consumer protection act and it business implications
TRANSCRIPT
APRESENTATION
ONCONSUMER PROTECTION
ACT&
IT’S BUSINESSIMPLICATION
-effectiveness of legal machinery in consumer protection- consumer welfare & trade practices of MNC’s
-MALAY SRIVASTAVA
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CONSUMER PROTECTION ACTWhy this act is needed ???
To prevent the exploitation of customers.
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CONSUMER PROTECTION ACTEvolution
Every year 15th March is observed as "World Consumer Rights Day".
It commemorates a historic declaration (1962) by former US President John F. Kennedy of four basic consumer rights:
1. The right to safety 2. The right to be informed 3. The right to choose 4. The right to be heard Another significant day is 9 April 1985, when the
General Assembly of the United Nations adopted a set of guidelines for consumer protection and the Secretary General of the United Nations was authorized to persuade member countries to adopt these guidelines through policy changes or law.
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CONSUMER PROTECTION ACTIn Indian context
In India, 24th December is celebrated as- "National Consumer Rights Day“ Since the Consumer Protection Act, 1986 was enacted on
this day.The Consumer Protection Act was enacted in 1986 based
on United Nations guidelines with the objective - ‘To provide for the better protection of the interests of consumers and for the purpose to
make provision for the establishment of consumer council & authorities for the
settlement of consumer disputes and for matters connected therewith.’
The Act provides for effective safeguards to consumers against various types of-
exploitations and unfair dealings relying on mainly compensatory rather than a punitive
or preventive approach.
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CONSUMER PROTECTION ACTWho is Consumer ???
The rights under the Consumer Protection Act, 1986 flow from the rights enshrined in Articles 14 to 19 of the Constitution of India.
As per the Act, a 'Consumer' has been defined as: -
1. Any person who buys goods for consideration, and any person who uses goods with the approval of the purchaser.
2. Any person who hires any service's for a consideration and any beneficiary of such services, provided the service is availed with the approval of the person who had hired the service for a consideration.
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CONSUMER PROTECTION ACTAreas to promote consumer protection
The guidelines provided by UN constituted a comprehensive policy framework outlining what Governments need to do to promote consumer protection in the following areas: -
1. Physical safety
2. Protection and promotion of consumer economic interests
3. Standards for safety and quality of consumer goods and services
4. Measures relating to specific areas (food, water, and pharmaceuticals)
5. Consumer education and information program.
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CONSUMER PROTECTION ACTConsumer Protection Act Says :
Right to Safety Means right to be protected against the marketing of goods
and services, which are hazardous to life and property. The purchased goods and services availed of should not
only meet their immediate needs, but also fulfill long term interests.
Before purchasing, consumers should insist on the quality of the products as well as on the guarantee of the products and services.
They should preferably purchase quality marked products such as BIS, AGMARK, etc.
Right to be Informed Means right to be informed about the quality, quantity,
purity, standard and price of goods so as to protect the consumer against unfair trade practices.
Consumer should insist on getting all the information about the product or service before making a choice or a decision.
This will enable him to act wisely and responsibly .
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CONSUMER PROTECTION ACTConsumer Protection Act Says :
Right to Choose Means right to be assured, wherever possible of access
to variety of goods and services at competitive price. In case of monopolies, it means right to be assured of
satisfactory quality and service at a fair price.
Right to be Heard It also includes right to be represented in various forums
formed to consider the consumer's welfare. The consumers should form non-political and non-
commercial consumer organizations which can be given representation in various committees formed by the Government and other bodies in matters relating to consumers.
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CONSUMER PROTECTION ACT
Consumer Protection Act Says :
Right to Seek Redressal Means right to seek redressal against unfair trade
practices or unscrupulous exploitation of consumers. It also includes right to fair settlement of the genuine
grievances of the consumer. Consumers must make complaint for their genuine
grievances. Many a times their complaint may be of small value
but its impact on the society as a whole may be very large.
They can also take the help of consumer organizations in seeking redressal of their grievances.
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CONSUMER PROTECTION ACT
Continues…Right to Consumer Education Means the right to acquire the knowledge and skill to be an
informed consumer throughout life. Ignorance of consumers, particularly of rural consumers, is
mainly responsible for their exploitation. They should know their rights and must exercise them. Only
then real consumer protection can be achieved with success.
