Chapter 12 Consumer Protection class 12th Commerce

1

Buys any goods for a consideration which has been paid or promised or party paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment, when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose; or

2

Hires or avails of any service for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such service other than the person who hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person, but does not include a person who avails of such service for any commercial purpose.

1 c

Consumer rights,

2

u

Unfair trade practices, and

3

m

Misleading advertisements

1

Inquiring into violations

Inquiring into violations of consumer rights, investigating and launching prosecution at the appropriate forum

2 I

Issuing direction

Issuing directions to the concerned trade/manufacturer/endorser/advertiser/publisher to either discontinue a false or misleading advertisement, or modify it;

3-I

Imposing penalties

Imposing penalties,

4-P

Passing orders

Passing orders to recall goods or withdraw services that are hazardous (खतरनाक)

 reimbursement of the price paid, and discontinuation of the unfair trade practices, as defined in the Bill;

5 -S

safety notices

Issuing safety notices to consumers against unsafe goods and services

1 D

Defective goods or services

2-O

Overcharging or deceptive charging;

3-0

offering of goods or services for sale which may be hazardous to life and safety

4-U

Unfair or restrictive trade practices

1

District Level

Not exceeds Rs. 1 crore.

The District CDRC will entertain complaints where value of goods and services does not exceeds Rs. 1 crore.

2

State level

More than Rs. 1 crore but does not exceed Rs. 10 crore.

The State CDRC will entertain complaints when the value is more than Rs. 1 crore but does not exceed Rs. 10 crore.

3

National Level

Over Rs. 10 crore

 Complaints with value of goods and services over Rs. 10 crore will be entertained by the National CDRC.

1

District Level

District  Consumer Dispute Redressal Commission

(i)

The State Government shall establish a District Consumer Disputes Redressal Commission, to be known as the District Commission, in each district of the State

ii

Each District Commission shall consist of

a President; and

not less than two and not more than such number of members as may be prescribed, in consultation with the Central Government.

iii

The District Commission will entertain complaints where value of goods and services does not exceed Rs. 1 crore.

iv

Any person aggrieved by an order made by the District Commission may prefer an appeal against such order to the State Commission on the grounds of facts or law within a period of 45 days from the date of the order

2

State Level

State Consumer Disputes Redressal Commission

i

The State Government shall, by notification, establish a State Consumer Disputes Redressal Commission, to be know as the State Commission, in the State.

ii

Each State Commission shall consist of

A President; and

Not less than four or not more than such number of members as may be prescribed in consultation with the Central Government

iii

The State Commission shall have jurisdiction to entertain complaints where the value of the goods or services paid as consideration, exceeds Rs. 1 crore, but does not exceed Rs. 10 crore.

iv

Any person aggrieved by an order made by the State Commission may prefer an appeal against such order to the National Commission within a period of 30 days from the date of the order.

3

National Level

The National Consumer Disputes Redressal Commission

i

The Central Government shall establish a National Consumer Disputes Redressal Commission, to be known as the National Commission.

ii

The National Commission shall consist of:

A President; and

Not less than four and not more than such number of members as may be prescribed.

iii

The National Commission shall have jurisdiction to entertain complaints where the value of the goods or services paid as consideration exceeds rupees Rs. 10 crore. Appeals against the orders of any State Commission can also be field in the National Commission

Iv

Any person, aggrieved by an order made by the National Commission may prefer an appeal against such order to the Supreme Court within a period of 30 days from the date of the order

1

To remove the defects in goods or deficiencies in the services in question.

2

To replace the goods with new goods of similar description which shall be free from any defect

3

To return the price, or the charges paid by the complainant along with interest

4

To pay compensation to the consumer for any loss or injury suffered by the consumer due to the negligence of the opposite party

5

To discontinue the unfair trade practice or restrictive trade practice and not to repeat them

6

Not to offer the hazardous or unsafe goods for sale

7

To withdraw the hazardous goods from being offered for sale

8

To cease manufacture of hazardous goods and to desist from offering services which are hazardous in nature

9

To pay such sum as may be determined by it, if it is of the opinion that loss or injury has been suffered by a large number of consumers who are not identifiable conveniently, provided that the minimum amount of sum so payable shall not be less than 25 percent of the value of such defective goods sold or service provided, as the case may be, to such consumers

10

To issue corrective advertisement to neutralize the effect of misleading advertisement at the cost of the opposite party responsible for issuing such misleading advertisement.

11

To provide for adequate costs to parties.

12

To cease and desist from issuing any misleading advertisement

1

 Intensive  Consumers exploitation

Consumers might be exploited by unscrupulous, exploitative and unfair trade practices like defective and unsafe products, adulteration, false and misleading advertising, hoarding, black-marketing etc. Consumers need protection against such malpractices of the sellers.

2

Consumer Ignorance:

In the light of widespread ignorance of consumers about their rights and reliefs available to them, it becomes necessary to educate them about the same so as to achieve consumer awareness.

A consumer, who is well-informed about his rights and reliefs available to him, would be in a position to raise his voice against any unfair trade practices of sellers.

3

Unorganized Consumers:

Consumers need to be organized in the form of consumer organizations which would take care of their interests. Consumer organizations play an important role in educating consumers about their rights and providing protection to them These organizations can force business firms to avoid malpractices and exploitation of consumers.

