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- What is the meaning of “Consumer”with reference to Consumer Protection Act 1986?
The Act defines Consumer as:-
- One who buys goods or hires services for consideration.
- One who uses the goods or hired services with the approval of the buyer or hirer of the service.
- One who uses the goods/services to earn livelihood by self-employment.
- What are the salient features of Consumer Protection Act?
- The Act applies to all goods and services unless specially expempted by the Union Government.
- It covers all sectors-public, private or cooperative.
- Provisions of the Act are compensatory in nature.
- It enshrines all consumer rights-to choose, to be heard, to be informed, to safety, education and redressal (CHISER).
- It empowers consumers seeking discontinuance of trader´s malpratices, defective goods, service deficiencies or withdrawal of hazardous goods from the market.
- What does “Consumer Protection”refer to?
- It refers to protection of consumers against anti consumer trade practices by producers/traders.
- These anti trade practices include adulteration, sub-standard quality, overcharging, making misleading claims in advertisements, etc.
- The essence of consumer protection is curbing such practices through legislative and other measures.
- Why is the Consumer Protection required ?
Business is a means of Human Welfare:
Business serves the customer and therefore it is a means and not an end in itself. Hence it is in the interest of both the consumer and the businessman to ensure that the business is run well because ignoring the interest of the consumer may be a sure death of the business.
Growth with Social Justice:
We are a secular country and growth with social justice is the cornerstone or our economic philosophy. Exploitation of consumers is against the Directive Principles of State Policy laid down in our Constitution.
Single versus multiple objectives:
Business works for all stakeholders-consumers, shareholders, employees, government, and the public. It is both a social and an economic institution. Therefore it cannot just make profit by ignoring the interest of the society. For the survival and growth of business, it must work for the interests of the stakeholders in general and consumers in particular.
Power Centre:
Business has considerable influence over society and government. Therefore, it has to set standards regarding food, dress habits, living styles, etc which will not damage the cause of society and serve the interst of a few persons only.
Self Interest:
- Due to liberalization and globalization, firms have to compete with multinationals. Unless they become customer oriented and provide right quality, quantity and price they cannot satisfy a customer and without customer satisfaction no business can survive for long and will be out beaten by competition from multinationals.
- Moreover, Government has enacted laws to protect the interest of the consumers. Hence if a firm violates the laws they are likely to lose their good will and clients permanently.
Ethical Obligations:
Firms that adapt ethical values, attain glories in the business world. Business without ethical values is nothing but a criminal activity and no civil society will tolerate a business without ethical values for long.
- What are the rights of Consumers under the Consumer Protection Act, 1986?
The right to safety:
It refers to the right to be protected against products, production processes and services which are hazardous to health or life. It includes concern for consumer´s immediate and long term needs.
The right to be informed:
Consumers have a right to be informed about the quality, quantity, potency, purity, standard and price of goods or services so that they can make the right decision and protect themselves against malpractices.
The right of choice:
The consumer has the right to be assured of a choice of various goods and services of satisfactory quality and competitive price.
Right to representation (or right to be heard):
It is a right and the responsibility of civil society to ensure that consumer interest prevails while formulating and executing policies which affect the consumers, as well as right to be heard while developing or producing a product or service.
Right to seek redressal of grievances:
The consumer has the right to go to court if he has been unscrupulously exploited against unfair or restictive trade practices and receive compensation for supply of unsatisfactory or shoddy goods.
Right to Consumer Education:
It is the right to acquire knowledge and skills to be an informed consumer because it is easier for the literate to know their rights and to take actions to influence factors that affect consumer´s decisions. The Union and State Governments have accepted the introduction of consumer education in school curriculum.
Right to basic needs:
It is the right to receive the eight basic necessities that are required to survive and lead a dignified life. These eight basic necessities include food, clothing, shelter, health care, sanitation, education, energy and transportation.
Right to Healthy Environment:
It is the right to be protected against environmental pollution and environmental degradation so as to enhance the quality of life of both the present and future generation.
- What are the responsibilities of a Consumer?
It is the responsibility of the Consumer to:
- Be aware of his rights and exercise them with regard to products purchased or services rendered.
- Be quality conscious and thoroughly examine the product before purchasing it.
° Check the quality mark i.e. AGMARK, ISI, PDS, BIS, etc.
° Ask for a guarantee card, if there is one.
- Insist on a cash memo which is required as proof of purchase in case of a complaint.
- File a complaint for redressal of grievance however small, to discourage malpractices.
- Do not get carried away by advertisements but check the actual use of the product with that given in the advertisement. If there is a discrepancy, it should be brought to the notice of the sponsor.
- Form Consumer Awareness Organizations, which can be represented at various committees formed by the Government for the Welfare of the Consumers.
