Consumer Awareness and Protection under the Consumer Protection Act in India BBA3032
- Subject Code :
BBA3032
1.Historical Background
We visit the market for buying a range of commodities & obtain services that are crucial to our daily existence. We pay theprice for these things &services, & we get comfort from using them. However, sometimes we experience dissatisfaction as a result of subpar products, excessive costs, deceptive marketing, concealed facts & expenses, etc. We act in this way as we are uninformed of our legal rights as customers.
A consumer is described as-Under the Consumer Protection Act,Any individual who purchases anything for consideration that has been paid for, promised, or partially paid for, or as part of any deferred payment plan. It excludes someone who acquires products for resale or any other business reason, yet it includes anyone who uses such goods when doing so has been authorized by the buyer (Consumer Affairs, 2019).
The goal of this report is to educatepeople on their rights as consumers, the project hopes to lessen theabuse of customers.
2.Exploitation of consumers
A capitalist society shouldvalue the consumer first. Nevertheless, there are numerous cases where organizations mistreat &mislead customers. No matter the things one purchases, oneshould always be cautious about the possibility of exploitation of consumers. While some forms of exploit are minor &somewhat meaningless, others can be very costly (Consumer Affairs, 2019).
a. Causes of consumer exploitation
1. Unorganized Consumers: Indian consumers are not unified & are widely distributed. They are at the kindness of merchants. Producers & traders, on the contrary, are strong & well-organized.
2. ImitatedGoods: The availability of imitation goods is growing. Ordinary consumers need helpto tell the difference between an imitated& a real one. It is vital to safeguard consumers against suchtype of exploitation by guaranteeing conformity to established standards for quality as well as security.
3. Ignorance & lack of education: The majority of Indian consumers lack literacy. They are uninformed of their legal rights. They need a system that will maintain them safe from dishonest businessmen.
4. Deceitful Advertising: A lot of commercials overstate, make deceptive claims, & provide scant product details. False advertising deceives consumers into perceiving that the things it advertises are of a particular standard.
5. Businessmen's Malpractices: Consumers are exploited when businessmen perform dishonest, illegal & monopolistic trading practices. Customers often encounter inadequate, inferior, & damaged products alongside subpar service. It is essential to take some steps towards protecting customers from these kinds of wrongdoing (Consumer Affairs, 2019).
6. Complexity of items: Customers consider it more difficult to make educated choices when items are more complicated.
b. Measures to prevent exploitation
Below are theconsumer rightsrecognized by India's Consumer Protection Act, of1986.
- The right to complete information regarding the performance & quality of each goods & services;
- The right to be shielded from all harmful goods & services
- The freedom to select products & services
- The right to look for remedy when consumer rights are violated;
- The right to finish consumer education;
- The right to participate in every step of decision-making about the interests of customers. One can report the appropriate authorities if one feels that any of the aforementioned rights have been violated. That being said, becoming informed is an effective defense against fraud and consumer exploitation (Consumer Protection Act, 2016).
3. Consumer Rights and its violation
a. Consumers Rights
A customer is a crucial player in the industry. The rights of the customer needs to be respected in cases of consumer exploitation. The Regulatory Consumer Protection Act of 1986 lists 6 rights for consumers.
- Right to Safety-This indicates that the consumer has the rightto obtain protection against potential hazards resulting from the use of subpar products or supplies that do not conform tosafety guidelines. The consumer also has a right to be safeguarded against the advertisement of those goods & services that are potentially dangerous to life, health, & property.
- Right of complaint- In case a customer is not satisfied with the products or services provided, he/she has a right to lodge a complaint in court and for this purpose should be given an opportunity to appear before the consumer courts. It is because of this reason that many companies have developed their own Consumer Service and Grievances cells (Consumer Affairs, 2019)
- Right to Seek Redressal- If the product or service does not meet his expectations then he can make use of his right to compensation for damages. There are provisions in the Consumers Protection Act which provide redress for customers such as replacement, removal, repair, reimbursement and payment for loss or damage suffered by a consumer (Consumer Affairs, 2019).
- Right to Choose- It is a right that gives the buyer freedom to choose goods or services among different products at competitive prices. Under COPRA, for customers to make appropriate choices, sellers should have many types of products in relation to quality, cost and size.
- Right to Consumer Education- A consumer has a right to be educated on issues pertaining to consumer protection and rights so that they become better informed consumers. He should always keep in mind his rights, obligations and remedies available in case of receipt of receipt of goods or services not matching his expectations (Consumer Protection Act, 2016).
- Right to be informed- The consumer is entitled to receive every detail he would like to know about the product before making a purchase. This makes it compulsory under Indian legal framework for manufacturers to put such information on the packet and label of a product (Consumer Affairs, 2019).
b. Consumers Responsibilities
A person should know his or her responsibilities to be an informed buyer. A person must educate him/herself on his/her rights as a consumer.
- These are the things that consumers should do when they buy, use and consume products
- Know different types of goods and services available in the market so that one can make an Intelligent choice.
- Buy only standardized goods as they give assurance of quality. Therefore, electrical goods should have ISI mark; food items FPO/FSSAI mark while jewellery should bear Hallmark symbols (FSSAI, 2011).
- Understand product hazards; follow instructions on using them and keep safe.
- Read labels attentively to find out their prices, net weights, dates of manufacture and expiry e.t.c.
