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Consumer Protection

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Last updated date: 22nd Mar 2024
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Introduction

Consumer protection is the practice of securing buyers of goods and services, and the public, against illegal practices in the business. Consumer protection measures are frequently established by law. Similar laws are intended to assist businesses from engaging in fraud or specified illegal practices so as to realize a plus over challengers or to mislead consumers. They may also give fresh protection for the general public which may be impacted by a product (or its product) indeed when they aren't the direct purchaser or consumer of that product. For example, government regulations may cause businesses to expose detailed information about their products — particularly in areas where public health or safety is an issue, similar as with food or motorcars.


Consumer protection is linked to the idea of consumer rights and to the confirmation of consumer associations, which help consumers make better choices in the business and pursue complaints against businesses. Realities that promote consumer protection include government associations ( similar to the Federal Trade Commission in the United States), tone-regulating business associations ( similar as the Better Business Divisions in the US, Canada, England, etc.), and non-governmental associations that endorse consumer protection laws and help to ensure their enforcement ( similar as consumer protection agencies and watchdog groups).


Consumer Protection Act 2019

The Consumer Protection Act safeguards the consumers and encourages the consumers to speak up against the insufficiency and about the flaws in the goods and services. This Act provides easy and fast compensation to the consumers' grievances. If the traders and the manufacturers involved in the buying transaction practices any illegal trade in this matter then this act protects all the rights as a consumer.


What is The Consumer Protect Act?

The Consumer Protection Act of 2019 was introduced in the Lok Sabha on the 8th July 2019 by the Minister of Consumer Affairs, in regards to the Food and Public Distribution, Ram Vilas Paswan. It was passed by the Lok Sabha on 30th July in the year 2019 and this was later passed in the Rajya Sabha on the 6th of August in the year 2019. 


The consumer protection bill received its assent from President Ram Nath Kovind on the 9th of August, after which it got notified in the Gazette of India on the same 9th of August itself. The Act came into effect by 20th July of 2020, after which certain other provisions of the Act were established like the Central Consumer Protection Authority (CCPA) came into this effect from 24th of July in the year 2020. 


The features of the Consumer Protection Act focus on providing the customer more power by taking care of them and providing all the transparencies. While, a recent addition in the year 2020 in the month of September, the government declared a new draft which is known as ‘advertising code’ this gives the customer all kinds of protection against the false advertisements, moreover this code protects the customer from the celebrities or idol figures who try to fool the customers by doing all these paid promotions of their products and services. 


Consumer Rights in India 

Right to Safety:

Right to Safety means getting protected against the marketing of goods and services that are hazardous to the life and property of an individual. The purchased goods and services which are availed should not only meet their immediate needs but also meet their long-term needs as well. Also, consumers must be made aware of the ISI and AGMARK, etc. 


Right to Choose:

The right to choose means the right to be assured of the product they are buying. Right to Choose means the consumers are at full freedom to know about the competitive prices existing in the market and then buy the best product. This right is mostly exercised in a competitive market structure.  


Right to be Informed:

The right to be informed means the consumers must be made aware of the quality, quantity, potency, purity, standard, and price of the goods. This will act as knowledgeable protection of the customers against unfair trade practices. The consumers must avail their right of knowing all the details of the product and thus insist on getting all the information about the product or service before making a choice or a decision of their own. 


Right to Consumer Education:

This right means that they must acquire the knowledge and the skill to be an informed consumer throughout their life. Ignorance of knowing any product by the consumers, particularly the rural consumers, acts as the main reason for their exploitation. They should accurately know about their rights and must exercise them wisely. 


Right to be Heard:

Right to be heard means that the consumer's interests must be heard properly. Their problem must receive all the due consideration at the right forums. The right to be heard also includes the right to be represented in the various forums which are formed to consider the consumer's welfare. The Consumers should form the non-political and non-commercial consumers organizations, this can be given exact representation in these various committees which are formed by the Government and by other bodies in all the matters which are relating to the consumers.


Right to Seek Redressal:

This means the right to seek redressal against any unfair trade practices or by the unscrupulous exploitation of the consumers. This Right also includes the right to fairly settle for the genuine grievances which are submitted by the consumers. Consumers should also take the responsibility of making genuine complaints about their real grievances. The consumers can also take the help of other consumer organizations in seeking redressal for their grievances.


