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INTRODUCTION
Consumer protection laws are designed to ensure fair trade competition and the free
flow of truthful information in the marketplace. The laws are designed to prevent
businesses that engage in fraud or specified unfair practices from gaining an advantage
over competitors and may provide additional protection for the weak and those unable
to take care of themselves. Consumer Protection laws are a form of government
regulation which aim to protect the MADs of consumers. For example, a government
may require businesses to disclose detailed information about products—particularly in
areas where safety or public health is an issue, such as food. Consumer protection is
linked to the idea of "consumer rights" (that consumers have various rights as
consumers), and to the formation of consumer organizations which help consumers
make better choices in the marketplace.
Consumer is defined as someone who acquires goods or services for direct use or
ownership rather than for resale or use in production and manufacturing.
“MODU" or "consumer law" is considered an area of law that regulates private
law relationships between individual consumers and the businesses that sell those
goods and services.
Consumers play a vital role in the economic system of a nation because in the absence
of effective demand that emanates from them, the economy virtually collapses.
Mahatma Gandhi said, "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 favour to a consumer by
giving him an opportunity. He is doing us a favour by giving us opportunity to
serve him”.
But, of late, unfortunately cheating by way of overcharging, black marketing, misleading
advertisements, etc has become the common practice of greedy sellers and
manufacturers to make unreasonable profits. It is the duty of the government to confer
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some rights on consumers to safeguard their interests.Pursuant to the common law
doctrine of caveat emptor; the buyer could not recover from the seller for defects on the
property that rendered the property unfit for ordinary purposes. Caveat emptor is Latin
for let the buyer beware. Both Congress and state legislatures have enacted consumer
protection laws intended to limit abuses inherent in the common law approach that
would have the buyer beware. A person violating the provisions of a consumer
protection statute is generally liable even though there was no intention to violate the
law. Liability also exists even though the breach was a single occurrence rather than a
pattern of repeated conduct. The word consumer refers to individuals or households
that use goods and services generated within the economy
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CONSUMER PROTECTION ACT, 1986
On March 15, 1962, US President John F Kennedy made a historical speech about
consumer rights as he introduced The Consumer Bill of Rights in the US Congress.
Ever since, consumers all over India (and the world) have celebrated March 15 as the
National Consumers’ Day.
Kennedy strongly believed that it is vital to United States’ National Interest to ensure the
welfare of the consumers, as it is the consumer who fundamentally drives the economy.
He formulated four rights for consumers, namely the right to safety, right to
choose, right to information and right to be heard which, in 1985, was accepted by
the United Nations (UN). The UN added the right to basic needs, right to
representation, right to consumer education, and right to healthy environment.
In the Consumer Protection Act 1986 in India; six of the following
consumer rights have been recognized.
Right to Safety
As stated in the Consumer Protection Act 1986, this consumer right is defined as the
‘right to be protected against marketing of goods and services which are
hazardous to life and property’. Specifically significant in areas such as healthcare,
food processing and pharmaceuticals, this right spans across any domain that could
have a serious impact on the consumers’ health or well being such as Automobiles,
Travel, Domestic Appliances, Housing etc.
Right to Information
This consumer right is defined as the ‘the right to be informed about the quality,
quantity, potency, purity, standard and price of goods or services, as the case
may be so as to protect the consumer against unfair trade practices’ in the
Consumer Protection Act of 1986. In the Indian market place, consumers get consumer
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information through two popular, yet unreliable means, namely advertising and word of
mouth. Due to this, the consumers in India seldom have accurate and complete
information to assess the true value, suitability, safety or reliability of any product.
Mostly we find out hidden costs, lack of suitability, safety hazards and quality problems
only after we have purchased the product. Another right again trumpeted by our
government on paper, this right should ideally ensure that all consumable products are
labeled in a standard manner which contains the cost, the ingredients, quantity, and
instructions on how to safely consume the product. Unfortunately, even the medicines in
India do not follow a standard labeling convention. Unit price publishing standards need
to be established for consumer market places where costs are shown in standard units
such as per kilogram, or per liter. We, as consumers, should be informed in a precise
yet accurate manner of the costs involved when availing a loan. For benefit to the
society from this right, advertisers should be held against the product standards in the
advertisements, pharmaceuticals need to disclose potential side effects about their
drugs, and manufacturers should be required to publish reports from independent
product testing laboratories regarding the comparison of the quality of their products
with competitive products, just to name a few.