- Take up your rights for a reasonable deal
- Be straightforward in all dealings. Only choose legal options once you decide where to get your supplies. Avoid practices such as hoarding or black marketing which are unethical.
- Take cash memo after buying any products or services since it is evidence that you bought them.
- If there is any flaw in the quality of goods purchased or services used file complaint in the appropriate consumer forum. Dont hesitate even if you are dealing with small amounts (Consumer Affairs, 2019).
c. Unfair trade practices
Deceptive marketing, misleading pricing, & the selling of inferior goods are indications of unfair trade practices. These actions might have severe consequences for customers & violate their liberties as consumers.
Case Study ofthe Debate Around Maggi Noodles- In 2015, it came out that the well-known instant noodle brand Maggi included substantial amounts of lead & MSG, which constituted significant health hazards. A statewide recall was ordered by the Food Safety and Standards Authority of India, underscoring the value of legislative oversight & food quality (Das, 2021).
4. Redressed System 3 Tier System
District Forum- If the overall value of the products or services in dispute, including any compensation claimed, is less than ?20 lakh, a complaint may be submitted before the appropriate District Forum. The State Commission may hear appeals of decisions rendered by the District Forum (Consumer Affairs, 2018).
State Commission- If the products or services, combined with the compensation demanded, are priced more than ?20 lakh but not more than ?1 crore, a complaint should be filed with the relevant State Commission. The National Commission may hear appeals of decisions issued by the State Commission (Consumer Affairs, 2018).
National Commission- If ?1 crore or more is the total worth of the products or services, including any compensation demanded, a complaint can be lodged with the relevant National Commission. The Supreme Court hears appeals of decisions handed down by the National Commission within its original area of authority (Consumer Affairs, 2018).
5. Consumer courts and their locations
There are consumer courts all around India, so people are able to access them. Every state has a National Commission in New Delhi, several District Forums, & State Commissions.
6. Functions of consumer court and its jurisdiction
These are the complaints that the consumer courts will consider :-
Products with flaws
Inadequate offerings
Injustices in Trade
Charging too much.
The claim's monetary worth, the consumer's & service provider's locations, & other factors dictate its jurisdiction.
7. Various Certifications, Hallmarks, Signs or other Quality Marks for Products Standard in India
Before making any purchases, buyers should check for the numerous quality assurance markings given out by the Indian government for a wide range of goods.
Hallmark: The Bureau of Indian Standards (BIS) issues the Hallmark certification to confirm the pureness of gold & silver jewellery. It appliedto silver since 2005 & to gold since April 2000 (Bureau Of Indian Standards, 2020).
AGMARK: The GOI's Directorate of Marketing &Inspection certifies agricultural products with the AGMARK mark. It was modified in 1986 & has been in operation since 1937. This certification guarantees that agricultural goods conform to certain specifications.
ISI Mark: The Bureau of Indian Standards certifies industrial goods manufactured in India with the ISI mark. It can be optional or obligatory & has been in effect since 1955. Prior to making a purchase, consumers should confirm that any industrial or electrical goods include the ISI mark (Singh, 2017).
FPO Mark: The Ministry of Food Processing issues the FPO mark, which is a mandatory accreditation for all processed fruit products in India. It has been in effect since 1955 & ensures that the product is made in a clean environment & is suitable for consumption by humans.
Eco mark: Since 1991, BIShas certified eco-friendly products with the eco label. Items bearing this certification correspond to strict guidelines & do not affectthe environment (Bureau Of Indian Standards, 2020).
Vegetarian and Non-Vegetarian Marks: Packaged foods supplied in India are required to have a green sign on the label for vegetarian items or a red or brown mark for non-vegetarian products as of 2011.
FSSAI: FSSAI Food items that satisfy specified criteria &are hygienic are certified by the Food Safety & criteria Authority of India (FSSAI). Dairy, fats, oils, veggies, fruit, cereals, meat, seafood, confections, sweets, & drinks are all covered by this (Singh, 2017).
8. Drawing Connection with Manipur
One of the landmark judgments delivered by the Manipur State Consumer Disputes Redressal Commission, entertained a consumer who had purchased a defective vehicle from one of the reputed automobile companies. The Commission held in favor of the consumer and directed the firm either to replace the vehicle with a new one or to refund the entire amount paid at the time of purchase with full compensation for the inconvenience caused. This ruling is not only giving justice to the wronged consumer but sent a strong message to all business houses to ensure quality in their products and follow ethical business practices (Indian Kanoon, 2021).
The various rural markets in Manipur are also beset with a number of problems, particularly in regard to access to information and resources. Most consumers who come from rural areas are easily cheated because they are uninformed about their rights and the unethical practices of some traders Therefore, the Manipur government also carries out a number of programmes toward consumer awareness and consumer rights, such as public awareness campaigns, workshops, and seminars; consumer education in schools; and helplines and online portals.
9. Conclusion
The government & consumers should work together to raise consumer understanding of their rights and obligations & to lessen consumer exploitation, it might be determined.
India has observed December 24 as National Consumers' Day since the Indian government passed the Consumer Protection Act of 1986 on this day. Out of 700 hundred, there are currently about 2025 recognized and well-organized consumer groups. Following the consumer movement, awareness among consumers in India grew extremely slowly. However, after the Consumer Protection Act of 1986 was passed, things started to gain steam, albeit gradually. We need individuals to take an active role in the consumer movement and make their own contributions it to proceed quickly (Consumer Protection Act, 2016).
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