This Photo by Unknown Author is licensed under CC BY-NC

CONSUMER
PROTECTION
 Traditional Approach – Caveat Emptor – Let the buyer beware.
 Modern Approach – Caveat Venditor – Let the seller beware.
 In order to protect consumers from unfair practices of sellers,
Consumer Protection Act,1986 was introduced. The Act has been
revised in 2019 with the aim to protect the consumers’ interest
through speedy and inexpensive redressal of grievances of the
consumers.
 The Act provides certain rights and responsibilities to consumers
with a view to empower them and to protect their interests.
 Who is a Consumer ?

A person who hires or avails of

A person who buys any goods any services, for consideration,
for a consideration, which has which has been paid or
been paid or promised or partly promised or partly paid and
paid and partly promised or partly promised or under any
under any system of deferred deferred system of payment.
payment. Example : If a person For example – A person is a
buys a car in cash or under consumer if he has hired a taxi
finance scheme, he is a from a tourist company to visit
customer. It also includes any some place. It also includes any
user of this product if the use beneficiary of such services, if
has been approved by the the beneficiary is using this
buyer. service with approval of the
hirer.
 Who is not a
Consumer ?
Thus,
consumer is a
person who is
Who obtains buying goods
goods for or services to
A person who resale or any satisfy his or
gets goods commercial her own
free of charge. purpose needs.

Who avails Who avails

services free services for
of charge any
commercial
purpose
 CONSUMER RIGHTS

For example – So the consumers are

According to this electrical appliances educated that they
right, a consumer has which are must buy electrical Before purchasing,
a right to be protected manufactured with appliances with ISI customer must insist
Right to Safety – against goods and substandard products mark as this mark on quality of the
services which are or do not conform to gives an assurance of product as wellas
hazardous to life, the safety norms, such products guarantee of product.
health and property. might cause serious meeting quality
injury. specifications.
 2. Right to be Informed

 Consumer has a right to have complete information about the

product he intends to buy, including its ingredients, date of
manufacturing, price, quantity, how to use etc.
 In India, producers are under legal obligation to provide all the
necessary information on the package and label of the product.
 Such information protects the consumer from deceptive
advertising, misleading labelling etc.

This Photo by Unknown Author is licensed under CC BY-NC

3. RIGHT TO CHOOSE/ RIGHT TO
BE ASSURED
 According to this right, every consumer has the right to choose
from a variety of goods and services at competitive prices.
 This principle basically implies that the marketer should offer
wide variety of products in terms of quality, brand, price and size
etc. and consumer must have full freedom to make a choice from
these products.
 Marketer cannot force the buyer to buy a particular brand.
 4. Right to be Heard

 According to this right, if a consumer is not satisfied with a

product or service, he or she can express his observations,
opinions and complaints in an appropriate forum.
 Many firms have set up their own consumer service and
grievance cells.
 Many Consumer organizations also work in this direction and help
consumers in redressal of their grievances.
 5. Right to seek Redressal

 According to this right, consumer has a right to get relief in case

the product or service falls short of his expectations.
 Consumer Protection Act provides a number of reliefs to the
consumers including replacement of the product, removal of
defects in the product, compensation if any loss or injury is faced
by the consumer.

This Photo by Unknown Author is licensed under CC BY-SA-NC

 6. Right to Consumer Education
According to this right, consumer has the right to
acquire knowledge and skills to be an informed
consumer.
Consumer must be aware of his rights and reliefs.
Many consumer organizations are taking an active
part in educating consumers.
Government also organizes several campaigns
time to time for consumer education.
This Photo by Unknown Author is licensed under CC BY
 RESPONSIBILITIES OF A
CONSUMER
1. Consumer must exercise his rights.
2. Quality Conscious
3. Read labels carefully.
4. Ask for cash memo
5. Use the product safely.
6. Beware of false advertisement
7. Respect the environment
8. Form Consumer Organizations
9. Fair Deal
10. File a complaint
SYMBOLS FOR QUALITY
ASSURANCE
1. ELECTRICAL
APPLIANCES

This Photo by Unknown

Author is licensed under
CC BY-SA
2. FOOD PRODUCTS
3. GOLD JEWELLERY: HALLMARK
4. AGRICULTURAL PRODUCTS: AGMARK
5. ENVIRONMENT FRIENDLY
PRODUCTS : ECOMARK
 Who can file a complaint?

A Consumer
 Any registered Consumer Association
 Central Government or any State Government
 Oneor more consumers on behalf of numerous
consumers having the same interest.
A legal heir or representative of a deceased
consumer.
Against whom a complaint can be
filed?
 Seller,manufacturer or dealer of goods which
are defective. Defect means any fault,
imperfection or shortcoming in the quality,
quantity or purity of goods.
 The provider of services if these services are
deficient in any manner. Deficiency means any
imperfection, shortcoming or inadequacy in
quality, nature or manner of performance of
services.
 1. DISTRICT FORUM
 State Government can set one or more district forums in a district.
 It consists of a President and two other members, one of whom should be a
woman.
 A consumer can make a complaint to District Forum when value of goods or
services and compensation claimed does not exceed ₹1 crore
 On receiving the complaint, District Forum refers the complaint to the party
against whom complaint has been made.
 If required, goods or a sample can be sent to laboratory for testing.
 After getting the laboratory report and hearing the other party, District
Forum will pass the order.
 If aggrieved party is not satisfied, it can appeal in State Commission within
45 days.
 2. STATE COMMISSION
 Consists of a President and at least FOUR other members above the age of
35 years, one of whom should be a woman.
 They are appointed by concerned State Government.
 A consumer can file a case here if compensation claimed exceeds ₹1 crore
but less than ₹10 crore. The appeals against the orders of District Forum
can also be filed here.
 On receiving the complaint, State Commission refers the complaint to the
party against whom complaint has been made.
 If required, goods or a sample can be sent to laboratory for testing.
 After getting the laboratory report and hearing the other party, State
Commission will pass the order.
 If aggrieved party is not satisfied, it can appeal in National Commission
within 30 days of passing of order.
 3. NATIONAL COMMISSION
 Consists of a President and at least four other members, one of whom
should be a woman.
 They are appointed by Central Government.
 A consumer can file a case here if compensation claimed exceeds ₹10
crore. The appeals against the orders of State Commission can also be filed
here.
 On receiving the complaint, National Commission refers the complaint to
the party against whom complaint has been made.
 If required, goods or a sample can be sent to laboratory for testing.
 After getting the laboratory report and hearing the other party, National
Commission will pass the order.
 If aggrieved party is not satisfied, it can appeal in Supreme Court within 30
days of passing of order
 REMEDIES/ RELIEFS AVAILABLE
1. To remove defect in goods or deficiency in services.
2. To replace defective product.
3. To refund the price paid for product or charges paid for service.
4. To pay reasonable compensation for injury or loss.
5. To pay punitive damages
6. To discontinue unfair trade practices.
7. Not to offer hazardous goods in future.
8. To withdraw hazardous goods from market.
9. To stop manufacturing of hazardous goods.
10. To issue corrective advertisement to neutralize the effect of misleading advertisement.
11. To pay adequate cost to adequate party.
12. To pay any amount (not less than 5% of value of defective goods or deficient services) to
Consumer Welfare Fund or any other organization in prescribed manner.