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` Consumer & Consumer Protection` Parties to Consumer Protection

` History & Growth of Consumer Protection

` Consumer Protection : Why and how

`

Consumer Duties & Responsibilities` Consumer Protection : Indian Scenario

` How are Indian consumers exploited

` Legal protection to consumers

Consumer Protection Act

` Institutional Arrangements under COPRA

` Consumer Protection (Amendment) Act 2002

` Roles and Initiatives of Voluntary Organization

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` A Consumer is any person who, a firm, Hindu undividedfamily(HUF), cooperative, or association which : Buys and any goods for a consideration which has been fully or

partly paid for, with a purpose that does not include resale or any

commercial purpose. Hires or avails of any services for a consideration which has been

fully or partly paid for, with a purpose that does not include freeservice or services under a personal contract.

Consumer Protection refers to the steps necessary tobe taken or measures required to be accepted toprotect consumers from business malpractices.

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` Role of Consumers who should take care of their own

interest & protect themselves from market malpractices

` Role ofBusinesspersons Producers, distributors ,

dealers , wholesalers & retailers should pay due

attention to consumer rights in their own interest

` Role of Government whose responsibility is to ensure

the general interest of society . Representations of

consumer groups should be associated with policy-

making bodies set up by governments at the centre &the states.

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` Genesis & growth of consumer movement can be traced

to consumer-related awareness in the US in first half of

20th century

` Ralph Naders contribution to consumer protection-

consumer advocate

` Before 1965,car safety standards very low

` Based on Ralphs book , the US Congress passed the

Traffic & Motor Vehicle Safety Act of 1966

` The quality of life for Americans improved in environment, healthcare , insurance , etc.

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` Consumers should assert their rights

` Right to safety

` Right to be informed

` Right to choose

` Right to be heard

` Right to seek redressal

` Right to consumer education

` UN report(1988)stresses consumer rights must be defended

through` Strict standards for consumer safety & health

` Product labeling about the content& proper use of products & their

environmental & social impact

` Information & awareness campaigns about potential hazard, such as

smoking & improper use of feeding formula for infants

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` Substantiate the complaint.

` Listen to the seller.

` Cooperate with the seller if needed.

` Avoid inconvenience to others.` Do not personalize issues.

Added Responsibilities

` Not lend self to others.

` Be well informed.` Understand the grievance redressal process.

` Avoid impulsive buying.

` Buy goods from authorized agents.

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` Spate of consumer-related legislations` MRTP Act 1970

` Prevention of Food Adulteration Act 1954

` Essential Commodities Act 1955

`

Prevention ofB

lack-marketing & Maintenance of Supplies of EssentialCommodities Act 1980

` Sale of Goods Act 1930

` Packaged Commodities Order , Price & Stock Display Order ,Consumer Protection Act1986,etc.

` Multiplicity of laws for trade regulation & consumer protection

has caused confusion among consumers` Weak implementation with unfair & exploitative practices in

the Indian market

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Mismatch between disadvantaged consumers & better organizedsuppliers

` Exorbitant prices of products and services.` Deceptive selling practices.` False and misleading advertisements.

` Defective quality, higher prices.` Sale of hazardous products to ignorant consumers.` Suppression of material information.` False product differentiation.` Producers/ sellers collusion.`

Supply of adulterated and substandard products.` Cheating consumer by giving lesser quantity for the price.` Dishonored guarantees and warranties.` Poor redressal of customers genuine grievances.` Creating a scare out of scarcity.

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` Making consumer buy unwanted goods.

` Misleading representation on utility of products.

` Manipulating condition of delivery.

` Customers pay for numerous intermediaries.

` Fall in prices- Never passed to consumers.

` Buying unaffordable goods.

` Advertisement cost.

` Counterfeits constitute substantial quantity of goods in

store shelves.

` Hoarding and Black-Marketing.

` Tie-In-Sales.

` Gifts for products/services.

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` Agricultural Products (Grading and Marketing) Act 1937` Industries (Development and Regulations)Act 1951

` Prevention of Food Adulteration Act 1954.

` Essential Commodities Act1955.

` The Standards of Weights and Measures Act 1956.` Monopolies and Restrictive Trade Practices Act 1969.

