Consumer Protection — NCERT Solutions

The proposal reinforces the Right to be informed. This right gives the consumer complete information about the product before purchase, including details such as ingredients and other relevant facts. Declaring the kind of oil/fat used in cooking helps consumers know what they are buying and make an informed choice.

Under the Consumer Protection Act, 2019, a consumer is a person who buys goods or avails services for consideration that has been paid, promised, partly paid and partly promised, or under deferred payment. It also includes any user or beneficiary of such goods or services with the buyer’s approval. A person who obtains goods or services for resale or commercial purpose is not a consumer.

From the point of view of business, consumer protection is important because:

1. Long-term interest of business: Satisfying customers leads to repeat sales and good feedback, helping increase the customer base and long-term profits.
2. Business uses society’s resources: Since business uses resources belonging to society, it should supply products and services in public interest.
3. Social responsibility: Consumers are an important stakeholder group and their interests must be taken care of.
4. Moral justification: It is the moral duty of business to avoid exploitation and unfair trade practices.
5. Government intervention: Unfair practices invite government action, which can damage the company’s image; therefore, businesses should voluntarily protect consumer interests.

Consumer rights

The Consumer Protection Act, 2019 provides six rights:

1. Right to Safety – protection against hazardous goods and services.
2. Right to be informed – complete information about the product or service.
3. Right to be assured / Right to choose – access to variety of products at competitive prices.
4. Right to be heard – right to file a complaint and be heard.
5. Right to seek redressal – right to get relief against unfair trade practices and exploitation.
6. Right to Consumer Education – right to acquire knowledge and remain informed.

Consumer responsibilities

A consumer should:

1. Be aware of goods and services.
2. Buy only standardised goods.
3. Learn the risks and use products safely.
4. Read labels carefully.
5. Assert himself/herself to get a fair deal.
6. Be honest and avoid illegal goods and practices.
7. Ask for a cash memo.
8. File a complaint when goods/services are deficient.
9. Form consumer societies.
10. Respect the environment.

The chapter lists the following ways and means of consumer protection:

1. Self-regulation by business – socially responsible firms follow ethical practices and set up grievance cells.
2. Business associations – bodies like FICCI and CII lay down codes of conduct for members.
3. Consumer awareness – informed consumers can protect themselves and raise their voice against unfair practices.
4. Consumer organisations – they educate consumers and help protect their interests.
5. Government – by enactment of laws, helplines, quality marks, and redressal machinery.

Under the Consumer Protection Act, 2019, consumer grievances are redressed through a three-tier machinery:

1. District Commission

• Hears complaints where the value of goods/services paid as consideration does not exceed ₹50 lakh.
• Can refer a matter to mediation if settlement seems possible.
• If needed, it can get defective goods analysed.
• Appeals from District Commission orders lie to the State Commission within 45 days.

2. State Commission

• Hears complaints where the value exceeds ₹50 lakh but does not exceed ₹2 crore.
• Appeals from its orders lie to the National Commission within 30 days.

3. National Commission

• Hears complaints where the value exceeds ₹2 crore.
• Appeals from its orders lie to the Supreme Court of India within 30 days.

Reliefs available

If the commission finds defect, deficiency, unfair trade practice, or product liability, it may order:

• removal of defect or deficiency
• replacement of defective product
• refund of price/charges
• compensation for loss or injury
• punitive damages
• discontinuation of unfair/restrictive trade practice
• withdrawal or non-sale of hazardous goods
• compensation under product liability

Consumer organisations and NGOs play an active role in protecting and promoting consumers’ interests. Their functions include:

1. Educating the public about consumer rights through training programmes, seminars and workshops.
2. Publishing periodicals and other publications to give knowledge about consumer problems, legal remedies and reliefs.
3. Comparative testing of products in accredited laboratories and publishing results for consumers’ benefit.
4. Encouraging consumers to protest against unscrupulous and unfair trade practices.
5. Providing legal assistance such as legal advice and aid.
6. Filing complaints in consumer courts on behalf of consumers.
7. Filing cases in public interest for the general welfare of consumers.

Thus, they help create awareness, provide support, and press for fair trade practices.

(a)

At the first instance, Mrs. Mathur exercised the Right to be heard, because she complained to the dry cleaner and sought redress for the grievance.

(b)

The right that helped her obtain compensation is the Right to seek redressal. This right gives the consumer relief against unfair trade practices or deficiency in service, including replacement, removal of defect, compensation for loss or injury, etc.

(c)

The consumer responsibility fulfilled by Mrs. Mathur is filing a complaint in an appropriate consumer forum when the dry cleaner did not resolve the issue.

(d)

Any other two consumer responsibilities are:

• Be aware of various goods and services available in the market.
• Buy only standardised goods so as to ensure quality assurance.

Other responsibilities from the chapter include reading labels carefully, asking for a cash memo, being honest, and respecting the environment.