Introduction
Consumer protection refers to a set of laws, regulations, and practices aimed at safeguarding the rights and interests of consumers when purchasing goods or services. It ensures fair treatment, access to accurate information, and protection against fraudulent or harmful business practices. Key aspects include promoting fair trade practices, ensuring product safety, requiring transparency in business dealings, and enforcing consumer rights such as the right to choose, seek redress, and receive compensation for defective products. Additionally, consumer protection provides mechanisms for dispute resolution, such as complaint filing and mediation, fostering trust and fairness the marketplace.
Importance of consumer Protection
The concept of consumer protection is to safeguard the interest of the consumers. It adopts measures to protect consumers from unethical malpractices by businesses and provide a swift redressal of their grievances with regard to :
- Sale of adulterated goods such as adding inferior substances to the product being sold.
- Sale of counterfeit goods such as selling a product of lesser value than the real product.
- Sale of sub-standard goods such as the sale of products that do not meet the prescribed quality standards.
- Sale of duplicate goods.
- Use of malfunctioning weights and measures that lead to underweight of products.
- Black marketing and hoarding that eventually leads to scarcity of the product and well as a rise in the price of the same.
- Overcharging a product, i.e., charging a product above its Maximum Retail Price.
- Supplying of defective goods.
- Advertisements that are misleading, i.e., advertisements that falsely claim a product or a service to be shown as superior quality, grade or standard when not in real.
- Supply of inferior services, i.e., quality of service lesser than the condition agreed.
Importance of Consumer Protection
The importance of consumer protection from the consumer’s point of view can be understood from the following points:
- 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.
- Unorganised Consumers: Consumers need to be organizes in the form of consumer organisations which would take care of their interests. Though, in India, we do have consumer organisations which are working in this direction, adequate protection is required to be given to consumers till these organisations become powerful enough to protect and promote the interests of consumers.
- Widespread Explotation 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. Consumers need protection against such malpractices of the sellers.
From the point of view of Business
- Long- term Interest of Business: Enlightened businesses realize that it is in their long – term interest to satisfy their customers. Satisfied customers not only lead to repeat sales but also provide good feedback to prospective customers and thus, help in increasing the customer-base of business. Thus, business firms should aim at long-term profit maximization through customer satisfaction.
- 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.
- Social Responsibility: A business has social responsibilities towards various interest groups. Business organisations make money by selling goods and providing services to consumers. Thus, consumers form an important group among the many stake-holders of business and like other stake-holders; their interest has to be well taken care of.
- Moral Justification: It is the moral duty of any business to take care of consumer’s interest and avoid any form of their exploitation. Thus, a business must avoid unscrupulous, exploitative and unfair trade unsafe products, adulteration, false and misleading advertising, hoarding, black marketing, etc.
- Government Intervention: A business engaging in any form of exploitative trade practices would invite government intervention or action. This can impair and tarnish the image of the company. Thus, it is advisable that business organizations voluntarily resort to such practices where the customers’ needs and interests will well be taken care of.
The Consumer Protection Act, 2019
The Consumer protection Act, 2019 seeks to protect and promote the consumers’ interest through speedy and inexpensive redressal of their grievances. It extends to the whole of India. It is applicable to all types of businesses whether a manufacturer or a trader and whether supplying goods or providing services including e-commerce firms. The Act confers certain rights to consumers with a view to empowering them and to protect their interests.
Who is A Consumer?
A ‘consumer’ is generally understood as a person who uses or consumes goods or avails of any service. Under the Consumer Protection Act 2019, a consumer is a person who buys any goods or avails services for a consideration, which has been paid or promised, or partly paid and partly promised, or under any scheme of deferred payment. It includes any user of such goods or beneficiary of services if such use is made with the approval of the buyer. It applies to both offline and online transactions teleshopping or direct selling or multilevel marketing.