Though in India, we do have consumer organizations which are working in this direction, adequate protection is required to be given to consumers till these organisations become powerful enough to protect and promote the interests of consumers.

1

Business uses Society’s Resources

: Business organisations use resources which belong to the society. Thus, they have a responsibility to supply such goods and services which are in public interest.

2

Moral Justification

 It is the moral duty of any business to take care of consumers interest and avoid any form of their exploitation. Thus, a business must avoid unscrupulous, exploitative and unfair trade practices like defective and unsafe products, adulteration, false and misleading advertising, hoarding, black marketing etc.

3

Social Responsibility

A business has social responsibilities towards various interest groups. Business organisations make money by selling goods and providing services to consumers. Thus, consumers form an important group among the many stakeholders of business and like other stakeholders, their interest has to be well taken care of.

4

Long-term Interest of Business

Enlightened business firms realise that it is in their long-term interest to serve and satisfy the customers. Satisfied customers not only lead to repeat sales but also provide good feedback to prospective customers and thus, help in increasing the customer-base of business. Thus, business firms should airm at long-term profit maximization through customer satisfaction. Socially responsible firms follow ethical standards and practices in dealing with their customers.

5

Government Intervention

A business engaging in any form of exploitative trade practices would invite government intervention or action. This can impair and tarnish the image of the company. Therefore, business organisations should voluntarily resort to such practices where the customers needs and interests will be taken care of.

1

Consumers Education

Educating the general public about consumer rights by organising training programmes, seminars and workshops

2

Comparative Analysis

Carrying out comparative testing of consumer products in accredited laboratories to test relative qualities of competing brands and publishing the test results for the benefit of consumers.

3

Publication

Publishing periodicals and other publications to impart knowledge about consumer problems, legal reporting, reliefs available and other matters of interest.

4

Protest

Encouraging consumers to strongly protest and take an action against unscrupulous, exploitative and unfair trade practices of sellers.

5

Legal Assistance

Providing legal assistance to consumers by way of providing aid, legal advice, etc. in seeking legal remedy.

6

Filling complaints

Filing complaints in appropriate consumer courts on behalf of the consumers.

7

filing cases

Taking an initiative in filing cases in consumer courts in the interests of the general public, not for any individual

1

Right to Safety

The consumer has a right to be protected against goods and services which are hazardous to life and health. For instance, electrical appliances which are manufactured with substandard products or do not conform to the safety norms might cause serious injury.

Thus, consumers are educated that they should use electrical appliances which are ISI marked as this would be an assurance of such products meeting quality specifications

2

Right to be Informed

The consumer has a right to have complete information about the product he/she intends to buy including its ingredients, date of manufacture, price, quantity, directions for use, etc.

It is because of this reason that the legal framework in India requires the manufacturers to provide such information on the package

3

Right to Choose

The consumer has the freedom to choose from a variety of products at competitive prices.

This implies that the marketers should offer a wide variety of products in terms of quality, brand, prices, size, etc. and allow the consumer to make a choice from amongst these.

4

Right to be Heard

The consumer has a right to file a complaint and to be heard in case of dissatisfaction with a good or a service.

It is because of this reason that man enlightened business firms have set up their own customer service and grievance cells to redress the problems and grievances of their customers

5

Right to Seek Redressal

The consumer has a right to get relief(s) in case the product or service falls short of his expectations. The Consumer Protection Act provides a number of reliefs to the consumers, for example.

Removal of defect in goods or deficiency in services

Replacement of the defective product with a new one (free from any defect)

Compensation paid for any loss or injury suffered by the consumer due to the negligence of the seller, etc

6

Right to Consumer Education

The consumer has a right to acquire knowledge and to be a well-informed consumer throughout life.

He should be aware about his rights and the reliefs available to his in case of a product or service falling short of his expectations.

1

Buy only standardized goods

A consumer should buy only standardized goods as they provide quality assurance. Thus, he/she should look for ISI mark on electrical goods, FPO mark on food products Hallmark on jewellery, AGMARK on agricultural products, etc.

2

Be honest in your dealings

 a consumer should be honest in his/her dealings. He/she should choose only from legal goods and services and discourage unscrupulous practices like black-marketing, hoarding, etc.

3

Be  aware about various goods and services available:

A Consumer should be aware about various goods and services available in the market so that an intelligent and wise choice can be made.

4

Read labels carefully:

He/She should read labels carefully so as to have information about price, net weight, manufacturing and expiry dates, etc.

5

Proof

Ask for a cash memo: A consumer must ask for a cash memo on purchase of goods or services .This would serve as a proof of the purchase made.

6

Ensure a fair deal

 A consumer must assert himself/herself to ensure that he/she gets a fair deal.

1

Learn about the risks associated

: A consumer must learn about the risks associated with products and services, follow manufacturers instructions and use the products safely.

2

Respect the environment:

A consumer must respect the environment and avoid waste, littering and contributing to pollution

3

Educating Consumer

Form consumer societies which would play an active part in educating consumers and safeguarding their interests

4

File a complaint in case of dissatisfaction

: A consumer must file a complaint in an appropriate consumer forum in case of a shortcoming in the quality of goods purchases or services availed. He/She should not fail to take an action even when the amount involved is small.

CASE STUDIES OF BATA :