consumer awareness, rights, responsibilities and protection

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Consumer Awareness, Rights, Responsibilities and Protection By:Lakshmi Bansal

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Business Studies project on Consumer Awareness, Rights, Responsibilities and Protection

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Consumer Awareness, Rights, Responsibilities and Protection

By:Lakshmi BansalAcknowledgement We would like to thanks our Commerce teacher Miss Swati Mam who gave us this wonderful project which help us a lot in doing a lot of important research and we are able to enhance our knowledge on this topic. We would like to thanks our parents too who helped us in finishing our project on time. Thanks again to all who helped us. We made this project not only to fetch good marks but to enhance knowledge also.Who Is A Consumer?A consumer is said to be a king of the free market economy. The earlier approach means let the buyers beware .However now it has been changed to let the sellers beware. HOW CONSUMER IS EXPLOITED?

Consumer Rights and ResponsibilitiesConsumer RightsConsumer face various problems on account ofCompetition in market,Misleading advertisements,Availability of inferior quality of goods and services.

Consumer Rights and ResponsibilitiesConsumer RightsHence, under the Consumer Protection Act1986, Government of India has provided certain rights to safeguard consumers interests.

Consumer Rights and ResponsibilitiesConsumer RightsRight to SafetyRight to be InformedRight to ChooseRight to be HeardRight to seek RedressalRight to EducationA consumer has a right to be protected against goods and services which are injurious to health and life.For example, a consumer should check a gas cylinder for leakage at the time of purchase. If the cylinder starts leaking afterwards, leading to fire and injury or death to anyone, then the supplier is liable to pay compensation.

Consumer Rights and ResponsibilitiesConsumer RightsRight to SafetyRight to be InformedRight to ChooseRight to be HeardRight to seek RedressalRight to EducationA consumer has a right to be informed about the ingredients, quality, quantity, purity, standard or grade, date of manufacture and price of goods he intends to buy.Also, suppliers and dealers must inform consumers about the safety precautions to be taken while using products to avoid loss or injury.In the given example, the gas supplier should inform the consumer to stop the flow of gas with the help of regulator when it is not in use.

Consumer Rights and ResponsibilitiesConsumer RightsRight to SafetyRight to be InformedRight to ChooseRight to be HeardRight to seek RedressalRight to EducationA consumer has the freedom choose the goods needed from a variety of products.This implies that dealers and traders should offer a variety of products to consumers and should avoid using pressure tactics to sell goods of poor quality.

Consumer Rights and ResponsibilitiesConsumer RightsRight to SafetyRight to be InformedRight to ChooseRight to be HeardRight to seek RedressalRight to EducationA consumer has a right to file a complaint and to be heard by manufacturers, dealers, advertisers. Government and public bodies in case of dissatisfaction with a good or service.

Consumer Rights and ResponsibilitiesConsumer RightsRight to SafetyRight to be InformedRight to ChooseRight to be HeardRight to seek RedressalRight to EducationI f a consumer has a complaint or grievance due to unfair trade practices like charging higher prices, selling of poor quality or unsafe products, and so on, he has a right to get relief.The consumer has a right to get the defective goods replaced or money refunded by seller or dealer.

Consumer Rights and ResponsibilitiesConsumer RightsRight to SafetyRight to be InformedRight to ChooseRight to be HeardRight to seek RedressalRight to EducationConsumer education empowers consumers to exercise their consumer rights.For this purpose, consumer associations, educational institutions and Government policy makers are expected to educate and inform consumers about the rights and the reliefs available to them.Today, a consumer also needs to know about government policies and introduction of new technology.

Consumer Rights and ResponsibilitiesConsumer ResponsibilitiesConsumer rights, by themselves, cannot be effective in achieving the objective of consumer protection. To achieve consumer protection, consumers also need to understand their responsibilities.For example, to exercise the right to seek redressal of complaints, a consumer must take all precautions to choose the right good, at the right price and must learn how to use products to prevent injury or loss.Let us understand the various responsibilities which a consumer should keep in his mind while purchasing, using or consuming goods and services.

Consumer Rights and ResponsibilitiesConsumer Responsibilities(1) A consumer should be aware of various goods and services available in the market in order to make an intelligent choice.

Consumer Rights and ResponsibilitiesConsumer Responsibilities(2) A consumer should purchase only standardized goods for quality assurance. They should check ISI mark on electrical goods, AGMARK on agricultural products, HALLMARK on jewelry, to mention a few.

Consumer Rights and ResponsibilitiesConsumer Responsibilities(3) A consumer must know about the risks associated with products and services, follow manufacturers instructions and use the products safely.

