NCERT Book Class 12 Business Studies Consumer Protection

CONSUMER PROTECTION

MAHARASHTRA CONSUMER COMMISSION SLAPS FINE OF RS ONE LAKH ON COCA COLA

The Maharashtra State Consumer Commission has asked Coca Cola, one of the international fizzy drinks manufacturer, its bottler and distributor to pay Rs one lakh in damages to a consumer who found impurities in a bottle of soft drink that he had bought. Chandrashekhar Paradkar, a resident of Shankar Nagar area here filed a complaint with the Nagpur district Consumer Grievances Fourm seeking compensation of Rupees four lakh after he found some solid objects inside a sealed bottle of a soft drink. He had bought six various brands of the soft drink— two bottles each of Mazaa, Coca Cola and Sprite from a shop near his house. Based on that, the District Forum earlier gave a ruling after finding Coca Cola, its bottlers Superior Drinks Pvt. Ltd. and distributors Balaji Sales guilty of supplying drinks unfit for human consumption, which was upheld by the State Consumer Commission. 

The District Forum had found objects resembling pieces of mosquito repellent mats floating inside the sealed bottle. Having conducted the tests by a Public Health Laboratory, they found the drink unfit for human consumption. The District Forum came down multinational giants would not be allowed to have a free run and exploit a poor country like India by manufacturing and marketing sub-standard products.While giving its ruling, the District Forum relied upon the historic Donald versus Stevenson case, wherein heavy compensation had been awarded to a consumer, who had found rusted nails inside a bottle of ginger beer. 

The above case is just one of the examples of the many problems that  consumers might have to face in the purchase, use and consumption of goods and services. The case also highlights the need for an appropriate legal protection to be provided to  consumers to protect them fromvarious forms of exploitation from the seller. Have you ever thought what would be the plight of consumers if adequate protection is not provided to them? Can the present day businesses afford to ignore the interests of consumers? The area of consumer protection has emerged as a very important area of study having significance for both the consumers and businesses alike.

INTRODUCTION

A consumer is said to be a king in a free market economy. The earlier approach of caveat emptor, which means “Let the buyer beware”, has now been changed to caveat venditor  (“Let the seller beware”). However, withgrowing competition and in an attempt to increase their sales and market share, manufacturers and serviceproviders may be tempted to engage in unscrupulous, exploitative and unfair trade practices like defective and unsafe products, adulteration, false and misleading advertising, hoarding, black-marketing etc. This means that a consumer might be exposed to risks due to unsafe products, might suffer from bad health due to adulterated food products, might be cheated because of misleading advertisements or sale of spurious products, might have to pay a higher price when sellers engage in overpricing, hoarding or blackmarketing etc. Thus, there is a need for providing adequate protection to consumers against such practices of the sellers. Let us now discuss the importance of consumer protection

IMPORTANCE OF CONSUMER PROTECTION

Consumer Protection has a wide agenda. It not only includes educating  consumers about their rights and responsibilities, but also helps ingetting their grievances redressed. It not only requires a judicial machinery for protecting the interests of consumers but also requires theconsumers to get together and form.

EXERCISES

True or False

State whether the following statements are true or false.

   (i) Consumer protection has a moral justification for business.

   (ii) In addition to rights, a consumer also has some responsibilities.

   (iii) A complaint can to be made to a District Forum when the value of the goods or services in question, along with the compensation claimed, exceeds Rs. 20 lakhs.

   (iv) The Consumer Protection Act provides for six consumer rights.

   (v) ISI is the quality certification mark used in case of food products.

   (vi) Under the Consumer Protection Act, a complaint can be filed by a consumer for a defective good and also for deficiency in service.

Short answer questions

(i) Explain the importance of consumer protection from the point of view of a business.

(ii) Enumerate the various Acts passed by the Government of India which help in protection of consumers’ interests.

(iii) What are the responsibilities of a consumer?

(iv) Who can file a complaint in a consumer court?

(v) What kind of cases can be filed in a State Commission?

(vi) Explain the role of consumer organisations and NGOs in protecting and promoting consumers’ interests. Long answer questions

(i) Explain the rights and responsibilities of a consumer.

(ii) What are various ways in which the objective of consumer protection can  be achieved? Explain the role of consumer organisations and NGOs inthis regard.

(iii) Explain the redressal mechanism available to consumers under the Consumer Protection Act, 1986. Application based questions

(i) Visit a consumer organisation in your town. List down the various functions performed by it.

(ii) Collect some newspaper cuttings of some consumer cases and the rulings given therein.

Please refer to attached file for NCERT Class 12 Business Studies Consumer Protection