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Consumer Protection Class 12 Notes CBSE Business Studies Chapter 12 (Free PDF Download)

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Revision Notes for CBSE Class 12 Business Studies Chapter 12 - Free PDF Download

Business Studies is an important chapter of the Class 12 Commerce syllabus. This subject delivers knowledge related to business administration and management. In Class 12 Business Studies syllabus, the 12th chapter is all about consumer protection. Class 12 Business Studies Chapter 12 revision notes are developed in such a way that the students will be able to understand the concepts easily and learn how consumers are protected by the law. You can download the Class 12 Business Studies Consumer Protection revision notes from the website and the mobile app of Vedantu to access them offline. 

It has become a huge concern when the world is going through an industrial revolution. Consumers need to be protected as the entire world’s economy depends on them. It has to be protected so that the products and service providers cannot dupe them or use illegal means to impart loss. Several elements of this subject have been converted into chapters for vivid description and discussion in the syllabus for Class 12.

Download CBSE Class 12 Business Studies Revision Notes 2023-24 PDF

Also, check CBSE Class 12 Business studies revision notes for other chapters:


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Access Class 12 Business Studies Chapter 12 - Consumer Protection Notes

Consumer Protection

  • Consumer protection refers to safeguarding consumers from manufacturers or sellers that engage in anti-consumer trade activities. 

  • Earlier Approach

The previous approach was of ‘caveat emptor’, which literally translates to "let the buyer beware."

  • Present Approach

However, presently the approach is of ‘caveat venditor’, which literally translates to "let the seller beware."

  • Exploitative and unfair trading practices, such as defective and dangerous items, adulteration, false and misleading advertising, hoarding, and black-marketing, expose consumers to dangers. As a result, effective consumer protection against such acts is required.

Importance of Consumer Protection 

A. From Consumer’s Point of View

  1. Consumer Ignorance: The majority of consumers are unaware of their rights and remedies, and as a result, they are constantly exploited. Consumer protection is required to protect consumers from such exploitative practices.

  2. Widespread Exploitation of Consumers: Consumers are abused on a huge scale through a variety of unfair trade practices, and consumer protection is necessary to safeguard them.

  3. Unorganized Consumers: Consumers in India are still unorganised, and there are few consumer organisations that would advocate for them.
     

B. From Business Point of View

  1. Business utilises societal resources: Every business utilises societal resources, and it is their job to operate in the society's best interests.

  2. Long-term business interests: It is in the business's best interests to keep its customers happy. Customers must be satisfied in order to win the global competition. Satisfied consumers lead to repeat purchases, which helps to expand the company's customer base.

  3. Government Intervention: If a firm engages in any type of unfair commercial practices, the government will take action against it, harming the company's reputation.

  4. Social Responsibility: A business has social duties to a variety of stakeholders, including owners, employees, the government, and customers. As a result, shoppers should be able to purchase high-quality goods at affordable pricing.

  5. Moral Justification: Any firm has a moral obligation to behave in the best interests of its customers and prevent exploitation and unfair trade practices such as faulty and unsafe products, adulteration, false and misleading advertising, hoardings, black marketing, and so on.

The Consumer Protection ACT, 2019

  • The Consumer Protection Act of 2019 aims to safeguard and promote consumers' interests by resolving their complaints in a timely and cost-effective manner. It came into force on July 20th 2020.

  • It covers the entire country of India, except the State of Jammu and Kashmir.. 

  • It applies to all types of enterprises, whether they are manufacturers or traders, and whether they sell goods or services, including e-commerce companies.

  • The Act gives consumers specific rights in order to empower them and defend their interests.

Scope of the Act

The scope of this act is broad and covers a wide range of activities. This act covers all the undertakings;

  • Both large and small scale undertakings.

  • All three sectors are covered, namely private, public, and cooperative.

  • It is applicable to e-commerce companies as well.

  • It is applicable to whole of India.