Consumer Rights and ResponsibilitiesConsumer Responsibilities(4) Before purchasing goods, a consumer should read labels carefully to get information about prices, net weight, manufacturing and expiry dates, and so on.

Consumer Rights and ResponsibilitiesConsumer Responsibilities(5) A consumer should ensure that he gets a fair deal and should be honest in his dealings. He should purchase legal goods and services only and discourage unscrupulous practices like black-marketing, hoarding and so on.

Consumer Rights and ResponsibilitiesConsumer Responsibilities(6) On the purchase of goods and services, consumers should ask for a cash memo as a proof of the purchase made.

Consumer Rights and ResponsibilitiesConsumer Responsibilities(7) Consumers must file a complaint in an appropriate consumer forum in case of any shortcoming in the quality of goods purchased or services availed.

Consumer Rights and ResponsibilitiesConsumer Responsibilities(8) Consumers should form consumer organisations that would play an active part in educating consumers and safeguarding their interests.

Consumer Rights and ResponsibilitiesConsumer ResponsibilitiesIn a nutshell Government of India has provided six rights, under the Consumer Protection Act 1986, to protect consumers interests.These are:(1) Right to safety,(2) Right to informed,(3) Right to choose.(4)Right to be Heard.(5) Right to seek redressal and(6) Right to consumer education.

Consumer Rights and ResponsibilitiesConsumer ResponsibilitiesThere is a well known saying that there cannot be rights without responsibilities.Hence, a consumer should also keep in mind his responsibilities while purchasing, using or consuming goods and services.

Consumer protection :An Overview

Consumer protection: An overviewConsumer ProtectionManufacturers and service providers offer products and services to fulfill needs and wants of consumers, on the one hand and to increase the level of profit, sales and market share, on the other.

Consumer protection: An overviewConsumer ProtectionHowever, in an attempt to increase their sales and market share, these producers may be tempted to engage in unfair trade practices like defective and unsafe products, adulteration, false and misleading advertising, black-marketing just to name a few.

Consumer protection: An overviewConsumer ProtectionHence, there is a need to provide adequate protection to consumers against such practices of the sellers.

Consumer protection: An overviewConsumer ProtectionAccording to the Cambridge Advanced Learning Dictionary, Consumer protection is the protection of buyers of goods and services against low quality or dangerous products and advertisements that deceive people.

Consumer protection: An overviewConsumer ProtectionConsumer protection includes educating consumers about their rights and responsibilities, and helping them to seek redressal of their grievances.

Importance of Consumer protection

Consumer protection: An overviewImportance of Consumer ProtectionMajority of consumers are ignorant about the rights and reliefs available to them. Hence, it becomes necessary to educate them about the same to achieve consumer awareness.

Consumer protection: An overviewImportance of Consumer ProtectionConsumers need to get together and form themselves into powerful consumer organisations to protect and promote their own interests.

Consumer protection: An overviewImportance of Consumer ProtectionConsumer protection plays a vital role as consumers might be exploited by unscrupulous, exploitative and unfair trade practices products, adulteration, false and misleading advertising, hoarding, black-marketing etc.

Consumer protection: An overviewImportance of Consumer Protection

Consumer protection: An overviewImportance of Consumer ProtectionBusiness firms should aim at long-term profit maximisation through customer satisfaction. Customer satisfaction not only leads to repeat sales but also increases the customer-base of business.

Consumer protection: An overviewImportance of Consumer ProtectionBusiness organisations use resources which belongs to the society. Hence, it is a responsibility of business firms to offer those products and services that are in public interest.

Consumer protection: An overviewImportance of Consumer ProtectionBusiness organisations make money by selling goods and services to consumers. Hence, form an important group of stake holders and business organisations should take care of the group.

Consumer protection: An overviewImportance of Consumer ProtectionIt is the moral duty of any business organisation to take care of consumers interest and avoid any form of their exploitation.

Consumer protection: An overviewImportance of Consumer ProtectionA business firm should take care of consumers needs & interests as its involvement in any form of exploitative trade practices would invite govt. intervention or action. Such govt. intervention may damage the image & position of the company in the society.

Consumer protection: An overviewLegal Protection to ConsumersIn order to provide adequate protection to consumers the Government of India has enacted a number of regulations.

