Consumer Protection

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Consumer Protection

• Consumers are said to be the king in a free
  market economy, The earlier approach of Caveat
  Emptor which means Let the buyer beware has now
  changed to Caveat Venditor which means Let the
  seller beware.
• With growing competition and increased sales and
  market share, manufacturers and service providers
  are engaged in unhealthy, exploitative and unfair
  trade practices. This means that a consumer might
  be exposed to risk due to unsafe products,
  misleading advertisements etc. Thus, there is a
  need for providing adequate protection to
  consumers against such practices of the sellers.

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What is consumer protection?

• Consumer protection refers to the protection of
  physical, economic and other interest of the
  consumers from exploitation by the business
  community. The consumers are being protected by
  restricting the mall practices through the
  legislature and other measures.

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Importance of consumer protection

• Consumer protection has a wide agenda. It not
  only includes educating consumers about their and
  responsibility but also helps in getting
  grievances redressed.
• Consumer protection has a special significance to
  both consumers and business persons.
• From the view of consumers.
• The importance of consumer protection from the
  view of consumers are,

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• 1. Consumer Ignorance
• There is widespread ignorance of consumers about
  their rights and reliefs available to them, it
  becomes necessary to educate them about it to
  achieve consumer awareness.
• 2. Unorganized consumers
• Consumers need to be organized in the form of
  consumer organizations which would take care of
  their interest. In India, there are many consumer
  organizations that are working in this direction,
  adequate protection is required to be given to
  consumers till these organizations become
  powerful enough to protect and promote the
  interest of consumers.
• 3. 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 the business community
• A business must also lay emphasis on protecting
  the consumers and adequately satisfying them
  because of the following,

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• 1. Long term interest in business
• Modern business realizes that it is in their long
  term interest to satisfy their customers.
  Satisfied customers not only lead to repeating
  sales but also provide good feedback to
  prospective customers and thus helps in
  increasing the customer base of business.
• Thus, business firms should aim at long term
  profit maximization through customer
  satisfaction.
• 2. Business uses society resources
• Business organizations use resources that belong
  to society. Thus, they have the responsibility to
  supply such products and render such services
  which are in the public interest and would not
  damage public conscience in them.

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• 3. Social responsibility
• A business has social responsibilities towards
  various interest groups. Business organizations
  make money by selling goods and providing
  services to consumers. So it is important to look
  after society to protect their business.
• 4. Moral justification
• It is the moral duty of any business to take care
  of consumers interest and avoid any form of
  their exploitative action. Thus, a business must
  avoid unfair trade practices towards consumers in
  their interest.

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• 5. Government intervention
• A business engaging in any form of exploitative
  trade practices would invite government action.
  This can damage the companys image and
  reputation. Thus, it is advisable that business
  companies voluntarily follow such practices where
  a consumers needs and interest will well be
  taken care of.
• Legal protection to consumers
• The Indian legal framework consists of a number
  of regulations that provide protection to
  consumers. The legal protections are,
• The Consumer Protection Act -1986
• The Indian Contract Act -1872
• The Sale of Goods Act -1930
• The Essential Commodities Act -1955
• The Agricultural Produce Grading and Marketing
  Act -1937
• The Prevention of Food Adulteration Act -1954
• The Standards of Weights and Measures Act -1954
• The Trademark Act -1999
• The Competition Act -2002
• The Bureau of Indian Standards Act -1986
• Consumer rights
• The consumer protection act provides for six
  rights of consumers such as,

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• 1. Right to safety
• The consumer has a right to be protected against
  goods and services which are hazardous to life
  and health. Products that are manufactured with
  substandard products or do not conform to safety
  norms might cause serious injury. Thus, consumers
  are educated to use products with safety
  assurance such as ISI mark etc.
• 2. Right to be informed
• The consumer has the right to have complete
  information about the products, he intends to buy
  including their ingredients date of manufacture,
  price, quantity and direction for use etc

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• 3. Right to choose
• The consumer has the freedom to choose from a
  variety of products at competitive prices. This
  implies that the marketers should offer a wide
  variety of products in terms of a quality brand,
  prices, size etc and allow the consumer to make a
  choice from amongst these.
• 4. Right to be heard
• Consumers have a right to file a complaint and to
  be heard in case of dissatisfaction with a good
  or service. It is because of this reason that
  many modern business firms have set up their own
  consumer services and grievance cells. Many
  consumer organizations are also working towards
  this direction and helping consumers in the
  redressal of their grievance.

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• 5. Right to seek redressal
• The consumer has a right to get relief in case
  the product and services fall short of his
  expectations. The consumer protection act
  provides a number of reliefs to the consumers
  including replacement of goods, compensation paid
  for any loss or injury suffered by the consumer
  etc.
• 6. Right to consumer education
• The consumer has a right to acquire knowledge and
  to be a well-informed consumer throughout life.
  He should be aware of his rights and reliefs
  available to him in case of products or services
  falling short of his expectations.

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• Who can file a complaint
• Any consumer can file a complaint on his own or
  her own and does not require the services of an
  advocate or professionals.
• Any registered consumer association. The central
  government or any state government.
• One or more consumers on behalf of numerous
  consumers having the same interest.
• A complaint under sec-2(B) of the consumer
  protection act 1986.
• After all, its the responsibility of the
  business community to look after the consumer
  rights, safety and interest for a long term
  functioning of the company so that the company
  does not drop its increasing consumers. The
  associations of trade, commerce and business-like
  the Federation of Indian Chambers of Commerce of
  India(FICCI) and Consideration of Indian
  Industries(CII) have laid down their code of
  conduct for their members, the guidelines in
  their dealings with the customers. So for every
  health working of a company to require to follow
  every code of conduct against the consumers.
  Consumers are the base of working of a company so
  it is nearly very important to maintain their
  protection in every possible way in its scope of
  working.

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