Business Studies Ii Chapter 12 Consumer Protection

From the Point of View of Business: Business needs consumers as much as consumers need business. Therefore, business should also join hands in protecting consumers’ interest. Its importance is highlighted by the following facts:

(i) Long term interest of Business: Every business wants to enjoy long existence. This is possible only when business firms provide absolute satisfaction to the consumers. A firm that succeeds in satisfying the consumers, the consumers themselves turn to such a firm for buying their products time and again and they tell others also about their satisfaction. In this way, the number of customers for that firm goes up and the firm continues to live for a long time. Paying attention to the satisfaction of the consumers is nothing but consumer protection.

(ii) Business Uses Society’s Resources: Every business uses various resources, e.g., material, machinery, human, capital, etc. All these resources are supplied by society. From this point of view, it becomes the responsibility of business to provide better facilities to society. By doing this and through the medium of consumer protection business gets an opportunity to discharge its responsibility towards society.
(iii) Government Intervention: By ignoring consumers’ interest, business is almost inviting government intervention. Government intervention in defence of consumers’ interest is certainly a set back for any firm. This is why every firm wants to avoid such a situation. Such a situation can be avoided only if the consumers’ interest is taken care of. Doing so means taking care of consumers’ protection.

(A) From the Consumers’ Point of view: The importance of consumers’ protection from the point of view of the consumers can be made clear with the help of the following points:

(i) Consumers’ Ignorance: Generally, the consumers are not aware of their rights. It is only because of this ignorance that they cannot raise their voice against their exploitation rampart in the market. They bear this exploitation ungrudgingly thinking it as a part of the market. Hence, they remain inactive in this respect. Therefore, it has become necessary in public interest that they should be educated about their rights so that they become activated.

(ii) Unorganised Consumers: Consumers are unorganised and this fact alone highlights the importance of consumers’ protection. A single consumer raising his voice against exploitation is not as effective as the voice of an organised consumers’ body can be. So far the consumers have not shown such an attitude that they should raise their voice in an organised manner. Consumers’ protection encourages the consumers to organise themselves.

(iii) Widespread Exploitation of Consumers: These days consumers are being exploited on a large scale. Following are some of the examples of their exploitation:

(a) Adulteration in consumers’ products.

(b) Inferior quality of goods and services.

(c) Misleading advertisement.

Consumers’ protection is absolutely necessary in order to get rid of such exploitation.
(B) From the Point of View of Business: Business needs consumers as much as consumers need business. Therefore, business should also join hands in protecting consumers’ interest. Its importance is highlighted by the following facts:

(i) Long term interest of Business: Every business wants to enjoy long existence. This is possible only when business firms provide absolute satisfaction to the consumers. A firm that succeeds in satisfying the consumers, the consumers themselves turn to such a firm for buying their products time and again and they tell others also about their satisfaction. In this way, the number of customers for that firm goes up and the firm continues to live for a long time. Paying attention to the satisfaction of the consumers is nothing but consumer protection.

(ii) Business Uses Society’s Resources: Every business uses various resources, e.g., material, machinery, human, capital, etc. All these resources are supplied by society. From this point of view, it becomes the responsibility of business to provide better facilities to society. By doing this and through the medium of consumer protection business gets an opportunity to discharge its responsibility towards society.
(iii) Government Intervention: By ignoring consumers’ interest, business is almost inviting government intervention. Government intervention in defence of consumers’ interest is certainly a set back for any firm. This is why every firm wants to avoid such a situation. Such a situation can be avoided only if the consumers’ interest is taken care of. Doing so means taking care of consumers’ protection.

Its purpose is to protect the consumers against the unfair practices of the producers and sellers.

The Consumer Protection Act, 1986.

Because it removes the ‘Consumer Ignorance’.

It helps long existence of the business through consumer satisfaction.

The Consumer Protection Act, 1986.

Government protects the interests of consumers by enacting various acts.