  • All goods, services and trade practices are a part of this act, until specifically exempted.

Legal Protection to Consumers

The legal framework that offers protection to consumers includes:

  1. The Indian Contract Act, 1872:
    The Indian Contract Act of 1872 stipulates the requirements for the applicability of a contract signed by the parties to the contract, as well as the remedies available in the event of a breach of contract.

  2. The Sale of Goods Act, 1930:
    The Act gives buyers various protections and benefits in respect to the agreement made for the sale of goods.

  3. The Essential Commodities Act, 1955:
    This Act prohibits profiteers, hoarders, and black marketers from engaging in anti-social behaviour. Its goal is to maintain control over the production, supply, and distribution of critical commodities.

  4. The Agricultural Produce (Grading and Marketing) Act, 1937:
    The Act establishes grade requirements for agricultural and livestock commodities.

  5. Adulteration Act, 1954:
    The Adulteration Act of 1954 was enacted to prevent the adulteration of food products and to preserve their purity in order to protect public health.

  6. The Standards of Weights and Measures Act, 1976:
    It protects customers from the practice of under-weighting or under-measurement.

  7. The Trade Marks Act, 1999:
    This Act prohibits the use of deceptive marks on products.

  8. The Competition Act, 2002:
    Consumers are protected by the Act in the event that businesses engage in unethical actions.

  9. The Bureau of Indian Standards Act, 1986:
    The Bureau's main tasks are to develop quality standards for goods and to certify them using the BIS certification method.

Consumer

A consumer is defined as someone who buys or receives consumer goods or services against a payment. It includes anyone who benefits from such services, but it excludes anyone who uses such services for financial gain.

Under the Consumer Protection Act 2019, a consumer is a person who buys any goods or avails services for a consideration, which has been paid or promised, or partly paid and partly promised, or under any scheme of deferred payment.

Consumer Rights

  1. Right to Safety: Consumers have the right to be safeguarded against items and services that are harmful to their health and well-being. The consumers are righteous to get quality products, and they can also demand quality assurance from the seller for the same. Such as ISI, FPO, AGMARK, Hallmark etc are quality marks for industrial items, food products, agricultural products, gold respectively.

  2. Right to be Informed: Before purchasing a product, the consumer has the right to get complete information about it, regarding the quality, quantity, ingredients, purity, price etc. 

  3. Right to Choose: Consumers have the right to choose any product from the available options based on their own preferences. Hence no seller has the right to influence the consumer into purchasing a certain product through unacceptable means

  4. Right to Seek Redressal: If a product or service fails to meet the consumer's expectations or is dangerous, the consumer has the right to seek redressal. The consumer may be entitled to a replacement or repair of the problem, as well as reimbursement for any losses.

  5. Right to Consumer Education: Consumers have the right to learn and be well-informed throughout their lives. He should be informed of his rights and remedies in the event that the goods or service does not meet his expectations. The Indian government has integrated consumer education in school curriculum and is using the media to educate consumers about their rights. For example, efforts like Jaago Grahak Jaago is one such measure to educate the consumers

  6. Right to be Heard: The consumer has the right to provide his opinion regarding the product and services, as well as he has the right to to be heard in such cases. Hence the consumer has a right to file a complaint if he thinks that his rights have been violated. Also various consumer cells have been opened up in India so as to provide them the right to be heard.

Consumer Responsibilities

Consumers have the following responsibilities:

  • Be knowledgeable: Be knowledgeable about the numerous items on the market so that you can make an informed and educated decision.

  • Standardized products: Purchase just standardized products to ensure quality. Look for the ISI mark on electrical goods, the FPO label on food products, and the Hallmark on jewellery, among other things.

  • Follow Instructions: Follow the product's instructions and learn about the hazards linked with it, then use it safely.

  • Cautious Purchasing: Carefully read labels for information on prices, net weight, manufacturing, expiration dates, and so on.

