Consumer awareness

Consumer Awareness,
Rights, Responsibilities
and Protection
By:Lakshmi Bansal

Acknowledgement
We would like to thanks our Commerce
teacher Miss Swati Mam who gave us this
wonderful project which help us a lot in doing
a lot of important research and we are able to
enhance our knowledge on this topic. We
would like to thanks our parents too who
helped us in finishing our project on time.
Thanks again to all who helped us. We made
this project not only to fetch good marks but
to enhance knowledge also.

Who Is A Consumer?
• A consumer is said to be a king of
the free market economy. The
earlier approach means “let the
buyers beware” .However now it
has been changed to “let the
sellers beware”.

Consumer Rights and Responsibilities

Hence, under the Consumer Protection Act1986, Government of India
has provided certain rights to safeguard consumers interests.

Right to
Safety
Right to be
Informed
Right to
Choose
Right to
be Heard
Right to seek
Redressal
Right to
Education

Right to
Safety
Right to be
Informed
Right to
Choose
Right to
be Heard
Right to seek
Redressal
Right to
Education
Also, suppliers and dealers must inform consumers about the safety
precautions to be taken while using products to avoid loss or injury.
In the given example, the gas supplier should inform the consumer to stop
the flow of gas with the help of regulator when it is not in use.

Right to
Safety
Right to be
Informed
Right to
Choose
Right to
be Heard
Right to seek
Redressal
Right to
Education
This implies that dealers and traders should offer a variety of products to
consumers and should avoid using pressure tactics to sell goods of poor
quality.

Right to
Safety
Right to be
Informed
Right to
Choose
Right to
be Heard
Right to seek
Redressal
Right to
Education
The consumer has a right to get the defective goods replaced or money
refunded by seller or dealer.

Right to
Safety
Right to be
Informed
Right to
Choose
Right to
be Heard
Right to seek
Redressal
Right to
Education
For this purpose, consumer associations, educational institutions and
Government policy makers are expected to educate and inform consumers
about the rights and the reliefs available to them.
Today, a consumer also needs to know about government policies and
introduction of new technology.

Consumer rights, by themselves, cannot be effective in achieving the
objective of consumer protection. To achieve consumer protection,
consumers also need to understand their responsibilities.
For example, to exercise the right to seek redressal of complaints, a
consumer must take all precautions to choose the right good, at the right
price and must learn how to use products to prevent injury or loss.
Let us understand the various responsibilities which a consumer should keep
in his mind while purchasing, using or consuming goods and services.

(1) A consumer should be aware of various goods and services available
in the market in order to make an intelligent choice.

(2) A consumer should purchase only standardized goods for quality
assurance. They should check ISI mark on electrical goods, AGMARK on
agricultural products, HALLMARK on jewelry, to mention a few.

(3) A consumer must know about the risks associated with products and
services, follow manufacturer’s instructions and use the products safely.

(4) Before purchasing goods, a consumer should read labels carefully to
get information about prices, net weight, manufacturing and expiry dates,
and so on.

(5) A consumer should ensure that he gets a fair deal and should be
honest in his dealings. He should purchase legal goods and services only
and discourage unscrupulous practices like black-marketing, hoarding
and so on.

(6) On the purchase of goods and services, consumers should ask for a
cash memo as a proof of the purchase made.

(7) Consumers must file a complaint in an appropriate consumer forum in
case of any shortcoming in the quality of goods purchased or services
availed.

(8) Consumers should form consumer organisations that would play an
active part in educating consumers and safeguarding their interests.

In a nutshell Government of India has provided six rights, under the
Consumer Protection Act 1986, to protect consumers’ interests.
(1) Right to safety, (2) Right to
informed,(3) Right to choose. (4)Right to be Heard.
(5) Right to seek redressal and (6) Right to consumer education.

There is a well known saying that “there cannot
be rights without responsibilities”.
Hence, a consumer should also keep in mind his
responsibilities while purchasing, using or consuming goods
and services.

Consumer protection: An overview

However, in an attempt to increase their sales and market share, these
producers may be tempted to engage in unfair trade practices like
defective and unsafe products, adulteration, false and misleading
advertising, black-marketing just to name a few.

Hence, there is a need to provide adequate protection to consumers
against such practices of the sellers.

According to the Cambridge Advanced Learning Dictionary, “Consumer
protection is the protection of buyers of goods and services against low
quality or dangerous products and advertisements that deceive people.”

Consumer protection includes educating consumers about their rights
and responsibilities, and helping them to seek redressal of their
grievances.

Consumer’s
point of view
Consumer
Ignorance
Unorganised
Consumers
Widespread
Exploitation
of consumers
Majority of consumers are ignorant about the rights and reliefs available
to them. Hence, it becomes necessary to educate them about the same
to achieve consumer awareness.

Consumer’s
point of view
Consumer
Ignorance
Unorganised
Consumers
Widespread
Exploitation
of consumers
Consumers need to get together and form themselves into powerful
consumer organisations to protect and promote their own interests.