Under this Act, remedies available to consumers are as follows:

1. Removal of Defects: If after proper testing the product proves to be defective then the ‘remove its defects’ order can be passed by the concerned authority.
2. Replacement of Goods: Orders can be passed to replace the defective product by new non-defective product of the same type.
3. Refund of Price: Orders can be passed to refund the price paid by the complaint about the product.
4. Award of Compensation: If because of the negligence of the seller a consumer suffers physical or any other loss, then compensation for that loss can be demanded for.
5. Removal of Deficiency in Service: If there is any deficiency in the delivery of service then orders can be passed to remove that deficiency. For instance, if an insurance company makes unnecessary delay in giving the final touch to the claim, then under this Act orders can be passed to immediately finalize the claim.
6. Discontinuance of Unfair/Restrictive Trade Practice: If a complaint is filed against unfair/restrictive trade practice then under the Act that practice can be banned with immediate effect. For instance, if any gas company makes it compulsory for a consumer to buy a gas stove with the gas connection then this type of restrictive trade practice can be checked with immediate effect.

Bharat Electricals cannot file a complaint. This is because this firm is not a consumer as per consumer protection Act, 1986 as they bought the goods for re-sale/ commercial purpose. Meaning of consumers as per consumers protection Act, 1986:

(i) he buys goods or hires services for a consideration but does not include a person who obtains them for re-sale or any commercial purpose;

(ii) he uses goods with the approval of the buyer;

(iii) he uses services which are availed of with the approval of one who hires the services, and

(iv) he uses the goods bought or services hired exclusively for earning livelihood by self-employment. (For example, a doctor who is a C.T. Scan expert, buys a C.T Scanner for the purpose of earning his livelihood is a consumer.)

Following are the salient features of Consumer Protection Act:

(i) Coverage of Items: This Act is applicable on all products and services, until or unless any product or service is especially debarred out of the scope of this Act by Central Government.

(ii) Coverage of Sectors: This Act is applicable to all areas whether private, public or cooperative.

(iii) Compensatory Nature of Provisions: Many Acts have been passed for the help of consumer. Consumers enjoy the benefits of these Acts but if a consumer wishes the Consumer Protection Act can provide extra help. As a result the nature of provisions of this Act is compensating for loss or providing extra help. Consumer is totally free to enjoy the benefits of any of these Acts.

(iv) Group of Consumer’s Rights: This Act provides many rights to consumers. These rights are related to safety, information, choice, representation, redressal, education etc.

(v) Effective Safeguards: This Act provides safety to consumers regarding defective products, dissatisfactory services and unfair trade practices. So under the purview of this Act there is a provision to ban all those activities which can cause a risk for consumer.

(i) Removal of defects.

(ii) Replacement of goods.

A consumer, a registered consumer association, Central Government and State Government can file a complaint.

The Sale of Goods Act, 1930.

Orders can be passed to refund the price paid by the consumer for the product.

(i) Right to be Informed / Right to Representation: Consumer has also the right that he should be provided all the information on the basis of which he decides to buy goods or services. Such information relate to quality, purity, potency, standard, date of manufacture, method of use, etc. of the commodity. Thus, a producer is required to provide all such information in a proper manner, so that consumer is not cheated.

(ii) Right to Choose: Consumer has the full right to buy any goods or service of his choice from among the different goods or services available in the market. In other words, no seller can influence his choice in an unfair manner. If any seller does so, it will be deemed as interference in his right to choice.

(iii) Right to Healthy Environment: This right provides consumers, the protection against environmental pollution so that the quality of life is enhanced. Not only this, it also gives stresses the need to protect the environment for future generations as well.

(i) Right to Safety: It is the right to safety against such goods and services as are hazardous to health, life and property of the consumer. For example, spurious and sub-standard drugs; appliances made of low quality raw material, such as, electric press, pressure cooker, etc. and low quality food products like bread, milk, jam, butter, etc. Consumers have the right to safety against loss caused by such products.