  • Assert Yourself: Assert yourself to guarantee that you obtain a fair bargain, and fair price of the product.

  • Honesty: Be truthful in interactions and buy only legal goods and services, thus discouraging buying from sellers who follow unethical methods such as black marketing and hoarding.

  • Cash Memo: When purchasing products or services, request a cash memo. This will serve as proof of the transaction.

  • Consumer Societies: Establish consumer societies that will actively participate in consumer education and protection. 

  • Take action whenever needed: In the event of a defect in the quality of items purchased or services received, file a complaint with an appropriate consumer forum. Even if the sum involved is modest, don't hesitate to take action.

  • Avoid Littering: Respect and value the environment, and avoid any activity that would adversely affect it.

Ways and Means of Consumer Protection

  1. Self-regulation by businesses: Businesses that value corporate social responsibility adhere to ethical norms and practices while working with customers.

  2. Business associations: The FICCI and the CII have established codes of conduct for its members to follow while interacting with clients.

  3. Consumer Awareness: A well-informed consumer will be able to speak out against any unethical business activities.

  4. Consumer Organizations: Consumer organisations play a vital role in informing consumers about their rights and protecting them.

  5. Government: The government safeguards consumers' interests by establishing various consumer protection regulations.

Redressal Under The Consumer Protection ACT

a. Who can file a complaint under CPA, 2019

  • a consumer; or

  • any voluntary consumer association registered under any law for the time being in force; or

  • the Central Government or any State Government; or

  • the Central Authority; or

  • one or more consumers, where there are numerous consumers having the same interest; or

  • in case of death of a consumer, his legal heir or legal representative; or

  • in case of a consumer being a minor, his parent or legal guardian.

b. Redressal Agencies

As per Consumer Protection Act, 2019, The statute establishes a three–tier system for resolving consumer complaints, as follows:

District Commission

Complaints upto 1 crore

State Commission

Complaints exceeding 1 crore, but upto 10 crores

National Commission

Complaints exceeding 10 crores

c. District Commission

The state concerned establishes district forums in each district. The following are the key characteristics:

  • It is made up of a President and two members, one of whom must be a woman, who are officially nominated by the state government.

  • The value of consumer complaints should not exceed Rs. 1 crore.

  • Upon receiving the complaint, the district forum shall forward it to the opposing party and submit the items or sample to a laboratory for testing.

  • If the district forum determines that the goods are defective or that there has been unfair trading practices, the opposite party may be ordered to repair or return the items or pay compensation. If any of the party is not satisfied with the district forum's decision, they have 45 days to file an appeal with the state forum from the date of order.

d. State Commission

The government establishes a state commission in each state. The following are the key characteristics:

  • Each commission has a president and at least two members appointed by the state government, one of whom should be a woman.

  • The total worth of the products or services, including the compensation sought, is greater than Rs. 1 Crore but less than Rs. 10 crore.

  • Upon receiving a complaint, the state commission may submit the matter to the opposing party and send the items to a laboratory for examination.

  • After being satisfied, the state commission might require the other party to replace, reimburse, or pay compensation. If any of the parties is not pleased with the judgement, they can file a complaint with the national commission within 30 days of the order being issued.

e. National Commission

Central government sets the National commission. The provisions are:

  • It is made up of a President and at least four members chosen by the central government, one of whom should be a woman.

  • All complaints relating to products and services with a compensation value above Rs. 1 crore can be filed with the national commission.

  • When the national commission receives a complaint, it can also refer it to the opposing party and send items for testing.

  • The National Commission has the authority to issue orders for product replacement and loss compensation, among other things.

  • If any of the parties is not pleased with the decision taken, they can file a complaint with the Supreme Court of India within 30 days of the order being issued.

f. Reliefs Available To The Consumer

  • Removal of flaws in the goods.

  • Removal of the deficiencies in the services.

