Professional Documents
Culture Documents
Explain briefly the meaning of “consumer” with reference to Consumer Protection Act 1986 - 2 marks
One who uses the goods or hired services with the approval of the buyer or hirer of the service.
The Act applies to all goods and services unless specially exempted by Union Government
It enshrines all consumers rights - to choose, to be heard, to be informed, to safety, education and
redressal (CHISER)
These anti trade include adulteration, sub standard quality, overcharging, making misleading claims in
advertisements, etc
The essence of consumer protection is curbing such practices through legislative and other measures
We are a secular country and growth with social justice is the cornerstone of our economic
philosophy. Exploitation of consumers is against the directive principles of State Policy laid down in our
Indian Constitution.
Business works for all stakeholders – consumers, shareholders, employees, government, and the
public. It is both a social and economic institution. Therefore it cannot just make profit by ignoring the
interest of the society. For the survival and growth of business it must work for the interest of the
stakeholders in general and consumers in particular.
Power Centre:
Business has considerable influence over society and government. Therefore it has to set standards
regarding food, dress habits, living styles, etc which will not damage the cause of society and serve the
interest of a few persons only.
Self interest:
Due to liberalization and globalization, firms have to compete with multinationals. Unless they
become customer oriented and provide right quality, quantity and price they cannot satisfy a customer
and without customer satisfaction no business can survive for long and will be out beaten by
competition from multinationals.
Moreover, Government has enacted laws to protect the interest of the consumers. Hence if a firm
violates the laws they are likely to lose their goodwill and clients permanently.
Ethical obligations:
Firms that adapt ethical values, attain glories in the business world. Business without ethical values is
nothing but a criminal activity and no civil society will tolerate a business without ethical values for long.
It refers to the right to be protected against products, production processes and services
which are hazardous to health or life. It includes concern for consumers immediate and long
term needs.
Consumers have a right to be informed about the quality, quantity, potency, purity, standard
and price of goods or services so that they can make the right decision and protect themselves
against malpractices.
The consumer has the right to be assured of a choice of various goods and services of
satisfactory quality and competitive price.
Right to representation (or right to be heard)
It is a right and the responsibility of civil society to ensure consumer interest prevails while
formulating and executing policies which affect the consumers, as well as right to be heard
while developing or producing a product or service.
The consumer has the right go to court if he has been unscrupulously exploited against unfair
or restrictive trade practices and receive compensation for supply of unsatisfactory or shoddy
goods.
It is the right to acquire knowledge and skills to be an informed consumer because it is easier
for the literate to know their rights and to take actions to influence factors that affect
consumer’s decisions. The Union and State Governments have accepted the introduction of
consumer education in school curriculum.
It is the right to receive the eight basic necessities that are required to survive and lead a
dignified life. These eight basic necessities include food, clothing, shelter, health care,
sanitation, education, energy and transportation.
Mr. Soni a consumer purchased medicines without noticing the date of expiry.
He also did not obtain the cash memo. Do you think he will be able to protect
himself by the loss caused due to expired medicine? Give reasons to support
your answer. – 4 marks
No, Mr. Soni cannot protect himself from the above loss due to the following
reasons:
He should have been a cautious consumer and should have thoroughly examined
the product including the expiry date of the medicine before purchasing it and not
depended on the seller.
He should have insisted on a cash memo, which is required as proof that he
has purchased the medicine from that particular trader, failing which he cannot
sue for compensation.
Explain any six ways and means of consumer protection followed in
India – 6 marks
The following are some of the ways and means of consumer protection followed in India:
Lok Adalats: How do Lok Adalat & publicity measures help in protecting the consumer?
The Consumer can approach the Adalat with his grievance. The issue is discussed and
decision is taken on the spot. This saves time and money
Lok Adalat has become a speedy, effective and economical redressal system.
Indian Railways, Delhi Transport Corp, Delhi Development Authority, Delhi Vidhyut Board,
etc hold Lok Adalat from time to time to sort out problems faced by users.
Publicity Measures: How do Lok Adalat & publicity measures help in protecting the
consumer?
15th March is celebrated as World Consumer Right Day all over the world ever year.
In 1995 this day was organized at Vigyan Bhawan, New Delhi.
In addition, the Ministry with the help of DAVP undertook a massive outdoor publicity
program such as displaying hoardings, banners, bus panels, etc.
Telecasting on consumer protection is also done by Doordarshan on a fortnightly basis.
Public Interest Litigations: (Under what circumstances can a public interest litigation be
filed?
The Indian legal system does not provide legal services to large segments of the population
such as the poor, environmentalists, consumers, minorities, etc. Thus the Public Interest
Litigations legally represents such groups with the result that any individual or organization can
approach the court for remedial action for effective implementation of the law, environmental
protection or any other social evils like bonded labour, etc.
Under the Consumer Protection Act 1986 a judicial machinery such as the District Forums,
State and National Commissions have been set up to provide speedy, effective and economical
redressal of consumer grievances and disputes.
To encourage consumers and youths to participate in the field of consumer protection, every
year the Union Ministry gives two national awards – National Award on Consumer Protection
and National Youth Award on Consumer Protection. The Ministry also gives a National Woman
Award to involve women in outstanding work in the field of consumer protection.
The Revenue Department of the Union Ministry of Finance has passed the Central excise and
Customs laws (Amendment) Act 1991. According to this Act, a consumer welfare fund is created
and the excess amount of excise/custom duties which is not refundable to manufacturers or
importers is credited into this fund and used for:
What type of judicial machinery is there to deal with consumer grievances and
disputes?
The Act further provides that the consumer can approach the following 3-tier judicial
machinery depending upon the amount of loss involved
District Forum
State Commission
if loss is between Rs.20 lakhs to Rs 1 crore
National Commission
if loss is more than Rs. 1 crore
The complaint must be disposed off as speedily as possible within 3 months or within 5
months if testing or analysis of goods is required to be done.
The consumer has the right to file an appeal within 30 days with the next higher forum if he
feels justice has not be done to him.
The prescribed fee to file an appeal is as follows:
State Commission - 50% of the amount payable or Rs. 25,000 whichever is less
National Commission – 50% of the amount payable or 35 % whichever is less
Replacement of goods
Discontinuation of unfair or restricted trade practices
Price refund
Withdrawal/discontinue the sale of hazardous goods
Compensation against loss or injury
Paying adequate cost to parties
Removal of service deficiency