CBSE Class 12 Business Studies Consumer Protection Notes Set B

Protecting consumers from unpair trade practices, adopted by the producers and/or sellers of goods and services is termed as consumer protection. It not only includes educating consumers about their rights and responsibilities, but also helps in getting their grievances redressed.

Importance of consumer protection from consumer s point of view:
1. Consumers Ignorance: Majority of consumers are not aware of their rights and reliefs available to them as a result of which they are exploited. In order to save consumers from exploitation, consumer protection is needed.
2. Unorganised Consumers: In India consumers are still unorganised and there is lack of consumer organisations also, thus consumer protection is required.
3. Widespread exploitation of Consumers: Consumers are exploited on large scale by means of various unfair trade practices and consumer protection is required to protect them from exploitation.

Importance of Consumer Protection from the Point View of Business
1. Long term business interest: It is always in the interest of the business to keep its customer satisfied, Global competition could be win only after satisfying customers. Satisfied customers lead to repeat sales and help in increasing customer base of business.
2. Moral Justification: It is the moral duty of any business to take care of consumer interest & avoid any form of their exploitation & unfair trade practices like defective & unsafe products, adulteration, false & misleading advertising, hoardings black marketing etc.
3. Business uses society resources: Every business uses the resources of the society and thus it is their responsibility to work in the interest of the society.
4. Social Responsibility: A business has social responsibilities towards various groups like owner, workers, government, customers etc. Thus, customers should be provided qualitative goods at reasonable prices.
5. Government Intervention: If a business engages in any form of unfair trade practices then government take action against it, which adversely affect its goodwill. Rights of a Consumer Consumer protection Act, 1986 has provided six rights to the consumer, which are as follows:
1. Right to Safety : Consumer has the right to be protected against products, & services which are hazardous to health & life (should use ISI marked electric products)
2. Right to be informed : Consumer has right to have complete information about the product before buying it.
3. Right to choose : Consumer has a right to choose any product out of the available products as per his own decision/liking.
4. Right to be heard : Consumer has the right to file a complaint & to be heard in case of dissatisfaction with goods or services (use of grievance cell)
5. Right to Seek Redressal : Consumer has the right to get relief in case the product or service falls short of his expectations or is dangerous. He may be provided with replacement / removal of defect / compensation for any loss.
6. Right to consumer education: Consumer has right to acquire knowledge & to be well informed consumer throughout life. It makes consumer aware all the time.

Responsibilities / Duties of a Consumer
1. Consumer must exercise his right: Consumer must be aware of their rights with regard to the product or services they buy from the market.
2. Consumer must be a cautions consumer: While buying a product or services, a consumer should read labels carefully to learn about its every minute detail.
3. Consumer must file a complaint in an appropriate forum in case of any shortcoming in product / service availed.
4. Consumer must insist on cash memo; i.e., a proof of purchase & required to file a complaint.
5. Consumer must be a quality conscious: He should ask / look for ISI mark on electric goods. FPO mark on food products, Hall mark on jewellery etc.
6. Consumer must bring the discrepancy in the advertisement to the notice of the sponsor.

THE SALIENT FEATURES AND PROVISIONS OF CONSUMER PROTECTION ACT, 1986
Why was consumer protection act, 1986 enacted?
To protect & promote the interests of the consumers by providing various rights to them.

Under what circumstances complaints can be filed?
Fraudulent practices of traders & manufactures.
Goods are defective
Any deficiency in the services hired.

Redressal agencies under the consumer Protection Act 1986.
District forum
State Commission