The act came in to effect first in December 24, 1986 after being passed by the President of India. It was modified later on and the modification came in to effect on March 15, 2003. The act is applicable in all States in India except Jammu and Kashmir. The acts makes provisions to include both tangible goods and Intangible services purchased from trader or service provider. The act can apply to any consumer who uses the product for non- commercial activities.
What is ethics?
Ethics is the art and science of determining
good and bad or right and wrong moral
behavior of a single or group of people.
What is MARKETING?
Marketing is the science and art of exploring,
creating, and delivering value to satisfy the
needs of a target market at a profit.
- Philip Kotler
Marketing ethics is an area that deals with
the moral principles behind marketing.
Ethics in marketing applies to different
spheres such as in product, pricing, Placing
(Distribution), promotion & advertising
Why we need Ethics in Marketing?
There are many reasons but will notify some:
• When an organization behaves ethically,
customers develop more positive attitudes
about the firm, its products, and its services.
• To create Values or trust with key
• To build good image about the organization
in the minds of customer, employees,
shareholders and the society.
Ethical Issues in Marketing:
We discuss Marketing issues by using 4P’S OF
• PRODUCT & PACKAGING
• PLACING (DISTRIBUTION)
• PROMOTION (ADVERTISING & BRANDING)
• Consumer safety
• Product liability and reliability
• Designing for special needs
Price: Second P of Marketing
• Bid rigging
• Supra competitive pricing
• Price fixing
• Price skimming
Product distribution (or place) is one of the
four elements of the Marketing MIX.
Distribution of product or service is
transporting them from manufacture to
stockiest, wholesalers, retailer and then to
Many retailers sell products that have crossed
expiry date is unethical.
Exerting influence to cause vendors to reduce
display space for competitors' products is
Promising shipment when knowing delivery
is not possible by the promised date is also
Paying vendors to carry a firm's product rather than
one of its competitors are also unethical.
Most drug stores would give too many drugs
without prescription from a qualified doctor are also
Products are moved in unsafe vehicles ,are also
• Promotion is one of the four elements of
marketing mix (product, price, promotion, place).
It is the communication link between sellers and
buyers for the purpose of influencing, informing,
or persuading a potential buyer's purchasing
• To present information to consumers as well as
• To increase demand
• To differentiate a product
Ethical Issues in Advertising
• Puffery ( Nothing to support the fact. )
• Advertising to Children
• Promoting Unhealthy Products
• Subliminal Advertising
• Deceptive Advertising
What is Consumer Protection ?
Consumer: refers to any
individuals or households that use
goods and services generated with
in the economy.
Consumer Protection: a
concept that are designed to ensure
fair competition and the free flow
of truthful information in the
• Consumer Protection laws : laws
designed to prevent businesses that engage in
fraud or specified unfair practices from gaining
and advantage over competitors and provide
additional protection for the weak for those
unable to take care of themselves.
Ethics in Marketing in Consumer Protection
Market is flooded with duplicate goods having
fake labels for selling drugs, food stuffs,
consumables like agarbatis, suparis etc.
followed by misleading advertisements. This
result in disrepute for the products of good
companies even though such fake goods are
small in quantities.
Who is responsible for consumer
• Responsibility of Business
• Responsibility of Consumer
• Responsibility of Government
Responsibility of Business
The business including producers and traders
have to due regard to consumer rights as it is
their social responsibility. They have to come
out with quality goods at reasonable prices.
Responsibility of Consumer
All efforts regarding consumer protection will
not produce desired results if consumerism is
not accepted as a means of asserting and
enjoying their rights.
Responsibility of Government
Innocent and helpless consumers should be
protected by the Government through
enacting legislations. Government will have to
set its own priorities for the protection
Consumer Protection Act,1986
Better protection of interests of consumer.
Protection of rights of consumers.
To prevent practices having adverse effect on
To promote and sustain competition on
To protect the interests of consumers.
Scope of Consumer Protection
• Applies to whole India.
• Applies to all type of goods and services,
public utilities and public sector undertakings.
• All types of complaints relating to goods,
unfair trade pictures.
Who can file complaint ?
• The consumer to whom the goods are sold or
delivered or agreed to be sold are delivered or
the service has been provided or agreed to be
But how to file a complain?
** One can go to Consumer courts and can file
**One can file consumer complaints online.