CONSUMER PROTECTION

INTRODUCTION TO CONSUMER PROTECTION

Protect consumers from exploitation and unfair marketplace practices, to promote and advance the social and economic welfare of consumers, to empower consumers and to develop a culture of consumer responsibility.

Consumer protection consists of laws and organizations designed to ensure the rights of consumers as well as fair trade competition and the free flow of truthful information in the marketplace.

HOW THE ACT WAS ENACTED

The act was passed in Lok Sabha on9thDecember,1986

Rajya Sabha on 10th December, 1986 assented by the President of India on 24th

December, 1986 and was published in the Gazette of India on 26th

December, 1986.

WHO IS THE “CONSUMER”?

Original definition limited to purchases for “personal consumption”

A person who has indicated his or her willingness to obtain goods and/or services from a supplier with the intention of paying for them.

CONSUMER RIGHTS

Right to safety Right to information Right to choose Right to heard

WHO IS RESPONSIBLE FOR CONSUMER PROTECTION

Government agenciesMinistry of Commerce,

Investment and Consumer AffairsProfessional/Industry associations

Consumer organizations

Functions of a consumer protection agency

Advise the government on consumer issues Represent the consumer interest in other governmental committees Enforce consumer protection and competition law Conduct market surveys and research into consumer protection problems Conduct product testing for safety and quality

ROLE OF CONSUMER

Consumers obtain optimum benefit from their economic resourcesEnsuring that goods meet production and performance standardsAdequate distribution channels and after sales servicesFair business practices are employedProtection against contractual abusesInformation is adequate for consumers to make informed decisions and exercise choice

CONSUMER PROTECTION AND BASIC NEEDS

Consumer education The provision of utilities Food Health care delivery Sustainable consumption

STANDARDS FOR SAFETY AND QUALITY OF GOODS AND SERVICES

Ensure there are national standards for safety and quality of goods and services

Such standards conform to international standards

Facilities to test and certify goods and services are encouraged

WHAT IS A COMPLAINT“Complaint” means any allegation inwriting made my a compliant that :I. An unfair trade practice or a restrictive trade practice has

been adopted by any trader or service provider; II. The goods bought by him or agreed to be bought by him

suffer from one or more defects ;III. The services hired or availed of or agreed to be hired or

availed off by him suffer from deficiency in any respect;

CONSUMER ORGANIZATIONS Need for an independent party that is non-political and

non-commercial Need for views of the under-represented and

vulnerable groups Some have wide membership and broad spectrum of

concerns Democracy involves participatory decision-making ;

consultation with these groups is part of the nation-building process

CONSUMER CONCERNS WITHMISLEADING ADVERTISING

Ads for products proven to be unsafe and/or addictive (e.g., alcohol and tobacco)

Ads that target and mislead vulnerable communities about the product

Ads that aggressively target children to consumer foods high in fat, sugar and salt

Ads for products that contain toxic or cancer-causing chemicals for which there is no scientific proof of safety levels (e.g., pesticides, aspartame, etc.)

CONSUMERS ARE ENCOURAGED TO AVOID PRODUCTS THAT

Cause environmental degradation during the extraction of natural resources or during their manufacture, use and disposal

Utilize large amounts of energy during their manufacture, use or disposal

Cause unnecessary waste, due to over-packaging or unduly short life span

Utilize materials derived from threatened species or environmentsAdversely affect other countries and communities, especially those

in the South

ROLE OF (CGSI) IN CONSUMER PROTECTION

Formation of consumer group Placing consumer problem before businessmen and

government Solving the complaint of consumer through peaceful Encourage the consumer to fight in courts.

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JURISDICTION Forum / Commission Where the value of the goods or

services and the compensation, if any claimed,

District Forum Does not exceed Rs. 20 lakhs

State Commission Rs. 20 lakhs and above but not exceeding One Crore

National Commission Above One Crore

Besides, State and National Commission have appellate jurisdiction also.

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APPEAL

shall be filed within thirty days.

Delay in filing appeal may be condoned if there is sufficient cause.

SLOW GROWTH OF CONSUMER PROTECTION ACT

Illiteracy/poverty Lack of alertness among consumer Ignorance Inadequate government support Existing consumer association do not operate

efficiently.

EDUCATION AND INFORMATION PROGRAMS

Should involve consumer and business groups Particular attention to disadvantaged consumers in

urban and rural areas Should be included in school curriculum Training programs for educators, mass media

professionals and consumer advocates

LEADING CONSUMER ASSOCIATION Consumer education and research centre(cerc) Akhil bhartiya grahak panchayat (pune) Consumer council of India Consumer unity trust and services(cuts) Consumer guidance society of India(CGSI)