Consumer Rights
The Consumer Protection Act 2019 provides for six rights of consumers. These rights include the following:
- Right to Safety: The consumer has a right to be protected against goods and services which are hazardous to life, health and property. For example, electrical appliances which are manufactured with substandard products or do not conform to the safety norms might cause serious injury. Thus, consumers are educated that they should use electrical that they should use electrical appliances which are ISI marked as this would be an assurance of such products meeting quality specifications.
- 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. It is because of this reason that the legal framework in India requires the manufactures to provide such information on the package and label of the product.
- Right to be assured: The consumer has the freedom to access variety of products at competitive prices. This implies that the marketers should offer a wide variety of products in terms of quality, brand, prices, size, etc. and allow the consumer to make a choice from amongst these.
- 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. It is because of this reason that many enlightened business firms have set up their own consumer service and grievance cells. Many consumer organizations are also working towards this direction and helping consumers in redressal of their grievances.
- Right to seek redressal: The consumer has a right to get relief against unfair practice or restrictive trade practices or unscrupulous exploitation in case the product or a service falls short of his expectations. The Consumer Protection Act 2019 provides for redressal to the consumer including replacement of the product, removal of defect in the product, compensation paid for any loss or injury suffered by the consumer, etc.
- 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 about his rights and the reliefs available to him in case of a product or service falling short of his expectations. Many consumer organisations and some enlightened businesses are taking an active part in educating consumers in this respect.
Consumer Responsibilities
The Consumer Protection Act empowers the consumer to fight against any unscrupulous, exploitative and unfair, restrictive trade practices adopted by sellers. Consumer rights, by themselves, cannot be effective in achieving the objective of consumer protection. Consumer protection can, in effect, be achieved only when the consumers also understand their responsibilities.
A consumer should keep in mind the following responsibilities while purchasing, using and consuming goods and services –
- Be aware about various goods and services available in the market so that an intelligent and wise choice can be made.
- Buy only standardized goods as they provide quality assurance. Thus, look for ISI mark on electrical goods, FPO mark on food products, Hallmark on jewelry, etc.
- Learn about the risks associated with products and services, follow manufacturer’s instructions and use the products safely.
- Read labels carefully so as to have information about prices, net weight, manufacturing and expiry dates, etc.
- Assert yourself to ensure that you get a fair deal.
- Be honest in your dealings. Choose only from legal goods and services and discourage unscrupulous practices like black-marketing, hoarding, etc.
- Ask for a cash memo on purchase of goods or services. This would serve as a proof of the purchase made.
- 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.
Ways and Means of Consumer Protection
A consumers’ awareness about their rights and responsibilities is just one of the ways in which the objective of consumer protection can be achieved. There are other ways in which this objective may be achieved.
- Self-regulation by Business: Socially responsible firms follow ethical standards and practices in dealing with their customers Good and ethical practices encourage firms to realize that it is in their long-term interest to serve the customers in a rightful manner. Many firms have set up their customer service and grievance cells to redress the problems and grievances of their consumers.
- Business Associations: The associations of trade, commerce and business like Federation of Indian Chambers of Commerce of India (FICCI) and Confederation of Indian Industries (CII) have laid down their code of conduct which lay down for their members the guidelines in their dealings with the customers.
- Consumer Awareness: A consumer, who is well-informed about his rights and the reliefs available to him, would be in a position to raise his voice against any unfair trade practices or unscrupulous exploitation. In addition to this, an understanding of his responsibilities would also enable a consumer to safeguard his interests. In this regard, the Department of Consumer Affairs, GOI, has been undertaking Jago Grahak Jago compaign, for generating awareness among consumers.
- Consumer Organizations: Consumer organizations paly an important role in educating consumers about their rights and providing protection to them. These organizations can force business firms to avoid malpractices and exploitation of consumers.
