Consumer Awareness

Consumer
Awareness, Rights,
Responsibilities and
Protection
By:Lakshmi Bansal
Acknowledgement
We would like to thanks our Commerce
teacher Miss Swati Mam who gave us this
wonderful project which help us a lot in
doing a lot of important research and we
are able to enhance our knowledge on
this topic. We would like to thanks our
parents too who helped us in finishing our
project on time. Thanks again to all who
helped us. We made this project not only
to fetch good marks but to enhance
knowledge also.
Who Is A Consumer?
A consumer is said to be a
king of the free market
economy. The earlier
approach means let the
buyers beware .However
now it has been changed to
let the sellers beware.
HOW
CONSUMER
IS
EXPLOITED?
Consumer Rights and Responsibilities

Consumer Rights
Consumer face various problems on account of

Competition in market,
Misleading advertisements,
Availability of inferior quality of goods and services.

Consumer Rights
Hence, under the Consumer Protection Act1986,

Government of India has provided certain rights to
safeguard consumers interests.

Consumer Rights
Right
to
Safet
y
Right to
be
Informe
d
Right
to
Choo
se
Right
to be
Heard
Right to
seek
Redressal
Right
to
Educat
ion
A consumer has a right to be protected against goods and

services which are injurious to health and life.
For example, a consumer should check a gas cylinder for leakage
at the time of purchase. If the cylinder starts leaking afterwards,
leading to fire and injury or death to anyone, then the supplier is
liable to pay compensation.

Consumer Rights
Right
to
Safet
y
Right to
be
Informe
d
Right
to
Choo
se
Right
to be
Heard
Right to
seek
Redressal
Right
to
Educat
ion
A consumer has a right to be informed about the ingredients,

quality, quantity, purity, standard or grade, date of manufacture
and price
of goods
intends
to buy.
Also,
suppliers
and he
dealers
must
inform consumers about the
safety precautions to be taken while using products to avoid loss
or
injury.
In the
given example, the gas supplier should inform the
consumer to stop the flow of gas with the help of regulator when
it is not in use.

Consumer Rights
Right
to
Safet
y
Right to
be
Informe
d
Right
to
Choo
se
Right
to be
Heard
Right to
seek
Redressal
Right
to
Educat
ion
A consumer has the freedom choose the goods needed from

This
implies
dealers and traders should offer a variety of
a variety
ofthat
products.
products to consumers and should avoid using pressure tactics to
sell goods of poor quality.

Consumer Rights
Right
to
Safet
y
Right to
be
Informe
d
Right
to
Choo
se
Right
to be
Heard
Right to
seek
Redressal
Right
to
Educat
ion
A consumer has a right to file a complaint and to be heard by

manufacturers, dealers, advertisers. Government and public bodies
in case of dissatisfaction with a good or service.

Consumer Rights
Right
to
Safet
y
Right to
be
Informe
d
Right
to
Choo
se
Right
to be
Heard
Right to
seek
Redressal
Right
to
Educat
ion
I f a consumer has a complaint or grievance due to unfair

trade practices like charging higher prices, selling of poor
quality or unsafe products, and so on, he has a right to get
relief.
The
consumer has a right to get the defective goods replaced or
money refunded by seller or dealer.

Consumer Rights
Right
to
Safet
y
Right to
be
Informe
d
Right
to
Choo
se
Right
to be
Heard
Right to
seek
Redressal
Right
to
Educat
ion
Consumer education empowers consumers to exercise their

consumer
rights.
For
this purpose,
consumer associations, educational institutions
and Government policy makers are expected to educate and
inform consumers about the rights and the reliefs available to
them.
Today, a consumer also needs to know about government
policies and introduction of new technology.

Consumer
Responsibilities
Consumer rights, by themselves, cannot be effective in achieving

the objective of consumer protection. To achieve consumer
protection, consumers also need to understand their
responsibilities.
For example, to exercise the right to seek redressal of
complaints, a consumer must take all precautions to choose the
right good, at the right price and must learn how to use products
to prevent
injury the
or loss
.
Let
us understand
various
responsibilities which a consumer
should keep in his mind while purchasing, using or consuming
goods and services.

Consumer
Responsibilities
(1) A consumer should be aware of various goods and services

available in the market in order to make an intelligent choice.

Consumer
Responsibilities
(2) A consumer should purchase only standardized goods for

quality assurance. They should check ISI mark on electrical
goods, AGMARK on agricultural products, HALLMARK on jewelry,
to mention a few.

Consumer
Responsibilities
(3) A consumer must know about the risks associated with

products and services, follow manufacturers instructions and
use the products safely.

Consumer
Responsibilities
(4) Before purchasing goods, a consumer should read labels

carefully to get information about prices, net weight,
manufacturing and expiry dates, and so on.