(ii) Right to Consumer Education: Consumer education refers to educate the consumer constantly with regard to their rights. In other words, consumers must be aware of the rights they enjoy against the loss they suffer on account of goods and services purchased by them. Government has taken several measures to educate the consumers. For instance, Ministry of Civil Supplies publishes a quarterly magazine under the title “Upbhokta Jagran”. Doordarshan telecasts a programme like “Sanrakshan Upbhokta Ka” and apart from this, Consumer Day is observed on March 15 every year.

(iii) Right to be Heard: Consumer has the right that his complaint be heard. Under this right, the consumer can file a complaint against all those things which are prejudicial to his interest. First, their rights mentioned above (Right to Safety; Right to be Informed and Right to Choose) have relevance only if the consumer has the right to file his complaint against them. These days, several large organisations have set up Consumer Service Cells with a view to provide the right to be heard of the consumer. The function of the cell is to hear the complaints of the consumers and to take adequate measures to redress them. Many daily newspapers have also a special columns to entertain the complaints of the consumers.

Under section-6 of Consumer Protection Act, a consumer has the following rights:

1. Right to Safety: It is a consumer’s right to be protected against goods and services which are hazardous to health and life. Ex- Electrical Appliances which are not ISI marked might cause serious injury.
2. Right to be Informed: Consumer has also the right that he should be provided all the information on the basis of which he decides to buy goods or services. Such information related to quality, purity, potency, standard, date of manufacture, a method of use, etc. of the commodity.
3. Right to Choose: Consumer has the full right to buy any good or service of his choice from among the different goods or services available in the market. In other words, no seller can influence his choice in an unfair manner.
4. Right to be Heard: Consumer has the right that his complaint is heard. Under this right, the consumer can file a complaint against all those things which are prejudicial to his interest.
5. Right to Consumer Education: Consumer education refers to educate the consumer constantly with regard to their rights. In other words, consumers must be aware of the rights they enjoy against the loss they suffer on account of goods and services purchased by them.
6. Right to Healthy Environment: This right provides consumers, the protection against environmental pollution so that the quality of life is enhanced.

Right to Seek Redressal: This right provides compensation to consumers against unfair trade practice of the seller. For instance, if the quantity and quality of the product do not confirm to those promised the seller, the buyer has the right to claim compensation. Several redressals are available to the consumer by way of compensation, such as free repair of the product, taking back of the product with refund of money, changing of the product by the seller.

It is related with ‘Right to be heard’.

It is related with ‘Right to consumer education’.

 It is ‘Right to be heard’.

It means that consumer has the full right to buy any goods or services available in the market.

Under this right, the consumer can file a complaint against all those things which are prejudicial to his interest.

It means that a consumer has the right that he should be provided all the information on the basis of which he decides to buy goods or services.

They are as follows:

(i) Consumer must exercise his Rights: Consumers have many rights with regard to the goods and services. They must be aware of their rights while buying. These rights are: right of safety, right to be informed, right to representation, right to seek redressal, right to consumer education, etc.

(ii) Cautious Consumer /do not buy Blindly: The consumers should make full use of their reason while buying things. They should not take the seller’s words as the final truth. In other words, while buying consumer must get information regarding the quality, quantity, price, utility, etc. of goods and services.

(iii) Filing complaint for the redressal of genuine grievances: It is the responsibility of the consumers to approach the officer concerned in case there is some complaint about the goods purchased. A late complaint may find that the period of guarantee/warrantee has lapsed. Sometimes, consumers ignore the deception of businessmen. This tendency encourages corrupt business practices.

(iv) Consumer must be Quality Conscious /should not compromise on Quality: The consumers should never compromise on the quality of the goods. Therefore, they should not buy inferior stuff out of greed for cheaper prices. If the consumers behave like this, there cannot be any protection for them from any quarter. It is also the responsibility of the consumers only to buy goods with the ISI, Agmark, Woolmark, FPO, etc. printed on them. All these symbols are indicative of the good quality of the goods.