Right to Choose
Consumer Protection Act 1986 defines this right as ‘the right to be assured, wherever
possible, to have access to a variety of goods and services at competitive prices’.
Competition, invariably, is the best regulator of a market place. Existence of oligopolies,
cartels and monopolies are counterproductive to consumerism. How often have you
noticed a conglomerate of companies that lobby the government to compromise
consumer rights? Our natural resources, telecommunications, liquor industry, airlines
have all been controlled by a mafia at some point. Coming from a socialistic
background, tolerance of monopolistic market forces are ingrained in the blood of Indian
Consumers. It is not very often we can say we are going to switch the power company,
when we have a blackout at home! Interestingly, even micro markets such as the fish
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vendors in particular cities have known to collude to drain the bargaining power of the
consumers. In any size, any form, or any span, collusion of companies selling a similar
type of product is unethical, less illegal.
Right to be Heard
According to the Consumer Protection Act 1986, ‘the right to be heard and to be
assured that consumer's interests will receive due consideration at appropriate
forums’ is referred to as the right to be heard. This right is supposed to empower Indian
consumers to fearlessly voice their complaints and concerns against products and
companies to ensure their issues are handled efficiently and expeditiously.
Right to Redressal
The right ‘to seek redressal against unfair trade practices or restrictive trade
practices or unscrupulous exploitation of consumers’ is defined as the right to
redressal in the Consumer Protection Act 1986. The Indian Government has been
slightly more successful with respect to this right. Consumer courts such as District
Consumer Disputes Redressal Forums at the district level, State Consumer
Disputes Redressal Commissions and National Consumer Disputes Redressal
Commissions have been established through the consumer protection act. Each
of these consumer grievance redressal agencies has fiduciary and geographical
jurisdictions to address consumer cases between consumers and businesses.
Consumer cases less than 20 lakhs are heard in the district consumer forum, between
20 lakhs and one crore are heard in the state consumer court and cases more than one
crore are heard in the national consumer court.
Right to Consumer Education
The right of each Indian citizen to be educated on matters related to consumer
protection and about his/her rights is the last right given by the Consumer
Protection Act 1986. This right simply ensures that the consumers in India have
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access to informational programs and materials that would enable them to make better
purchasing decisions. Consumer education may mean both formal education through
school and college curriculums and also consumer awareness campaigns run by both
governmental and non governmental agencies (NGO). Consumer NGOs, with little
support from the Indian government, primarily undertake the ardent task of ensuring this
consumer right around the country.
Consumer Protection Act, 1986 is an important Act in the history of the consumer
movement in the country. The Act was made to provide for the better protection and
promotion of consumer rights through the establishment of consumer councils and
quasi-judicial machinery. It is mile stone in the history of socio-economic legislation and
directed towards public welfare and public benefits.
The CPA was passed by the Lok Sabha on 5th December 1986 and Rajya Sabha
on 10th December, 1986 and assented to by the president in the Gazette of India.
Under the Act, consumer disputes redressal agencies have been set up throughout the
country with the District Forum at the District level, State Commission at the State
level and National Commission at national level to provide simple, inexpensive and
speedy justice to the consumer with complaints against defective goods, deficient
services and unfair and restrictive trade practices.
The Law relating to consumer protection in India is at recent origin and is developing
slowly, day by day, with the pronouncement of orders passed by the commissions
constituted under the Act all over India and the National Commission. However the
presence of some The Consumer Protection Act, 1986, is a benevolent social legislation
that lays down the rights of the consumers and provides there for promotion and
protection of the rights of the consumers.
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The first and the only Act of its kind in India, it has enabled ordinary consumers to
secure less expensive and often speedy redressal of their grievances. By spelling out
the rights and remedies of the consumers in a market so far dominated by organized
manufacturers and traders of goods and providers of various types of services, the Act
makes the dictum, caveat emptor (‘buyer beware’) a thing of the past.
The Act mandates establishment of Consumer Protection Councils at the Centre as well
as in each State and District, with a view to promoting consumer awareness.
The Central Council is headed by Minster, In-charge of the Department of Consumer
Affairs in the Central Government and the State Councils by the Minister In-charge of
the Consumer Affairs in the State Governments. It also provides for a 3-tier structure of
the National and State Commissions and District Forums for speedy resolution of
consumer disputes.
