Consumer Protection
Chapter 3
Very Short Answer Type
1. Under which consumer right does a business firm set up consumer grievance cell?
Ans: The consumer right under which a business firm sets up a consumer grievance cell is the Right to Redressal, enshrined in the Consumer Protection Act, 2019.
2. Which quality certification mark is used for agricultural products?
Ans: AGMARK is the main quality certification mark for agricultural products in India.
3. What is the jurisdiction of cases that can be filed in a State Commission?
Ans: State Commissions handle cases:
Value of goods/services > ₹50 lakh but ≤ ₹2 crore
Appeals against District Forum orders within 30 days.
4. State any two relief available to consumers under CPA.
Ans: Two key reliefs available to consumers under the Consumer Protection Act, 2019, are:
1. Removal of defects and deficiencies: Consumers have the right to get faulty goods repaired or replaced, or deficient services rectified, at no additional cost. Imagine buying a phone with a dead battery – the Act ensures you get a new one, not just a temporary fix.
2. Compensation for loss or injury: If a consumer suffers financial loss or physical harm due to defective goods, deficient services, or unfair trade practices, they can seek compensation from the business. Think of a faulty washing machine damaging your clothes – the Act allows you to claim reimbursement for the ruined garments.
These are just a glimpse of the various reliefs available under the Act, protecting consumers from unfair treatment and ensuring responsible business practices. Remember, knowing your rights empowers you to be a confident and protected consumer!
5. Name the component of product mix that helps the consumer to exercise the right to information.
Ans: The component of the product mix that helps consumers exercise their right to information is labeling. This includes everything on the product packaging, like ingredients, instructions, warnings, and manufacturing details. Clear and accurate labeling provides consumers with essential information about the product, enabling them to make informed choices based on their needs and preferences.
Think of it this way: detailed nutritional labels on food items empower consumers to choose options aligned with their dietary needs, while ingredient lists in cosmetics allow them to avoid potential allergens.
So, remember, the next time you pick up a product, give the label a good read – it's your key to making informed choices as a consumer!
Short Answer Type
1. Enumerate the various Acts passed by the Government of India which help in protection of consumers’ interests.
Ans: Several Acts in India safeguard consumer interests, each tackling specific aspects:
1. The Consumer Protection Act, 2019: The cornerstone, protecting against faulty goods, deficient services, unfair trade practices, and more. It establishes redressal mechanisms like Consumer Commissions for swift dispute resolution.
2. The Food Safety and Standards Act, 2006: Ensures food safety and quality by regulating production, processing, distribution, and sale of food items.
5. The Real Estate (Regulation and Development) Act, 2016: Protects homebuyers from malpractices by developers, ensuring transparency and timely project completion.
2. What are the responsibilities of a consumer?
Ans: Being a responsible consumer goes beyond just buying! Here are some key duties:
1. Be informed: Research products and services, understand rights and responsibilities, read labels and terms carefully.
2. Choose wisely: Consider needs, quality, environmental impact, and fair trade practices before buying.
3. Use consciously: Consume responsibly, avoid waste, and dispose of products properly.
4. Report unfairness: Speak up against misleading ads, defective products, or unfair trade practices.
5. Be ethical: Avoid piracy, respect intellectual property, and choose legal and sustainable options.
3. Who can file a complaint in a consumer court?
Ans: The Consumer Protection Act, 2019, allows several parties to file complaints in consumer courts:
1. Consumers: Any individual who has availed goods or services and faced issues like defective products, deficient services, or unfair trade practices.
2. Consumer Associations: Registered voluntary organizations working for consumer welfare can file complaints on behalf of affected consumers.
3. Central/State Governments: They can take up issues of public interest related to consumer rights and file complaints.
4. Legal heirs/representatives: In case of a consumer's death, their legal heir or authorized representative can pursue the complaint.
4. FSSAI (Food Safety and Standards Authority of India) has made a proposal for hotels and other food outlets to declare the kind of oil/fat used in cooking each of the food items on their menus. Name and explain the Consumer Right being reinforced by this proposal.
Ans: The Consumer Right reinforced by the FSSAI proposal is the Right to Information. This right, enshrined in the Consumer Protection Act, 2019, guarantees consumers access to accurate and relevant information about the goods and services they purchase. Knowing the oil/fat used in food empowers consumers to make informed choices based on dietary needs, preferences, and potential allergies. It promotes transparency and allows them to choose options aligned with their health goals or religious beliefs.
By mandating oil/fat declaration, the FSSAI empowers consumers to exercise their Right to Information, promoting responsible food choices and a healthier, more informed consumer culture.
5. Who is a consumer as per CPA?
Ans: Under the Consumer Protection Act, 2019, a "consumer" means:
1. Buyer of goods or services: Anyone who obtains goods or services for consideration (payment or promise to pay) through any transaction, online or offline.