Rights of a consumer:
(i) Right to Safety: It is the right to safety against such goods and services as are hazardous to health, life and property of the consumer. For example, spurious and sub-standard drugs.

(ii) Right to be Informed: Consumer has also the right that he should be provided all the information on the basis of which he decides to buy goods or services. Such information relate to quality, purity, potency, standard, date of manufacture, method of use, etc. of the commodity.

(iii) Right to Choose: Consumer has the full right to buy any good or service of his choice from among the different goods or services available in the market. In other words, no seller can influence his choice in an unfair manner.
Responsibilities of a consumer:

(i) Consumer must exercise his Rights: Consumers have many rights with regard to the goods and services. They must be aware of their rights while buying. These rights are: right of safety, right to be informed, right to representation, right to seek redressal, right to consumer education, etc.

(ii) Cautious Consumer /do not buy Blindly: The consumers should make full use of their reason while buying things. They should not take the seller’s words as the final truth. In other words, while buying consumer must get information regarding the quality, quantity, price, utility, etc. of goods and services.

(iii) Filing complaint for the redressal of genuine grievances: It is the responsibility of the consumers to approach the officer concerned in case there is some complaint about the goods purchased. A late complaint may find that the period of guarantee/warrantee has lapsed. Sometimes, consumers ignore the deception of businessmen. This tendency encourages corrupt business practices.

Following are the responsibilities of a consumer:

1. Consumer must exercise his Rights: Consumers have many rights with regard to the goods and services. They must be aware of their rights while buying. These rights are: right to safety, right to be informed, right to representation, right to seek redressal, right to consumer education, etc.
2. Cautious Consumer /do not buy Blindly: The consumers should make full use of their reason while buying things. They should not take the seller’s words as the final truth. In other words, while buying consumer must get information regarding the quality, quantity, price, utility, etc. of goods and services.
3. Filing complaint about the redressal of genuine grievances: It is the responsibility of the consumers to approach the officer concerned in case there is any complaint about the goods purchased. A late complaint may find that the period of guarantee/warranty has lapsed. Sometimes, consumers ignore the deception of businessmen. This tendency encourages corrupt business practices.
4. Consumer must be Quality Conscious /should not compromise on Quality: The consumers should never compromise on the quality of the goods. Therefore, they should not buy inferior stuff out of greed for cheaper prices. It is also the responsibility of the consumers only to buy goods with the ISI, Agmark, Woolmark, FPO, etc. printed on them. All these symbols are indicative of the good quality of the goods.
5. Advertisements Often Exaggerate/Beware of False Advertisement: The sellers inform the consumers about their things through the medium of advertisement. The sellers exaggerate the quality of their goods through advertisement. Therefore, it is the responsibility of the consumers to recognize the truth of the advertisement.
6. Do not forget to Get Receipt and Guarantee/Warranty Card: One should always get a receipt or bill for the things purchased. In case a guarantee/warranty card is also offered by the seller, it should also be taken. In case, the goods purchased turn out to be of inferior quality or some defect appears and bothers the customers, these documents will be of great help in settling all kinds of disputes with the seller.

In this situation following are the responsibilities of a customer:

(i) Consumer must exercise his Rights: Consumers have many rights with regard to the goods and services. They must be aware of their rights while buying. These rights are: right to safety, right to be informed, right to representation, right to seek redressal, right to consumer education, etc.

(ii) Cautious Consumer /do not buy Blindly: The consumers should make full use of their reason while buying things. They should not take the seller’s words as the final truth. In other words, while buying consumer must get information regarding the quality, quantity, price, utility, etc. of goods and services.

(iii) Filing complaint for the redressal of genuine grievances: It is the responsibility of the consumers to approach the officer concerned in case there is some complaint about the goods purchased. A late complaint may find that the period of guarantee/warrantee has lapsed. Sometimes, consumers ignore the deception of businessmen. This tendency encourages corrupt business practices.

(i) Consumer must exercise his/her rights.

(ii) Filing complaint for the redressal of genuine grievances.