- Government: The government can protect the interests of the consumers by enacting various measures. For example, the GOI has set up a toll-free national consumer Helpline Number 1800114000 for this purpose. The legal framework in India encompasses various legislations which provide protection to consumers. The most important of these regulations is the Consumer Protection Act, 2019. The Act provides for a central authority to regulate matters relating to violation of rights of consumers, unfair trade practices and false or misleading advertisements which are prejudicial to the interests of consumers. This is known as Central Consumer Protection Authority (CCPA). A three-tier machinery at the district, state and national levels for redressal of consumer grievances.
Redressal Agencies Under the Consumer Protection Act
For the redressal of consumer grievances, the Consumer Protection Act 2019 provides for setting up of a three-tier enforcement machinery at the District, State, and the National levels, known as the District Consumer Disputes Redressal Commission, State Consumer Disputes Redressal Commission, and the National Consumer Disputes Redressal Commission. They are briefly referred to as the ‘District Commission’, ‘State Commission’, and the ‘National Commission’, respectively. While the National Commission is set up by the Central Government, the State Commissions And the District Forums are set up, by the State Government. The Figure on redressal agencies shows the hierarchical structure of this three-tire machinery.
Let us now see how the consumer grievances are redressed by the three-tire machinery:
- District Commission: District commission has a jurisdiction to entertain complaints where value of goods or services paid as consideration does not exceed one crore rupees. Either on the first hearing or at any later stage, first hearing or at any later stage, it appears to district commission that there exists elements of settlement which may be acceptable to the parties, it may direct them to give their consent for settlement of dispute through mediation within five days. In case the parties agree for settlement by mediation and give written consent, the district commission refers the matter for mediation and the provisions relating to mediation shall apply.
- State Commission: It is established by the respective state government and ordinarily function at the state capital. State Commission has a jurisdiction to entertain complaints where value of goods and services paid as consideration exceeds one crore but does not exceed ten crore rupees. If any of the order of State Commission can appeal against such order to the National Commission within a period of thirty days of such order.
- National Commission: The National Commission has territorial jurisdiction over the whole country. National Commission has a jurisdiction to entertain complaints where value of goods or services paid as consideration exceeds ten crores of rupees. If any of the parties are not satisfied by the order of National Commission can appeal against such order to the Supreme Court of India within a period of thirty days of such order.
Relief Available
Where District or State or National Commission is satisfied about defect in goods, or deficiency in services on any unfair trade practice or claim for compensation under product liability, issues an order:
- To remove the defect in goods or deficiency in service.
- To replace the defective product with a new one, free from any defect.
- To refund the price paid for the product, or the charges paid for the service.
- To pay a reasonable amount of compensation for any loss or injury suffered by the consumer due to the negligence of the opposite party.
- To pay punitive damages in appropriate circumstances.
- To discontinue the unfair/restrictive it in the future.
- Not to offer hazardous goods for sale.
- To withdraw the hazardous goods from sale.
- To cease manufacture of hazardous goods and to desist from offering hazardous services.
- Compensate for any loss or injury suffered by consumer under product liability action and withdraw hazardous products from being offered for sale etc.
However, every order of a district commission, the state commission or the national commission is deemed final if no appeal for such order is made by any of the parties involved in dispute.
Role of Consumer Organizations and NGOs
In India, several consumer organizations and non-governmental organizations (NGOs) have been set up for the protection and promotion of consumers’ interests. Non-governmental organizations are non-profit organizations which aim at promoting the welfare of people. They have a constitution of their own and are free form government interference. Consumer organizations and NGOs perform several functions for the protection and promotion of interest of consumers. These include:
- Educating the general public about consumer rights by organizing training programmes, seminars and workshop.
- Publishing periodicals and other publications to impart knowledge about consumer problems, legal reporting, reliefs available and other matters of interest.
- 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.
- Encouraging consumers to strongly protest and take an action against unscrupulous, exploitative and unfair trade practices of sellers.
- Providing legal assistance to consumers by way of providing aid, legal advice etc. in seeking legal remedy.