Consumer
Responsibilities
(5) A consumer should ensure that he gets a fair deal and should
be honest in his dealings. He should purchase legal goods and
services only and discourage unscrupulous practices like blackmarketing, hoarding and so on.

Consumer
Responsibilities
(6) On the purchase of goods and services, consumers should

ask for a cash memo as a proof of the purchase made.

Consumer
Responsibilities
(7) Consumers must file a complaint in an appropriate consumer

forum in case of any shortcoming in the quality of goods
purchased or services availed.

Consumer
Responsibilities
(8) Consumers should form consumer organisations that would

play an active part in educating consumers and safeguarding
their interests.

Consumer
Responsibilities
In a nutshell Government of India has provided six rights, under

the Consumer Protection Act 1986, to protect consumers
interests.
These are:
(2) Right to
(1) Right to safety,
informed,
(4)Right to be
(3) Right to choose.
(6) Right to consumer
(5) Right to seek redressal and Heard.
education.

Consumer
Responsibilities
There is a well known saying that there

cannot be rights without
responsibilities.
Hence, a consumer
should also keep in mind his
responsibilities while purchasing, using or consuming
goods and services.
Consumer
protection :
An Overview
Consumer protection: An overview

Consumer
Protection
Manufacturers and service providers offer products and services

to fulfill needs and wants of consumers, on the one hand and to
increase the level of profit, sales and market share, on the
other.

Consumer
Protection
However, in an attempt to increase their sales and market share,

these producers may be tempted to engage in unfair trade
practices like defective and unsafe products, adulteration, false
and misleading advertising, black-marketing just to name a few.

Consumer
Protection
Hence, there is a need to provide adequate protection to

consumers against such practices of the sellers.

Consumer
Protection
According to the Cambridge Advanced Learning Dictionary,

Consumer protection is the protection of buyers of goods and
services against low quality or dangerous products and
advertisements that deceive people.

Consumer
Protection
Consumer protection includes educating consumers about their

rights and responsibilities, and helping them to seek redressal of
their grievances.
Importance of
Consumer
protection

Importance of Consumer
Protection
Majority of consumers are ignorant about the rights and reliefs

available to them. Hence, it becomes necessary to educate
them about the same to achieve consumer awareness.

Protection
Consumers need to get together and form themselves into

powerful consumer organisations to protect and promote their
own interests.

Protection
Consumer protection plays a vital role as consumers might be

exploited by unscrupulous, exploitative and unfair trade
practices products, adulteration, false and misleading
advertising, hoarding, black-marketing etc.

Protection

Protection
Business firms should aim at long-term profit maximisation

through customer satisfaction. Customer satisfaction not only
leads to repeat sales but also increases the customer-base of
business.

Protection
Business organisations use resources which belongs to the

society. Hence, it is a responsibility of business firms to offer
those products and services that are in public interest.

Protection
Business organisations make money by selling goods and

services to consumers. Hence, form an important group of stake
holders and business organisations should take care of the
group.

Protection
It is the moral duty of any business organisation to take care of

consumers interest and avoid any form of their exploitation.

Protection
A business firm should take care of consumers needs &

interests as its involvement in any form of exploitative trade
practices would invite govt. intervention or action. Such govt.
intervention may damage the image & position of the company

Legal Protection to
Consumers
In order to provide adequate protection to consumers the

Government of India has enacted a number of regulations.

Legal Protection to
Consumers
The Consumer Protection Act 1986
The Act provides safeguards to consumers against different

forms of exploitation such as defective goods, deficient services,
unfair trade practices and so on.

Legal Protection to
Consumers
The Consumer Protection Act 1986
The Act also makes provision for establishment of consumer

councils and other authorities for the settlement of consumer
disputes and matters therewith connected.

Legal Protection to
Consumers
The Contract Act 1982
The Act lays down the conditions in which the promises made
by parties to a contract will be binding on each other. The Act
also signifies the remedies available to parties in case of breach
of contract.

Legal Protection to
Consumers
The Sale of Goods Act, 1930
The Act provides some safeguards and reliefs to the buyers of

the goods, if the goods purchased do not comply with implied
conditions or warranties.

Legal Protection to
Consumers
The Essential Commodities Act, 1955
This Act was enacted to ensure the easy availability of essential

commodities to consumers and to protect them from
exploitation by profiters, hoaders and black-marketers. The Act
provides for the regulation and control of production, distribution
and pricing of essential commodities.

Legal Protection to
Consumers
The Agricultural Produce (Grading and Marking) Act, 1937
This Act prescribes grade standards for agricultural commodities

and allied commodities. These are known as AGMARK
standards an acronym for Agricultural Marketing. The Act lays
down the procedure for grading, marking and packing of
agricultural produce.

