Under the modern concept of marketing consumer is treated as the king as all the activities of business circulates around one of the major aim i.e. to provide maximum satisfaction to consumers. But in reality consumes are often exploited and ignored. Misleading advertisements, adulterated products, under-weighing, overcharging, are some of the examples of exploitation of consumers. As a result consumers are deprived to their rights.
Importance
Protection of consumer is important due to the following reasons:
- Business exists to satisfy the needs and desires of consumers being the source of income for business. The aim of every business is to earn maximum profits which can be attained only by providing maximum satisfaction to consumers. According to Peter F. Drucker, “There is only one valid definition of business purpose: to create a customer. It is the customer who determines what a business is. The customer is the foundation of business and keeps it in existence and it is to satisfy the customer that society entrusts wealth producing resources to a business enterprise.”
- Businessmen are trustees of the society’s wealth for the benefit of people. It is thus the moral responsibility of business to protect and promote the interests of consumers.
- Consumers have been granted some rights under law. Government of India is committed to consumer welfare.
- Consumers are becoming increasingly aware of their rights. Print and electronic media is increasingly highlighting unethical business practices. For the purpose the consumer forum is also been established.
- It is ultimately in the interest of business community to protect and serve consumers. In India business firms should adopt the strategy of consumer oriented so as to survive in the competition from multinationals.
In order to protect the rights of consumers a movement is started. This movement is known as consumerism. It is a social force designed to protect consumer interests in the market place. Consumerism is a try to rectify the imbalance created between sellers and buyers, to protect consumers against unfair practices on the part of manufacturer. It has the ability to make marketing practices more informative, more transparent, more truthful and more responsive to consumers.
Consumer rights
The Consumers Protection Act provides the following rights of consumers:
The Right of Safety : Products may not cause any physical danger to consumers or put them in difficulty due to any reason. Hence, consumers must have assurance regarding quality, reliability and performance. For the purpose the right to safety is provided to customers against the marketing of goods which accompanied with many harmful substances like food additives, food colouring, pesticides which add new potential dangers to life of a human being. Due to advancement of science and technology, consumer products have become highly complex. Therefore, responsibility for their safety should be fixed on producers and distributors.
The Right to Choose : The consumer is given full right to choose the desired product from among various alternative products. This means that the seller should not use aggressive selling techniques to sell the product to the consumer. There should be freedom for choice.
The Right to Seek Redressal : It means the right to get claims and complaints settled against manufacturer or seller. The foremost aim of the manufacturer should be to gain the maximum satisfaction of consumers which can only be attained by listening their queries and grievances against the product carefully and solving them with due care.
The Right to be Informed : The consumer has the right to be informed about the quality, quantity, purity, standard and price of the goods he intends to purchase. It is the responsibility of the manufacturer and distributor to give complete information about the product including its ingredients, date of manufacturing, technical specifications, etc., the precautions if any, to be taken in the use and maintenance of the product, the side effects and risks involved, etc. Such information is useful to the consumer to consumer use the product intelligently and cautiously.
The Right to be Heard : The consumer has a right to make complaints if any to make protest against his right. For the purpose the consumer has a right to register his dissatisfaction and get his complaint and grievances heard at appropriate forums.
The Right to Consumer Education: The customers must be made aware of his rights and the remedies available to him. This will create consciousness among the customers. An ignorant customer can not escape cheating and frauds would not be able to come forward to protest against the malpractices by sellers.
Means of Consumer Protection
The following methods may be adopted for the protection of consumers.
Self-Regulation : Business commu-nity can itself ensure consumer protection through self-discipline and adopting a code of conduct so as to behave in a more responsible manner. Such code of conduct helps the businessman to avoid government control. Trade associations and chambers of commerce can play a vital role in ensuring that business firms do not exploit consumers.
Consumer Association : Consumer associations and Non Consumer organisations (NGOs) can educate and awaken consumers. These bodies can take a united action on behalf of consumers.
Consumer Self-help : The consumer himself must be alert and well informed.
Government Control : Government has passed certain laws for the sake of consumers’ protection. All the wings of the government—legislature, judiciary and executive can assist in consumer protection.
Consumer Protection Act
The Consumer Protection Act seeks to provide a speedy and simple redressal to consumer grievances. The Consumer Protection Act has specified consumer rights given above. It provides for the setting up of a three tier quasi-judicial machinery. This machinery has been authorised to provide time bound relief to consumers. Remedies available to an aggrieved consumer are:
- Removal of defects in goods.
- Payment of compensation by seller for any loss borne by the consumer.
- Return of price by the seller.
- Replacement of defective goods with new goods of similar description.
The Consumer Protection Act makes provision for the setting up of the following authorities:
District Forum
The State Governments are required to establish District Forum in each district.
The important features of District Forum are as under:
- Each District Forum consists of a chairman and two members appointed by the State Government. It has the powers of a civil court for enquiring into any complaint.
- A District Forum can receive consumer complaints where the value of goods or services and the compensation claimed is less than Rs. Five lakh.
- The consumer can file complaint against the manufacturer for the malpractices.
- On receiving the complaint, the District Forum shall refer the complaint to the opposite party concerned (i.e. seller, manufacturer or the organisation who is responsible for malpractice), and send the sample of goods for testing in a laboratory.
- If the other party is responsible for the default or some unfair trade practices, the District Forum can issue an order to them directing them to either resolve the defect or replace the goods, or return the price, or pay compensation to the consumer for loss or injury etc.
An appeal against the order of the District Forum can be filed to the State Commission within 30 days.
State Commission
It is set up by the State Government and its jurisdiction is restricted to the boundaries of the state concerned. The Consumer Protection Act lays down the working of a State Commission as under:
- The State Commission shall consists of a President who either has been a Judge of a High Court and two other members. All the three shall be appointed by the State Government.
- Only those complaints can be filed where the value of goods or services and compensation claims comes in between Rs. 5 lakh and Rs. 20 lakh. The appeal against the order of any District Forum can also be filed before the State Commission.
- The State Commission is required to refer the complaint to the opposite party concerned and send the sample of goods for retesting in a laboratory, if necessary.
- The State Commission after being satisfied that the goods were defective can issue the same order as can be issued by the District Forum.
Any person who is aggrieved by the order of the State Commission can appeal against such order to the National Commission within 30 days.
National Commission
It is set up by the Central Government. The salient features and provisions of the Act pertaining to the National Commission are as under:
- It shall include a President who is or has been a Judge of the Supreme Court and four other members appointed by the Central Government.
- The identical complaints as can be filed in the District Forum and State Commission can be filed in the National Commission too. Appeal against the order of State Commission can also be filed before the National Commission.
- The National Commission shall have the same powers as that of a Civil Court in dealing with cases and follow the procedure prescribed by the Central Government.
- It has the authority to issue orders for safety provisions and pay compensation for loss or injury caused.
An appeal against the order of the National Commission can be filled to the Supreme Court within 30 days.