Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
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INTRODUCTION
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. In this context, it is the duty of the government to
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CONSUMER EXPLOITATION
When a producer is doing selfish deeds for his/her own benefit and the decision is a purpose giving more
than mental happiness for only the producer and having adverse effects on consumer who may be illiterate or
unaware etc.
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. Unorganised 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.
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
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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
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CONSUMER RIGHTS
1. Right to Safety: The right to be protected against goods which are hazardous to life and property.
2. Right to Information: The right to be informed about the quality, quantity, purity, price and standards of
goods.
3. Right to Choose: The right to be assured access to a variety of products at competitive prices, without any
4. Right to be Heard: The right to be heard and assured that consumer interests will receive due
5. Right to Seek Redressal: The right to get relief against unfair trade practice or exploitation.
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PROTECTION OF CONSUMER RIGHTS
Consumer protection means safeguarding the rights and interests of consumers. It includes all
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. Unorganised 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.
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
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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
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METHODS OF CONSUMER PROTECTION
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
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.
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
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. Some of these
• The Essential Commodities Act, 1955 which aims to regulate and control the production, supply and
eatables.
• The Drugs and Cosmetics Act, 1940 which seeks to ensure purity and quality in drugs and cosmetics.
• The Standards of Weights and Measures Act, 1956 which aims at ensuring that consumers get the right
• The Household Electrical Appliances (Quality Control) Order, 1976 which seeks to ensure safety and
• The Consumer Protection Act, 1986 which seeks to provide speedy and inexpensive redressal to the
grievances of consumers.
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THE CONSUMER PROTECTION ACT, 1986
• Replacement of defective goods with new goods of similar description which shall be free from any defect.
• Discontinue the restrictive, or unfair trade practice, and not to repeat it.
• Withdraw the hazardous goods from being offered for sale and not to offer them for sale.
The Consumer Production Act provides for a three tier system of redressal agencies: one at district
level known as District Forum, second at state level known as 'State Commission', and third at
national level known as 'National Commission'. A complaint is to be made to the district forum of
the concerned district where the value of goods and services and compensation, if any, is up to Rs 20
lakhs, to the 'State Commission' between Rs 20 lakhs and Rs 100 lakhs, and to the National Commission
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for more than Rs 100 lakhs. Interestingly, there is provision for appeals against the orders of a particular
redessal forum by the aggrieved party before the next higher echelon and even from the findings of the
(1) This Act may be called the Consumer Protection Act, 1986.
(2) It extends to the whole of India except the State of Jammu and Kashmir.
(3) It shall come into force on such date as the Central Government may, by notification, appoint
and different dates may be appointed for different States and for different provisions of
this Act.
(4) Save as otherwise expressly provided by the Central Government by notification, this Act
2. Definitions. –
(iii) any such laboratory or organization established by or under any law for the time
a State Government for carrying out analysis or test of any goods with a view to
(ii) any establishment carrying on either the same or substantially the same activity
(i) a consumer; or
(ii) any voluntary consumer association registered under the Companies Act, 1956
(1of 1956) or under any other law for the time being in force; or
(iv) one or more consumers, where there are numerous consumers having the same
interest;
(v) in case of death of a consumer, his legal heir or representative; who or which
makes a complaint;
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(c) "Complaint" means any allegation in writing made by a complainant that—
(i) An unfair trade practice or a restrictive trade practice has been adopted by any trader
or service provider;
(ii) The goods bought by him or agreed to be bought by him; suffer from one or more
defects;
(iii) the services hired or availed of or agreed to be hired or availed of by him suffer
(iv) a trader or service provider, as the case may be, has charged for the goods or for
(a) fixed by or under any law for the time being in force
(c) displayed on the price list exhibited by him by or under any law for the time being
in force;
(v) goods which will be hazardous to life and safety when used or being offered for sale to
the public,--
complied with, by or under any law for the time being in force;
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(B) if the trader could have known with due diligence that the goods so offered are
(vi) services which are hazardous or likely to be hazardous to life and safety of the public
when used, are being offered by the service provider which such person could have
(i) buys any goods for a consideration which has been paid or promised or partly
paid and partly promised, or under any system of deferred payment and includes
any user of such goods other than the person who buys such goods for
system of deferred payment when such use is made with the approval of such
person, but does not include a person who obtains such goods for resale or for any
commercial purpose; or
(ii) hires or avails of any services for a consideration which has been paid or
promised or partly paid and partly promised, or under any system of deferred
payment and includes any beneficiary of such services other than the person who
'hires or avails of the services for consideration paid or promised, or partly paid and
partly promised, or under any system of deferred payment, when such services are
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availed of with the approval of the first mentioned person but does not include a
Explanation.— For the purposes of this clause, “commercial purpose” does not
include use by a person of goods bought and used by him and services availed by him
(e) "Consumer dispute" means a dispute where the person against whom a complaint
has been made, denies or disputes the allegations contained in the complaint.