  • Replacement of damaged goods with new ones that are free of flaws.

  • Refunding the complainant for the price paid by him.

  • Payment of an appropriate amount of compensation for any loss or injury that has occurred.

  • In suitable circumstances, payment of punitive damages.

  • Discontinuance or abandonment unfair/restrictive trade practices.

  • Discontinuance of the sale of hazardous goods and services.

  • Payment to the consumer welfare fund (not less than 5%)  which is to be used in the prescribed manner.

  • Run corrective advertisements to counteract the effect of misleading advertisements.

  • Reimburse all parties for their expenses.

Role of NGO’s and Consumer organizations:

There are a number of NGO’s and consumer organizations active in India who are working for consumer protection. Their roles involve:

  • Raising awareness of consumer rights among the general public.

  • Educating consumers through periodicals and other publications.

  • Providing consumers with legal help, such as legal counsel.

  • Filing complaints on behalf of consumers in competent consumer tribunals.

  • Inspiring consumers to take action against unfair business practices.

  • Taking the initiative to file cases on behalf of consumers in consumer courts.

List of Consumer Organisations and Non-Governmental organisations(NGOs) working to defend and promote consumers' interests.

  • Consumer Coordination Council, Delhi 

  • Common Cause, Delhi 

  • Voluntary Organisation in Interest of Consumer Education (VOICE), Delhi 

  • Consumer Education and Research Centre (CERC), Ahmedabad 

  • Consumer Protection Council (CPC), Ahmedabad 

  • Consumer Guidance Society of India (CGSI), Mumbai 

  • Mumbai Grahak Panchayat, Mumbai 

  • Karnataka Consumer Service Society, Bangalore 

  • Consumers’ Association, Kolkata 

  • Consumer Unity and Trust Society (CUTS), Jaipur

Revision Notes Class 12 Business Studies Chapter 12

Consumer Protection: Business Studies Class 12 Chapter 12 Revision Notes Summary

The commerce students of Class 12 will study the Consumer Protection Act 1986. This act has been developed and amended by the Government of India to protect all kinds of consumers from fraudulent activities and to save them from any loss. This act is valid for all kinds of products and services offered and accepted. The elaborate description of this act using simple language is mandatory for the preparation of the students. This is where the revision notes Class 12 Business Studies Chapter 12 prepared by the experts can be very helpful.

The language used in the textbook might be intimidating for many. In fact, the clauses included in the act need to be accurately explained in a simpler tone so that the students can easily figure out the motto. All the clauses in the act have been developed to protect the best interest of the consumers. This act also makes the product manufacturers, sellers, and service providers more aware of the penalties and stop them from duping consumers. Once you start studying Class 12 notes Consumer Protection, you will find that there are many sections of this act. Let us take a quick look into this act.

The first section is ‘right to safety’. Find the proper explanation of this section and learn what safety means for a consumer, what the products and services have to maintain to make them safe to use for consumers. You will also learn how a consumer can find out which products are safe to use, what kind of certifications from the standardizing authorities offer to check in common products. NCERT Class 12 revision notes Business Studies Chapter 12 cover explanations to all the topics.

As per the Class 12 revision notes Chapter 12, the second segment of this chapter is ‘Right To Information’. You must have seen news related to RTI Act and people using it to extract information from the government’s sources. Every citizen has the right to know whether everything is going on in a particular incident as shown. The government is obligated to answer the questions and let the public know the truth. You will find a simpler explanation of this act in Business Studies Class 12 Chapter 12 revision notes.

According to Class 12 Business Studies revision notes solution Chapter 12, there are many clauses in the Consumer Protection Act that states that consumers have the right to choose anything when there are multiple options available. It depends on the consumer’s discretion and no one can impose any product on service even if there are multiple options available in the market. This act also makes the government bodies to hear what a consumer wants to say. This is called ‘Right To Be Heard’. This act also ensures proper education of consumers, seeking redressal for settlement, etc. Referring to the Consumer Protection Class 12 Business Studies revision notes will help you understand these Acts and why the chapter has been included and why every student should study it.