Central Consumer Protection Authority 

CCPA or Central Consumer Protection Authority, unlike other Councils. This is a type of commissioned body that is neither purely regulatory, advisory nor it is a policy-making body, this body is entirely adjudicatory and quasi-judicial in nature. The structure of the CCPA is also based on a central structure and besides this even provides for the creation of the regional offices, the Act itself does not mandate the creation of any State or any District Authorities on its own. The CCPA also comprises the Chief Commissioner, Commissioners, and a whole team of subject matter experts and professional bodies. Besides this, there also consists of an investigation wing that is being headed by a Director-General.


Central Consumer Protection Council

Under Consumer Protection Act, the Central Government gets to establish a Central Consumer Protection Authority that consists of the Minister in charge of the consumer affairs in the Central Government who is the Chairman and a such number of other official and non-official members, those who are representing other such interests as may be prescribed from time to time.


Under the Consumer Protection Council India, Consumer Protection Rules 1987. The membership of this Council is an accommodation to 150 members, the number includes the Central Minister in charge of the Consumer Affairs who acts as the Chairman. The term of this Council is a span of three years.


The council was formed in order to monitor the implementation of the recommendations of the Council, the Central Government which may constitute a standing working group from among the members of the council which comes under the Chairmanship of the Member Secretary of the Council.


The Council will conduct their meeting as and when it deems fit, but at least one meeting is to be conducted of the Council which shall be held at such time and place as the Chairman may think best.


Did You Know?

  • Under the shed of the Consumer Protection Act, customers remain protected from hazardous goods. 

  • It is the right of a customer to know all the information regarding the product.

  • Consumer Education is given under Consumer Protection.

  • A consumer can also demand a healthy environment under this Act.

  • If you are a customer, then you can file your complaint from anywhere!

  • A customer can also seek a hearing with video conferencing mode too.

  • A customer also knows the reason for the rejection of his complaint.  


Thus, we see that the consumer protection council under the consumer law in India is an exact forum where the aggrieved customers can file their grievances and seek justice. This is indeed a relief to the customers, as without this facility they were easily exploited at the hands of the sellers. Also, with the establishment of this Act, all the sellers are cautious before they deliver any type of goods or services to the customers. 


Apart from this, the consumer protection Act 2019 pdf is attached below this content; students are advised for an in-depth study from the same.

FAQs on Consumer Protection

1. State some key features of Consumer Protection?

The Consumer Protection Act 1986 enhanced the hypercritical power of consumers, by making them understand what's right and wrong and shoulder the proper opinions when buying any product or service. It checked the business malpractices generally being done to make gains, without minding whether the well being of consumers and community is being hampered or not. That’s why the Right to Safety, Right to Information, Right to Choose, Right to Seek Redressal, Right to be heard, Right to Consumer Education came as the necessary part of this act.


As technology has taken a storm over e-commerce, Digital branding has taken a replacement shape. Why not! After all, it has come easier for consumers to order their favorite effects from the comfort of their settee. An accessible payment system has also contributed towards a better shopping experience.

2. State the Consumer Protection Act of 1986.

The industrial revolution and the development in the transnational trade and commerce have led to the vast expansion of business and trade, as a result of which a variety of consumer goods have appeared in the request to feed to the requirements of the consumers and a host of services have been made available to the consumers like insurance, transport, electricity, casing, entertainment, finance and banking. A well-conditioned systematized sector of manufacturers and dealers with better knowledge of requests has come into actuality, thereby affecting the relationship between the dealers and the consumers making the principle of consumer sovereignty nearly irrelevant. 


The announcements of goods and services in TV, journals and magazines impact the demand for the same by the consumers however there may be manufacturing blights or defects or short appearances in the quality, volume and the chastity of the goods or there may be insufficiency in the services rendered. In addition, the product of the same item by numerous enterprises has led the consumers, who have little time to make a selection, to suppose before they can buy the stylish. For the welfare of the public, the glut of thinned and sub-standard papers in the request have to be checked. In malignancy of colorful vittles furnishing protection to the consumer and furnishing for strict action against thinned and sub-standard papers in the different enactments like Code of Civil Procedure, 1908, the Indian Contract Act, 1872, the Trade of Goods Act, 1930, the Indian Penal Code, 1860, the Norms of Weights and Measures Act, 1976 and the Motor Vehicles Act, 1988, veritably little could be achieved in the field of Consumer Protection.