FPO Mark.

He should check ISI mark on the product as it provides quality assurance.

Because it would be an assurance of such products meeting quality standards.

He should check ISI mark on the product as it provides quality assurance.

The consumer should buy only AGMARK labelled edible oil as it provides quality assurance.

Main means of consumer protection are as under:

1. Self Regulation by Business: Every firm insists to have a strong consumer base which means that more and still more people should buy their products. This is possible only when the consumers are fully satisfied with the products of the firm. Many firms have set up their customer service and grievance cells to redress the problems and grievances of their consumers.
2. Business Associations: Business associations prepare a code of conduct for businessmen. It is laid down in the code of conduct as to how businessmen are expected to behave with the consumers. For example, the Federation of Indian Chambers of Commerce and Industries (FICCI) and the Confederation of Indian Industries (CII) have proposed their code of conduct which governs the attitude of their members towards consumers.
3. Consumer Awareness: As an important means of consumer protection, consumer should protect himself. He should be alert in the matter of his rights. Alert consumer alone can demand his rights from the sellers. Thus, the consumer himself must know his rights and raise voice against unfair practices of the sellers.
4. Consumer Organisations: Consumer organizations play an important role in educating consumers about their rights and providing protection to them. These organizations can force business firms to avoid malpractices and exploitation of consumers.
5. Government: Interests of the consumers are protected by the government by enacting various legislations. Consumer Protection Act 1986 is an important legislation by the government to provide protection to the affected consumer. This Act provides for a three-tier machinery at the district, state and national levels for redressal of consumer grievances.

The Consumer Protection Act has provided three tier judicial machinery for redressing the grievances of consumers:

(A) District Forum: According to Consumer Protection Act, state government can set up one or more district forum in each district. Main features of district forum are as under:

(i) There are three members including one presiding officer. Of these one must be a lady member. They are appointed by the state government. The presiding officer must have the qualifications of a District Judge.

(ii) District Forum hears disputes involving a sum upto र 20 lacs.

(iii) If neither party is satisfied with the judgement of the District Forum, it can file appeal against it with the state commission within 30 days.

(B) State Commission: One state commission is appointed by the state government in each state. Its main characteristics are as follows:

(i) It is also composed of three members including one presiding officer. Of these, one must be a lady member. They are appointed by the state government. The person appointed as presiding officer must have the qualifications of an Honourable Justice of the High Court.

(ii) State commission redresses grievances involving a sum exceeds र 20 lacs and upto र 1 crore.

(iii) If either of the party is not satisfied with the decision of the state commission, it can file an appeal before the National Commission within 30 days.

(C) National Commission: It is appointed by the central government. Its main characteristics are as under:

(i) It has five members including the presiding officer. One lady member is a must. They are appointed by the central government. Only that person is eligible to become the presiding officer who possesses qualifications equivalent to Supreme Court Judge.

(ii) It has the jurisdiction to hear complaints involving a sum exceeding र 1 crore.

(iii) If any party is not satisfied with the decision of the National Commission, it can file an appeal with the Supreme Court within 30 days.

Upto र 20 lacs.

Exceeds र 20 lacs but upto र 1 crore.

Exceeding र 1 crore.

National Commission.

He should file a complaint in District Forum.

State Commission.

If any party is not satisfied with the decision of the national commission the matter is appealable before the Supreme Court.

Consumer service and grievance cells are established to handle the problems of their consumers.

Business associations prepare a code of conduct for businessmen indicating how they are expected to behave with the consumers.

These consumer organisations perform the following functions:

(i) Accelerating Consumer Awareness/Educating Consumers: The first priority of consumer organisation is to accelerate consumer awareness towards their rights. To accomplish this task following efforts are made:

(a) To publish brochures, journals and monographs.

(b) To arrange conferences, seminars and workshops.

(ii) Collecting Data on Different Products and Testing them: These organisations collect samples of different products from time to time and test them. After that the results of tests are declared to public. In this way, these organisations provide prior information to consumers about the authenticity of product and protects them.

