• As an end result of this, buyers may also be uncovered to dangers due to risky products- that is, he may also be cheated, might also have to pay a greater rate etc.
• Thus; there is a want to supply sufficient safety to buyers towards such practices.
Business Studies Class 12 Notes Financial Markets
1 Importance of Consumer Protection
(from Consumer’s factor of view)
Consumers Ignorance: Majority of buyers are now not conscious of their rights and reliefs reachable to them as an end result of which they are exploited.
In order to store buyers from exploitation, patron safety is needed.
Unorganized Consumers: In India buyers are nonetheless unorganized and there is lack of purchaser corporations also, accordingly purchaser safety is required.
Widespread Exploitation of Consumers: Consumers are exploited on massive scale by way of capability of a range of unfair exchange practices and purchaser safety is required to defend them from exploitation.
(From the factor of Business)
Long time period Business Interest: It is constantly in the pastime of the commercial enterprise to maintain its patron satisfied.
Global opposition may want to be received solely after enjoyable customers.
Satisfied clients lead to repeat income and assist in growing purchaser base of business.
Moral Justification: It is the ethical obligation of any commercial enterprise to take care of customer hobby & keep away from any structure of their exploitation & unfair change practices like faulty & hazardous products, adulteration, false and deceptive advertising, hoardings, black advertising etc.
Business makes use of Resources of Society: Every commercial enterprise makes use of the sources of the society and as a result it is their accountability to work in the hobby of the society.
Social Responsibility: A commercial enterprise has social obligations in the direction of a range of organizations like owners, workers, government, clients etc.
Thus, clients ought to be furnished qualitative items at lifelike prices.
Government Intervention: If a commercial enterprise engages in any shape of unfair exchange practices then authorities takes motion towards it, which adversely impacts its goodwill.
2 CONSUMER PROTECTION ACT, 1986 (CPA, 1986)
A. Set up to shield and promote patron hobbies through a rapid and less expensive redressal of grievances.
B. Recognizes patron rightsRedressal agencies– set up a three-tier business enterprise to tackle purchaser grievances.
3 Meaning of Consumer
A. Any character who buys any items for a consideration. It consists of any consumer of such items with the approval of the buyer.
But it does now not encompass an individual who obtains items for resale or any industrial purpose.
B. Any individual who avails any offerings for a consideration. It consists of any beneficiary of such offerings however it does now not encompass a man or woman who avails such provider for any business purpose.
4 Rights of a Consumer
Consumer Protection Act, 1986 has furnished six rights to the consumers, which are as follows:
- Right to Safety: Consumer has the proper to be included towards products, offerings which are hazardous to fitness existence (should use ISI marked digital device).
- Right to be Informed: Consumer has proper to have entire records about the product earlier than shopping for it.
- Right to choose: Consumer has a proper to pick any product out of the accessible merchandise as per his personal selection
- Right to be heard: Consumer has the proper to file a criticism to be heard in case of dissatisfaction with items or offerings (use of complaint cell)
- Right to Seek Redressal: Consumer has the proper to get comfort in case the product or provider falls quick of his expectations or is dangerous. He can also be furnished with replacement/removal of defect or compensation for any loss. Various redressal boards are set up through the Govt. at National and State level.
- Right to patron education: Consumer has the proper to accumulate expertise and to be properly knowledgeable during life. He has to be made conscious of his rights and reliefs on hand to him in case of the product or carrier falls quick of his exceptions. The Govt. of India has covered customer training in the faculty curriculum & is making use of media to make buyers conscious of their rights.
5 Responsibilities/Duties of a Consumer
A. Consumer Responsibilities:
a. Ask for a money memo: On buy of items or services. This would serve as a proof of the buy made.
b. Be aware: About quite a number items and offerings accessible in the market so that a shrewd and sensible desire can be made
c. Buy solely standardized goods: As they furnish fine assurance. Thus, seem for ISI mark on electrical goods, FPO mark on meals products, Hallmark on earrings etc.
d. Follow manufacturer ‘s instructions: Learn about the dangers related with merchandise and services, and use the merchandise safely.
e. Read labels carefully: So as to have statistics about prices, internet weight, manufacturing and expiry dates, etc.
f. Assert yourself: To make sure that you get an honest deal.
g. Be trustworthy in your dealings: Choose solely from prison items and offerings and discourage unscrupulous practices like black-marketing, hoarding etc.
h. File a grievance in a gorgeous patron forum: In case of a shortcoming in the fine of items bought or offerings availed. Do now not fail to take a motion even when the quantity worried is small.
i. Form purchaser societies: Which would play a lively section in instructing buyers and safeguarding their interests.
j. Respect the environment: Avoid waste, littering and contributing to pollution.
6 The salient features and provisions of consumer protection act,1986
Who Can File A Complaint Under CPA, 1986?
