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8/12/2019 03 Ethics of Consumer Protection
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Who is a Consumer
Any person who
Buys goods for a consideration which has been fully
or partially paid for, with a purpose that does not
include resale or any commercial purpose except self-employment
Hires or avails of any services for a consideration
which has been fully or partially paid for, with a
purpose that does not include free service or servicesunder a personal contract
Consumer protection refers to steps that are
necessary to protect the consumer from
business malpractices
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Parties to Consumer
Protection
Three interested parties consumers,
businesspersons and government
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Role of Consumers
Should take care of their own interests
Should know their rights and exercise them
Should not depend on business persons Have a right to be educated and to be heard
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Role of Business Persons
Should pay attention to consumer rights
Must supply quality goods and services at
reasonable prices Business associations should entertain
consumer complaints against members
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Role of Government
Should formulate laws and enforce
Should include consumer groups in policy
making
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UN Guidelines for
Governments
Ensure efficient distribution especially in rural
areas
Encourage consumer cooperatives
Ensure effective grievance redressal
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History of Consumer
Protection
In the 1920s there was a crack down on
exaggerated advertising claims
In 1960s Ralph Nader led the consumer
movement in the US
Consumers are helpless because they lack
information and awareness
Information such as expiry dates, nutritional
facts, etc. address this problem
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Consumer Legislations
Competition Act
Essential Commodities Act
Prevention of Food Adulteration Act Prevention of Black Marketing and
Maintenance of Supplies of Essential
Commodities Ac
Sale of Goods Act
Patent and Designs Act
Drugs and Cosmetics Act, etc.
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Consumer Protection Act
(COPRA)
Provides right to seek legal redress or
recover costs and damages for injury or loss
resulting from faulty or defective goods and
services bought for valuable consideration
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6 Consumer Rights under
COPRA
Right to safety
Right to be informed about quality, quantity,
potency, purity, standard and price
Right to choose and have access to a variety
of products at competitive prices
Right to be heard and to be assured that
grievances will receive due consideration
Right to seek redressal from unfair trade
practices
Right to consumer education
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Authorities under COPRA
District Forums established by State
Governments
State Commission established by State
Governments
National Commission established by Central
Government
Appeals go from district to state to national
commission
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The End