(g) "defect" means any fault, imperfection or shortcoming in the quality, quantity, potency,
purity or standard which is required to be maintained by or under any law for the time
being in force under any contract, express or implied or as is claimed by the trader in any
(h) "deficiency" means any fault, imperfection, shortcoming or inadequacy in the quality,
nature and manner of performance which is required to be maintained by or under any law
for the time being in force or has been undertaken to be performed by a person in
DISTRICT FORUM
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(i) "District Forum" means a Consumer Disputes Redressal Forum established under
(j) "goods" means goods as defined in the Sale of Goods Act, 1930 (3 of 1930);
(ii) does not make or manufacture any goods but assembles parts thereof made or
manufactured by others; or
(iii) puts or causes to be put his own mark on any goods made or manufactured by any
other manufacturer;
(iv)
branch office maintained by him, such branch office shall not be deemed to be the
manufacturer even though the parts so dispatched to it are assembled at such branch office
(jj) "member" includes the President and a member of the National Commission or a State
(l) "National Commission" means the National Consumer Disputes Redressal Commission
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(m) "notification" means a notification published in the Official Gazette;
(m)"Person" includes,—
(v) every other association of persons whether registered under the Societies
(n) "prescribed" means prescribed by rules made by the State Government, or as the case
(nn)“regulation” means the regulations made by the National Commission under this Act;
(nnn) “restrictive trade practice” means a trade practice which tends to bring about
(a) delay beyond the period agreed to by a trader in supply of such goods or in providing
the services which has led or is likely to lead to rise in the price;
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(b) any trade practice which requires a consumer to buy, hire or avail of any goods or, as
the case may be, services as condition precedent to buying, hiring or availing of other
goods or services;
(o) "service" means service of any description which is made available to potential users and
includes, but not limited to, the provision of facilities in connection with banking,
or other information, but does not include the rendering of any service free of charge or
(oo) “Spurious goods and services” mean such goods and services which are claimed to
(q) "trader" in relation to any goods means a person who sells or distributes any goods for
sale and includes the manufacturer thereof, and where such goods are sold or distributed in
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(q) "unfair trade practice" means a trade practice which, for the purpose of promoting the
sale, use or supply of any goods or for the provision of any service, adopts any unfair
method or unfair or deceptive practice including any of the following practices, namely;—
(1) the practice of making any statement, whether orally or in writing or by visible
representation which,—
(i) falsely represents that the goods are of a particular standard, quality, quantity,
(ii) falsely represents that the services are of a particular standard, quality or grade;
(iv) represents that the goods or services have sponsorship, approval, performance,
have;
(v) represents that the seller or the supplier has a sponsorship or approval or affiliation
(vi) makes a false or misleading representation concerning the need for, or the
(vii) gives to the public any warranty or guarantee of the performance, efficacy or
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Provided that where a defence is raised to the effect that such warranty or
guarantee is based on adequate or proper test, the burden of proof of such defence
carried out;
(ix)materially misleads the public concerning the price at which a product or like
products or goods or services, have been or are, ordinarily sold or provided, and,
for this purpose, a representation as to price shall be deemed to refer to the price at
which the product or goods or services has or have been sold by sellers or provided
price at which the product has been sold or services have been provided by the
(x) gives false or misleading facts disparaging the goods, services or trade of another
person.
container; or
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(b) expressed on anything attached to, inserted in, or accompanying, an article
offered or displayed for sale, or on anything on which the article is mounted for
display or sale; or
shall be deemed to be a statement made to the public by, and only by, the person
(2) permits the publication of any advertisement whether in any newspaper or otherwise,
for the sale or supply at a bargain price, of goods or services that are not intended to be
offered for sale or supply at the bargain price, or for a period that is, and in quantities that
are, reasonable, having regard to the nature of the market in which the business is carried
on, the nature and size of business, and the nature of the advertisement.
(b) a price that a person who reads, hears or sees the advertisement, would
reasonably understand to be a bargain price having regard to the prices at which the
(3) permits—
(a) the offering of gifts, prizes or other items with the intention of not providing
free of charge when it is fully or partly covered by the amount charged in the
transaction as a whole;
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(b) the conduct of any contest, lottery, game of chance or skill, for the purpose of
promoting, directly or indirectly, the sale, use or supply of any product or any
business interest;
(3A) withholding from the participants of any scheme offering gifts, prizes or other items
free of charge, on its closure the information about final results of the scheme.