- Filing complaints in appropriate consumer courts on behalf of the consumers.
- Taking an initiative in filing cases in consumer courts in the interest of the general public, not por any individual.
- Consumer unity and Trust Society (CuTS), Jaipur.
Very Short Answer Type
- Under which consumer right does a business firm set up consumer grievance cell?
Ans. Under the Right to seek Redressal consumer grievance cell is set up. A consumer has the right to seek redressal and compensation in case of any exploitation. The Consumer Protection Act provides for compensation in various forms such as replacement of product, cash compensation and repair/removal of defects, among others.
2. Which quality certification mark is used for agricultural products?
Ans. Food Process Order FPO Mark is the quality certification mark used for agricultural products.
3. What is the jurisdiction of cases that can be filed in a State Commission?
Ans. State Commission has a jurisdiction to entertain complaints where value of goods and services paid as consideration exceeds ₹1 crore but does not exceed ₹10 crore rupees.
4. State any two relief available to consumers under CPA.
Ans. Relief available under CPA, 2019 are:
(i) To remove the defect in goods or deficiency in service.
(ii) Replacing the defective product with a new one, free from any defect.
5. Name the component of product mix that helps the consumer to exercise the right to information.
Ans. Labelling component of product mix helps a customer exercise his Right to Information as it acknowledged all the mandatory details of the product in the package.
Short Answer Type
- Enumerate the various Acts passed by the Government of India which help in protection of consumers’ interests.
Ans: The Consumer protection Act, 2019 seeks to protect and promote the consumers’ interest through speedy and inexpensive redressal of their grievances. It extends to the whole of India. It is applicable to all types of businesses whether a manufacturer or a trader and whether supplying goods or providing services including e-commerce firms. The Act confers certain rights to consumers with a view to empowering them and to protect their interests.
2. What are the responsibilities of a consumer?
Ans:
The Consumer Protection Act empowers the consumer to fight against any unscrupulous, exploitative and unfair, restrictive trade practices adopted by sellers. Consumer rights, by themselves, cannot be effective in achieving the objective of consumer protection. Consumer protection can, in effect, be achieved only when the consumers also understand their responsibilities.
A consumer should keep in mind the following responsibilities while purchasing, using and consuming goods and services –
- Be aware about various goods and services available in the market so that an intelligent and wise choice can be made.
- Buy only standardized goods as they provide quality assurance. Thus, look for ISI mark on electrical goods, FPO mark on food products, Hallmark on jewelry, etc.
- Learn about the risks associated with products and services, follow manufacturer’s instructions and use the products safely.
- Read labels carefully so as to have information about prices, net weight, manufacturing and expiry dates, etc.
- Assert yourself to ensure that you get a fair deal.
- Be honest in your dealings. Choose only from legal goods and services and discourage unscrupulous practices like black-marketing, hoarding, etc.
- Ask for a cash memo on purchase of goods or services. This would serve as a proof of the purchase made.
- 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.
3. Who can file a complaint in a consumer court?
Ans. A complaint can be made by:
(i) Any consumer.
(ii) Any registered consumer’s association.
(iii) The Central Government or any State Government.
(iv) One or more consumers, on behalf of numerous consumers having the same interest.
(v) A legal heir or representative of a deceased consumer.
4. FSSAI (Food Safety and Standards Authority of India) has made a proposal for hotels and other food outlets to declare the kind of oil/fat used in cooking each of the food items on their menus. Name and explain the Consumer Right being reinforced by this proposal.
Ans. Right to be Informed has been enabled by the FSSAI by proposing to furnish details about the kind of oil used in cooking by food outlet. A consumer has the right to be completely informed regarding the quality, quantity, price, ingredients, weight, etc., of goods and services. In India, it is legally mandatory for manufacturers to provide all the relevant information on the packages and the labels of goods.