To provide inexpensive, speedy and summary redressal of consumer disputes, quasi-
judicial bodies have been set up in each District and State and at the national level,
called the District Forums, the State Consumer Disputes Redressal Commissions and
the National Consumer Disputes Redressal Commission respectively. At present,
there are 604 District Forums and 34 State Commissions with the National
Consumer Disputes Redressal Commission (NCDRC) at the apex.
The provisions of this Act cover ‘goods’ as well as ‘services’. The goods are those
which are manufactured or produced and sold to consumers through wholesalers and
retailers. The services are in the nature of transport, telephone, electricity, housing,
banking, insurance, medical treatment, etc.
If a consumer is not satisfied by the decision of a District Forum, he can appeal to the
State Commission. Against the order of the State Commission a consumer can come to
the National Commission.
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The Consumer Protection Act, 1986 was enacted for better protection of the interests of
consumers. Consumer Protection Act imposes strict liability on a manufacturer, in case
of supply of defective goods by him, and a service provider, in case of deficiency in
rendering of its services. The term “defect” and “deficiency”, as held in a catena of
cases, are to be couched in the widest horizon of there being any kind of fault,
imperfection or shortcoming. It covers to all the sectors whether private, public, and
cooperative or any person. The provisions of the Act are compensatory as well as
preventive and punitive in nature and the Act applies to all goods covered by sale of
goods act and services unless specifically exempted by the Central Government.
WHO IS A CONSUMER?
A consumer is any person who buys any goods for a consideration and user of such
goods where the use is with the approval of buyer, any person who hires/avails of any
service for a consideration and any beneficiary of such services, where such services
are availed of with the approval of the person hiring the service. The consumer need
not have made full payment.
All of us are consumers of goods and services. For the purpose of the Consumer
Protection Act, the word "consumer" has been defined separately for "goods" and
"services".
For the purpose of "goods", a consumer means a person belonging to the
following categories:
(i) One who buys or agrees to buy any goods for a consideration which has been paid
or promised or partly paid and partly promised or under any system of deferred payment
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(ii) It includes any user of such goods other than the person who actually buys goods
and such use is made with the approval of the purchaser.
Note: - A person is not a consumer if he purchases goods for commercial or resale
purposes. However, the word "commercial" does not include use by consumer of goods
bought and used by him exclusively for the purpose of earning his livelihood, by means
of self employment.
For the purpose of "services", a "consumer" means a person belonging to the
following categories:
(i) One who hires or avails of any service or services for a consideration which has been
paid or promised or partly paid and partly promised or under any system of deferred
payment
(ii) It includes any beneficiary of such service other than the one who actually hires or
avails of the service for consideration and such services are availed with the approval of
such person.
An enlightened consumer is an empowered consumer. An aware consumer not only
protects himself from exploitation but induces efficiency, transparency and
accountability in the entire manufacturing and services sector. Realizing the importance
of consumer awareness, Government has accorded top priority to ‘Consumer
Education, Consumer Protection and Consumer Awareness. India is a country, which
has taken a lead in introducing progressive legislation for consumer protection. The
most important milestone in Consumer Movement in the country has been the
enactment of the Consumer Protection Act, 1986. The Act has set in motion a revolution
in the field of consumer rights that perhaps cannot be paralleled anywhere else in the
World. The Act applies to all goods and services unless specially exempted by the
Central Government, in all sectors whether Private, Public or Co-operative.
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CONSUMER RESPONSIBILITIES
The country now has exclusive special law to protect the interest of the consumer with a
foolproof redressal mechanism in case of defective goods and unsatisfactory services.
Hence the welfare of consumers now remains in their own hands. If the consumers
are responsible, vigilant and are able to assert their rights and responsibilities,
resist/reject substandard goods/services wherever required and do not hesitate to seek
justice through consumer courts if needed, the manufacturers, traders and service
providers cannot afford to take them for granted while selling a product or rendering
service on payment or by adopting any unfair trade practice.
An alert consumer aware of his rights and responsibilities not only can protect himself
but can also make consumer sovereignty a reality. The success of the consumer
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movement in India depends on the vigilance of the consumer with regard to their rights
and responsibilities. As consumers become more conscious of their rights, they are able
to voice their concerns better.
