This GSEB Class 12 Organization of Commerce and Management Notes Chapter 11 Consumer Protection Posting covers all the important topics and concepts as mentioned in the chapter.
Consumer Protection Class 12 GSEB Notes
Meaning of Consumer Protection:
Consumer protection means providing shield to consumer against the unethical, exploitative and unlawful practices of sellers and manufacturers.
Concept of Consumer Protection:
The exploitation of consumers can be categorized under three heads:
- Physical and Mental Exploitation
- Economic Exploitation and
- Damage/Loss to Public Interest.
Meaning of Consumer:
According to Consumer Protection Act, “A consumer is a person who receives goods or services against an exchange. He pays or agrees to compensate partly or fully or promises to compensate on a future date or has participated in some future payment plan. Any user of the product or service who uses it on the basis of the permission of the purchaser is a consumer. But the one who purchases on a resale basis or for further production is not included under the definition of a consumer.”
Importance of Consumer Protection:
The list of the functions of consumer protection is wide. The function of consumer protection is not only limited to only spreading awareness regarding consumers’ rights and responsibilities but also solving the complaints of consumers.
1. Importance of Consumer Protection from the view-point of Business:
- Use of Public Resources and Wealth
- Social Responsibility
- A part of the Society,
- Impression on the Society
- Consumer Protection is good for Business and
- Principle of Trusteeship and Consumer Protection.
2. Importance of Consumer Protection from the view-point of Consumer:
- Extensive Exploitation of Consumers
- Ignorance of Consumers (Lack of Information with Consumers) and
- Lack of Unity among Consumers.
Consumer Protection Act, 1986:
1. Meaning of Consumer Protection:
Consumer protection refers to the measures taken against the manufacturers and sellers who adopt various means to exploit consumers for earning maximum profit.
2. Rights and Responsibilities of Consumers:
(i) Rights of a Consumer:
- Redressal and
- Consumer Education.
United Nations Organization (UNO) has issued a directive recommending two more rights for the consumers. They are:
- Basic Needs and
- Hygienic Environment.
(ii) Responsibilities of a Consumer:
- Conscipus Use of Rights
- Beware of Misleading Advertisement
- Care during Purchases
- Solicit for a Bill,
- Solicit a High Quality
- Registration of Genuine Complaint
- Spread of Consumerism
- Environment Protection and
- No Involvement in Unethical Activities.
Grievances Redressal Organizations:
The three layer mechanism has been established for complaint redressal of the consumers. These three layers are as under:
1. District Level Forum:
In every district of the nation; the state government set up this forum. With the president there are two other members in this forum. They are appointed by state government. The redressal is made at this level if the product or service price as well as compensation demanded is ₹ 20 lakhs or less. If either of the party is not satisfied then he can within 30 days of the judgement; appeal to State Level Commission for re-examination.
2. State Level Commission:
In each state this commission is formed by the State . Government. In this there are two members together with the President. If the price or compensation demanded for the disputed product or service is more than ₹ 20 lakhs and equal to or less than ₹ 1 crore, the redressal can take place at the State Level Commission. If either of the party is not satisfied with the state level commission, within 30 days of the judgement of state level commission, it can appeal for reexamination with the National Level Commission.
3. National Level Commission:
The responsibility of setting up this commission lies with the Central Government. There are at least four other members along with one President. The price and compensation demanded for the disputed product or service is more than ₹ 1 crore, the National Level Commission can be approached for redressal. If with the judgement of the National Level Commission, either of the parties is not satisfied, they can appeal for re-examination with the Supreme Court in due course of time.
Available Remedies / Reliefs for Consumers:
- About defect of the product or service,
- Refund of the amount paid
- Exchange of defective product with new (fresh) product,
- Compensation for the loss or injury,
- Penalizing compensation
- Unfair and prohibitive business practice to be stopped,
- Production and sales of harmful products can be stopped
- Harmful products can be stopped from being sold
- 5 % of total sales amount to be deposited with consumer protection fund,
- Direct to remove misleading advertisement and introduce improvised advertisement and
- Order to make payment of reasonable compensation.
- Lok Adalat
- Public Interest Litigation (PIL) and
- Eco Friendly Products.
Role of Consumer Organizations and Non- Govemment Organizations:
Many consumer unions and non-government organizations work in India to maintain and protect consumers’ interest. Such NGOs work as non-profit making organizations for public welfare.
The functions of such institutions are as under:
- Educating about the rights of consumers through seminars, conferences and workshops
- Publishing favourable information for Consumers’ problems, legal awareness, eligibility of compensation
- Comparison of various products and services available in the market, their quality analysis in authorized laboratories and information to consumers
- Providing information and support for legal procedure
- To help consumers to oppose unethical, exploitative and unfair sales practices of the sellers
- Registering complaint in the consumers’ court for consumers’ interest
- All required assistance is provided to a consumer desiring to complain in the consumer court,
- Compilation and publishing of consumers’ satisfaction and their related information
- To educate consumers, films and information Eire released
- To organize consumer education programmes in schools or colleges and to educate students for consumer protection
- Awareness against food adulteration
- To support government institutions which work towards spreading consumer awareness,
Organizations Working for Consumer Awareness:
- Consumer Education and Research Centre (CERC) – Ahmadabad,
- Consumer Protection Council (CPC)-Ahmadabad
- Voluntary Organization in Interest of Consumer Education (VOICE) – Delhi
- Consumer Guidance Society of India (CGSI) – Mumbai
- Consumer Unity and Trust Society (CUTS) – Jaipur, etc.
Consumer Co-ordination Council – CCC, Delhi; is co-ordinating all the institutions working for consumer protection. Most of the institution voluntarily working in India holds the membership of Consumer Co-ordination Council, New Delhi. Consumer courts work fast for the redressal of consumer disputes. Still however there is more scope for consumer protection work within India.