient,
service, unfair trade practice, etc.
iii) The act has provided three tier redressal agencies where customer
can file complaints. (i) District forum, (ii) State commission, (iii)
National Commission
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 According to consumer protection Act “A Consumer is”
• One who buys goods or hires service for some value

• Any user of such goods or beneficiary of services with

approval of the buyer

• Anyone who uses the goods bought or services hired for

earning livelihood by self employment

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 The following are not considered as consumer
a) The person who obtains goods for resale

b) The person who uses the goods without the approval of the buyer

c) The person who avails of the services without the approval of the
hirer

d) Who obtains goods without any considerations

e) Who hires any services without any considerations

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 Consumer rights
a) Right to safety

b) Right to choice

c) Right to information

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d) Right to be heard or Right to Representation

e) Right to seek redressal

f) Right to consumer education

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 Consumer Responsibilities

a) Consumer must exercise his right

b) Cautious consumer

c) Filing complaints for the Redressal of Genuine Grievances

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d) Consumer must be quality conscious

e) Do not be Carried away by Advertisement

f) Insists on Cash memo

g) Respect the Environment

h) Discourage Black Marketing and choose only legal Goods
and services.

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Thank You
SPCC

Sunil Panda Commerce Classes

CONSUMER PROTECTION
PART 2
XII BUSINESS STUDIES
TERM 2

Sunil Panda Commerce Classes

Sunil Panda Commerce Classes
 District forum
District forum consists of a president and two other members.
The president can be a retired or working judge of district
court. They are appointed by state govt. the complaints for
goods or services worth 20 Lakh or less can be filed in this
agency.
The agency send the goods for testing in laboratory gives
decision accordingly. If the aggrieved party is not satisfied by
the jurisdiction. He can file appeal against the judgement in
state commission within 30 days.

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 State Commission
It consists of a president and two other members. The
president must be a retired or working judge of high court.
They all are appointed by state govt. the complaints for the
goods worth more than 20 lakh and less than 1 crore can be
filed in state commission agency send goods for testing in
laboratory & give decision. In case the aggrieved party is not
satisfied with the judgement then they can file an appeal in
national commission with in 30 days.

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 National Commission
It consist a president and four members one of whom shall be
a woman. They are appointed by central govt. the complaint
can be a woman. They are appointed by central govt. the
complaint can be filed in National Commission if the value of
goods exceed 1,00,00,000 on receiving the complaint the
national commission agency sends the goods for testing if
required & give judgement. If aggrieved party is not satisfied
with the judgement then they can file a complaint in supreme
court with in 30 days.

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These are the following Remedies are available to consumer
on complaints filed by him
a) Refund of the price paid.

b) Compensation of loss or injury suffered.

c) Withdrawal of hazardous goods from market.

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d) Payment of adequate cost to grieved party.

e) Alternation of misleading Advertisement.

f) Discontinuance of unfair trade practices.

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 Marks indicating Quality in different products

a) ISI on consumer durable products electronic items

b) AGMARK on agricultural commodities and live stock product

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c) BIS mark (hall mark) on gold jewellery

d) Wool mark it signifies 100% pure wool

e) ECO mark for environmental friendly product

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These area the list of some consumer Organisations
and NGOs.
• Consumer coordination council, Delhi
• Voluntary organization in interest of consumer education
(VOICE)
• Consumer Association (Kolkata)
• Consumer guidance society in India
• Mumbai Grahak Panchayat

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 Role of Consumer organisations and NGO

• Educating the villager/general public about consumer rights

by organizing training Programmes, seminars and workshops
• Public periodicals and other publications to import
knowledge about consumer problems, relief available and
other matters of interest
• Carrying out comparative testing of consumer products in
accredited laboratories to test relative qualities of competing
brands and publishing the test result for the benefit of
consumer

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• Encouraging consumers to strongly protest and take an action
against exploitative and unfair trade practices of sellers
• Providing legal assistance to consumers by way of providing
aid, legal advice, etc. in seeking legal remedy
• Filling complaints in consumer courts on behalf of consumer
• Taking an initiative in filling cases in consumer courts in the
interest of the villager/general public, not for any individual
Motivating people to ask for quality makes such as ISI mark,
AGMARK, etc.

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Thank You
SPCC

Sunil Panda Commerce Classes