Consumer protection: An overviewLegal Protection to ConsumersThe Act provides safeguards to consumers against different forms of exploitation such as defective goods, deficient services, unfair trade practices and so on. The Consumer Protection Act 1986

Consumer protection: An overviewLegal Protection to ConsumersThe Act also makes provision for establishment of consumer councils and other authorities for the settlement of consumer disputes and matters therewith connected.The Consumer Protection Act 1986

Consumer protection: An overviewLegal Protection to ConsumersThe Act lays down the conditions in which the promises made by parties to a contract will be binding on each other. The Act also signifies the remedies available to parties in case of breach of contract.The Contract Act 1982

Consumer protection: An overviewLegal Protection to ConsumersThe Act provides some safeguards and reliefs to the buyers of the goods, if the goods purchased do not comply with implied conditions or warranties.The Sale of Goods Act, 1930

Consumer protection: An overviewLegal Protection to ConsumersThis Act was enacted to ensure the easy availability of essential commodities to consumers and to protect them from exploitation by profiters, hoaders and black-marketers. The Act provides for the regulation and control of production, distribution and pricing of essential commodities.The Essential Commodities Act, 1955

Consumer protection: An overviewLegal Protection to ConsumersThis Act prescribes grade standards for agricultural commodities and allied commodities. These are known as AGMARK standards an acronym for Agricultural Marketing. The Act lays down the procedure for grading, marking and packing of agricultural produce.The Agricultural Produce (Grading and Marking) Act, 1937

Consumer protection: An overviewLegal Protection to ConsumersThe Act aims to protect the consumers from poisonous and harmful foods and prevent the sale of substandard foods in order to maintain public health.The Prevention of Food Adulteration Act, 1954

Consumer protection: An overviewLegal Protection to ConsumersThe provisions of this Act are applicable in case of those goods which are sold or distributed by weight, measure or number The Act aims at ensuring that consumers get products with the right weight and measurements.The Standards of Weights and Measures Act, 1976

Consumer protection: An overviewLegal Protection to ConsumersThis Act has replaced the Trade and Merchandise Marks Act, 1958. The Act provides protection to consumers by preventing the use or fraudulent marks on products.The Trade Mark Act, 1999

Consumer protection: An overviewLegal Protection to ConsumersThis Act has replaced the Monopolies and Restrictive Trade Practices Act, 1969. The Act provides protection to consumers by refraining traders to promote any activity which hampers competition in the market.The Competition Act, 2002

Consumer protection: An overviewLegal Protection to ConsumersThis Act provides for the establishment of the Bureau of Indian Standards for the harmonious development of the activities of standardisation, marking and quality certification of goods.The Bureau of Indian Standards Act, 1986

Consumer protection: An overviewLegal Protection to ConsumersThis Act permitted manufacturers to use the ISI Mark on the products after ensuring that the goods conform to the prescribed quality standards.The Bureau of Indian Standards Act, 1986

Consumer protection: An overviewLegal Protection to ConsumersThe Bureau has also setup a grievance cell where consumers can make a complaint about the quality of products carrying the ISI mark.The Bureau of Indian Standards Act, 1986

Consumer protection: An overview

Consumer protection: An overviewWays and Means of Consumer ProtectionThere are various ways of protecting the interest of consumers.

Consumer protection: An overviewWays and Means of Consumer ProtectionThe business organisations themselves can promote consumer protection by regulating their own behavior and actions.

Consumer protection: An overviewWays and Means of Consumer ProtectionSocially responsible firms follow ethical standard and practices in dealing with their customers.

Consumer protection: An overviewWays and Means of Consumer ProtectionFirms establish customer service and grievance cell to redress the problems and grievances of their consumers.

Consumer protection: An overviewWays and Means of Consumer ProtectionThe associations of trade, commerce and business like Federation of Indian Chambers of Commerce of India (FICCI) and Confederation of Indian Industries (CII) can check unfair trade practices used by some business organisations through their code of conduct.

Consumer protection: An overviewWays and Means of Consumer ProtectionIn order to protect his interests a consumer should know the rights and reliefs available to him.

Consumer protection: An overviewWays and Means of Consumer ProtectionConsumer organisations awaken consumers by educating them about their rights.

Consumer protection: An overviewWays and Means of Consumer ProtectionThese organisations provide protection to consumers by taking organised action and forcing business firms to adopt fair trade practices.

Consumer protection: An overviewWays and Means of Consumer ProtectionThe Government can protect consumers interest through legislative, executive and judicial actions. The executive should strictly enforce the laws passed by the Government.

Consumer protection: An overviewRedressal Agencies under the Consumer Protection ActIn order to resolve consumer disputes, the Consumer Protection Act 1986 provides for the establishment of a three tier enforcement machinery at the National, State and District levels.

Consumer protection: An overviewRedressal Agencies under the Consumer Protection ActThese are the National Consumer Disputes Redressal Commission (National Commission), the State Consumer Disputes Redressal Commission (State Commission), the District Consumer Dispute Redressal Forum (District Forum), respectively.

Consumer protection: An overviewRedressal Agencies: District ForumDistrict ForumUnder Consumer Protection Act the state Government has to set up a District Forum in each district of the State.