` Prevention ofBlack-marketing and Maintenance of Essential

Supplies Act 1980.

`

Consumer Protection Act 1986.

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` The Consumer Protection Act,1986(COPRA) conferred a legal

right to the individual consumer to seek legal redress or recover

costs & damages for injury or loss suffered by him as a result of

faulty , defective goods & services

` The six rights of the consumer enunciated under Section6 of

the COPRA

` Eligibility to file a claim.

` Limitations.

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` Major changes by the Amendment Act` Compensation amounts hiked for District , State & National Commission

` Setting up of benches & increasing the number of members in the National

& State Commissions , etc.

` In case of absence of the incumbent president of the DistrictForum, the selection commission or National commission, a

provision introduced in the Amendment Act empowers the

senior member to act as president of the respective bodies.

` Minimum qualifications have been prescribed for members of

all consumer court.

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` Consumer Protection Council

Central Council

State Consumer Protection Council

` Three-Tier Consumer Dispute Redressal System

District Forums

State Consumer Dispute Redressal Commission

National Commission

Qualification of members, term of office, remuneration,

jurisdiction, procedure for filing complaints & setting disputes , powers

& appeals

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` BIS develops need-based standards with a certification

mark scheme

` BIS certification mandatory for 131 items such as LPGcylinders, steel products, food colours , etc. & 246

pesticides

` Standard of Weights and Measures.

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Consumer Associations or Councils.

Consumer Cooperatives.

Coordination at the National Level.

Other Initiatives to Promote Consumer Protection

` National Awards

` Publicity Measures.

` Customer Service Department of RBI.

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A consumer is the most important visitor on our

premises. He is not dependent on us, we are on

him. He is not an interruption to our work; he is the

purpose of it. We are not doing a favor to aconsumer by giving him an opportunity. He is

doing us a favor by giving us opportunity to serve

him

- MAHATMA GANDHI

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` An advertisement which is potentially misleading

or literally false is deceptive.

` Potentially misleading ads are difficult to evaluate

because miscomprehension may often occur.

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(An advertisement issued by the Government of

India in public interest)

Negligent Consumer Behavior

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` Inadequate awareness

` Burden on law and order machinery additional

load

` Delays in the judicial system` Deficiency in existing laws

- Not cognizable

- Punishments are not enough

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The Act provides following remedies to an aggrievedconsumer:

` Removal of defects in goods or deficiency in service.` Replacement of defective goods with new goods of similar

description which shall be free from any defect.` Return of price paid by the consumer.` Payment of compensation for any loss or injury suffered by

the consumer.` Discontinue the restrictive, or unfair trade practice, and not

to repeat it.

` Withdraw the hazardous goods from being offered for saleand not to offer them for sale.` Provide for adequate cost to the aggrieved party.

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National Commission(for claims exceeding

Rs20 lakhs)

State commission(for claims between Rs

5& 20 lakh )

District Forum(claims upto Rs 5

lakhs)

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` Invariably, consumers are a vulnerable lot forexploitation, more so in a developing country with theprevalence of mass poverty and illiteracy. India too is noexception to it. Instances like overcharging, blackmarketing, adulteration, lack of proper services in trains,

telecommunication, water supply, airlines, etc are notuncommon here. From time to time, the government hasattempted to safeguard consumer's interests throughlegislations and the CPA 1986 is considered as the most

progressive statute for consumer protection. Proceduralsimplicity and speedy and inexpensive redressal ofconsumer grievances as contained in the CPA are reallyunique and have few parallels in the world.

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` Implementation of the Act reveals that interests of

consumers are better protected than ever before.

However, consumer awareness through consumer

education and actions by the government,consumer activists, and associations are needed

the most to make consumer protection movement

a success in the country.

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` Make the forums more consumer friendly` Initiate action against beauracrats and red tapism` Regular product testing` Free legal counseling` Conduct workshops in schools, colleges, villages, offices, etc.

` Research on issues on consumer concerns` Publish regular articles on current scenarios` Strict norms for advertisements and their promises` The brand ambassadors should be equally held liable if the

brand they promote fails to keep up with its claims` Routine inspection of plant, storage, manufacturing, logistics and

distribution and upload of data for public usage` MIS information upload for public usage

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