A criticism earlier than the excellent client discussion board can be made by:
a. Any consumer.
b. Any registered customer association.
c. The central or nation government.
d. One or extra buyers on behalf of severa shoppers having equal interest.
e. A prison inheritor or consultant of a deceased consumer.
- Complaints can be filed and compensation claimed w.r.t:
• Fraudulent practices by way of merchants and manufacturers
• Defective goods
• Deficiency in offerings in connection with 9 offerings such as banking, transportation, insurance, grant of electrical energy and gas, residence construction, clinical service
7 Redressal agencies under consumer protect act, 1986
For the redressal of patron grievances, the act gives a three–tier equipment as:
A. District forum
District discussion board are set up in each district with the aid of the nation concerned. The essential points are:
(a) It consists of a President and two members, one of whom have to be a woman, duly appointed by way of State Govt.
(b) It can get hold of purchaser complaints of now not greater than Rs. 20 lakhs value.
(c) On receiving the complaint, the district discussion board shall refer the grievance to the contrary birthday celebration worried and ship the pattern of items for checking out in a laboratory.
(d) The district discussion board after being at ease that items are faulty or there is some unfair change exercise can problem an order to contrary celebration directing him to both exchange or return the rate or pay compensation. In case the aggrieved birthday party is now not comfy with the order of district forum. He can enchantment earlier than kingdom discussion board inside 30 days of passing an order.
B. State commission
It is set up in every country by using the govt. concerned. The salient elements are:
(a) Each fee consists of a president and it least two contributors appointed by way of kingdom Govt.
(b) Complaints of at least Rs. 20 lakhs however no longer extra than 1 crore can be filed with kingdom commission.
(c) On receiving the complaint, the country fee can additionally refer the criticism to contrary birthday celebration and ship the items for trying out in laboratory.
(d) The nation fee after being blissful can order to contrary birthday celebration to both substitute or repay or pay compensation. In case the aggrieved celebration is now not satisfied, they can attraction earlier than country wide fee inside 30 days of passing an order.
C. National commission
It is setup with the aid of Central Govt. The provisions of act are:
a) It consists of a President and at least four individuals appointed by using Central Govt.
(b) All complaints are pertaining to items and offerings of fee greater than Rs. 1 crore can be filed with country wide commission.
(c) On receiving the complaint, the country wide fee can additionally refer it to contrary birthday celebration and ship items for testing.
(d) The National Commission has the energy to problem orders for change mentor elimination and to pay the compensation for loss.
9 Remedies available to consumers
• Remove defect in items and deficiency in services.
• Replace faulty items with one with no defects
• Refund rate paid
• Pay a real looking quantity of compensation for any loss or damage suffered.
• Pay punitive damages in fantastic circumstances.
• Discontinue unfair/restrictive exchange practice
• Not to provide hazardous items and offerings for sale
• Withdraw hazardous items from sale
• Cease manufacturing hazardous goods
• Pay a quantity to patron welfare fund/ individual (not much less than 5%) to be utilized in the prescribed manner
• Issue corrective commercial to neutralize the impact of deceptive ads.
• Pay sufficient prices to parties.
10 Consumer awareness
Some essential patron corporation and NGO’s engaged in defending client pursuits are:
A. Consumer coordination council, Delhi.
B. Voluntary company in Interest of Consumer Education, Delhi.
C. Mumbai Grahak Panchayat, Mumbai.
D. Consumer Association, Kolkata.
E. Consumer Unity and Trust Society Jaipur.
11 Role of Consumer companies and NGO’s
A. Educating the customary public about purchaser rights by way of organizing coaching programmed, seminars and workshops.
B. Publishing periodical & different publications to instruct consumers.
C. Providing prison help to buyers with the aid of imparting prison recommendation etc.
D. Producing motion pictures or cassettes on meals adulteration, misuse of tablets etc.
E. Filing complaints in fabulous client courts on behalf of consumers.
F. Encouraging customers to take on motion towards unfair change practices.
G. Taking an initiative in submitting instances in customer courts on behalf of consumers.
12 Ways and Means of Consumer Protection
A. Self-Regulation through Business:
• It is in the long-term activity of companies to serve the clients well.
• Socially accountable companies comply with moral requirements and practices in dealing with their customers.
• Many companies have set up their purchaser provider and criticism cells to redress the troubles and grievances of their consumers.
B. Business Associations:
• Examples of associations of trade, commerce and commercial enterprise – Federation of Indian Chambers of Commerce of India (FICCI) and Confederation of Indian Industries (CII)
• They have laid down their code of habits which lay down for their participants the recommendations in their dealings with the customers.
C. Consumer Awareness:
• A consumer, who is nicely knowledgeable about his rights and the reliefs on hand to him, would be in a function to increase his voice in opposition to any unfair exchange practices or unscrupulous exploitation.