Legal Protection to
Consumers
The Prevention of Food Adulteration Act, 1954
The Act aims to protect the consumers from poisonous and

harmful foods and prevent the sale of substandard foods in
order to maintain public health.

Legal Protection to
Consumers
The Standards of Weights and Measures Act, 1976
The provisions of this Act are applicable in case of those goods

which are sold or distributed by weight, measure or number The
Act aims at ensuring that consumers get products with the right
weight and measurements.

Legal Protection to
Consumers
The Trade Mark Act, 1999
This Act has replaced the Trade and Merchandise Marks Act,
1958. The Act provides protection to consumers by preventing
the use or fraudulent marks on products.

Legal Protection to
Consumers
The Competition Act, 2002
This Act has replaced the Monopolies and Restrictive Trade

Practices Act, 1969. The Act provides protection to consumers
by refraining traders to promote any activity which hampers
competition in the market.

Legal Protection to
Consumers
The Bureau of Indian Standards Act, 1986
This Act provides for the establishment of the Bureau of Indian

Standards for the harmonious development of the activities of
standardisation, marking and quality certification of goods.

Legal Protection to
Consumers
This Act permitted manufacturers to use the ISI Mark on the

products after ensuring that the goods conform to the prescribed
quality standards.

Legal Protection to
Consumers
The Bureau has also setup a grievance cell where consumers

can make a complaint about the quality of products carrying the
ISI mark.

Ways and Means of Consumer
Protection
There are various ways of protecting the interest of consumers.

Protection
The business organisations themselves can promote consumer

protection by regulating their own behavior and actions.

Protection
Socially responsible firms follow ethical standard and practices

in dealing with their customers.

Protection
Firms establish customer service and grievance cell to redress

the problems and grievances of their consumers.

Protection
The associations of trade, commerce and business like

Federation of Indian Chambers of Commerce of India (FICCI) and
Confederation of Indian Industries (CII) can check unfair trade
practices used by some business organisations through their

Protection
In order to protect his interests a consumer should know the

rights and reliefs available to him.

Protection
Consumer organisations awaken consumers by educating them

about their rights.

Protection
These organisations provide protection to consumers by taking

organised action and forcing business firms to adopt fair trade
practices.

Protection
The Government can protect consumers interest through

legislative, executive and judicial actions. The executive should
strictly enforce the laws passed by the Government.

Redressal Agencies under the Consumer
Protection Act
In order to resolve consumer disputes, the Consumer Protection

Act 1986 provides for the establishment of a three tier
enforcement machinery at the National, State and District levels.

Redressal Agencies under the Consumer
Protection Act
These are the National Consumer Disputes Redressal

Commission (National Commission), the State Consumer
Disputes Redressal Commission (State Commission), the
District Consumer Dispute Redressal Forum (District Forum),
respectively.

Redressal Agencies: District
Forum
District Forum
Under Consumer Protection Act the state Government has to set
up a District Forum in each district of the State.

Forum
Each District Forum consists of a President, who is qualified to be

a district judge and two other members, one of whom should be
a women. They are appointed by the State Government
concerned.

Forum
The District Forum has the jurisdiction to deal with all

complaints where the value of the goods or services and the
compensation claimed is less than Rs. 20 lakh.

Redressal Agencies: State
Commission
State Commission
Like the District Forum, the State Commissions are set up by the
respective State Government in the State. Each State
Commission consist of a President, who is or has been a judge of
a High Court, and two other members, one of whom should be a
woman.

Redressal Agencies: State
Commission
They are appointed by the State Government Concerned.

Redressal Agencies: National
Commission
National Commission
The National Commission is set up by the Central Government.
The National Commission consists of a President, who is or has
been a judge of Supreme Court, and four other members, one of
whom should be a women. They are appointed by the Central
Government.

Redressal Agencies: National
Commission
The National Commission has the jurisdiction to take up all

claims and grievances exceeding the value of Rs. 1 crore. The
commission also has power to entertain appeals against the
orders of any State Commisssion.

Process of Redressal of Complaints
The National Commission, State Commission and District Forums

need to decide complaints within a period of three months from
the date of notice received by consumers if a complaint does not
require analysis on testing of commodities, and within five
months if it requires analysis or testing of commodities.

On the receipt of a complaint, a copy of the complaint is to be

referred to the trader against whom the complaint is filed. The
goods or a sample may be sent for testing in a laboratory, if
required. Then, the complaint will be decided after considering
the test report from the laboratory and hearing the trader.

An order passed by a District Forum is appealable before the

concerned State Commission, by a state Commission is
appealable before the National commission, and by a National
Commission is appealable before the Supreme Court within a
period of 30 days.