Consumer’s
point of view
Consumer
Ignorance
Unorganised
Consumers
Widespread
Exploitation
of consumers
Consumer protection plays a vital role as consumers might be exploited by
unscrupulous, exploitative and unfair trade practices products,
adulteration, false and misleading advertising, hoarding, black-marketing
etc.

Business point of view
Long-term interest of
Business
Business uses society’s
resources
Social responsibility
Moral justification
Government intervention

Long-term interest
of Business
Business uses
society’s resources
Moral justification
Government
intervention
Business firms should aim at long-term profit maximisation through
customer satisfaction. Customer satisfaction not only leads to repeat
sales but also increases the customer-base of business.

Long-term interest
of Business
Business uses
Moral justification
Government
intervention
Business organisations use resources which belongs to the society.
Hence, it is a responsibility of business firms to offer those products and
services that are in public interest.

Long-term interest
of Business
Business uses
Moral justification
Government
intervention
Business organisations make money by selling goods and services to
consumers. Hence, form an important group of stake holders and business
organisations should take care of the group.

Long-term interest
of Business
Business uses
Moral justification
Government
intervention
It is the moral duty of any business organisation to take care of
consumer’s interest and avoid any form of their exploitation.

Long-term interest
of Business
Business uses
Moral justification
Government
intervention
A business firm should take care of consumers’ needs & interests as its
involvement in any form of exploitative trade practices would invite govt.
intervention or action. Such govt. intervention may damage the image &
position of the company in the society.

In order to provide adequate protection to consumers the Government of
India has enacted a number of regulations.
The Consumer
Protection Act 1986
The Contract Act
1982
The Sale of Goods
Act 1955
The Agricultural
Produce (Grading
and Marketing) Act
1937
The Prevention of
Food Adulteration
Act 1954
The Standards of
Weights and
Measures Act 1978
The Trade Marks Act
1999
The Competition Act
2002
The Bureau of Indian
Standards Act 1986

The Act provides safeguards to consumers against different forms of
exploitation such as defective goods, deficient services, unfair trade
practices and so on.

The Act also makes provision for establishment of consumer councils and
other authorities for the settlement of consumer disputes and matters
therewith connected.

The Act lays down the conditions in which the promises made by parties
to a contract will be binding on each other. The Act also signifies the
remedies available to parties in case of breach of contract.

The Act provides some safeguards and reliefs to the buyers of the goods,
if the goods purchased do not comply with implied conditions or
warranties.

This Act was enacted to ensure the easy availability of essential
commodities to consumers and to protect them from exploitation by
profiters, hoaders and black-marketers. The Act provides for the
regulation and control of production, distribution and pricing of essential
commodities.

This Act prescribes grade standards for agricultural commodities and
allied commodities. These are known as “AGMARK” standards an
acronym for Agricultural Marketing. The Act lays down the procedure for
grading, marking and packing of agricultural produce.

The Act aims to protect the consumers from poisonous and harmful foods
and prevent the sale of substandard foods in order to maintain public
health.

The provisions of this Act are applicable in case of those goods which are
sold or distributed by weight, measure or number The Act aims at
ensuring that consumers get products with the right weight and
measurements.

This Act has replaced the Trade and Merchandise Marks Act, 1958. The
Act provides protection to consumers by preventing the use or fraudulent
marks on products.

This Act has replaced the Monopolies and Restrictive Trade Practices Act,
1969. The Act provides protection to consumers by refraining traders to
promote any activity which hampers competition in the market.

This Act provides for the establishment of the Bureau of Indian Standards
for the harmonious development of the activities of standardisation,
marking and quality certification of goods.

This Act permitted manufacturers to use the ISI Mark on the products after
ensuring that the goods conform to the prescribed quality standards.

The Bureau has also setup a grievance cell where consumers can make
a complaint about the quality of products carrying the ISI mark.

Ways and Means of Consumer
Protection
Self Regulation by
Business
Business Associations
Consumer Awareness
Consumer
Organisations
Government

Protection
Self Regulation by
Business
Consumer Awareness
Consumer
Organisations
Government
There are various ways of protecting the interest of consumers.

Protection
Self Regulation by
Business
Consumer Awareness
Consumer
Organisations
Government
The business organisations themselves can promote consumer protection
by regulating their own behavior and actions.

Protection
Self Regulation by
Business
Consumer Awareness
Consumer
Organisations
Government
Socially responsible firms follow ethical standard and practices in dealing
with their customers.

Protection
Self Regulation by
Business
Consumer Awareness
Consumer
Organisations
Government
Firms establish customer service and grievance cell to redress the
problems and grievances of their consumers.

Protection
Self Regulation by
Business
Consumer Awareness
Consumer
Organisations
Government
The associations of trade, commerce and business like Federation of
Indian Chambers of Commerce of India (FICCI) and Confederation of
Indian Industries (CII) can check unfair trade practices used by some
business organisations through their code of conduct.