5. Who is a consumer as per CPA?
Ans. As per the Consumer Protection Act, a consumer is defined as follows:
(i) Any individual who purchases any good for which he has paid or promised to pay; partly paid and promised to pay the remaining part. That is, it includes all individuals who use the goods with the approval of the seller. However, those individuals who purchase the goods for the purpose of resale or for commercial purposes are not considered as consumers.
(ii) Any individual who avails any service or hires a service for which he has paid or promised to pay; partly paid and promised to pay the remaining part. That is, it includes all individuals who have availed the service with the approval of the seller.
Long Answer Type
- Explain the importance of consumer protection from the point of view of a business.
Ans. A business cannot survive without paying attention on protecting the consumers interest and adequately satisfying them. Hence, consumer protection is important because of the following reasons:
From the point of view of Business
- Long- term Interest of Business: Enlightened businesses realize that it is in their long – term interest to satisfy their customers. Satisfied customers not only lead to repeat sales but also provide good feedback to prospective customers and thus, help in increasing the customer-base of business. Thus, business firms should aim at long-term profit maximization through customer satisfaction.
- 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.
- Social Responsibility: A business has social responsibilities towards various interest groups. Business organisations make money by selling goods and providing services to consumers. Thus, consumers form an important group among the many stake-holders of business and like other stake-holders, their interest has to be well taken care of.
- Moral Justification: It is the moral duty of any business to take care of consumer’s interest and avoid any form of their exploitation. Thus, a business must avoid unscrupulous, exploitative and unfair trade unsafe products, adulteration, false and misleading advertising, hoarding, black marketing, etc.
- Government Intervention: A business engaging in any form of exploitative trade practices would invite government intervention or action. This can impair and tarnish the image of the company. Thus, it is advisable that business organizations voluntarily resort to such practices where the customers’ needs and interests will well be taken care of.
2. Explain the rights and responsibilities of consumer?
Ans.: Rights
The Consumer Protection Act 2019 provides for six rights of consumers. These rights include the following:
- Right to Safety: The consumer has a right to be protected against goods and services which are hazardous to life, health and property. For example, electrical appliances which are manufactured with substandard products or do not conform to the safety norms might cause serious injury. Thus, consumers are educated that they should use electrical that they should use electrical appliances which are ISI marked as this would be an assurance of such products meeting quality specifications.
- 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. It is because of this reason that the legal framework in India requires the manufactures to provide such information on the package and label of the product.
- Right to be assured: The consumer has the freedom to access variety of products at competitive prices. This implies that the marketers should offer a wide variety of products in terms of quality, brand, prices, size, etc. and allow the consumer to make a choice from amongst these.
- 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. It is because of this reason that many enlightened business firms have set up their own consumer service and grievance cells. Many consumer organizations are also working towards this direction and helping consumers in redressal of their grievances.
- Right to seek redressal: The consumer has a right to get relief against unfair practice or restrictive trade practices or unscrupulous exploitation in case the product or a service falls short of his expectations. The Consumer Protection Act 2019 provides for redressal to the consumer including replacement of the product, removal of defect in the product, compensation paid for any loss or injury suffered by the consumer, etc.
- 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 about his rights and the reliefs available to him in case of a product or service falling short of his expectations. Many consumer organisations and some enlightened businesses are taking an active part in educating consumers in this respect.
Consumer Responsibilities
The Consumer Protection Act empowers the consumer to fight against any unscrupulous, exploitative and unfair, restrictive trade practices adopted by sellers. Consumer rights, by themselves, cannot be effective in achieving the objective of consumer protection. Consumer protection can, in effect, be achieved only when the consumers also understand their responsibilities.
A consumer should keep in mind the following responsibilities while purchasing, using and consuming goods and services
- Be aware about various goods and services available in the market so that an intelligent and wise choice can be made.
- Buy only standardized goods as they provide quality assurance. Thus, look for ISI mark on electrical goods, FPO mark on food products, Hallmark on jewelry, etc.
- Learn about the risks associated with products and services, follow manufacturer’s instructions and use the products safely.
