12 Consumer Protection 4 Planning

Consumer protection refers to protection of consumers from exploitative Planning is defined as the process of: • setting objectives for a given time
and unfair trade practices of manufacturers, sellers and service providers. period, • formulating various courses of action to achieve them and • selecting
Scope of the Consumer Protection Act 2019: It seeks to protect the best possible alternative from among the various courses of action available.
and promote the consumers’ interest through speedy and inexpensive Steps in Planning Process SD IES IF
redressal of their grievances. 1. Setting objectives for the entire organization and each department.
Importance of Consumer Protection 2. Developing Premises: Planning premises are assumptions about future in
From Consumer’s Point of View CUW the form of forecasts. They are base material of plans.
1. Widespread exploitation of consumers: Consumers need protection 3. Identifying alternative courses of action to achieve the set objectives.
against unfair trade practices of sellers like defective and unsafe 4. Evaluating alternative courses of action—positive and negative aspects.
products, adulteration, hoarding, black-marketing etc. 5. Selecting the best alternative after analyzing feasibility and consequences
2. Consumer ignorance: Due to ignorance of consumers about their of each alternative.
rights and reliefs, it is necessary to educate them about their rights. 6. Implementing the plan: It means putting the plan into action. This step
3. Unorganised consumers: There is a need to form consumer involves organising for labour and purchase of machinery.
organisations which would take care of their interests. 7. Follow up action—monitoring the plans to ensure that objectives are
From the Point of View of Business LMG SR achieved.
1. It is in the long-term interest of business to promote the interests Features of Planning CM OP2D F
of consumers because satisfied customers provide good feedback. 1. Planning focuses on achieving objectives because specific goals are set
2. A business which engage in exploitative and unfair trade practices out in the plans along with activities to be undertaken to achieve them.
invite government intervention. 2. Planning is futuristic as it involves looking ahead and preparing for future.
3. Moral justification: It is the moral duty of any business to take 3. Planning involves decision making as it involves evaluating alternative
care of consumer’s interest. course of action and selecting the best alternative.
4. Since the business uses society’s resources, therefore it has a 4. Planning is a mental exercise because it is an intellectual activity of thinking.
responsibility to supply goods or services which are in public interest. 5. Planning is the primary function of management as it is the basis for all
5. The business has social responsibility towards various interest other functions of management.
groups, including consumers. 6. Planning is pervasive as it is required in all organisations, at all levels and
Role/Functions of NGOs and consumer organisations in all departments.
PPT FEE 7.Planning is continuous because a plan is implemented for a specific time
1. Educating the general public about consumer rights by period, and is followed by another plan and so on.
organising seminars and workshops. Importance of Planning DR SODI
2. Publishing periodicals and other publications to impart 1. Planning provides directions by deciding in advance what action should
knowledge about consumer problems, rights and reliefs. be taken.
2.Planning reduces the risks of uncertainty by anticipating changes and
3. Carrying out comparative testing of consumer products. developing managerial responses to them.
4. Encouraging consumers to strongly protest and take an 3.Planning reduces overlapping and wasteful activities by coordinating
action against exploitative and unfair trade practices of sellers. the activities of different departments and individuals.
5. Providing legal assistance to consumers. 4. Planning promotes innovative ideas as it requires application of mind
6. Filing complaints in consumer courts on behalf of consumers. and foresight.
Rights of a consumer SA HIRE 5. Planning facilitates decision making by making a choice from among the
1. Right to Safety – right to be protected against goods and services alternative courses of action.
which are hazardous to life and health. 6. Planning establishes standards for controlling.
Limitations of Planning RS DTC2
2. Right to be informed – right to have complete information about the 1. Planning leads to rigidity because managers change it with the changed
product such as, ingredients, date of manufacture, price, quantity etc. circumstances.
3. Right to be heard – right to file a complaint in case of dissatisfaction 2.Planning may not work in a dynamic environment as environment keeps
with a product or a service. on changing and planning may not foresee everything.
4. Right to seek redressal — right to get relief(s) in case the product 3. Planning reduces creativity as middle management and other decision-
is defective or there is deficiency in service,e.g. replacement of product, makers are not allowed to deviate from plans.
removal of defect in the product, compensation for any loss, etc. 4. Huge costs are involved in formulating the plans.
