Consumer Protection Consumerism

Consumerism

A social movement seeking to augment the rights and powers of the buyer in relation to seller. The dedication of those activities of both public and private organizations which are designed to protect individuals from practices that impinge upon their rights as consumers.

Exploitation of consumers in Indian context

Prevailing conditions triggering exploitation Demand supply imbalances Lack of effective or workable competition Unfamiliarity of the consumer with product features Low literacy rates Unsatisfactory information flows Deficiency in legal system Less dedication of PSUs

Exploitation
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2. 3. 4.

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6. 7. 8.

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10. 11. 12.

13.
14. 15.

High/Unreasonable prices Deceptive selling practices False and misleading advertisements Sale of hazardous products to ignorant customers Suppression of material information Reduction in quality for the same or even higher prices False product differentiation Unhonoured warranties and guarantees Poor redressal of consumers genuine complaints Making consumers buy goods they dont need Tie in sales supply of substandard products Offering gifts having no value Sellers collision to lessen competition Hoarding and Black marketing

Consumer Protection

Consumer protection refers to the steps necessary to be taken or measures required to be accepted to protect customers from business malpractices. Practical response of three parties is essential
Business Consumers Government

Role of business

Ensure quality at affordable prices Honest and responsible for business practices Dealing with consumer complaints promptly and reasonably. Invest in testing the safety of the product Invest in R& D for consumer utility maximization.

Role of consumers

Substantiate the complaint Give chance to seller Cooperate with the seller if needed Avoid inconvenience to others Dont personalize issues Be well informed and rational Buy from authorized agents. Avoid impulsive buying Dont allow others to use you.

Role of Government
Adopting necessary measures to protect consumer interests by guaranteeing their legitimate rights through Development of Public sector Statutory regulation of business

Statutory regulation of businesses

Aims to control the production, supply/ distribution, price and quality of goods or services. Competition Act, 2002 Industries (Development and Regulation) Act, 1951 Prevention of Food Adulteration Act, 1954 Essential Commodities Act, 1955 The standards of Weights and Measures Act, 1956 Prevention of Black Marketing and Maintenance of essential Supplies Act, 1980. Bureau of Indian Standards Act, 1986 Consumer Protection Act, 1986.

The Consumer Protection Act, 1986

Enacted to provide for the better protection of the interest of consumer. This act was enacted to better protect the interests of consumers and to safeguard their rights. Act applies to whole of India except Jammu and Kashmir The act was amended in 2002 and the amendments came into force w.e.f. 15th March 2003.

Rights of the Consumers

Right to Safety: right to be protected against the marketing

of goods and services which are hazardous or unsafe to life and property. Right to be Informed: Consumers have right to be informed about the quality, quantity, potency, purity, standard and price of goods. Right to Choose: The consumers have right to be assured wherever possible of access to variety of goods and services at competitive price. Right to be heard: consumer's interests will receive due consideration at appropriate forums. Right to seek redressal: right to seek redressal against unfair trade practices or unscrupulous exploitation of consumers. Right to Consumer Education: the right to acquire the knowledge and skill to be an informed consumer throughout life.

A CONSUMER

Any person who buys goods or avails services for consideration Consideration may be fully paid, partially paid or fully promised to be paid or partially promised to be paid Any body who uses the goods or services with the consent of the consumer

The objects of the Act are sought to be promoted and protected by the Consumer Protection Councils established at the central and state level. To provide speedy and simple redressal to consumers' disputes, 3-tier Quasi-judicial machinery popularly known as the consumer courts has been set up at district, state and national level. These are empowered to give relief and awards to compensate consumers wherever appropriate.

CONSUMER DISPUTE REDRESSAL AGENCIES

National Commission

State Commission

District Forum

JURISDICTION
Forum / Commission District Forum State Commission National Commission the value of the goods or services and the compensation, if any claimed, Does not exceed Rs. 20 lakhs Rs. 20 lakhs and above but not exceeding One Crore Above One Crore

Besides, State and National Commission have appellate jurisdiction also.

FILING OF COMPLAINTS
a)
b) c) d) A complaint may be filed by The consumer to whom the goods are sold or services are provided Any recognised consumer association One or more consumers with same interest The central government or state government

Complaints can be made regarding unfair trade practices, defective goods or deficient services, hazardous goods and charging higher than stipulated prices etc.

Remedial Action
IF THE COMPLAINT IS PROVED THE FORUM SHALL ORDER

a) b) c) d)

e)

to remove defect pointed out by the appropriate laboratory from the goods in question; to replace the goods with new goods of similar description which shall be free from any defect; to return to the complainant the price, or , as the case may be, the charges paid by the complainant; to pay such amount as may be awarded by it as compensation to the consumer for any loss or injury suffered by the consumer due to negligence of the opposite party; To remove the defect or deficiency in the services in question.

To discontinue the unfair/ restrictive trade practice or not to repeat them Not to offer the hazardous goods for sale To withdraw the hazardous goods from being offered for sale To provide for adequate cost to parties.

Role of Consumer Groups

These are voluntary organizations protecting consumer rights through Monitoring adverse business practices Consumer Education Product rating Formulate codes of marketing and other business practices. Liaison with Government and Producers. Promote growth of strong consumer movement.