Protection
Self Regulation by
Business
Consumer Awareness
Consumer
Organisations
Government
In order to protect his interests a consumer should know the rights and
reliefs available to him.

Protection
Self Regulation by
Business
Consumer Awareness
Consumer
Organisations
Government
Consumer organisations awaken consumers by educating them about
their rights.

Protection
Self Regulation by
Business
Consumer Awareness
Consumer
Organisations
Government
These organisations provide protection to consumers by taking organised
action and forcing business firms to adopt fair trade practices.

Protection
Self Regulation by
Business
Consumer Awareness
Consumer
Organisations
Government
The Government can protect consumers interest through legislative,
executive and judicial actions. The executive should strictly enforce the
laws passed by the Government.

In order to resolve consumer disputes, the Consumer Protection Act 1986
provides for the establishment of a three tier enforcement machinery at
the National, State and District levels.

These are the National Consumer Disputes Redressal Commission
(National Commission), the State Consumer Disputes Redressal
Commission (State Commission), the District Consumer Dispute
Redressal Forum (District Forum), respectively.
National Commission
State Commission
District Forum

District Forum
Under Consumer Protection Act the state Government has to set up a
District Forum in each district of the State.

Each District Forum consists of a President, who is qualified to be a
district judge and two other members, one of whom should be a women.
They are appointed by the State Government concerned.

The District Forum has the jurisdiction to deal with all complaints where
the value of the goods or services and the compensation claimed is less
than Rs. 20 lakh.

State Commission
Like the District Forum, the State Commissions are set up by the
respective State Government in the State. Each State Commission
consist of a President, who is or has been a judge of a High Court, and
two other members, one of whom should be a woman.

They are appointed by the State Government Concerned.

National Commission
The National Commission is set up by the Central Government. The
National Commission consists of a President, who is or has been a judge
of Supreme Court, and four other members, one of whom should be a
women. They are appointed by the Central Government.

The National Commission has the jurisdiction to take up all claims and
grievances exceeding the value of Rs. 1 crore. The commission also has
power to entertain appeals against the orders of any State Commisssion.

The National Commission, State Commission and District Forums need to
decide complaints within a period of three months from the date of notice
received by consumers if a complaint does not require analysis on testing
of commodities, and within five months if it requires analysis or testing of
commodities.

On the receipt of a complaint, a copy of the complaint is to be referred to
the trader against whom the complaint is filed. The goods or a sample
may be sent for testing in a laboratory, if required. Then, the complaint will
be decided after considering the test report from the laboratory and
hearing the trader.

An order passed by a District Forum is appealable before the concerned
State Commission, by a state Commission is appealable before the
National commission, and by a National Commission is appealable before
the Supreme Court within a period of 30 days.
District
Forum
State
Commission
National
Commission
Supreme
Court

On finding a consumer’s complaint genuine a consumer court may ask a
trader, against whom the complaint is filed.

(1) To remove the defect in goods or deficiency in service.

(2) To replace the defective product with a new one, free from any defect.

(3) To refund the price or charges paid for a product or a service,
respectively.

(4) To pay a reasonable amount of compensation for any loss or injury
suffered by the consumer due to the negligence of the trader or dealer.

(5) To pay compensation in excess of actual damage in appropriate
circumstances.

(6) To discontinue the unfair/restrictive trade practice and not to repeat it
in future.

(7) To cease manufacturing of hazardous goods and withdraw the same
for sale.

(8) To pay any amount (not less than 5% of the value of the defective
goods or deficient services provided), to be credited to the Consumer
Welfare Fund or any other organisation/person, to be utilised in the
prescribed manner.

(9) To issue corrective advertisement to neutralise the effect of a
misleading advertisement.

In a nutshell, consumer protection refers to the activities of government,
business and independent organisations designed to protect consumers
from unfair trade practices like defective and unsafe products, adulteration,
false and misleading advertising, black-marketing, just to name a few.
The Indian legal framework consists of a number of regulations which
provide protection to consumers. These include:
(1) The Consumer Protection Act, 1986
(2) The Contract Act, 1982
(3) The Sale of Goods Act, 1930
(4) The Essential Commodities Act,1955
(5) The Agriculture Produce (Grading and Marking)
Act, 1937(6) The Prevention of Food Adulteration
Act, 1954(7) The Standards of Weights and Measures Act, 1976
(8) The Trade Marks Act, 1999
(9) The Competition
Act,2002(10) The Bureau of Indian Standards
Act,1986

The various ways in which the objective of consumer protection can be achiev
(1) Self regulation by business,
(2) Business
Associations,(3) Consumer
Awareness,(4) Consumer Organisations,
(5) Government
The Consumer Protection Act, 1986 mandates establishment of quasi-
judicial bodies in each District and State and at the national level to
provide inexpensive and speedy redressal of consumer disputes. These
are known as the District Forums, The State Consumer Disputes
Redressal Commissions and the National Consumer Disputes Redressal
Commission, respectively.

Consumer awareness

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