5. Planning is time consuming and sometimes not much time is left for its
5. Right to be Assured — right of freedom to choose from a variety implementation.
of products at competitive price. 6. Planning does not guarantee success. It creates false sense of security
6. Right to consumer education — right to acquire knowledge and leads to failure.
about consumer rights and the reliefs. Types of Plans
Three-Tier Redressal Machinery
A single-use plan is developed for a one-time event or project, not repeated
1. District Commissions  It has a jurisdiction to entertain complaints in future, e.g. budgets, programmes.
where value of goods or services paid as consideration does not exceed A standing plan is used for activities that occur regularly over a period of
` 1 crore.  If any of the parties is not satisfied by the order of District time, e.g. policies, procedures, methods and rules.
Commission can appeal to the State Commission within 45 days.
1.Objectives are ends which are numerically expressed, that management
2. State Commissions  It has a jurisdiction to entertain complaints seeks to achieve within a given time period, e.g. increasing sales by 10% in the
where value of goods and services paid as consideration exceeds one next quarter. •Set by top management • Focus on broad general issues
crore but does not exceed ` 10 crore. • If any of the parties is not 2. Strategy refers to future decisions defining the organisation’s direction
satisfied by the order of State Commission can appeal to the National and scope in the long run. Example: Marketing strategy – which channel of
Commission within 30 days of such order. distribution to use? what is the pricing policy? how to advertise the product?
3. The National Commission  It has a jurisdiction to entertain It includes three dimensions: (i) determining long-term objectives of the
complaints where value of goods or services paid as consideration exceeds enterprise, (ii) adopting a particular course of action, and (iii) allocating
` 10 crore. • If any of the parties is not satisfied by the order of National resources necessary to achieve the objectives.
Commission can appeal to the Supreme Court of India within 30 days. 3. Rule is a statement that specifies what is to be done or not to be done. It
does not allow any flexibility; it prescribes a penalty for violation. Example: No
Reliefs/Remedies available to a consumer smoking in office. Rules are usually the simplest type of plans because there is
1. To remove the defect in good or deficiency in service. no compromise or change unless a policy decision is taken.
2. To replace the defective product with a new one, free from any defect. 4. Method is the prescribed way or manner in which a task has to be performed.
3. To refund the price paid for the product or charges paid for the service. Selection of right method saves time, money and effort and increases efficiency.
4. To pay a reasonable amount of compensation for any injury or loss Example: Training methods
suffered by the consumer. 5. Policy is a general guideline that guides thinking or channelizes energy
5. To pay adequate costs. towards a particular direction. •It defines parameters within which a manager
6. To cease manufacture of hazardous goods and not to offer hazardous may function. •It brings uniformity in decision making. Example: Recruitment
goods for sale. Policy, Purchase Policy, etc.
Definition of a Consumer under the Consumer Protection 6. Procedure means sequence of routine steps performed in a chronological
Act 2019: A consumer is a person who buys any goods or avails services order to carry out activities. •It details the exact manner in which any work is to
for a consideration, which has been paid or promised, or partly paid and be performed. Example: Procedure for reporting progress in production.
partly promised, or under any scheme of deferred payment. • It includes any 7. Budget is a statement of expected results for a given future period expressed
user of such goods or beneficiary of services with the approval of the buyer. in numerical terms. Examples: Sales budget, Cash budget, etc. Budget is a
• However, any person who obtains goods or avails services for resale or statement of expenses, revenue and income for a specified period. A budget is
commercial purpose is not treated as a consumer. • It applies to both off-line also a control device from which deviations can be taken care of. But making a
and on-line transactions. budget involves forecasting, therefore, it is a fundamental planning instrument.
8. Programme is a detailed statement about a project which outlines the
Who can file a complaint? (i) Any consumer (ii) Any registered consumers’ objectives, policies, procedures, rules, resources required and the budget
association (iii) The Central Government or any State Government(iv) One or more
to implement any course of action.
consumers, on behalf of many consumers having the same interest (v) A legal Examples: Construction of a shopping mall, opening a new department, etc.
representative of a deceased consumer.
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