Explanation. — For the purposes of this sub-clause, the participants of a scheme shall
be deemed to have been informed of the final results of the scheme where such results are
within a reasonable time, published, prominently in the same newspapers in which the
(4) permits the sale or supply of goods intended to be used, or are of a kind likely to be
used, by consumers, knowing or having reason to believe that the goods do not comply
prevent or reduce the risk of injury to the person using the goods;
(5) permits the hoarding or destruction of goods, or refuses to sell the goods or to make
them available for sale or to provide any service, if such hoarding or destruction or refusal
raises or tends to raise or is intended to raise, the cost of those or other similar goods or
services.
(6) manufacture of spurious goods or offering such goods for sale or adopts deceptive
(2) Any reference in this Act to any other Act or provision thereof which is not in force in any
area to which this Act applies shall be construed to have a reference to the corresponding Act
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CONSUMER PROTECTION COUNCILS
1. The Central Consumer Protection Council.—(1) The Central Government shall, by notification,
establish with effect from such date as it may specify in such notification, a Council to be known as
the Central Consumer Protection Council (hereinafter referred to as the Central Council).
(2) The Central Council shall consist of the following members, namely:—
(a) the Minister in charge of the consumer affairs in the Central Government, who shall
(b) such number of other official or non-official members representing such interests as
may be prescribed.
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2. Procedure for meetings of the Central Council.—(1) The Central Council shall meet as and when
necessary, but at least one meeting of the Council shall be held every year.
(2) The Central Council shall meet at such time and place as the Chairman may think fit and shall
observe such procedure in regard to the transaction of its business as may be prescribed.
3. Objects of the Central Council.—The objects of the Central Council shall be to promote and protect
(a) the right to be protected against the marketing of goods and services which are hazardous
(b) 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;
(c) the right to be assured, wherever possible, access to a variety of goods and services at
competitive prices;
(d) the right to be heard and to be assured that consumer's interests will receive due
(e) the right to seek redressal against unfair trade practices or restrictive trade practices or
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THE STATE CONSUMER PROTECTION COUNCILS
1 The State Consumer Protection Councils.- (1) The State Government shall, by notification,
establish with effect from such date as it may specify in such notification, a Council to be known as
the Consumer Protection Council for..................... (hereinafter referred to as the State Council).
(2) The State Council shall consist of the following members, namely:—
(a) the Minister incharge of consumer affairs in the State Government who shall be its
Chairman;
(b) such number of other official or non-official members representing such interests as
(3) The State Council shall meet as and when necessary but not less than two meetings shall be held
every year.
(4) The State Council shall meet at such time and place as the Chairman may think fit and shall
observe such procedure in regard to the transaction of its business as may be prescribed by the
State Government.
2. Objects of the State Council. — The objects of every State Council shall be to promote and protect
within the State the rights of the consumers laid down in clauses (a) to (f) of section 6.
2A. (1) The State Government shall establish for every district, by notification, a council to be known as
the District Consumer Protection Council with effect from such date as it may specify in such
notification.
(2) The District Consumer Protection Council (hereinafter referred to as the District Council) shall
(a) the Collector of the district (by whatever name called), who shall be its Chairman; and
(b) such number of other official and non-official members representing such interests as
(3) The District Council shall meet as and when necessary but not less than two meetings shall be
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(4) The District Council shall meet at such time and place within the district as the Chairman may
think fit and shall observe such procedure in regard to the transaction of its business as may be
The objects of every District Council shall be to promote and protect within the district the
CONCLUSION
Invariably, consumers are a vulnerable lot for exploitation, more so in a developing country with the
prevalence of mass poverty and illiteracy. India too is no exception to it. Instances like overcharging, black
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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
District Supply Officer of districts other than Chennai and Deputy Commissioners of
North and South in Chennai District have been designated as District Supply and
Consumer Protection Officer and Deputy Commissioner of Civil Supplies and
Consumer Protection Officer (Chennai) respectively. They are carrying out consumer
awareness and education programmes as per the policy laid down by Government of
Tamil Nadu.
4. Consumer Courts
Most districts have a District Consumer Forum (DCF) headed by a a President. Appeal
against the orders of the the DCF lies with State Consumer Disputes Redressal
Commission (SCDRC) at Chennai. The SCDRC also has certain original jurisdiction
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based on the value of the complaint. Appeal against the orders of the SCDRC lies with
the National Consumer Disputes Redressal Commission.
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