- Read labels carefully so as to have information about prices, net weight, manufacturing and expiry dates, etc.
- Assert yourself to ensure that you get a fair deal.
- Be honest in your dealings. Choose only from legal goods and services and discourage unscrupulous practices like black-marketing, hoarding, etc.
- Ask for a cash memo on purchase of goods or services. This would serve as a proof of the purchase made.
- 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.
3. What are various ways in which the objective of consumer protection can be achieved?
Ans.: A consumers’ awareness about their rights and responsibilities is just one of the ways in which the objective of consumer protection can be achieved. There are other ways in which this objective may be achieved.
- Self-regulation by Business: Socially responsible firms follow ethical standards and practices in dealing with their customers Good and ethical practices encourage firms to realize that it is in their long-term interest to serve the customers in a rightful manner. Many firms have set up their customer service and grievance cells to redress the problems and grievances of their consumers.
- Business Associations: The associations of trade, commerce and business like Federation of Indian Chambers of Commerce of India (FICCI) and Confederation of Indian Industries (CII) have laid down their code of conduct which lay down for their members the guidelines in their dealings with the customers.
- Consumer Awareness: A consumer, who is well-informed about his rights and the reliefs available to him, would be in a position to raise his voice against any unfair trade practices or unscrupulous exploitation. In addition to this, an understanding of his responsibilities would also enable a consumer to safeguard his interests. In this regard, the Department of Consumer Affairs, GOI, has been undertaking Jago Grahak Jago compaign, for generating awareness among consumers.
- Consumer Organizations: Consumer organizations paly an important role in educating consumers about their rights and providing protection to them. These organizations can force business firms to avoid malpractices and exploitation of consumers.
- Government: The government can protect the interests of the consumers by enacting various measures. For example, the GOI has set up a toll-free national consumer Helpline Number 1800114000 for this purpose. The legal framework in India encompasses various legislations which provide protection to consumers. The most important of these regulations is the Consumer Protection Act, 2019. The Act provides for a central authority to regulate matters relating to violation of rights of consumers, unfair trade practices and false or misleading advertisements which are prejudicial to the interests of consumers. This is known as Central Consumer Protection Authority (CCPA). A three-tier machinery at the district, state and national levels for Redressal of consumer grievances.
Role of Consumer Organisations and NGOs: Consumer organisation and NGOs perform several functions for the protection and promotion of interest of consumers. In India, these associations are performing lots of functions. Some of them are:
(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. exploitation and unfair trade practices of sellers.
(v) Providing legal assistance to consumers by 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 court in the interest of the general public, not for any individual.
4. Explain the redressal mechanism available to consumers under the Consumer Protection Act,2019
Ans. Under the Consumer Protection Act, a three-tier machinery has been set for the redressal of consumer grievances and complaints. The machinery works at the District level, State level and National level and are known as District Consumer Dispute Redressal Forum (or District Forum), State Consumer Dispute Redressal Commission (State Commission) and National Consumer Dispute Redressal Commission (National Commission) respectively.
The following is a brief explanation of the machinery under the Consumer Protection Act.
- District Commission: District commission has a jurisdiction to entertain complaints where value of goods or services paid as consideration does not exceed one crore rupees. Either on the first hearing or at any later stage, first hearing or at any later stage, it appears to district commission that there exists elements of settlement which may be acceptable to the parties, it may direct them to give their consent for settlement of dispute through mediation within five days. In case the parties agree for settlement by mediation and give written consent, the district commission refers the matter for mediation and the provisions relating to mediation shall apply.
- State Commission: It is established by the respective state government and ordinarily function at the state capital. State Commission has a jurisdiction to entertain complaints where value of goods and services paid as consideration exceeds one crore but does not exceed ten crore rupees. If any of the order of State Commission can appeal against such order to the National Commission within a period of thirty days of such order.
