Consumer Protection

Consumer protection encompasses entire range of activities by the Government, Consumers, NGOs and other
parts of society to safeguard the rights of consumers.

Importance of Consumer Protection

1. FROM THE POINT OF VIEW OF CONSUMERS

o Consumers are ignorant about their rights and duties. So they should be educated in order to
remove their ignorance and lack of knowledge.
o Consumers are unorganised as generally they do not have the necessary qualities to fight in an
organised manner against frauds and malpractices.
o Consumers are widely exploited by dishonest companies and business firms. They become
victims of unfair trade practices, hoarding, black marketing, etc.
2. FROM THE POINT OF VIEW OF BUSINESS
o Long-term Interest of Business. If business takes care of long-term interests of consumers then it
grows.
o Moral Justification. Adoption of good business ethics can be logically supported. These business
ethics promote the welfare of consumers and in turn help business.
o Government intervention. In order to avoid legal intervention in present and future, business
firms adopt good practices for consumers.
o Business uses society’s resources. As business uses resources that belong to the society as inputs
to produce goods as output, it should fulfill its responsibilities towards consumers.
o Social responsibility. Business should take care of consumers as they are also important

Consumer Protection Act. 2019

According to the Act, a consumer is a person who buys goods/services with the approval of the seller for
personal use (not for business motive). He buys these goods/services after paying the required amount of money
(consideration).
Consumer Rights
Rights of Consumers:-
The Consumer Protection Act provides six rights to consumers. They are as follows:
1) Right to safety:-The consumer has a right to be protected against marketing of goods and services which are
hazardous to life and property, e.g., sometimes the manufacturing defects in pressure cookers, gas cylinders and
other electrical appliances may cause loss to life, health and property of customers.
2) Right to be Informed:-According to this right the consumer has the right to get information about the its
ingredients, date of manufacture, quality, quantity, purity, standard and price of goods or services so as to
protect himself against the abusive and unfair practices.
3) Right to Choose:-The consumer has the freedom to choose from a variety of products. The marketers should
offer a wide variety of product and allow the consumer to make a choice and choose the product which is most
suitable for him/her.
4) Right to be Heard:- The consumer has a right to file a complaint and to be heard in case of dissatisfaction
with a good or a service. It is because of this reason that many enlightened business firms have set up their own
consumer service and grievance cells.
5) Right to Seek Redressal:-The Consumer Protection Act provides a number of reliefs to the consumer
including replacement of the product, removal of defect in the product, compensation paid for any loss or injury
suffered by the consumer etc.
6) Right to Consumer Education:-The consumer has a right to acquire knowledge about products. He should
be aware about his rights and the reliefs available to him in case of a product/service falling short of his
expectations. Many consumer organisations and some enlightened businesses are taking an active part in
educating consumers in this respect.
Responsibility of consumers:-
a) Consumer must exercise his Rights.
b) Insist for Cash Memo on purchase of goods and services. This would serve as a proof purchase made.
c) Filing Complaints for the Redressal of Genuine Grievances.
d) Consumer must be Quality-Conscious.
e) Respect the environment. Avoid waste, littering and contributing to pollution
f) Do not carried Away by Advertisement.
g) Discourage black marketing, hoarding and choose only legal gods and services.
h) Form consumer societies which could play an active part in educating consumers and safeguarding their
interest.

Relief available to Consumers under the Consumer Protection Act. 1986

The manufacturer must –
1. Remove the defects in a good.
2. Replace the defective good with proper goods.
3. Refund the consumers
4. Stop production of hazardous goods.
5. Not offer hazardous goods.
6. Withdraw hazardous goods from sale.
7. Pay compensation and damage.
8. Make correction in the misleading advertisements.
9. Make payment to Consumer Welfare Fund (CWF) (not less than 5%) of the price of the good.

Three-tier Redressal Machinery

District Forum State Commission National Commission

President and four other President and at least four

President and two members members (Atleast one members (Atleast one should

1. Composition (At least one should be a should be a woman). One be a woman). One member

woman). member should be the judge should be the judge of

of high court Supreme court

2. Appointed by State Government State Government Central Government

3. Value of goods and Should not exceed 1 cr Exceeds Rs.1cr lakhs but Exceeds Rs.10 crore.

services
 not Rs.10 crore.

If not satisfied with the

National Commission one

If not satisfied with District If not satisfied with the
can appeal to Supreme
4. Where to Appeal if not Forum, one can appeal to State Commission one can
Court. Only those cases will
satisfied? the State Commission appeal to the National
go to Supreme Court whose
within 45 days. Commission within 30 days.
value is more than Rs.10

crore, otherwise not.

Role of Consumer Organisations

1. Educating the consumers about their rights, reliefs and responsibilities.
2. Helping in protesting and taking other actions if consumers are exploited.
3. Publishing journals and magazines for creating awareness about consumer rights and other aspects
connected with consumer protection.
4. Filing legal suites and providing legal assistance, whenever required.
5. Organising seminars and workshops for creating consumer awareness.