UNIT 12 CONSUMER PROTECTION ACT 1986/2019

CONCEPT & IMPORTANCE OF CONSUMER PROTECTION

Q1- What do you meant by Consumer Protection? Discuss its importance.
Ans: Protecting consumers from unfair trade practices, adopted by the producers and 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. Generally consumers are explaited by (1) Adulteration (2) Poor quality etc.

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 of view of Business)

Traditional Approach Caveat Emptor (Let the buyer beware)
Modern Approach Caveat Venditor (Let the seller beware)
Market–Consumer=Zero
1. Long term Business Interest: It is always in the interest of the business to keep its customer satisfied. Global
competition could be won 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 and misleading advertising,
hoardings, black marketing etc.
3. Business uses resources of society: 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 owners, 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 takes action
against it, which adversely affects its goodwill.

CONSUMER PROTECTION ACT 2019: MEANING OF CONSUMER, RIGHTS AND RESPONSIBILITIES OF CONSUMERS, WHO
CAN FILE COMPLAINT?

Q2- Explain the salient features and provisions of Consumer Protection Act, 1986? Or
Q- What do you mean by Consumer? Or
Q- Define Consumer Protection as per CPA-1986?
Q- Who Can File A Complaint Under CPA, 1986?
Q- Against whom can a complaint be filed?
Ans:
THE SALIENT FEATURES AND PROVISIONS OF CONSUMER PROTECTION ACT, 1986 :
I-. MEANING OF CONSUMER:
Consumer Protection Act 1986 was introduced to make consumers aware about their rights and to give them legal
protection. According to it consumer is defined as follows.
1. Any person who buys any goods for a consideration. It includes any user of such goods with the approval of the
buyer. But it does not include a person who obtains goods for resale or any commercial purpose.
2. Any person who avails any services for a consideration. It includes any beneficiary of such services but it does not
include a person who avails such service for any commercial purpose.
II-. MEANING OF CONSUMER PROTECTION:
CPA, 1986 defines consumer protection as
1. To protect and promote the interest of consumers by recognising consumer’s rights such as right to safety, right to
be informed, right to choose, right to be heard, right to seek redressal and right to consumer education.
2. To provide for a simple, speedy and inexpensive redressal of consumer grievances by setting a 3-Tier enforcement
machinery
III-. WHO CAN FILE A COMPLAINT?:
Under CPA, 1986 A complaint before the appropriate consumer forum can be made by:
1. Any consumer.
2. Any registered consumer association.
3. The central or state government.
4. One or more consumers on behalf of numerous consumers having same interest.
5. A legal heir or representative of a deceased consumer.

IV-. AGAINST WHOM CAN A COMPLAINT BE FILED?:

Consumer Protection Act, 1986 is applicable to all types of undertakings, whether big or small, private or public, or in
co-operative sector, manufacturer or a trader, wholesaler or retailer, supplying goods or providing services. Thus, a
complaint can be filed against:
1. The seller, manufacturer or dealer of defective goods. Defect means any fault, imperfection or shortcoming in the
quality, quantity or purity of goods.
2. The provider of services if they are deficient in any manner. Deficiency means any imperfection, shortcoming or
inadequacy in the quality, nature and manner of performance of services.

Q3- Explain the Rights of a Consumer as per Consumer Protection Act, 1986?
Ans:RIGHTS OF A CONSUMER:
Consumer Protection Act, 1986 has provided six rights to the consumers, 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 electronic devices.
2. Right to be Informed: Consumer has right to have complete information about the product before buying it.
Manufacturing Date (20th Aug., 2016) Price (Rs. 35) Quantity (330 ml) Expiry Date (Best before Jan., 2017)
3. Right to choose: Consumer has a right to choose any product out of the available products as per his own decision
making.
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 or compensation for any loss.
Various redressal forums are set up by the Govt. at National and State level.
6. Right to consumer education: Consumer has the right to acquire knowledge and to be well informed throughout
life. He should be made aware of his rights and reliefs available to him in case of the product or service falls short of
his expectations. The Govt. of India has included consumer education in
the school curriculum & is making use of media to make consumers aware of their rights. Responsibilities/Duties of a
Consumer 1. Consumer must exercise his rights:Consumers must be aware of their rights with regard to the products
or services they buy from the market. 2. Consumer must be a Cautious consumer:While buying a product or services, a
consumer should read labels carefully. 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 is required to
file a complaint. 5. Consumer must be 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. 7. Consumer must exercise
his legal right. If any of these rights is violated by manufacturer or seller, the consumers must file a complaint with the
legal machinery constituted under CPA, 1986.
REDRESSAL MACHINERY
REDRESSAL AGENCIES UNDER CONSUMER PROTECT ACT, 1986 For the redressal of consumer grievances the act
provides a three–tier machinery as
Direct Appeal Direct Appeal Direct Appea National Commission (More than 1 crore) State Commission (More than 20
Lakhs to 1 crore) District Forum (upto 20 lakhs)

REMEDIES AVAILABLE
REMEDIES AVAILABLE TO CONSUMERS 1. To remove the defect in goods or services. 2. To replace the defective
product with new one free from defect. 3. To refund the price paid for the product/service. 4. To pay compensation
for the loss or injury suffered by the consumer due to product/service. 5. To discontinue the unfair trade practice and
not to repeat them. 6. To withdraw the hazardous goods from sale. 7. To pay any amount (not less than 5% of value of
defective goods) to any person, consumer organisation. 8. To issue corrective advertisement to neutralise the effect of
a misleading advertisement. Some important consumer organization and NGO’s engaged in protecting consumer
interests are: 1. Consumer coordination council, Delhi. 2. Voluntary organisation in Interest of Consumer Education,
Delhi. 3. Mumbai Grahak Panchayat, Mumbai. 4. Consumer Association, Kolkata. CGSI 5. Consumer Unity and Trust
Society Jaipur.
CONSUMER AWARENESS- ROLE OF CONSUMER ORGANISATIONS & NON-GOVT. ORG. (NGO)
Role of Consumer organisations and NGO’s 1. Educating the general pubic about consumer rights by organising
training programmes, seminars and workshops. 2. Publishing periodical & other publications to educate consumers. 3.
Providing legal assistance to consumers by providing legal advice etc. 4. Producing films or cassettes on food
adulteration, misuse of drugs etc. 5. Filing complaints in appropriate consumer courts on behalf of consumers. 6.
Encouraging consumers to take on action against unfair trade practices. 7. Taking an initiative in filing cases in
consumer courts on behalf of consumers. Scope of Consumer Protection Act The Act applies to all goods and services
of any kind other than for commercial purposes provided by any sector - private, public or co-operative. It also covers
public utility services. Any ultimate consumer or registered association of consumers, state and central government
can file a complaint under the Act. Complain can be filed either personally or by post. There is no fee for filing a
complaint The complaint may relate to defect in the goods, deficiency in service, price variation and unfair trade
practice. Ways and Means of Consumer Protection 1. Government:Protects the interest of consumers by enacting
various legislations like CPA, 1986, Sale of Goods Act 1930, Bureau of Indian Standard 1986 etc. Consumer Protection
Act provides for a three-tier machinery at the district, state & national level for speedy & inexpensive redressal of
consumer grievances. 2. Consumer Organisation:Force business firms to avoid mal practices & exploitation of
consumers. 3. Business Association:The associations of trade, Commerce & business like federation of Indian
Chambers of Commerce (FICCI), Confederation of Indian Industries (CII) have laid down their code of conduct for their
members in their dealings with the customers.