- National Commission: The National Commission has territorial jurisdiction over the whole country. National Commission has a jurisdiction to entertain complaints where value of goods or services paid as consideration exceeds ten crores of rupees. If any of the parties are not satisfied by the order of National Commission can appeal against such order to the Supreme Court of India within a period of thirty days of such order.
5. Explain the role of consumer organizations and NGOs in protecting and promoting consumer’s interest.
Ans.: In India, several consumer organizations and non-governmental organizations (NGOs) have been set up for the protection and promotion of consumers’ interests. Non-governmental organizations are non-profit organizations which aim at promoting the welfare of people. They have a constitution of their own and are free form government interference. Consumer organizations and NGOs perform several functions for the protection and promotion of interest of consumers. These include:
The following are the functions performed by these organisations in regard of safeguarding the interest of the consumers:
(i) Consumer Education: The NGOs and consumer organisations educate the consumer about their rights through various training programmes and workshops.
(ii) Publishing Journals: They publish journals and periodicals to spread knowledge and awareness about various consumer problems, legal remedies available and other such matters.
(iii) Legal Assistance: They also provide legal assistance to the consumers and help them in seeking suitable redressal.
(iv) Encouraging Protest against Exploitation: They encourage the consumers to protest against any form of exploitation and unfair trade practices.
(v) Assistance in Filing Complaints: They encourage the consumers to file complaints in appropriate forums and also file complaints on their behalf.
(vi) Taking Initiatives: They not only encourage the consumers to register complaints but also take initiatives themselves in filing cases in the general interest of the public.
(vii) Testing Quality of the Products: They carry out the quality tests for various products in laboratories and publish the results.
6. Mrs. Mathur sent a jacket to a laundry shop in January 2018. The jacket was purchased at a price of 4,500. She had previously sent the jacket for dry cleaning with Shine Dry Cleaners and the jacket was cleaned well. However, she noticed that her jacket had white discoloration marks when she collected the jacket this time. On informing the dry cleaner, Mrs. Mathur received a letter confirming that discoloration indeed appeared after the jacket was dry cleaned. She contacted the dry cleaner multiple times and requested for compensation for discolored jacket but to no avail.
Upon Consumer court’s intervention, Shine Dry Cleaners agreed to compensate Rs. 2,500 to Mrs. Mathur for the discoloured jacket.
- Which right was exercised by Mrs. Mathur at the first instance.
- Name and explain the right which helped Mrs. Mathur to avail the compensation.
- State which consumer responsibility has been fulfilled by Mrs. Mathur in the above case.
- State any other two responsibilities to be assumed by the consumers.
Ans. (a) Right to be Heard was exercised by Mrs. Mathur on first instance. In case of any grievance or dissatisfaction, a consumer has the right to file a complaint under appropriate forums established by the government.
(b) Right to Seek Redressal enabled Mrs. Mathur to seek compensation. A consumer has the right to seek redressal and compensation in case of any exploitation. The Consumer Protection Act provides for compensation in various forms such as replacement of product, cash compensation and repair/removal of defects, among others.
(c) Yes, Mrs. Mathur was responsible consumer as she checked the jacket pre and post dry cleaning. She also complained the Dry Cleaners before moving to the court.
(d) The following are some of the responsibilities that a consumer must fulfil:
- Awareness: A consumer should be well aware of the availability of various goods and services in the market so that he can choose carefully and wisely.
- Look for Quality Marks: Before buying a product, a consumer must always look for the quality certification marks, such as ISI in case of electrical goods , AGMARK in case of agricultural goods, etc.
7. Explain the role of consumer organizations and NGOs in protecting and promoting consumers’ interest.
Ans. Consumer organisation and NGOs perform several functions for the protection and promotion of interest of consumers. In India, these associations are performing lots of functions, some of them are:
(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 exploitation and unfair trade practices of sellers.
(v) Providing legal assistance to consumers by 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 court in the interest of the general public, not for any individual.