CHAPTER 5 : CONSUMER PROTECTION

1. CHAPTER 5 : CONSUMER PROTECTION

2. It is said that the consumer is a . . . . . KING! IS THAT REALLY… BUT . . . TRUE ???

3. Distributors Dealers Wholesalers Retailers MANUFACTURERS With help of Marketing & Advertising

4. Resort to practices like SUBSTANDARD GOODS PVR MOVIE TICKETS @ ₹350 POPCORN ₹150 ! SAMSOSA ₹ 50 !?? HOARDING AQUAFINA ₹ 40! CARTELS CHARGING EXCESSIVELY HIGH !!!

5. And may take advantage of innocent and ignorant consumers Hence arises the need for Consumer protection

6. WHO IS A CONSUMER ? Any person who consumes or uses any commodity or service available from natural source or through the market is known as a consumer. The word ‘consumer’ is derived from Latin word “consumere” which means ‘to eat or drink’.

7. IMPORTANCE OF CONSUMER PROTECTION It is a normal tendency of consumers to rush to shopping outlets where high rate of discount is provided on goods. Most of the consumers get attracted to cheap products, schemes, discounts, sale etc. However, sellers may sell sub-standard goods in such cases. As a result, the consumer may get exploited and he may not even come to know about it. 6. Tendency of consumers : 3. Participation of consumers is lacking : 2. Market dominated by sellers : 4. Overall Rate Of Consumption has increased : • 9. Consumers are unorganized : • 5. Required information is not easily available: • 8. Nature of Products : • 7. Attitude of Consumers If the market is dominated by the sellers, then they take all the decisions which favor them. The sellers do not give preference to consumer welfare. Consumer has to accept the terms as decided by sellers. The transactions invariably benefit the sellers, manufacturers and other middlemen. Ignorance Of Consumers One of the biggest reasons of exploitation of consumers is their attitude. Most consumers have a “chaltahain” attitude due to which even if they are exploited, they will not complain or act against it. The sellers therefore take advantage of this situation and continue to exploit the consumer. For e.g.: A consumer may sometime get a tshirt which has a small hole in it but then he may not complain to the seller regarding the same. The population as well as an increase in overall standard of living of people has resulted in increase in consumption. To satisfy huge demand, it is necessary for manufacturers to undertake large scale production. This has resulted in increased prices, more variety, exploitation, unfair trade practices etc. Due to complicated manufacturing processes and the technical knowledge involved, consumers are unable to judge the quality or safety aspects of a product. The producers take advantage of this situation and try to exploit consumers. Many decisions directly affecting consumer’s interest are taken without their or their organizations’ consent. The decisions taken by the association of sellers or traders are generally one sided where the consequences of the decision on the consumers are not considered at all. Sellers & traders have their own associations. However, consumers do not have any union. They are unorganized and are not united. Bargaining power is always with a stronger group and hence a single consumer cannot fight an entire association. In the modern world , the distance between the consumer and the manufacturer is vast. It is impossible to get information from manufacturers directly. The consumer relies more on advertisements of the products, other’s experiences or on trial and error method to decide about the product. As a result, his chances of getting exploited are high. The consumers get exploited due to their ignorance about their rights, product detail, price etc. The consumers get cheated because they lack complete knowledge. For e.g.: Shopkeepers may even sell off some expired goods to illiterate and ignorant customers.

8. To sum up … What is the importance of consumer protection • Ignorance of Consumers • Market dominated by sellers • Participation of consumers is lacking • Overall rate of consumption has increased • Required information is not easily available Tendency of consumers Attitude of consumers • Nature of Products Consumers are unorganized

9. Rights of consumers 9 points

10. Right to Redressal • The right enables a consumer to seek redressal against unfair trade practices or exploitation. This right assures proper legal recourse to attend to a consumer’s complaint and get it redressed (solved).

11. Right to Information PRICE PURITY QUALITY Right to Information helps consumer in selecting the right product and take more informed decision. It assures safety of the consumer and the product both.

12. Right to Protect Against Spurious Goods Companies cannot advertise about cigarettes or liquor The right protects the consumers against marketing of spurious and hazardous goods which pose a danger to public health and life.

13. Right to be Heard Every consumer has the right to file a complaint and be heard about

14. Right to Protect Against Unfair Trade Practices This right offers protection to consumers against any kind of unfair trade practices.

15. Right to safety • If the product is hazardous in nature then detailed information should be given about its inherent danger and safe mode of handling. It should also contain the consequences that would occur if it is not used correctly. INGREDIENTS

16. Right to choose • Right to Choose enables a consumer to select a suitable product from among the available variety in the market at a competitive price.

17. Right to healthy environment • Right to live in a healthy and pollution free environment in the present as well as in the future.