The Responsibility, To Beware and alert to the quality and safety of goods and
services before we buy them.
The Responsibility, To Be Aware and to gather all the information and facts
available about a product or service as well as to keep abreast of changes and
innovations in the marketplace.
The Responsibility of Thinking Independently and making decisions about
well considered needs and wants.
The Responsibility, To Speak Out to inform manufacturers and governments of
our needs and expectations.
The Responsibility, To Complain and to inform businesses and other
consumers in a fair and honest manner of our dissatisfaction and satisfaction
with a product or service.
The Responsibility, To Be An Ethical Consumer and to be fair by not
engaging in dishonest practices which cost all consumers money.
The Responsibility, To Respect The Environment and avoid waste, littering
and contributing to pollution.
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PROTECTION OF CONSUMER RIGHTS
Consumer protection means safeguarding the rights and interests of consumers. It
includes all the measures aimed at protecting the rights and interests of consumers.
Consumers need protection due to the following reasons:
1. Illiteracy and Ignorance: Consumers in India are mostly illiterate and ignorant. They
do not understand their rights. A system is required to protect them from unscrupulous
businessmen.
2. Unorganized Consumers: In India consumers are widely dispersed and are not
united. They are at the mercy of businessmen. On the other hand, producers and
traders are organized and powerful.
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3. Spurious Goods: There is increasing supply of duplicate products. It is very difficult
for an ordinary consumer to distinguish between a genuine product and its imitation. It is
necessary to protect consumers from such exploitation by ensuring compliance with
prescribed norms of quality and safety.
4. Deceptive Advertising: Some businessmen give misleading information about
quality, safety and utility of products. Consumers are misled by false advertisement and
do not know the real quality of advertised goods. A mechanism is needed to prevent
misleading advertisements.
5. Malpractices of Businessmen: Fraudulent, unethical and monopolistic trade
practices on the part of businessmen lead to exploitation of consumers. Consumers
often get defective, inferior and substandard goods and poor service. Certain measures
are required to protect the consumers against such malpractices.
6. Freedom of Enterprise: Businessmen must ensure satisfaction of consumers. In the
long run, survival and growth of business is not possible without the support and
goodwill of consumers. If business does not protect consumers' interests, Government
intervention and regulatory measures will grow to curb unfair trade practices.
7. Legitimacy for Existence: Business exists to satisfy the needs and desires of
consumers. Goods are produced with the purpose of selling them. Goods will, in the
long run, sell only when they meet the needs of consumers.
8. Trusteeship: Businessmen are trustees of the society's wealth. Therefore, they
should use this wealth for the benefit of people.
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METHODS OF CONSUMER PROTECTION
There are four main methods of protecting the interests of consumers:
1. Business Self-regulation: The business community itself can help in achieving
consumer protection and satisfaction through self -discipline. Businessmen can regulate
their own behaviour and actions by adopting higher ethical standards. Trade
associations and chambers of commerce can check unfair trade practices used by
some businessmen.
2. Consumer Self-help: Every consumer must be alert as self-help is the best help. He
should educate himself and know his rights. He should not allow unscrupulous
businessmen to cheat him.
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3. Consumers' Associations: Consumers should form voluntary associations. These
associations can educate and awaken consumers. They can take organized action and
put pressure on businessmen to adopt fair trade practices.
4. Government Regulations: The State can ensure consumer protection through
legislative, executive and judicial actions. The laws enacted by the Government must be
strictly enforced by the executive. Government of India has enacted several laws to
protect the interests and rights of consumers.
GOVERNMENT‘S INNOVATIVE CONSUMER CAMPAIGN
'JAGO GRAHAK JAGO'
With the focus on empowering consumers, the government has been implementing an
innovative and intensive multimedia campaign, "Jago Grahak Jago (Wake up
Consumer)" to create consumer awareness in the country.
Consumer Awareness Scheme in the XI Plan
The Consumer Awareness Scheme for the XI Plan amounting to a total of Rs. 409
crores has been approved by the Cabinet Committee on Economic Affairs on 24.01.08.
This scheme has been formulated to give an increased thrust to a multi media publicity
campaign to make consumers aware of their rights. The slogan 'JAGO GRAHAK
JAGO' has now become a household name as a result of publicity campaign
undertaken in the last 3 years. Through the increased thrust on consumer awareness in
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the XI Five Year Plan, the Government has endeavored to inform the common man of
his rights as a consumer.