• This permits them to apprehend their duties and to protect their interests.
D. Consumer Organizations’:
• Force enterprise companies to keep away from malpractices and exploitation of consumers.
• The most necessary of these policies is the Consumer Protection Act, 1986. The Act presents for three-tier equipment at the district, country and country wide ranges for redressal of client grievances.
SHORT ANSWER TYPE QUESTIONS
1. Besides a ‘consumer’, identify any two events who can file a. complaint earlier than the
appropriate patron forum.
Who can file a criticism underneath the Consumer Protection Act, 1986?
Ans: A grievance underneath Consumer Protection Act, 1986 can be made by: (Any two)
(i) Any consumer.
(ii) Any registered consumers’ association.
(iii) The Central Government or any State Government.
(iv) One or greater consumers, on behalf of severa customers having the identical interest.
(v)A prison inheritor or consultant of a deceased consumer.
2. How many contributors are required to represent ‘District patron dispute redressal forum’?
Ans: The District Forum consists of a President and two different members, one of whom ought to be a woman:
3. How can Business Associations act as a capability of customer protection?
Ans: Business Associations act as an ability of patron safety as they lay down suggestions for their individuals in dealings with the customers.
4. Give any one comfort handy to a customer who suffers due to consumption of an expired date medicine.
Ans: Relief reachable to consumer:
(i) To refund the rate paid for the medicine.
(ii) To pay a lifelike quantity of compensation for any loss or damage suffered with the aid of the consumer.
(iii) To withdraw the faulty precise from sale.
5.State how self-rules by means of commercial enterprise acts as an ability of purchaser protection.
Ans: Self-law by using enterprise acts as a ability of customer safety by
- Establishing moral requirements and practices in dealing with their consumers.
(ii) Setting up their patron carrier and complaint cells to redress the troubles and grievances of their consumers.
6. When can a patron get greater than one comfort for a complaint?
Ans: If the Consumer Court is comfortable about the genuineness of the complaint, a customer can get greater than one alleviation for a complaint.
7. Which type of instances can be filed in the State Commission below the Consumer Protection Act, 1986?
Ans: Those instances can be filed in the State Commission beneath the Consumer Protection Act, 1986 in which compensation claimed exceeds Rs 20 lakh however does no longer exceed Rs1crore.
8.Which instances can be filed in the National Commission below Consumer Protection Act, 1986.
Ans: Those instances can be filed in the National Commission below Consumer Protection Act, 1986 in which the fee of the items or offerings in question, alongside with the compensation claimed, exceed? 1 crore.
9. Which claims can be appealable become the Supreme Court below Consumer Act?
Ans: An order exceeded via the National Commission in a remember of its authentic jurisdiction is appealable earlier than the Supreme Court. Its capability solely these appeals the place the price of items and offerings in question, alongside with the compensation claimed exceed? 1 crore and the place the aggrieved birthday celebration used to be no longer at ease with the order of the National Commission can be taken to the Supreme Court.
10. Who can file a grievance on behalf of a deceased consumer?
Ans: A criminal inheritor or consultant of a deceased consumer.
11. Is self-legislation by means of commercial enterprise critical for customer protection? How?
Ans: Yes, self-law through commercial enterprise is indispensable for customer safety due to the fact it is in their long-term pastime to serve the clients well.
12. Mohit filed a case towards Domestic Collings Ltd in the District Forum, however he was not cozy with the orders of the district forum. Where can he enchantment similarly in opposition to the selections of district forum?
Ans: Mohit can similarly enchantment at the State Commission towards the choice of the District Forum.
13.Amrit filed a case in opposition to Volvo Ltd in the State Commission however he used to be no longer comfy with the orders of the State Commission. Name the authority to which he can enchantment towards the choices of State Commission.
Ans: Amrit can strategy National Commission to attraction in opposition to the selection of the State Commission.
14.How does a commercial enterprise use self-guideline for patron protection?
Ans: Enlightened commercial enterprise companies recognize that it is in their long-term hobby to serve the clients well.
Socially accountable companies observe moral requirements and practices in dealing with their customers.
Many companies have set up their consumer provider centers and complaint cells to redress the issues and grievances of their customers.
LONG ANSWER TYPE QUESTIONS
1. How are customer grievances redressed by way of the three-tier equipment below CPA,1986? Explain.
Ans: The three-tier-machinery underneath CPA, 1986 consist of District Forum, State Commission and the National Commission.
A customer can file a case in District Forum if the value of items and offerings along with the compensation claimed, does now not exceed Rs 20 lakh, in the State Commission if the price of items and offerings along with the compensation claimed is over Rs 20 lakh however much less than Rs 1 crore, and in the National commission, if the fee of items and offerings along with the compensation claimed is above Rs 1 crore
On receiving the complaint, the District Forum/State Commission/National Commission shall refer the criticism to the celebration towards whom the criticism is filed.