(iii) Filing Suit on behalf of Consumers: Whenever a consumer fails to raise his voice of protection regarding his complaints, these consumers’ organisations come to his rescue and file a case in the court. They also run voluntary complaint centres for the guidance of consumers.

(iv) Helping Educational Institutions: These organisations tell the educational institutions the way to prepare courses of study keeping in view the interests of the consumers. They stress the fact that a special chapter on consumers’ interest should always be added to the courses on general study.

(v) Promoting network of Consumer Associations: Consumer organisations are trying to grow their numbers. They want to cover all regions so that consumers of all regions are benefited by their services.
(vi) Extending Support to Government: Consumer organisations by informing government agencies about adulteration, artificiality, inferior quality products and other such evils helps government. This helps government to conduct proceedings on time.

 (i) Use of adulterated khoya will spoil the health of consumers.

(ii) Child labour is a crime.

(iii) Spreading diseases due to non-consideration of cleanliness.

(iv) By employing females equal opportunities to females.

(i) Harmful for health.

(ii) Adulteration is violation of law.

(iii) False information to consumers.

(i) Endangering the lives.

(ii) Violation of law.

(iii) False information to consumers.

(i) Deterioration of quality of products.

(ii) Reduction in quantity of the products.

(iii) Bad effects on health of consumers.

(i) Bad effects on the health of children.

(ii) Polluting the environment.

(iii) Violation of rules/regulations.

(i) The seller should get the iron of Mohan repaired.

(ii) Rights of Mohan should not be violated.

(iii) Mohan should file complaint to the company against the seller.

(iv) If not heard then Mohan should move to consumer court.

(i) To read the instructions and information carefully.
(ii) To consult the chemist/doctor.

The document Ravi needed for filing complaint is Cash memo.

The importance of consumer protection from the consumers’ point:
(i) Consumer Ignorance: Providing information to customers about his various rights and reliefs is very essential in order to get rid of the customers ignorance about their rights.
(ii) Unorganised Consumers: Union is strength. A customer alone may not be able to raise his voice against and question the mighty business enterprises. But when they are organised it makes the difference. Consumers need to be organised in the form of consumer organisations which would take care of their interests.
(iii) Widespread Exploitation of Consumers: Consumers might be exploited by unscrupulous, exploitative and unfair trade practices like defective and unsafe products, adulteration, false and misleading advertising, hoarding, black-marketing etc. Consumers need protection against such malpractices of the sellers.

(i) Right to Safety: According to this act, consumer has a right to be protected against goods and services which are hazardous to life and health. For example, electrical appliances, which are manufactured with substandard products many not conform to the safety norms and might cause serious injury. Thus, consumers are educated that they should use electrical appliances which are ISI marked as this would be an assurance of such products meeting quality specifications.

(ii) Right to be Informed: According to this act, Consumers have the right to get informed all about the product he intends to buy. The information includes its ingredients, date of manufacture, price, quantity, directions for use, etc. It is because of this reason manufactures are legally required to provide all such information on the package and label of the product.

For compensation claims above 20 lakhs, a consumer has to approach the state commission and file the complaint. In this case, the legal heir of deceased consumer can file complaint in state commission as the compensation claim is 25 lakh.

Pragya can exercise the following rights:
a) Right to Safety: Praghya has the right to be protected against goods and services which are hazardous to life and health.
b) Right to be Heard: Praghya has the right to file a complaint and to be heard. Usually reputed companies have their own consumer service and grievance cell where she can say her complaints and have the right to be heard.
c) Right to seek Redressal: Praghya has a right to get relief in this case as the product falls short of her expectations. The Consumer Protection Act provides a number of reliefs to the consumers including replacement of the product, removal of defect in the product, compensation paid for any loss or injury suffered by the consumer, etc.