2. Beneficiaries of services: Family members or users who benefit from goods or services purchased by someone else, with their approval.
3. Exclusions: Individuals who obtain goods for resale or commercial purposes.
Remember, the Act recognizes the practical use of goods and services, extending consumer rights beyond the immediate purchaser to benefit everyone involved.
Long Answer Type
1. Explain the importance of consumer protection from the point of view of a business.
Ans: While consumer protection might seem like a hurdle for businesses, it actually offers several vital benefits, making it more than just a legal obligation:
1. Builds Trust and Customer Loyalty: Strong consumer protection measures demonstrate a commitment to fair practices and transparency. This fosters trust and loyalty, leading to repeat customers and positive word-of-mouth promotions.
2. Reduces Complaints and Legal Issues: Proactive steps like clear labeling and grievance redressal mechanisms prevent misunderstandings and complaints. This avoids costly legal battles and saves resources and reputation.
3. Enhances Product and Service Quality: Consumer feedback and regulations encourage businesses to continuously improve their offerings. This leads to higher quality products and services, driving market competitiveness and customer satisfaction.
4. Promotes Innovation and Responsible Practices: Stringent consumer protection laws encourage responsible sourcing, ethical marketing, and sustainable practices. This attracts conscious consumers and positions the business as a leader in its field.
5. Creates a Fair and Stable Market: Robust consumer protection regulations level the playing field, preventing unfair competition and promoting healthy market practices. This benefits businesses by creating a sustainable and predictable environment for growth.
Ultimately, strong consumer protection safeguards not just customers, but also businesses themselves. By embracing it as a core value, businesses can build trust, enhance quality, and cultivate a loyal customer base, securing long-term success in a responsible and ethical manner.
2. Explain the rights and responsibilities of consumer?
Ans: Consumer Rights and Responsibilities: A Two-Way Street
Consumer rights and responsibilities are like the two sides of a coin – both crucial for a healthy marketplace.
Rights:
*Right to safety: Goods and services should be safe and not pose any harm.
*Right to information: Clear and accurate information about products and services, including ingredients, labels, and warranties.
*Right to choose: Freedom to select from a variety of options without unfair trade practices.
*Right to be heard: Consumers have the right to voice their concerns and seek redressal if their rights are violated.
*Right to redressal: Fair and swift mechanisms for settling disputes with businesses, like Consumer Fora.
Responsibilities:
*Be informed: Make informed choices by reading labels, researching products, and understanding terms and conditions.
*Use goods and services responsibly: Follow instructions, dispose of products properly, and avoid misuse.
*Report unfair practices: Speak up against misleading advertisements, defective products, or unfair trade practices.
*Be ethical consumers: Avoid piracy, respect intellectual property, and choose legal and sustainable options.
*Pay bills on time: Meet financial obligations as agreed upon to maintain a fair market environment.
By understanding and fulfilling both rights and responsibilities, consumers can empower themselves and contribute to a fair and ethical marketplace. Remember, responsible consumers drive responsible businesses, ultimately leading to a win-win situation for everyone!
3. What are various ways in which the objective of consumer protection can be achieved?
Ans: Achieving consumer protection isn't a lone wolf's howl, but a symphony of efforts from various players:
1. Legal Framework: Strong consumer protection laws and regulations, like the Consumer Protection Act, set the baseline for fair practices and provide redressal mechanisms.
2. Regulatory Bodies: Government agencies like the FSSAI or BIS monitor compliance, enforce standards, and investigate complaints, ensuring accountability.
3. Consumer Awareness: Educating consumers about their rights, responsibilities, and available resources empowers them to make informed choices and protect themselves. This can be done through campaigns, media outreach, and educational programs.
4. Business Ethics: Responsible businesses prioritize fair practices, transparent communication, and quality products and services. Investing in ethical sourcing, responsible marketing, and grievance redressal systems fosters trust and strengthens their brand image.
5. Consumer Organizations: NGOs and independent organizations advocate for consumer rights, raise awareness, and offer support to individuals facing issues. They provide a collective voice and pressure businesses and policymakers for necessary changes.
6. Technology: Online platforms and consumer review sites empower consumers to share experiences, compare products, and hold businesses accountable. They create transparency and encourage businesses to improve practices.
7. International Cooperation: Sharing best practices and collaborating on global standards through international organizations ensures consistent protection for consumers across borders, making the whole world a safer marketplace.
4. Explain the redressal mechanism available to consumers under the Consumer Protection Act, 2019
Ans: The Consumer Protection Act, 2019, arms consumers with a multi-tiered redressal mechanism to tackle grievances against businesses:
1. District Forum: For complaints up to ₹50 lakh, you can file with the District Forum in your district. Simple procedures and lower fees make it an accessible first step.