If required, the items or a sample, thereof, shall be despatched for trying out in a laboratory.
The court docket shall ignore an order after thinking about the take a look at file and listening to the birthday party in opposition to whom the grievance is filed.
2. Give the definition of ‘Consumer’ as per CPA, 1986.
Ans: Under the Consumer Protection Act, 1986, the time period ‘consumer’ has been described as any individual who buys items or hires or avail any carrier for a consideration which has been paid or promised or partly paid and partly promised or beneath any machine of deferred payment.
It additionally consists of any person of such items with the approval of the customer or any beneficiary of offerings when such items or offerings are availed of with the approval of the character worried however does now not consist of a man or woman who avails such offerings for any industrial purpose.
3.State any eight reliefs accessible to a purchaser below the provision of CPA, 1986.
Ans: The reliefs handy to a customer underneath the CPA, 1986 are:
(i) To eliminate the defects in items or deficiency in services.
(ii) To exchange the faulty product with a new one, free from any defect.
(iii)To refund the charge paid for the product.
(iv) To pay a realistic quantity of compensation for any loss suffered.
(v)To pay punitive damages in fabulous circumstances.
(vi)Not to provide hazardous items for sale.
(vii)To withdraw the hazardous items from sale.
(viii) To quit the manufacture of hazardous goods.
4.Anita purchased a e book from Satish e book stores. While studying the book, she located that ten pages have been missing. She approached the e book vendor and complained about the lacking pages. The vendor promised that if the writer was once equipped to alternate the book, he would trade the same. After one week, the vendor knowledgeable Anita that the writer had refused to trade the book.
Where can Anita file a criticism in opposition to the vendor of the book? Give purpose in help of your answer. Also, provide an explanation for who is a customer as per Consumer Protection Act, 1986.
Ans. Anita can file a grievance in opposition to the vendor of the e book in the District Forum.
District Forum is set up by way of the State Government in every district.
In District Forum, solely such complaints can be filed in which the price of items or offerings and the compensation claimed is now not extra than Rs 20 lakhs.
Consumer as per CPA, 1986 Under the Consumer Protection Act, 1986, the time period ‘consumer’ has been described as any individual who buys items or hires or avail any carrier for a consideration which has been paid or promised or partly paid and partly promised or below any device of deferred payment.
It additionally consists of any consumer of such items with the approval of the purchaser or any beneficiary of offerings when such items or offerings are availed of with the approval of the individual worried however does now not encompass an individual who avails such offerings for any industrial purpose.
5.Harish bought a medicinal drug from Bhatia Medical Stores for his son, who had excessive fever. Even after giving the medicinal drug his son’s situation did no longer enhance and he had to be hospitalized. Doctor knowledgeable Harish that medicinal drug given to his son was once spurious. Harish complained about this to Bhatia Medical Stores. As-a result, Bhatia Medical Stores determined to file a criticism in opposition to the producer in the client court. Can Bhatia Medical Stores do this? Give motive in help of your answer. Also, provide an explanation for who is a client as per Consumer Protection Act, 1986.
Ans: ‘Bhatia Medical Stores’ can’t file a criticism in opposition to the producer in the customer courtroom due to the fact Bhatia Medical Stores is now not a client in this case. He is now not a consumer however has bought medicinal drug for resale purpose/commercial purpose.
Meaning of Consumer as per Consumer Protection Act, 1986 Anita can file a criticism towards the vendor of the e book in the District Forum. District Forum is mounted by means of the State Government in every district. In District Forum, solely such complaints can be filed in which the price of items or offerings and the compensation claimed is no longer greater than Rs 20 lakhs.
Consumer as per CPA, 1986 Under the Consumer Protection Act, 1986, the time period ‘consumer’ has been described as any individual who buys items or hires or avail any carrier for a consideration which has been paid or promised or partly paid and partly promised or beneath any gadget of deferred payment. It additionally consists of any consumer of such items with the approval of the consumer or any beneficiary of offerings when such items or offerings are availed of with the approval of the character worried however does no longer consist of a character who avails such offerings for any industrial purpose.
6. Explain the following as approaches and ability of customer protection
Ans: (i) Consumer focus A nicely knowledgeable client will shield himself from unfair alternate practices. A customer needs to be properly knowledgeable about his rights, obligations and reliefs handy to him. Only then, he would be in a function to elevate his voice in opposition to unfair alternate practices and shield his interests. In addition to this, a perception of his duties would additionally allow a customer to protect his interest.
(ii) Government The authorities can defend the hobby of the buyers by way of enacting a number legislation. CPA is one of them which presents 3-tier device of redressal to the aggrieved consumers. The felony framework in India encompasses a variety of legislations which furnish safety to consumers.