In addition to profit-making, the business must give due importance to the consumer protection and their satisfaction. This is important because of the following reasons:
(i) Long-term Interest of Business: Giving importance to consumer protection and their satisfaction makes the consumers delighted and thus they become a loyal customer. Customer loyalty is very beneficial for a business as they will repeat their purchase and also lead to mouth to mouth marketing to their friends and relatives which help in increasing the customer-base of business. Thus, business firms should aim at long-term profit maximisation through customer satisfaction.
(ii) Business uses resources of the society: Business uses resources which actually belongs to the society. Thus they have a moral responsibility towards the consumers to provide quality products.
(iii) Moral Justification: It is the moral duty of any business to take care of consumer’s interest and avoid any form of their exploitation. Thus, a business must avoid exploitative and unfair trade practices like defective and unsafe products, adulteration, false and misleading advertising, hoarding, black marketing etc.
(iv) Government Intervention: A business engaging in any form of exploitative trade practices would invite government intervention or action. This can impair and tarnish the image of the company. Thus, it is advisable that business organisations voluntarily resort to such practices where the customers’ needs and interests will well be taken care of. 

By laying down the code of conduct for the members, business associations like FICCI and CII provide guidelines in their dealings with the customers and facilitate consumer protection.

Consumer can claim for a reasonable amount of compensation for any injury/sickness suffered by the consumer due to the consumption of expired date medicine.

1. Right to Safety: According to this act, consumer has a right to be protected against goods and services which are hazardous to life and health. For example, electrical appliances, which are manufactured with substandard products many not conform to the safety norms and might cause serious injury. Thus, consumers are educated that they should use electrical appliances which are ISI marked as this would be an assurance of such products meeting quality specifications.

2. Right to Consumer Education: According to this act, the consumer has a right to acquire knowledge and be well informed. He should be aware about his rights and the reliefs available to him in case of exploitation and injustice. Many consumer organisations and some businesses organisations are taking active participation for educating consumers their rights.

If Reena complains about the adulteration and could satisfy the consumer court its genuineness, the following reliefs are available.
(i) To replace the defective Deshi Ghee with a new one, free from any defect.
(ii) To refund the price paid for the product, or the charges paid for the service.
(iii) To pay a reasonable amount of compensation to Reena for any loss or injury/sickness suffered by the due to the consumption of adulterated ghee.
(iv) To discontinue the unfair/ restrictive trade practice and not to repeat it in the future.
(v) To pay an adequate cost to Reena.
(vi) )To withdraw the hazardous goods from sale.
(vii)To cease manufacture of hazardous goods and to stop offering hazardous services.

According to Consumer Protection Act, 1986, a Consumer is defined as:
a) Any person who buys any goods for a consideration, which has been paid or promised, or partly paid and partly promised, or under any scheme of deferred payment. It includes any user of such goods, when such use is made with the approval of the buyer, but does not include a person who obtains goods for resale or any commercial purpose.
b) Any person who hires or avails of any service, for a consideration which has been paid or promised, or partly paid and partly promised, or under any system of deferred payment. It includes any beneficiary of services when such services are availed of with the approval of the person concerned but does not include a person who avails of such services for any commercial purpose.
Here ‘Bharat Electricals’ cannot file a complaint as it is not a consumer as per the Consumer Protection Act 1986 Act and it has purchased good from the manufacturer for commercial purpose that is reselling.

(a) Six directions which might have been issued by the court:
i. Removing the deficiency in the pest control service and repairing the defective goods.
ii. To provide the pest control service again and replacement of defective good with the new one.
iii. Refunding the cost paid by the consumer of pest control.
iv. Removing any misleading advertisements and passing orders for issuing a correct and reliable advertisement so that it does not cheat the consumers.
v. Crediting an appropriate amount(not less than 5% in the question) to the Consumer Welfare Fund.
vi. To discontinue the exploitative practice and providing compensation to the consumer for the loss or injury suffered by them, and not to repeat the same in future.
(b) Values communicated by IYO to society are:
(i) Fulfilling social responsibility as IYO visited an Old Age Home so that they can do some social work.
(ii) Promoting hygienic and clean environment as the club decided to clean the premises.

