CONSUMER PROTECTION
1 Who can file a complaint under Consumer Protection Act,1986?
A complaint before the appropriate consumer forum can be made by:
(i) Any consumer
(ii) Any registered consumers’ association
(iii)The Central Government or any State Government
(iv) One or more consumers, on behalf of numerous consumers having the same interest and
(v) A legal heir or representative of a deceased consumer.
2 Define a Consumer as per the Consumer Protection Act,1986?
Under the Consumer Protection Act, a consumer is defined as:
(a) Any person who buys any goods for a consideration, which has been paid or promised, or partly paid and partly promised, or under any scheme of deferred payment.
3 What is Consumer Protection? Discuss its importance to (a) Consumers and (b) Business.
Protecting consumers from unfair trade practices. It not only includes educating consumers about their rights and responsibilities, but also helps in getting their grievances redressed.
From Consumers’ point of view:
The importance of consumer protection from the consumers’ point of view can be understood from the following points:
(i) Consumer Ignorance: In the light of widespread ignorance of consumers about their rights and reliefs available to them, it becomes necessary to educate them about the same so as to achieve consumer awareness.
(ii) Unorganized Consumers: Consumers need to be organised in the form of consumer organisations which would take care of their interests.
(iii) Widespread Exploitation of Consumers: Consumers might be exploited by unscrupulous,exploitative and unfair trade practices like defective and unsafe products, adulteration, false and misleading advertising, hoarding, black-marketing etc.
From the point of view of Business
A business must also lay emphasis on protecting the consumers and adequately satisfying them. This is important because of the following reasons:
(i) Long-term Interest of Business: Enlightened businesses realise that it is in their long-term interest to satisfy their customers
(ii) Business uses Society’s Resources: Business organisations use resources which belong to the society. They, thus, have a responsibility to supply such products and render such services which are in public interest and would not impair public confidence in them.
(iii) Social Responsibility: A business has social responsibilities towards various interest groups.
(iv) Moral Justification: It is the moral duty of any business to take care of consumer’s interest and avoid any form of their exploitation.
(v) Government Intervention: A business engaging in any form of exploitative trade practices would invite government intervention or action.
4 What are the responsibilities of a consumer?
(i) Be aware about various goods and services available in the market so that an intelligent and wise choice can be made.
(ii) Buy only standardised goods as they provide quality assurance. Thus, look for ISI mark on electrical goods, FPO mark on food products, Hallmark on jewelry etc.
(iii) Learn about the risks associated with products and services, follow manufacturer’s instructions and use the products safely.
(iv) Read labels carefully so as to have information about prices, net weight, manufacturing and expiry dates, etc.
(v) Assert yourself to ensure that you get a fair deal.
(vi) Be honest in your dealings. Choose only from legal goods and services and discourage unscrupulous practices like black-marketing, hoarding etc.
(vii) Ask for a cash memo on purchase of goods or services. This would serve as a proof of the purchase made.
(viii) File a complaint in an appropriate consumer forum in case of a shortcoming in the quality of goods purchased or services availed. Do not fail to take an action even when the amount involved is small.
(ix) Form consumer societies which would play an active part in educating consumers and safeguarding their interests.
(x) Respect the environment. Avoid waste, littering and contributing to pollution.
5 Explain the redressal mechanism available to consumers under the Consumer Protection Act, 1986.
1. District Forum: The District Forum consists of a President and two other members, one of whom should be a woman. They all are appointed by the State Government concerned. A complaint can be made to the appropriate District Forum when the value of the goods or services, does not exceed Rs. 20 lakhs. In case the aggrieved party is not satisfied with the order of the District Forum, he can appeal before the State Commission within 30 days of the passing of the order.
2. State Commission: Each State Commission consists of a President and not less than two other members, one of whom should be a woman. They are appointed by the State Government concerned. A complaint can to be made to the appropriate State Commission when the value of the goods or services in question, along with the compensation claimed, exceeds Rs. 20 lakhs but does not exceed Rs. 1 crore.
3. National Commission: The National Commission consists of a President and at least four other members, one of whom should be a woman. They are appointed by the Central Government. A complaint can be made to the National Commission when the value of the goods or services in question, along with the compensation claimed, exceeds Rs. 1 crore. The appeals against the orders of a State Commission can also be filed before the National Commission.
6 State the relief available to the Consumers under the Consumer Protection Act, 1986.
Relief (Remedies):
(i) To remove the defect in goods or deficiency in service.
(ii) To replace the defective product with a new one, free from any defect.
(iii) To refund the price paid for the product, or the charges paid for the service.
(iv) To pay a reasonable amount of compensation for any loss or injury suffered by the consumer due to the negligence of the opposite party.
(v) To pay punitive damages in appropriate circumstances.
(vi) To discontinue the unfair/ restrictive trade practice and not to repeat it in the future.
(vii) Not to offer hazardous goods for sale.
(viii) To withdraw the hazardous goods from sale.
(ix) To cease manufacture of hazardous goods and to desist from offering hazardous services.
(x) 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.
7 Within what period the complaint must be filed by the consumers?
Within 3 months of purchase and if some testing of goods is required then within 5 months.
8 Under what circumstances complaints can be filed?
Fraudulent practices of traders and manufacturers, if goods are defective and if any deficiency in the services hired.
9 Explain the rights of a consumer under Consumers Protection Act 1986:
1. Right to Safety: The consumer has a right to be protected against goods and services which are hazardous to life and health. Thus, consumers are educated that they should use electrical appliances which are ISI marked as this would be an assurance of such products meeting quality specifications.
2. Right to be Informed: The consumer has a right to have complete information about the product he intends to buy including its ingredients, date of manufacture, price, quantity, directions for use, etc.
3. Right to Choose: The consumer has the freedom to choose from a variety of products at competitive prices.
4. Right to be Heard: The consumer has a right to file a complaint and to be heard in case of dissatisfaction with a good or a service.
5. Right to seek Redressal: The consumer has a right to get relief in case the product or service falls short of his expectations.
6. Right to Consumer Education: The consumer has a right to acquire knowledge and to be a well informed consumer throughout life.
10 Explain the role and functions of Consumer Organisation and NGO.
(i) Educating the general public about consumer rights by organising training programmes, seminars and workshops.
(ii) Publishing periodicals and other publications to impart knowledge about consumer problems, legal reporting, reliefs available and other matters of interest.
(iii) Carrying out comparative testing of consumer products in accredited laboratories to test relative qualities of competing brands and publishing the test results for the benefit of consumers.
(iv) Encouraging consumers to strongly protest and take an action against unscrupulous, exploitative and unfair trade practices of sellers.
(v) Providing legal assistance to consumers by way of providing aid, legal advice etc. in seeking legal remedy.
(vi) Filing complaints in appropriate consumer courts on behalf of the consumers.
(vii) Taking an initiative in filing cases in consumer courts in the interest of the general public, not for any individual.
Please click on below link to download CBSE Class 12 Business Studies Consumer Protection Act Worksheet Set A