- Mr. ´X´ a consumer purchased medicines without noticing the date of expiry. He also did not obtain the cash memo. Do you think he will be able to protect himself by the loss caused due to expired medicine?
No, Mr. ´X´ cannot protect himself from the above loss due to the following reasons:
° ´X´should have been a cautious consumer and should have thoroughly examined the product including the expiry date of the medicine before purchasing it and not depended on the seller.
° ´X´should have insisted on a cash memo, which is required as proof that he has purchased the medicine from that particular trader, failing which he cannot sue for compensation.
- What are the means of Consumer Protection followed in India?
The following are some of the ways and means of consumer protection followed in India:
Lok Adalats:
- The Consumer can approach the Adalat with his grievance. The issue is discussed and decision is taken on the spot. This saves time and money.
- Lok Adalat has become a speedy, effective and economical redressal system.
- Indian Railways, Delhi Transport Corp, Delhi Development Authority, Delhi Vidhyut Board, etc hold Lok Adalat from time to time to sort out problems faced by users.
Publicity Measures:
- 15th March is celebrated as World Consumer Rights Day all over the world every year.
- In 1995, this day was organized at Vigyan Bhawan, New Delhi.
- In addition, the Ministry with the help of D.A.V.P undertook a massive outdoor publicity program such as displaying hoardings, banners, bus panels, etc.
- Telecasting on Consumer Protection is also done by Doordarshan on a fortnightly basis.
Public Interest Litigation:
The Indian legal system does not provide legal services to large segments of the population such as the environmentalists, consumers, minorities as such. Thus the Public Interest Litigation legally represents such groups with the result that any individual or organization can approach the court for remedial action for effective implementation of the law, environmental protection or any other social evils like bonded labour.
Environmental Friendly Products:
- The Ministry of Environment and Forests has introduced an “Eco-Mark” Scheme. It is a label that has a symbol of an earthen pitcher. If this label appears on a product, it means that the manufacturer has satisfied the conditions laid down regarding the production processes and used environmental friendly materials.
- This scheme has been started with consumer items like soap, detergents, paints, food items, edible oil, etc.
- This scheme is consumer oriented so that people manufacture, use and dispose off products which are least harmful to the environment.
Redressal Fora & Consumer Protection Councils:
Under the Consumer Protection Act 1986, a judicial machinery such as the District Fora, State and National Commissions have been set up to provide speedy, effective and economical redressal of consumer grievances and disputes.
National Youth Award on Consumer Protection:
To encourage consumers and youth to participate in the field of consumer protection, every year the Union Ministry gives two National awards � National Award on Consumer Protection and National Youth Award on Consumer Protection. The Ministry also gives a National Woman Award to involve women in outstanding work in the field of consumer protection.
Consumer Welfare Fund:
The Revenue Department of the Union Ministry of Finance has passed the Central Excise and Customs Laws (Amendment) Act 1991. According to this Act, a Consumer Welfare Fund is created and the excess amount of excise/custom duties which is not refundable to manufacturers or importers is credited into this fund and used for:
- Promoting the Welfare of the Consumers.
- Community based rural awareness projects.
- Setting up a Consumer Guidance Bureau to handle complaints, counseling and guidance.
- Setting up Consumer Product Testing Laboratories.
- When can a Consumer Complaint be filed?
A consumer can file a written complaint depicting therein dispute with respect to one or more of the following:-
- On receiving defective goods or deficient services.
- Against Restrictive Trade Practice. It includes any trade practice which requires a consumer to buy, hire or avail of any goods or, as the case may be, services as a condition precedent for buying, hiring or availing of other goods or services.
- Against Unfair Trade Practice. It includes a trade practice which, for the purpose of promoting the sale, use or supply of any goods or for the provision of any service, adopts any unfair method or unfair or deceptive practice including any of the following practices, namely :-
° false or misleading representation
° bargain price
° offering of gifts, prize, contest, etc
° non compliance of product safety standards
° hoarding or destruction of goods.
° when goods hazardous to life & safety are being offered for sale to public in contravention of provisions of any law for the time being in force.
° when a trader charges excess of price
° Fixed by or under any law for the time being in force; or
° Displayed on goods;or
° Displayed on any packet containing such goods.
What constitutes a “defect”?
Defect means any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard which is required to be maintained by or under any law for the time being in force or under any contract express or implied or as is claimed by the trader in any manner whatsoever in relation to any goods.
What constitutes a “deficiency”?
Deficiency means any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance which is required to be maintained by or under any law for the time being in force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service.
- How to file a Consumer Complaint?
- Three(3) copies of the complaint are required to be filed in addition to the number of copies of complaint meant for number of opposite parties.
- No stamp paper is required. It can be filed on plain paper.
- It can be hand-written or typed .
• It can be filed personally through authorized representative or by post.