3. State the importance of the Consumer Protection Act?

To shape Consumers-Indian guests aren't well-organized, and merchandisers exploit them fluently. 


Import Market Information-Most consumers are oblivious, and have no information about the product they're buying and this might beget their losses. 


Physical Safety-Some products are thinned and can hinder consumer health. So, they need to be defended. 


Forestall Monopoly-Irrespective of different restrictions numerous organizations follow monopoly practice and consumers get told and should be defended. 


Malpractices-Company pursues prejudiced trade practices, and unlawful trade practices and this protection plays a pivotal part. 


Deceiving announcement-Numerous enterprises, designedly trick consumers through incorrect or deceptive announcements. This act will shield consumers from getting exploited. 


Education Consumers about their Basic Rights-Utmost consumers ignore or don't know about their rights. The Consumer Cover Act educates them and secures their rights and interests.

4. What is the history of Consumer Protection of 1986?

The Consumer Protection Act, 1986 is benevolent social legislation that lays down the rights of the consumers and provides for the creation and protection of the rights of the consumers. the primary and therefore the only Act of its kind in India, it enabled ordinary consumers to secure less precious and regularly speedy redressal of their grievances. By spelling out the rights and remedies of the consumers during an invitation so far dominated by systematized manufacturers and dealers of products and providers of colorful kinds of services, the Act makes the dictum, principle (‘Buyer Guard’) a thing of the history.


The Act authorizes the establishment of Consumer Protection Councils at the Center also as in each State and District, with a view to promoting consumer mindfulness. The Central Council is headed by the Minister In- charge of the Department of Consumer Affairs within the Central Government and thus the State Councils by the Minister In- charge of the buyer Affairs within the State Governments. It also provides for a 3- league structure of the National and State Commissions and District Commissions for quick resolution of consumer controversies.

5. State the functions and powers of the Central Consumer Protection Authority?

Interrogate or probe into matters relating to violations of consumer rights or illegal trade practices suo motu, or on a complaint entered, or on a direction from the central government.


Recall goods or pullout of services that are “ dangerous, dangerous or unsafe.


Pass an order for a refund of the prices of goods or services so recalled to purchasers of similar goods or services; termination of practices which are illegal and prejudicial to consumer’s interest”.


Put a penalty up to Rs 10 lakh, with imprisonment up to 2 times, on the manufacturer or endorser of false and deceiving announcements. The penalty may go up to Rs 50 lakh, with imprisonment up to 5 times, for each posterior offense committed by an equivalent manufacturer or endorser.


Ban the endorser of a false or deceiving announcement from making countersign of any products or services in the future, for a period that may extend to one time. The ban may extend up to three times in every posterior violation of the Act.


Train complaints of violation of consumer rights or illegal trade practices before the District Consumer Controversies Redressal Commission, State Consumer Controversies Redressal Commission, and the National Consumer Controversies Redressal Commission.

6. What are Consumer Legal Rights?

There are several consumer rights which are given below:


a. Right to Safety- The assertion of this right is aimed at the defense of consumers against injuries caused by products other than automobile vehicles, and implies that products should cause no harm to their users if such use is executed as prescribed.


b. Right to be informed- This right states that businesses should always provide consumers with enough appropriate information to make intelligent and informed product choices.


c. Right to be Heard- This right asserts the ability of consumers to voice complaints and concerns about a product in order to have the issue resolved efficiently and responsively.


d. Right to seek Redressal- To receive a fair settlement of just claims, including compensation for misrepresentation, shoddy goods or unsatisfactory services. It ensures the right to seek redressal of their grievances


e. Right to Choose- The right to free choice among product offerings states that consumers should have a variety of options provided by different companies from which to choose.


f. Right to Consumer Education- To acquire knowledge and skills needed to make informed, confident choices about goods and services, while being aware of basic consumer rights and responsibilities and how to act on them.

7. What is the need for Consumer Protection?

Consumer protection is required against all types of pollution so that the consumers can enjoy a healthier environment, which is free from water, air, and food pollution. Also, consumer protection is needed against the abuse of monopolistic and restrictive trade practices which is done in transactions. The consumer. council works with this in mind that 'protection delayed is protection denied.

8. What is the difference between a customer and a consumer?

A consumer is the one who consumes all the goods or services, he is actually the end-user, while a customer is the one who only buys it.