As part of the consumer awareness scheme, the rural and remote areas have been
given top priority. In a big country like India, given the scenario of economic disparity
and level of education and ignorance, educating the consumers remains a gigantic task.
Government has taken up number of activities and schemes in creating consumer
awareness in the country as part of this Consumer Awareness Scheme.
India is a country with more than 70% population being under 35 years. The youngsters
are using the internet in a big way for various purposes and also happen to be major
consumers. Realizing this, a major initiative is being taken to spread consumer
awareness through the online medium. The advertisements being brought out by the
Department are also being displayed on the website of the Ministry www.fcamin.nic.in.
In 2005, the government set up the Consumer Online Resource and Empowerment
Centre (CORE) to provide fast and convenient grievance redressal services as well as
consumer resources to the citizens of India. The Consumer Coordination Council a
premier organization in the field of consumer movement of India recommended the
setting-up of the CORE Centre.
With a view to promote Consumer Sovereignty, CORE works in the interest of
consumers to resolve their complaints and avoid unnecessary litigation for brands. It is
both an effective one point source for complaint redressal as well as a nodal agency to
protect the interests of Indian Consumers.
Joint Campaign
'JAGO GRAHAK JAGO' has become the focal theme through which issues concerning
the functioning of almost all Government Departments having a consumer interface can
been addressed. To achieve this objective joint campaigns have been undertaken/are
being undertaken with a number of Government Departments. The Department had run
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a joint campaign with Bureau of Energy Efficiency to educate people about energy
conservation by having awareness of the BEE star labels. A joint campaign with
National Pharmaceuticals Product Authority is being devised to educate consumers
about the various issues concerning pharma industry. Similarly, campaigns with
Reserve Bank of India, FICCI, Ministry of Urban Development (for real estate sector)
and HRD (for education sector) are being planned.
The National Consumer Helpline, which has been the focus of the awareness
campaign, empowers consumers from all over the country to dial the toll-free
number 1800-11-4000 and seek telephonic counselling for problems that they face
as consumers.
CONSUMER PROTECTION AND CONSUMERISM IN INDIA
Plight of the Indian Consumer
An examination of the important problems facing the Indian consumer would
make clear the need for more effective government intervention and consumer
movement to safeguard consumer rights. The following factors make the plight of the
Indian consumer miserable.
1. Short supply of many goods and services, especially of essential items, is a
very serious problem afflicting the Indian consumer. The demand-supply
imbalance has produced all the associated evils of profiteering, hoarding and
black-marketing, corruption, nepotism, irresponsiveness and arrogance towards
consumers. Although the situation has improved as a result of the increase in
competition due to liberalization, it is still far from satisfactory.
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2. The Indian consumer is also the victim of lack of effective or workable
competition. “Competition among sellers, even though imperfect, may be
regarded as effective or workable if it offers buyers real alternatives sufficient to
enable them, by shifting their purchases form one seller to another, substantially
to influence quality, service, and price. Effective competition depends also upon
the general availability of essential information; buyers cannot influence the
behaviour of sellers unless alternatives are known. It requires the presence in the
market of several sellers, each of them possessing the capacity to survive and
grow, and the preservation of conditions which keep alive the threat of potential
competition among sellers is thus to be found in the availability of buyers of
genuine alternatives in policy among their sources of supply.”
3. Many products with which consumers in advanced countries are quite
familiar are still new to a very large segment of the Indian consumers. The
unfamiliarity of the consumers with product features makes the sale of
substandard, inferior or even defective products easier in India than in advanced
countries.
4. Due to low literacy levels and unsatisfactory information flows, the Indian
consumers, by and large, are not conscious of all their rights. This
encourages irresponsible and unscrupulous business attitudes and tactics.
5. It has been said that the legal process in India is comparatively time-
consuming and cumbersome. This discourages the consumers from seeking
the Redressal of their grievance by means of the judicial process.
6. Consumerism in India is not well organized and developed.
7. Though the public sector had not been developed and expanded to serve
the public interest by providing effective competition to the private sector,
increasing production, improving distribution, etc., it failed to produce
benefits that were commensurate with the investment.
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8. Though there are a number of laws to safeguard the interests of
consumers, they are not effectively implemented and enforced to achieve
the objectives.
