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