On finding a consumers complaint genuine a consumer court

may ask a trader, against whom the complaint is filed.

Relief Available to Consumers
(1) To remove the defect in goods or deficiency in service.

(2) To replace the defective product with a new one, free from
any defect.

(3) To refund the price or charges paid for a product or a service,

respectively.

(4) To pay a reasonable amount of compensation for any loss or

injury suffered by the consumer due to the negligence of the
trader or dealer.

(5) To pay compensation in excess of actual damage in

appropriate circumstances.

(6) To discontinue the unfair/restrictive trade practice and not to

repeat it in future.

(7) To cease manufacturing of hazardous goods and withdraw

the same for sale.

(8) To pay any amount (not less than 5% of the value of the
defective goods or deficient services provided), to be credited to
the Consumer Welfare Fund or any other organisation/person, to
be utilised in the prescribed manner.

(9) To issue corrective advertisement to neutralise the effect of a

misleading advertisement.

Summary
In a nutshell, consumer protection refers to the activities of
government, business and independent organisations designed
to protect consumers from unfair trade practices like defective
and unsafe products, adulteration, false and misleading
advertising,
black-marketing,
just to name
a few. of regulations
The Indian legal
framework consists
of a number
which provide protection to consumers. These include:
(1) The Consumer Protection Act, 1986
(2) The Contract Act, 1982
(3) The Sale of Goods Act, 1930
(4) The Essential Commodities
(5) The Agriculture Produce (Grading and
Act,1955
(6)
The Prevention
Marking)
Act, 1937 of Food
(7)
The Standards
of Weights and Measures Act,
Adulteration
Act, 1954
(8)
The Trade Marks Act, 1999
1976
(9) The Competition
(10)
The Bureau of Indian
Act,2002
Standards Act,1986

Summary
rious ways in which the objective of consumer protection can be achieve

(1) Self regulation by business,
(2) Business
Associations,
(3) Consumer
(4) Awareness,
Consumer Organisations,
(5) Government
The Consumer Protection Act, 1986 mandates establishment of
quasi-judicial bodies in each District and State and at the
national level to provide inexpensive and speedy redressal of
consumer disputes. These are known as the District Forums, The
State Consumer Disputes Redressal Commissions and the
National Consumer Disputes Redressal Commission,
respectively.

Consumer Awareness

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Consumer

Consumer Rights and Responsibilities

Consumer face various problems on account of

Consumer Rights and Responsibilities

Hence, under the Consumer Protection Act1986,

Consumer Rights and Responsibilities

A consumer has a right to be protected against goods and

Consumer Rights and Responsibilities

A consumer has a right to be informed about the ingredients,

Consumer Rights and Responsibilities

A consumer has the freedom choose the goods needed from

Consumer Rights and Responsibilities

A consumer has a right to file a complaint and to be heard by

Consumer Rights and Responsibilities

I f a consumer has a complaint or grievance due to unfair

Consumer Rights and Responsibilities

Consumer education empowers consumers to exercise their

Consumer Rights and Responsibilities

Consumer rights, by themselves, cannot be effective in achieving

Consumer Rights and Responsibilities

(1) A consumer should be aware of various goods and services

Consumer Rights and Responsibilities

(2) A consumer should purchase only standardized goods for

Consumer Rights and Responsibilities

(3) A consumer must know about the risks associated with

Consumer Rights and Responsibilities

(4) Before purchasing goods, a consumer should read labels

Consumer Rights and Responsibilities

Consumer Rights and Responsibilities

(6) On the purchase of goods and services, consumers should

Consumer Rights and Responsibilities

(7) Consumers must file a complaint in an appropriate consumer

Consumer Rights and Responsibilities

(8) Consumers should form consumer organisations that would

Consumer Rights and Responsibilities

In a nutshell Government of India has provided six rights, under

Consumer Rights and Responsibilities

There is a well known saying that there

Consumer protection: An overview

Manufacturers and service providers offer products and services

Consumer protection: An overview

However, in an attempt to increase their sales and market share,

Consumer protection: An overview

Hence, there is a need to provide adequate protection to

Consumer protection: An overview

According to the Cambridge Advanced Learning Dictionary,

Consumer protection: An overview

Consumer protection includes educating consumers about their

Consumer protection: An overview

Majority of consumers are ignorant about the rights and reliefs

Consumer protection: An overview

Consumers need to get together and form themselves into

Consumer protection: An overview

Consumer protection plays a vital role as consumers might be

Consumer protection: An overview

Consumer protection: An overview

Business firms should aim at long-term profit maximisation

Consumer protection: An overview

Business organisations use resources which belongs to the

Consumer protection: An overview

Business organisations make money by selling goods and

Consumer protection: An overview