9. Government Measures In India; the Government has taken a number of
measures to protect consumer interests. The various Government measures may
be classified into (i) statutory regulation of private business, and (ii) development
of the public sector.
WHAT IS CONSUMER COMPLAINT?
Under the Consumer Protection Act, a complaint means any allegation in writing
made by a complainant in regard to one or more of the following:-
1. Any unfair trade practice as defined in the Act or restrictive trade practices like tie-
up sales adopted by any trader.
2. One or more defects in goods. The goods hazardous to life and safety, when
used, are being offered for sale to public in contravention of provisions of any law
for the time being in force.
3. Deficiencies in services.
4. A trader charging excess of price.
(i) Fixed by or under any law for the time being in force; or
(ii) Displayed on goods; or
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(iii) Displayed on any packet containing such goods.
Procedures for filing complaints and seeking redressal are simple. There is no fee for
filing a complaint before the District Forum, the State Commission or the National
Commission. (A stamp paper is also not required). Three to five copies of the complaint
on plain paper depending on the number of opposite parties, etc. are required to be
filed.
JURISDICTION
If the cost of goods or services and compensation asked for is up to rupees twenty lakh,
then the complaint can be filed in the District Forum which has been notified by the
State Government for the district where the cause of action has arisen or where the
opposite party resides. A complaint can also be filed at a place where the branch office
of the opposite party is located.
If the cost of goods or services and compensation asked for is more than rupees twenty
lakh, but less than rupees one crore then the complaint can be filed before the State
Commission notified by the State Government or Union Territory Concerned.
If the cost of goods or services and compensation asked for exceed rupees one
crore then the complaint can be filed before the National Commission at New Delhi.
LIMITATION
The District Forum, the State Commission or the National Commission shall not admit a
complaint unless it is filed within two years from the date on which cause of action has
arisen.
RELIEF AVAILABLE TO CONSUMER
Depending on the facts and circumstances, the Redressal Forums may give order for
one or more of the following relief.
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Removal of defects from the goods,
Replacement of the goods;
Refund of the price paid;
Award of compensation for the loss or injury suffered;
Removal of defects or deficiencies in the services;
Discontinuance of unfair trade practices or restrictive trade practices or direction not
to repeat them; Withdrawal of the hazardous goods from being offered to sale; or
Award for adequate costs to parties
CONTENTS OF CONSUMER COMPLAINT
A complaint should contain the following information:-
(a) The name, description and the address of the complainant.
(b) The name, description and address of the opposite party or parties, as the case may
be, as far as they can be ascertained;
(c) The facts relating to complaint and when and where it arose;
(d) Documents, if any, in support of the allegations contained in the complaint.
(e) The relief which the complainant is seeking.
The complaint should be signed by the complainant or his authorized agent. The
complaint is to be filed within two years from the date on which cause of action has
arisen.
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India has been observing 15 March since 1989 as the National Consumers’ Day.
This day has a historic importance as it was on this day in 1962, when the Bill for
Consumer Rights was moved in the US Congress. During his speech President John
F. Kennedy had remarked:
“If a consumer is offered inferior products, if prices are exorbitant, if drugs are
unsafe or worthless, if the consumer is unable to choose on an informed basis,
then his dollar is wasted, his health and safety may be threatened, and national
interest suffers.”
Every year 15th March is observed as the World Consumer Rights Day all over the
world. Since 1997, the observance of World Consumer rights’ day is an annual occasion
for celebration and solidarity within the international consumer movement. The day has
its origin in former US president John F. Kennedy’s declaration of four basic
consumer rights in his 15th March 1962 special message to the
US Congress such as:
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1. Right to safety
2. Right to be informed
3. Right to choose
4. Right to be heard
To these, consumers international (CI) added four more rights:
1. Right to satisfaction of basic needs
2. Right to redress
3. Right to education
4. Right to a healthy environment
World Consumer Rights Day was first observed on 15th March, 1983. Two years later,
on 9th April 1985, the United Nations general assembly adopted the UN guidelines for
consumer protection. In India, the Consumer protection Act, 1986 is an important Act in
the history of the consumer movement in the country. The Act was made to provide for
the better protection and promotion of consumer rights through the establishment of
consumer councils and quasi-judicial machinery. A vigilant consumer can contribute
in reducing the problem of sub-standard, defective goods, deficiency services,
adulteration, unfair trade practices, etc to a large extent. The responsibility for the
promotion and protection of consumer rights rest with all of us and more particularly
with governmental agencies .
