The document discusses India's Consumer Protection Act which was passed in 1986 to protect consumers from unfair trade practices. It aims to promote consumer welfare and empower consumers. The Act established consumer forums at the district, state and national levels to address consumer complaints. It defines who constitutes a consumer and outlines consumer rights such as the right to safety, information, choice and being heard. Government agencies and consumer organizations play a role in enforcing the act and advocating for consumers.
2. INTRODUCTION TO CONSUMER
PROTECTION
Protect consumers from exploitation and unfair
marketplace practices, to promote and advance the
social and economic welfare of consumers, to
empower consumers and to develop a culture of
consumer responsibility.
Consumer protection consists of laws and
organizations designed to ensure the rights of
consumers as well as fair trade competition and the
free flow of truthful information in the marketplace.
3. HOW THE ACT WAS
ENACTED
The act was passed in Lok Sabha
on9thDecember,1986
Rajya Sabha on 10th December, 1986
assented by the President of India on 24th
December, 1986 and
was published in the Gazette of India on 26th
December, 1986.
4. WHO IS THE “CONSUMER”?
Original definition limited to purchases for “personal
consumption”
A person who has indicated his or her willingness to obtain
goods and/or services from a supplier with the intention of
paying for them.
6. WHO IS RESPONSIBLE FOR
CONSUMER PROTECTION
Government agencies
Ministry of Commerce,
Investment and Consumer Affairs
Professional/Industry associations
Consumer organizations
7. Functions of a consumer protection
agency
Advise the government on consumer issues
Represent the consumer interest in other governmental committees
Enforce consumer protection and competition law
Conduct market surveys and research into consumer protection problems
Conduct product testing for safety and quality
8. ROLE OF CONSUMER
Consumers obtain optimum benefit from their
economic resources
Ensuring that goods meet production and performance
standards
Adequate distribution channels and after sales services
Fair business practices are employed
Protection against contractual abuses
Information is adequate for consumers to make
informed decisions and exercise choice
9. CONSUMER PROTECTION AND BASIC
NEEDS
Consumer education
The provision of utilities
Food
Health care delivery
Sustainable consumption
10. STANDARDS FOR SAFETY AND
QUALITY OF GOODS AND SERVICES
Ensure there are national standards for safety
and quality of goods and services
Such standards conform to international
standards
Facilities to test and certify goods and services
are encouraged
11. WHAT IS A COMPLAINT
“Complaint” means any allegation in
writing made my a compliant that :
I. An unfair trade practice or a restrictive trade practice has
been adopted by any trader or service provider;
II. The goods bought by him or agreed to be bought by him
suffer from one or more defects ;
III. The services hired or availed of or agreed to be hired or
availed off by him suffer from deficiency in any respect;
12. CONSUMER ORGANIZATIONS
Need for an independent party that is non-political and
non-commercial
Need for views of the under-represented and
vulnerable groups
Some have wide membership and broad spectrum of
concerns
Democracy involves participatory decision-making ;
consultation with these groups is part of the nation-
building process
13. CONSUMER CONCERNS WITH
MISLEADING ADVERTISING
Ads for products proven to be unsafe and/or
addictive (e.g., alcohol and tobacco)
Ads that target and mislead vulnerable communities
about the product
Ads that aggressively target children to consumer
foods high in fat, sugar and salt
Ads for products that contain toxic or cancer-
causing chemicals for which there is no scientific
proof of safety levels (e.g., pesticides, aspartame,
etc.)
14. CONSUMERS ARE ENCOURAGED TO
AVOID PRODUCTS THAT
Cause environmental degradation during the extraction of natural
resources or during their manufacture, use and disposal
Utilize large amounts of energy during their manufacture, use or
disposal
Cause unnecessary waste, due to over-packaging or unduly short
life span
Utilize materials derived from threatened species or environments
Adversely affect other countries and communities, especially those
in the South
15. ROLE OF (CGSI) IN CONSUMER
PROTECTION
Formation of consumer group
Placing consumer problem before businessmen and
government
Solving the complaint of consumer through peaceful
Encourage the consumer to fight in courts.
16. 16
JURISDICTION
Forum / Commission Where the value of the goods or
services and the compensation, if
any claimed,
District Forum Does not exceed Rs. 20 lakhs
State Commission Rs. 20 lakhs and above but not
exceeding One Crore
National Commission Above One Crore
Besides, State and National Commission have appellate jurisdiction also.
17. 17
APPEAL
shall be filed within thirty days.
Delay in filing appeal may be condoned if there
is sufficient cause.
18. SLOW GROWTH OF CONSUMER
PROTECTION ACT
Illiteracy/poverty
Lack of alertness among consumer
Ignorance
Inadequate government support
Existing consumer association do not operate
efficiently.
19. EDUCATION AND INFORMATION
PROGRAMS
Should involve consumer and business groups
Particular attention to disadvantaged consumers in urban
and rural areas
Should be included in school curriculum
Training programs for educators, mass media professionals
and consumer advocates
20. LEADING CONSUMER
ASSOCIATION
Consumer education and research centre(cerc)
Akhil bhartiya grahak panchayat (pune)
Consumer council of India
Consumer unity trust and services(cuts)
Consumer guidance society of India(CGSI)
Editor's Notes
Modern-day concept first articulated… i.e., not to be deceived, and to have access to information about products i.e., to have a variety of products at competitive prices i.e., consideration from the government of their concerns
In an ideal economy, the market is in perfect equilibrium with the supply and demand side having equal power and functioning optimally. We know that doesn’t happen. State intervention ensures that suppliers behave responsibly and consumers have access to remedies. Consumer rights are seen as part of the new range of social rights that individuals are entitled to claim in a modern society. There are many areas where there is inequality of bargaining power: one example is use of the standard form contract; for example, in credit transactions. Consumers don’t have the right to bargain over the terms of the contract; “take it or leave it” How does it do this? By focusing on the expenditure side as well as the income side of the poverty issue. Highlights fact that the poor not only make less, they also pay more. (Substantiated in numerous studies and publications, such as Caplovitz’s “The Poor Pay More.”)
Things we take for granted but millions in developing world lack
What kind of society are we, and do we want to be? How we treat the vulnerable and disadvantaged is a reflection of the type of society we are. Development is hampered if there are substantial disparities in information, bargaining power and resources; these things prevent optimal operation of a market economy and thus development.
In some cases they operate totally informally, and may be created to address limited, short-term goals (though sometimes they stay in operation) In others, they may be formally created and provided for in the nation’s law (or at least formally recognized –e.g., CI is recognized formally by many international bodies) Their role is premised on the following considerations:
e.g., breast mild substitutes/ see materials p. 64
In developing countries, this is as much of a concern as the quality and prices at which the products are sold to the ultimate consumer.