Table of Contents
Before Directly jumping on the concept of “Consumer Protection” as a student we must know the real meaning of the Word “Consumer”.
Question- What do you mean by consumer?
Answer- A consumer is a person or a group of persons who intends to purchase goods, products, or services primarily to satisfy personal, social, family, household and similar needs but not for the purpose of business activities.
• A consumer is said to be a king in a free market economy like India.
Concept of Consumer Protection:
• Consumer Protection refers to protecting the consumer against unfair trade practices by the producers or sellers.
• Consumers are exposed to risk due to unfair trade practices performed by the seller or producer such as defective or unsafe products, adulteration , false & misleading advertisement , hoarding or black marketing etc.
• Therefore, for protection of consumers from the trading malpractices of the manufacturers , traders and service providers – the parliament of India introduced “Consumer Protection Act 1986” which focuses on protecting & promoting the consumers’ interests through speedy and inexpensive solutions of their grievances.
• This act leads to the formations of consumer protection council in every district and state, and at apex level also to protect and promote the consumer rights.
Scope of Consumer Protection:
Consumer Protection by the virtue of “Consumer Protection Act 1986” is applicable to all types of enterprises whether small or big , whether in the private or public sector or cooperative sector , whether manufacturer or trader , whether dealing in goods or services.
Consumer Protection is done with the following Aims (objectives):
1. Providing protection to consumers against unfair trade practices of traders , manufacturers and service providers.
2. Educating consumers about their rights and responsibilities.
3. Providing speedy and inexpensive solutions of their grievances.
4. Spreading awareness among the consumers so that they can protect & promote their interests with the help of consumer protection forums.
Importance of Consumer Protection:
Importance of Consumer Protection – From Customer Point of View
The importance of consumer protection from the consumers’ point of view can be understood from the following points:
1. Consumer Ignorance
In India maximum number of consumers do not know about their rights and reliefs available to them therefore, it becomes necessary to educate them about the same so as to achieve consumer awareness.
2. Unorganised Consumers
In India, we do have consumer organisations which are working in the direction of consumer protection however these organizations are few in number & not so powerful to take action against big businessmen who are engaged in unfair trade practices on a large scale. Therefore , adequate protection is required to be given to consumers till these organisations become powerful enough to protect and promote the interests of consumers.
3. Widespread Exploitation of Consumers
3.with growing competition and in an attempt to increase their sales and market share some traders , manufacturers and service providers may engage in unfair trade practices such as defective or unsafe products, adulteration, false & misleading advertisement , hoarding or black marketing etc. which means Consumers are exposed to risk to use unsafe products , may suffer from bad heath etc. therefore , they need protection against such malpractices of the sellers.
Importance of Consumer Protection – From Business Organization Point of View
A business must also lay emphasis on protecting the consumers and adequately satisfying them. This is important because of the following reasons:
1. Long term interest of Business
• Business enterprises can increase their sales volume only when they are able to satisfy the needs of consumers by providing quality product at reasonable prices , giving after-sales services & avoiding unfair trade practices.
• Because Satisfied customers not only lead to repeat sales but also provide good feedback to prospective customers and thus, help in increasing the customer-base of business.
• Therefore , business enterprises should aim at long-term profit maximization through customer satisfaction.
2. Business uses Society’s Resources
Business organizations earn profits by using the resources of the society. Therefore , they have a responsibility to supply such products and provide such services which are in public interest and would not damage company’s goodwill.
3. Government Intervention
• If a business engages in any form of unfair trade practices, then the government will take action against it which will adversely affect the goodwill of the company.
• Therefore , it is advisable that business organizations should voluntarily rely on such practices where the customers’ needs and interests will be taken care of.
4. Social Responsibility
• A business has social responsibilities towards various interest groups such as owners , workers , government , customers etc.
• However ,Business organizations make money by selling goods and providing services to consumers.
• Therefore , consumers should be provided good quality goods at the reasonable prices.
5. Moral justification
• It is the moral duty of any business to take care of consumer’s interest and avoid any form activity which can harm their interest.
• Thus, a business must avoid any kind of unfair trade practices like selling defective and unsafe products, adulteration, false and misleading advertising, hoarding, black marketing, etc.
Other Topics From this Chapter:
Topic 2 – Consumer Protection Act and its Legal Protection to Consumers
Topic 3 – Consumer Rights and Duties
Topic 4 – Ways of Consumer Protection and Relief available to Consumers
Topic 5 – 3 Tier Redressal Machinery | Redressal Machinery under Consumer Protection Act
Appreciation to my father who told me concerning this blog, this web site is in fact awesome.