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Ibe Unit V


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    • It is a battle against exploitation of consumers.
    • A social force to make business more honest,efficient & responsible.
  • 2. “ A social movement seeking to augment the rights & powers of the buyers in relation to sellers”. Philip Kotler.
  • 3. Need for Consumerism
    • The consumers are not only subject to the exploitation of private sector enterprises like nationalized commercial banks,state electricity board, telephone department.
    • Despite a number of laws passed to protect the interest of the Indian consumers, they are not aware of their rights.
  • 4. Most of the victims of adulterated, hazardous, duplicate & standard goods as well as indirect weights & measurements. By resorting to unethical , false & misleading advertisement, business make quick money at the cost of consumers.
  • 5. Utility of consumerism
    • It provides feedback information to businesses:
    • They understand the real needs & wants of the consumers. This will enables them to implement the marketing concept very successfully.
    • Producers & sellers will not take the consumers for granted:
    • When consumers are in position to protect their rights , businesses will not resort to unfair & unethical trade practices.
  • 6. Consumers makes the government more responsive to consumer needs: Government compels it to pass the necessary legislative measures to safeguard the rights of consumers. Consumers get support to minimize the imperfections with regard to distributions : Sometimes the sellers charge exorbitant prices by giving one or other reasons.
  • 7. Legislative measures for consumer protection in India.
    • Indian Contract Act 1872.
    • Sale of Goods Act 1930.
    • Agricultural Produce Act, 1937.
    • Industries (Development & Regulation) Act 1951.
    • Prevention of Food Adulteration Act 1954.
    • Essential Commodities Act 1955.
  • 8. Essential Services Maintenance Act 1968. MRTP Act 1969. Standards of Weights & Measures Act,1976 together with the standards of W & M (Packaged Commodities) Rules 1977 & 1990. Bureau of Indian Standards Act 1986. Environment Protection Act 1986. Consumer Protection Act 1986.
  • 9. Consumer Rights
    • Right to choose:
    • Even in a competitive market, consumers should have an assurance of satisfactory quality & services at fair price.
    • Right to be informed :
    • They should be provided with full information concerning the product or service such as quality & performance standards , ingredients of the product etc.
    • Right to safety:
    • The products available should not be hazardous to the health of life of consumers.
  • 10. Right to redressal: It ensures compensation to consumers for the loss suffered by them or injury caused to them by the seller. Right to be heard: Right to a healthy environment. The products should not pollute air or water. Right to consumer education:
  • 11. Hindrances to the growth of a strong consumer movement
    • Most of the consumers in India are illiterate.
    • Legal process in India is time consuming, due to which consumers do not come forward.
    • Lack of leadership is considered to be an important hurdle.
    • It is difficult to disseminate consumer education as India is a vast country.
    • Legislative are numerous but they are not effectively implemented .
  • 12. Consumer Protection Act, 1986.
    • It is the only act which directly pertains to the market place and seeks to redress complaints arising from it.
    • It provides protection to consumers against unfair trade practices.
    • The act is applicable in whole India except J&K.
  • 13. Who is the consumer for the Act
    • Any person who buys any goods for a consideration is a “Consumer” as defined under the CPA. But a person who obtains such goods “ for re-sale or for any other commercial purpose” is not a consumer.
  • 14. What is commercial purpose??
    • When any goods are purchased with a view to use the same “ for carrying on any activity on large-scale, for the purpose of earning profit". it is a purchase for commercial purpose.
  • 15. Meaning of Goods
    • The term “goods” in the Consumer Protection Act has the same meaning as found in sales of goods act as “ every kind of movable property other than actionable claims & money, & includes stocks & shares , growing crops , grass & things attached to or forming part of land , which are agreed to be served before sale”.
  • 16. Examples of services
    • Services include banking, financing, insurance, transport, processing, supply.
    • Who is a Complainant?
    • “ A consumer or any other recognized consumer association or the central or any other state government”.
  • 17. Complaint
    • If the complainant has suffered loss or damage as a result of any unfair trade practice adopted by any other trader.
    • If the goods delivered to the complainant have one or more defects.
    • If the services rendered is deficient in any respect.
  • 18. Consumer protection councils:
    • Central Consumer Protection Council– At national level.
    • Central Government & protection council—At state level.
  • 19. Consumer Dispute Redressal Forums
    • It includes:
    • A District Forum in each district.
    • A state commission in each State.
    • A National Commission at the Central level.
  • 20. Composition of district forum
    • Each district forum shall consists of:
    • A person who is or has been or is qualified to be a district judge, to be nominated by the State government , who shall be its president.
    • A person of eminence in the field of education trade or commerce.
    • A lady social worker.
  • 21. Composition of State Commission
    • A person who is or has been a judge of a high court , appointed by the state government who shall be its President.
    • Two other members who shall be persons of ability, integrity & standing & have adequate knowledge or experience in dealing with problems.
  • 22. Jurisdiction of the state commission: the commission can entertain complaints where the value of the goods & services & compensation claimed exceeds rs. 5 lakhs but does not exceeds rs. 20 lakhs. Procedure for handling complaints- State Commission: Any person aggrieved by the order of state commission can make an appeal to National Commission within a period of 30 days.
  • 23. Composition of National Commission
    • A person who has been the judge of supreme court to be appointed by Central Government.
    • 4 other members with ability, integrity & capacity in dealing with problems relating to economics, law, commerce.
  • 24. Jurisdiction of National Commission
    • Value of goods /services exceeds 20 lakhs, such complaints are entertained.
    • In the disposal of any complaint the commission will have all the powers of a civil court.
  • 25. Pay attention
    • Time limit for disposing of a complaint is 90 days from the date of filing of case.
    Presented by: Ms. Megha Mathur