Class 12 Subject-wise Revision Notes

 

Subject-wise Solutions for Class 12

FAQs on Consumer Protection Class 12 Notes CBSE Business Studies Chapter 12 (Free PDF Download)

1. Why is it necessary to amend the Consumer Protection Act?

The Consumer Protection Act is solely developed and amended for the purpose of protecting the best interest of the consumers and stop fraudulent activities in any private or public sectors.

2. Why should you study the Consumer Protection Act?

Studying this act in NCERT Solutions Chapter 12 Class 12 Business Studies revision notes will help you discover your rights as a consumer and utilize them to learn the truth or fight for giving fraud public and private service providers a lesson.

3. What is the importance of consumer protection from the consumer point of view, according to Chapter 12 of Class 12 Business Studies?

Importance of consumer protection from the customer’s point of view is:

  • Consumer Ignorance - Due to growing ignorance among the consumers, it is important to educate them about their rights.

  • Unorganized Consumers - It is necessary to have organized consumer organizations that will take care of the needs of the consumers. Until these organizations acquire the required power, it is important for the consumers.

  • Widespread Exploitation Of Consumers - Consumers are often seen to be exploited by unfair trade practices and thus it becomes evident that the consumers require protection against these kinds of malpractices.

4. What is consumer protection from the point of the business, according to Chapter 12 of Class 12 Business Studies?

Consumer protection from the point of the business is:

  • Long Term Interest of Business - The businesses know and accept the fact that to satisfy their consumers is the main aim for them to flourish the business. Therefore, they aim towards long term profit through consumer satisfaction.

  • Businesses Use Society’s Resources - It is the responsibility of the businesses to render services that profit the consumers because it is the society’s resources they use to run their business.

  • Social Responsibility - Consumers are the main part of any business because these businesses flourish only if the consumers purchase their products. Therefore, it becomes the social responsibility of every business to look after its consumers.

5. Why is it important to refer to Revision Notes for Chapter 12 of Class 12 Business Studies?

The Revision Notes for Chapter 12 of Class 12 Business Studies are the best guidebooks that students should refer to attain good marks in their board exams. These are designed by experts to support students in their learning process. The exercises that these present have detailed and explanatory answers that make the learning process easier for students. The language is simple and easy to comprehend. Thus, students must possess these notes so that they can get rid of their doubts and confusion. The Revision Notes for Chapter 12 of Class 12 Business Studies are available free of cost on the Vedantu website and the Vedantu app.

6. What are the acts passed by the Government of India that help to protect the interests of the consumer, according to Chapter 12 of Class 12 Business Studies?

 Some of these acts and regulations are -

  • The Consumer Protection Act, 1986, ensures the safety of the consumers against defective goods and services, unfair trade practices etc.

  • The Contract Act, 1982 is an agreement enforced by the law 

  • The Sale of Goods Act, 1930 ensures safeguards and reliefs for the buyers in case the goods that they purchase fail to meet the warranties.

There are other regulations as well which the student needs to be aware of to do well in the exam. To achieve this, they should get the revision notes and study all that it has to offer. They can get these notes online for free on the website of Vedantu.

7. What responsibilities do the consumer hold, according to Chapter 12 of Class 12 Business Studies?

Following are some of the responsibilities that the consumer ought to follow:

  • They should always go for and purchase standardized goods

  • Have insight into the various goods and services that get introduced in the market. This will help them make intelligible and wise choices.

  • Be aware of the risks that come associated with different products and services

  • Should always read the label carefully before making any purchase

  • If any problem or shortcomings arise in the goods that the consumer has purchased, they should file the complaint in the respective consumer forum

  • After every purchase, it is advisable that the consumer demands for the cash memo to have the proof of the purchase and use it if need be.