Consumer Protection
1. Meaning of Consumer Protection
● Consumer protection refers to safeguarding consumers from unfair trade practices,
exploitation, and unsafe products.
2. Importance of Consumer Protection
From Consumers’ Point of View:
1. Consumer Ignorance – Many consumers are unaware of their rights and reliefs
2. Unorganised Consumers – Consumers are scattered and lack collective power.
3. Widespread Exploitation – Consumers face issues like adulteration, overpricing,
defective goods, misleading ads, and black marketing.
From Business Point of View:
1. Long-Term Interest – Satisfied consumers lead to repeat sales and goodwill.
2. Use of Society’s Resources – Businesses must use resources responsibly
3. Social Responsibility – Ethical businesses must ensure fair dealings with consumers.
4. Moral Justification – It is the moral duty of businesses to avoid unfair trade practices.
5. Government Intervention – Businesses that exploit consumers may face legal
actions and penalties.
3. Consumer Protection Act, 2019
● Aims to protect and promote consumer rights and provide speedy and inexpensive
grievance redressal.
● Covers all goods and services (including e-commerce and digital transactions).
● Consumer is any person who buys goods or avails services for personal use.
4. Consumer Rights
1. Right to Safety – Protection from hazardous goods/services (e.g., electrical appliances
must meet ISI standards).
2. Right to be Informed – Consumers must receive complete details about the product
(e.g., MRP, expiry, ingredients).
3. Right to Choose – Access to variety of goods/services at competitive prices.
4. Right to be Heard – Consumers can file complaints and seek grievance redressal.
5. Right to Seek Redressal – Compensation or replacement in case of defective
goods/services.
6. Right to Consumer Education – Awareness of consumer rights and remedies.
5. Consumer Responsibilities
1. Be Aware – Research and compare products before purchase.
2. Buy Standardized Products – Look for ISI, AGMARK, Hallmark, FSSAI symbols.
3. Read Labels Carefully – Check price, expiry date, usage instructions.
4. Follow Safety Instructions – Use products as per guidelines.
5. Demand a Cash Memo – Proof of purchase for legal claims.
6. File a Complaint if Cheated – Report unfair practices in consumer forums.
7. Avoid Waste & Pollution – Dispose of products responsibly.
Three-Tier Consumer Dispute Redressal
Machinery
The Consumer Protection Act, 2019 provides for a three-tier dispute redressal
mechanism to address consumer grievances at different levels. These include:
1. District Consumer Disputes Redressal Commission (District
Commission)
Jurisdiction:
● Handles cases where the value of goods/services paid does not exceed ₹1 crore.
Functions & Powers:
● Hears complaints related to defective goods, deficient services, and unfair trade
practices.
● If required, orders testing and verification of the product.
● Can direct the seller to replace, repair, or refund the price of defective goods.
● Awards compensation for any loss or injury suffered by the consumer.
● Encourages mediation if both parties agree.
Appeal:
● If dissatisfied with the order, the consumer can appeal to the State Commission
within 45 days.
2. State Consumer Disputes Redressal Commission (State Commission)
Jurisdiction:
● Handles cases where the value of goods/services paid exceeds ₹1 crore but does
not exceed ₹10 crore.
● Hears appeals against the orders of the District Commission.
Functions & Powers:
● Can uphold, modify, or overturn the decisions of the District Commission.
● Has the power to issue orders for compensation, refund, and corrective actions.
● Monitors consumer rights violations at the state level.
Appeal:
● If dissatisfied with the order, the consumer can appeal to the National Commission
within 30 days.
3. National Consumer Disputes Redressal Commission (National
Commission)
Jurisdiction:
● Handles cases where the value of goods/services paid exceeds ₹10 crore.
● Hears appeals against the orders of the State Commission.
Functions & Powers:
● Has nationwide jurisdiction and hears cases of significant consumer rights
violations.
● Can uphold, modify, or reverse the decisions of the State Commission.
● Directs companies to recall hazardous products, discontinue unfair practices, and
compensate consumers.
● Has the power to impose penalties on businesses violating consumer rights.
Appeal:
● If dissatisfied, the consumer can appeal to the Supreme Court within 30 days.
Relief Available:
● Replacement/Refund for defective products.
● Compensation for loss or injury.
● Discontinuation of unfair trade practices.
● Punitive damages for severe violations.
8. Role of Consumer Organisations and NGOs
1. Educate Consumers – Conduct awareness programs and publish articles.
2. Test Products – Compare quality of brands.
3. File Complaints – Take legal action against unfair practices.
4. Assist Consumers – Provide legal advice and help in grievance redressal.