2. State Commission: If dissatisfied with the District Forum's order, or for complaints between ₹50 lakh and ₹2 crore, you can appeal to the State Commission. They offer greater expertise and resources for complex cases.
3. National Commission: For complaints exceeding ₹2 crore or appeals against State Commission orders, the National Commission is the ultimate authority. These cases often involve national companies or significant financial claims.
Mediation: At any stage, both parties can opt for mediation, a quicker and less adversarial means of resolving disputes with the help of a neutral mediator.
Key features:
*Time-bound disposal: Decisions within 90 days at District Forum, 180 days at State Commission, and 270 days at National Commission.
*Simple procedures: Minimal documentation and legal formalities.
*Affordable fees: Low fees compared to regular courts.
*Compensation: Power to award compensation for financial loss, mental agony, and physical injury.
5. Explain the role of consumer organisations and NGOs in protecting and promoting consumer’s interest.
Ans: In the fight for fair markets and empowered consumers, consumer organizations and NGOs play a crucial role, acting as champions for our rights and interests. Here's how they protect and promote consumers:
1. Raising awareness: They educate consumers about their rights, responsibilities, and available resources through campaigns, workshops, and publications. This empowers individuals to make informed choices and protect themselves from unfair practices.
2. Advocacy and lobbying: These organizations push for stronger consumer protection laws, regulations, and policies. They lobby at local, state, and national levels to ensure consumer voices are heard and addressed by policymakers.
3. Research and testing: They conduct independent research and product testing to expose misleading claims, harmful ingredients, or substandard quality. This information equips consumers with valuable insights to make informed choices.
4. Complaint redressal support: Consumer organizations offer guidance and support to individuals facing issues with businesses. They help navigate the complaint process, draft letters, and even represent consumers in legal proceedings.
5. Promoting ethical practices: These organizations hold businesses accountable by highlighting unethical practices. They expose misleading advertising, price gouging, and unfair trade practices, putting pressure on businesses to adopt more responsible behavior.
6. Building networks and solidarity: Consumer organizations create platforms for consumers to connect, share experiences, and collectively voice their concerns. This solidarity amplifies their impact and strengthens their bargaining power against powerful businesses.
7. International reach: Some organizations collaborate with international counterparts to share best practices, address global consumer issues, and influence international standards and regulations.
In conclusion, consumer organizations and NGOs act as a formidable force for good in the marketplace. They empower consumers, advocate for strong protections, and hold businesses accountable, paving the way for a fairer and more ethical environment for all.
6. Mrs. Mathur sent a jacket to a laundry shop in January 2018. The jacket was purchased at a price of `4,500. She had previously sent the jacket for dry cleaning with Shine Dry Cleaners and the jacket was cleaned well. However, she noticed that her jacket had white discoloration marks when she collected the jacket this time. On informing the dry cleaner, Mrs. Mathur received a letter confirming that discolouration indeed appeared after the jacket was dry cleaned. She contacted the dry cleaner multiple times and requested for compensation for discoloured jacket but to no avail. Upon Consumer court’s intervention, Shine Dry Cleaners agreed to compensate Rs. 2,500 to Mrs. Mathur for the discoloured jacket.
(a) Which right was exercised by Mrs. Mathur at the first instance.
Ans: Right to Service: At the first instance, Mrs. Mathur is exercising her Right to Service, which implies receiving services with due care and skill, as per agreed terms. In this case, the service of dry cleaning should have been performed without damaging the jacket.
(b) Name and explain the right which helped Mrs. Mathur to avail the compensation.
Ans: Right to Redressal: The right that helped Mrs. Mathur avail compensation is the Right to Redressal. After suffering a deficiency in service (discoloration), she could seek and ultimately received fair compensation for the damaged jacket. This right ensures consumers have access to mechanisms for resolving disputes with service providers and obtaining remedies for losses incurred.
(c) State which consumer responsibility has been fulfilled by Mrs. Mathur in the above case.
Ans: Consumer Responsibility: In this case, Mrs. Mathur fulfilled the responsibility of Informing the dry cleaner about the issue. She contacted them multiple times and requested compensation, effectively raising her concerns and allowing for potential resolution.
(d) State any other two responsibilities to be assumed by the consumers.
Ans: Other Consumer Responsibilities: Two other important consumer responsibilities include:
1. Being an informed consumer: This involves researching products and services before purchase, understanding terms and conditions, and choosing wisely based on needs and preferences. In Mrs. Mathur's case, she had chosen the dry cleaner based on previous satisfactory experience.
2. Taking reasonable care of goods and services: While not entirely relevant to this specific case, consumers are generally responsible for using products and services as intended and within reasonable parameters.
Questions And Answer Type By : Himashree Bora.