Right to consumer education.

The approach of Caveat Emptor means let the buyer beware and approach of caveat venditor means let the seller beware. The change has taken place because a consumer is said to be a king in the current competitive market and all the marketing efforts of a firm revolve around him

Right to Choose.

1. Food Products (FPO Marks);
2. Electrical Appliances (ISI Mark);
3. Jewellery (Hallmark);
4. Environmental friendly products (Eco mark);
5. Agriculture products (Agmark).

Right to Choose.

No, Ramesh will not be able to protect himself as he didn’t obtain the proof of purchase, i.e. cash memo.

1. ISI Marks;
2. Hall Marks;
3. Agmark;
4. FPO Mark;
5. Eco Mark.

It is important because of ‘consumer ignorance’.

Consumer Protection Act, 1986.

Right to seek redressal.

Right to be heard.

Cash memo.

Rita should look for FPO Mark on the packet of juice.

Right to Safety.

1. Right to be informed is violated;
2. Yes, Harishankar can recover extra money of Rs. 50;
3. Harishankar also has more option:
   1. He can ask for refund of money after returning the book;
   2. He can also sue bookseller for unfair practices.

Meaning: Consumer protection refers to protecting the consumer against anti-consumer trade practices by the producers or sellers.
Importance of Consumer Protection:

From Consumer point of view:

1. Consumer Ignorance: Most of the consumers are not aware of their rights and relief available to them. It is, therefore, necessary to educate them and create awareness among them.
2. Unorganized Consumers: There is need to organize consumers in the form of consumer association who would take care of their interest.
3. Wide-spread exploitation of Consumers: Unscrupulous and unfair trade practices, such as defective and unsafe products, hoarding and black marketing etc. are widespread. Consumers require protection against such malpractices.

From Business Point of view:

1. Long-term Interest: It is in the long-term interest of the business to satisfy customers. When customers are satisfied business gets repeat sales and its customer base increases.
2. Use of society’s resources: Business firms use resources of the society. Therefore they are under an obligation to supply products and services which are in public interest.
3. Social Responsibility: A businessman has a responsibility towards various groups. Customer is one of the important groups because firms earn money by selling goods and services to them.

The redressal machinery under the consumer protection Act,1986:

1. District Forum: According to consumer protection Act state government can set up one or more district forum in each district.
   1. A complaint can be made to the appropriate District Forum when the value of the goods or services in question, along with the compensation claimed, does not exceed Rs. 20 lakhs.
   2. In case the aggrieved party is not satisfied with the order of the District Forum, he can appeal before the State Commission within 30 days of the passing of the order.
2. State Commission: The appeals against the orders of a District Forum can be filed before the State Commission.
   1. A complaint can be made to the appropriate State Commission when the value of the goods or services in question, along with the compensation claimed, exceeds Rs. 20 lakhs but does not exceed Rs. 1 crore.
   2. In case the aggrieved party is not satisfied with the order of the State Commission, he can appeal before the National Commission within 30 days of the passing of the order.
3. National Commission: The appeals against the orders of a State Commission can be filed before the National Commission.
   1. A complaint can be made to the National Commission when the value of the goods or services in question, along with the compensation claimed, exceeds Rs. 1 crore.
   2. In case the aggrieved party is not satisfied with the order of the National Commission, it can be taken to the Supreme Court of India.

In India, several consumer organisations and non-governmental organizations (NGOs) have been set up for the protection and promotion of consumers’ interests. They perform several functions:

1. Educating the general public about consumer rights by organizing training programmes, seminars and workshops.
2. Publishing periodicals and other publications to impart knowledge about consumer problems, legal reporting, reliefs available and other matters of interest.
3. Encouraging consumers to strongly protest and take an action against unscrupulous, exploitative and unfair trade practices of sellers.
4. Providing legal assistance to consumers by way of providing aid, legal advice etc. in seeking legal remedy.