Consumer protection: An overviewRedressal Agencies: District ForumEach District Forum consists of a President, who is qualified to be a district judge and two other members, one of whom should be a women. They are appointed by the State Government concerned.

Consumer protection: An overviewRedressal Agencies: District ForumThe District Forum has the jurisdiction to deal with all complaints where the value of the goods or services and the compensation claimed is less than Rs. 20 lakh.

Consumer protection: An overviewRedressal Agencies: State CommissionState CommissionLike the District Forum, the State Commissions are set up by the respective State Government in the State. Each State Commission consist of a President, who is or has been a judge of a High Court, and two other members, one of whom should be a woman.

Consumer protection: An overviewRedressal Agencies: State CommissionThey are appointed by the State Government Concerned.

Consumer protection: An overviewRedressal Agencies: National CommissionNational Commission The National Commission is set up by the Central Government. The National Commission consists of a President, who is or has been a judge of Supreme Court, and four other members, one of whom should be a women. They are appointed by the Central Government.

Consumer protection: An overviewRedressal Agencies: National CommissionThe National Commission has the jurisdiction to take up all claims and grievances exceeding the value of Rs. 1 crore. The commission also has power to entertain appeals against the orders of any State Commisssion.

Consumer protection: An overviewProcess of Redressal of ComplaintsThe National Commission, State Commission and District Forums need to decide complaints within a period of three months from the date of notice received by consumers if a complaint does not require analysis on testing of commodities, and within five months if it requires analysis or testing of commodities.

Consumer protection: An overviewProcess of Redressal of ComplaintsOn the receipt of a complaint, a copy of the complaint is to be referred to the trader against whom the complaint is filed. The goods or a sample may be sent for testing in a laboratory, if required. Then, the complaint will be decided after considering the test report from the laboratory and hearing the trader.

Consumer protection: An overviewProcess of Redressal of ComplaintsAn order passed by a District Forum is appealable before the concerned State Commission, by a state Commission is appealable before the National commission, and by a National Commission is appealable before the Supreme Court within a period of 30 days.

Consumer protection: An overviewProcess of Redressal of ComplaintsOn finding a consumers complaint genuine a consumer court may ask a trader, against whom the complaint is filed.

Consumer protection: An overviewRelief Available to Consumers(1) To remove the defect in goods or deficiency in service.

Consumer protection: An overviewRelief Available to Consumers(2) To replace the defective product with a new one, free from any defect.

Consumer protection: An overviewRelief Available to Consumers(3) To refund the price or charges paid for a product or a service, respectively.

Consumer protection: An overviewRelief Available to Consumers(4) To pay a reasonable amount of compensation for any loss or injury suffered by the consumer due to the negligence of the trader or dealer.

Consumer protection: An overviewRelief Available to Consumers(5) To pay compensation in excess of actual damage in appropriate circumstances.

Consumer protection: An overviewRelief Available to Consumers(6) To discontinue the unfair/restrictive trade practice and not to repeat it in future.

Consumer protection: An overviewRelief Available to Consumers(7) To cease manufacturing of hazardous goods and withdraw the same for sale.

Consumer protection: An overviewRelief Available to Consumers(8) To pay any amount (not less than 5% of the value of the defective goods or deficient services provided), to be credited to the Consumer Welfare Fund or any other organisation/person, to be utilised in the prescribed manner.

Consumer protection: An overviewRelief Available to Consumers(9) To issue corrective advertisement to neutralise the effect of a misleading advertisement.

Consumer protection: An overviewSummaryIn a nutshell, consumer protection refers to the activities of government, business and independent organisations designed to protect consumers from unfair trade practices like defective and unsafe products, adulteration, false and misleading advertising, black-marketing, just to name a few.The Indian legal framework consists of a number of regulations which provide protection to consumers. These include:(1) The Consumer Protection Act, 1986(2) The Contract Act, 1982(3) The Sale of Goods Act, 1930(4) The Essential Commodities Act,1955(5) The Agriculture Produce (Grading and Marking) Act, 1937(6) The Prevention of Food Adulteration Act, 1954(7) The Standards of Weights and Measures Act, 1976(8) The Trade Marks Act, 1999(9) The Competition Act,2002(10) The Bureau of Indian Standards Act,1986

Consumer protection: An overviewSummaryThe various ways in which the objective of consumer protection can be achieved are:(1) Self regulation by business,(2) Business Associations,(3) Consumer Awareness,(4) Consumer Organisations,(5) GovernmentThe Consumer Protection Act, 1986 mandates establishment of quasi-judicial bodies in each District and State and at the national level to provide inexpensive and speedy redressal of consumer disputes. These are known as the District Forums, The State Consumer Disputes Redressal Commissions and the National Consumer Disputes Redressal Commission, respectively.