Chapter 8

Consumer protection means safeguarding the interest and rights of consumers. In other words, it refers to the measures adopted for the protection of consumers from unscrupulous and unethical malpractices by the business and to provide them speedy redressal of their grievances. The most common business malpractices leading to consumer exploitation are given below.
a) b) c) d) e) Sale of adulterated goods i.e., adding something inferior to the product being sold. Sale of spurious goods i.e., selling something of little value instead of the real product. Sale of sub-standard goods i.e., sale of goods which do not confirm to prescribed quality standards. Sale of duplicate goods. Use of false weights and measures leading to underweight.

The necessity of adopting measures to protect the interest of consumers arises mainly due to the helpless position of the consumers. There is no denying fact that the consumers have the basic right to be protected from the loss or injury caused on account of defective goods and deficiency of services. But they hardly use their rights due to lack of awareness, ignorance or lethargic attitude. However in view of the prevailing malpractices and their vulnerability there to, it is necessary to provide them physical safety, protection of economic interests, access to information, satisfactory product standard, and statutory measures for redressal of their grievances

 a) b) c) d) e) f)

The other main arguments in favor of consumer protection are as follows: Social Responsibility Increasing Awareness Consumer Satisfaction Principle of Social Justice Principle of Trusteeship Survival and Growth of Business

Right Right Right Right Right Right

to to to to to to

Safety be Informed Choose be Heard Seek Redressal Consumer Education

Be quality conscious Beware of misleading advertisements Responsibility to inspect a variety of goods before making selection Collect proof of transaction Consumers must be aware of their rights Complaint for genuine grievances Proper use of product/services

District Forum

This is established by the state governments in each of its districts. Composition: The district forums consist of a Chairman and two other members one of whom shall be a woman. The district forums are headed by the person of the rank of a District Judge. Jurisdiction: A written complaint can be filed before the District Consumer forum where the value of goods or services and the compensation claimed does not exceed Rs. 20 lakh. Appeal: If a consumer is not satisfied by the decision of the District forum, he can challenge the same before the State Commission, within 30 days of the order.

State Commission

This is established by the state governments in their respective states. Composition: The State Commission consists of a President and not less then two and not more than such number of members as may be prescribed, one of whom shall be a women. The Commission is headed by a person of the level of High Court judge. Jurisdiction: A written complaint can be filed before the State Commission where the value of goods or services and the compensation claimed exceeds Rs. 20 lakh but does not exceed Rs. One crore. Appeal: In case the aggrieved party is not satisfied with the order of the State Commission he can appeal to the National Commission within 30 days of passing of the order

National Commission

The National commission was constituted in 1988 by the central government. It is the apex body in the three tier judicial machinery set up by the government for redressal of consumer grievances. Its office is situated at Janpath Bhawan (Old Indian Oil Bhawan), A Wing, 5th Floor, Janpath, New Delhi. Composition: It consists of a President and not less than four and not more than such members as may be prescribed, one of whom shall be a woman. The National Commission is headed by a sitting or retired judge of the Supreme Court. Jurisdiction: All complaints pertaining to those goods or services and compensation whose value is more than Rs. one crore can be filed directly before the National Commission. Appeal: An appeal can be filed against the order of the National Commission to the Supreme Court within 30 days from the date of order passed.