18. Right to education • The government, media and NGO’s can play a major role in educating consumer.

19. To sum up… The Rights of a Consumer RIGHT TO REDRESSAL RIGHT TO INFORMATION RIGHT TO PROTECT AGAINST SPURIOUS GOODS RIGHT TO BE HEARD RIGHT TO PROTECTED AGAINST UNFAIR TRADE PRACTICES RIGHT TO SAFETY RIGHT TO CHOOSE RIGHT TO HEALTHY ENVIROMENT RIGHT TO EDUCATION In short , RIGHTS CHE

20. Responsibilities of a consumer • 1.Social Concern: • Products & services used are not produced in an environment that harms others

21. 2.ACTIVE/ALERT A consumer has to be assertive and ensure that he gets a fair deal. EG: CHECKING THE EXPIRY DATE BEFORE BUYING

22. 3.Value before buying • (Critical Awareness): MUMBAI: In a sluggish property market, British bank Standard Chartered has sold a sea-facing duplex apartment in the SamudraMahal building at Worli in Mumbai for Rs 40 crore. The deal works out to Rs 1,10,000 per sq ft.

23. 4.EnvironmentalConcern : • The consumer should recognize his individual and collective responsibility to conserve natural resources. • Has to ensure that the goods and services he uses do not harm the environment.

24. 5.UNITY The consumers should organize themselves and work for the welfare of all consumer.

25. 6.SUSTAINABLE CONSUMPTION The consumer should consume only as per his requirement. He should ensure that he actually requires a particular product and only then buy it.

26. Consumer should take care of……………………

27. Before buying : • Planning in advance • Enquire about past performance of product or service. • Enquire about part performance of the product seller or service provider • Go through product reviews in newspaper and websites

28. While buying : • Asking for demonstration about how to operate or use the product. • Enquiring about after sales service and ensuring availability & contact details of service centre. • Insisting on approved sale bill with all details of product. • Getting a signed warranty / guarantee card from the dealer and reading the contents therein.

29. After buying : • Using products as per instructions given in user manual. • Storing the product as mentioned on the cover or manual. • Keeping bills and guarantee card safely. • In case of a fault inform the dealer or service centre. • Seek immediate redressal if there is a deficiency in product

30. Ways and means of consumer protection LOK ADALAT • LokAdalat is referred to as People’s Court. • Mock court held by State Authority, District Authority, Supreme Court Legal Service Committee, High Court Legal Service Committee or Taluka Legal Service Committee. • Established by the government to settle disputes by compromise • LokAdalat accepts pending cases from regular courts which can be settled by compromise only if • 1. Both parties agree to transfer the case to LokAdalat or • 2. One party makes an application and the court sees any chance of compromise.

31. Ways and means of consumer protection PUBLIC INTEREST LITIGATION • This scheme enables any person in the interest of the public to approach a court of law. • A PIL is not for individual interest but for the benefit of a particular group

32. Ways and means of consumer protection • Redressal Forums

33. AWARENESS PROGRAMMES • This awareness is done by journals, newspapers, magazines, advertisements etc. • Besides, various consumer related programmes are telecasted on various radio and TV channels. • The society observes 15th March, World Consumer Rights Day and 24th December, National Consumer Day as consumer awareness days.

34. Consumer Organisations: • The consumer organizations also help the consumers to fight for their rights through campaigning, lobbying and through protests. • Thus, they strengthen the consumer movement.

35. CONSUMER WELFARE FUND • This fund is created by Department of Revenues. • It provides monetary assistance to the consumer movement especially in rural areas. • These funds are used for consumer education, guidance, complaint redressal etc.

36. Legislative Measures • Various acts have been passed by the Govt. of India • However, the Consumer Protection Act of 1986 has proved to be a boon for consumers because under this Act they can file a suit against any manufacturer or seller in case of loss due to fault in their product or service.

37. Consumer Awareness and Legal Redressal

38. Three tier quasi-judicial consumer disputes Redressal Machinery • District forum • State commission • National commission

40. Comparative analysis of District forum, State commission and National commission

41. Role of NGOs

42. CONSUMER ORGANIZATIONS ????? • Consumer Organisations are voluntary groups of people who work for a cause of protecting consumers from harmful products, wrongful representation, pollution etc. • Their main objective is to establish consumer rights. • Consumer organizations are a category of NGOs who work for protecting consumers. • The word NGO itself suggests that they are not connected to the government or any political party. NGOs are non-profit organization. • NGOs have their own rules and principles. They do not have any statutory powers. However, they are a strong support group for the consumers. • NGOs also help to create awareness about consumer rights and assist consumers taking legal action against producers or sellers who are much bigger and stronger than individual consumers.

43. EXAMPLES OF NGOs • Consumer Unity & Trust society • Consumer Guidance Society of India • Mumbai GrahakPanchayat • Consumer’s Association of India • FUNCTIONS PERFORMED BY NGOs • To undertake various programmes • To guide consumers • To represent a consumer • Make suggestions and recommendations • Publish periodicals, bulletins • Testing of consumer products and publishing the results. • Filing in the interest of general public.