BIRTH OF CONSUMERS’ DAY
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Considering the importance of Kennedy’s speech to the US Congress on this day, and
the resultant law, the CI took a decision in 1982 to observe 15 March as the World
Consumer Rights Day from 1983.
Peculiar though it may sound, 15 March is not observed as a special day in the world’s
largest and most pulsating consumer society - the US. But at home in India the
Government, adopted 15 March as the National Consumer’s Day.
India is a country, which never fell behind in introducing progressive legislation - we
were among the first in the world to introduce universal adult franchise for women.
BIRTH OF ‘COPRA’
The right to redress lead to the passing of the Consumer Protection Act (COPRA)
in 1986 in India which has been defined as the Magna Carta of consumers but, it
recognizes only six of these eight rights:
1. Safety
2. Information
3. Choice
4. Representation
5. Redress
6. Consumer Education
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INDIA’S GLOBAL REPUTATION
The most important milestone in Consumer Movement in the country has been the
enactment of the Consumer Protection Act, 1986. The Act applies to all goods and
services unless specially exempted by the Central Government, in all sectors whether
private, public or co-operative. This Act has been regarded as the most progressive,
comprehensive and unique piece of legislation.
In the International conference on consumer protection held in Malaysia, the
Indian Consumer Protection Act was described as one “which has set in motion a
revolution in the fields of consumer rights, the parallel of which has not been
seen anywhere else in the world.”
As consumers we are dependent on the markets for meeting our needs and
wants. At present we have around 24 legislations in India for protecting the consumers.
We have moved from the situation of caveat emptor, i.e. let the buyer beware to a
situation of caveat venditor i.e., the marketer or the vendor needs to be careful and
responsible when he sells goods and services to the consumers. Amongst the various
laws for the protection of the consumers, the foremost is the Consumer Protection Act
in India.
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Laws, rules, regulations and orders (for which India has unparalleled distinction in the
Guinness book of records) alone do not protect consumers, but it is the rights’
movement of people which produce results in a democracy.
One of the greatest achievements of the Indian consumer movement is the enactment
of the dynamic consumer law: COPRA. Coming 39 years after Independence, it has
acknowledged the rampant consumer abuses, including those of the government owned
public utilities like telephones, transport, power etc. These utilities, in the first place,
were created as state monopolies ostensibly to protect consumers!
Critics of COPRA rightly conclude that it can’t do anything about rising prices, but it has
succeeded in bringing about fair play in the supply of goods and services available in
the market place, giving substance to the adage: Customer is King. Also, COPRA has
encouraged active consumer bodies to demand, and perhaps see in the near future,
independent Public Utility Regulatory Commissions to debate costing, pricing and
promote competition.
In fact the Central Consumer Protection Council has recommended to the Government
to enact a Freedom of Information Act on the pattern of a similar law in the US. Another
major achievement of the Indian consumer movement in the context of the world
scenario was to get the government in 1989, to adopt 15 March, the World
Consumer Rights Day, as the National Consumers’ Day. Unlike the Labour Day on 1
May, which has roots in the US, the Consumer Rights Day, which also has roots in the
US, is not even observed there?
Today India is the only country in the world, which has exclusive courts for
consumer redressal. At the IOCU’s 13th World Congress held in Hong Kong during 7-
13 July 1991 it came in for praise and developed countries were called upon to emulate.
In the same year, these developments inspired Jim Sugarman, a noted US consumer
activist and a close associate of Ralph Nader, to candidly observe: “India is getting a
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global reputation for the rapid development of its consumer movement.”
CONCLUSION
Invariably, consumers are a vulnerable lot for exploitation, more so in a developing
country with the prevalence osf mass poverty and illiteracy. India too is no exception to
it. Instances like overcharging, black marketing, adulteration, profiteering, lack of proper
services in trains, telecommunication, water supply, airlines, etc are not uncommon
here. From time to time, the government has attempted to safeguard consumer's
interests through legislations and the CPA 1986 is considered as the most progressive
statute for consumer protection.
Procedural simplicity and speedy and inexpensive redressal of consumer grievances as
contained in the CPA are really unique and have few parallels in the world.
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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