Thus, the concern of consumer protection is to ensure fair trade practices; quality of goods and efficient services with information to the consumer with regard to quality, quantity, potency, composition and price for their choice of purchase. Such a consumer protection policy creates an environment whereby the clients, customers, and consumers receive satisfaction from the delivery of goods and services needed
by them.
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CONSUMER PROTECTION ACTConsumer protection council
The establishment of central council takes placed by central govt. and same as in case of state councils.
The council shall meet as and when necessary but at least one meeting of the council shell be held every year.
Central council shall consist of the minister in
charge of consumer affairs in the central govt.
who shall be its chairman.
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CONSUMER PROTECTION ACTObjective of council
The objective of the central council are to promote and to protect the right to the consumers such as:
1. The right to be protected against marketing of goods and services which are hazardous to life and property.
2. The right to be assured ,whenever possible , access to a variety of goods at competitive price.
3. The right to be heard and assured that consumers interest will receive due consideration at appropriate forums.
4. The Right to consumer education
5. The right to seek redressal against UTP or unscrupulous exploitation of consumers.
6. The right to be informed about the quality ,quantity ,potency ,purity ,standard and price of goods and services so as to protect the consumer against UTP’s.
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CONSUMER PROTECTION ACTConsumer complaints
A complaint in relation to any goods sold or delivered or any service provided may be filed with the redressal agency by-
1. The consumer to whom such goods are sold or delivered or such service provided.
2. Any recognized consumer association ,whether the consumer is a member of such association.
3. One or more consumers where there are numerous consumers are having the same interests.
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CONSUMER PROTECTION ACTRemedial actions & penalties
If the consumer disputes redressal agency is satisfied that any of the allegations contained in the complaint is true ,it shall issue an order to the opposite party directing him to take one r more of the following things, namely-
1. To remove the defect pointed out by appropriate laboratory from the goods in questions
2. To replace the goods with new goods of similar description which shall be free from all defects
3. To return to the complainant the price ,or as the case may be ,the charge paid by the complainant.
4. To pay such amount as may be awarded by it as compensation to the consumer by any loss or injury suffered by the consumer due to the negligence of the opposite party.
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CONSUMER PROTECTION ACTContinues…
5. To remove the defect or deficiencies in the service in questions.
6. To discontinue the UTP or not to repeat them.7. To provide the adequate cost to the party .8. To withdraw the hazardous goods from being
offered for sale. If a trader or person against whom a complaint is
made or the complainant fails or omits to comply with any order made by redressal agency –
He shall be punishable with imprisonment for any term not exceeding three years or with the fine not exceeding ten thousand rupees or with both.
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CONSUMER PROTECTION ACTRESPONSIBILITIES OF CONSUMERS
Like a coin which has obverse and reverse , consumer rights on the other side ,consumer responsibilities are as-
the consumer should not make vague or general complaint , but have a specific complaint ,with supporting information and proof such as a bill.
Consumer ,in asserting their rights, should not inconvenience or hurt other sections of the public.
for instance- Rasta roko ,satyagraha ,dharna ,bandh etc.
In some situations ,consumer have to cooperate with the sellers. For instance, in observing a queue ,or in a situation of coin shortage using the coupons issued by the bus transport systems.
The consumer should ,as a rule ,complain against a system and not attack individuals who are incumbents of posts.
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BUSINESS IMPLICATIONS OF CONSUMER PROTECTION ACT
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BUSINESS IMPLICATIONS OF CP ACT
Opportunity for the Industry1. T.Thomas (former chairman ,HLL) observes
that, by such acts the responsibility of the company towards society increased .
2. Industries are investing increasingly in testing the safety of the products in use.
3. Dealing with consumer complaint satisfactorily is yet another responsibility of company.
4. To cope up with consumer need industry has to invest in R&D in such a manner that consumerism should be their.
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ROLE OF LEGAL MACHINERY IN CONSUMER PROTECTION
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TRADE PRACTICES OF MNC’S Now a days CGSI (consumer guidance society
of India)and CERC (consumer education and research centre) are doing commendable work.
It was reported that Kellogg ,manufacturers of Kellogg's brand of breakfast cereals , in corporation with CERC , was recalling Kellogg's pull N go cars which were offered free inside specially marked package certain brands of Kellogg’s product as it was found that the tyres of these can separate from the wheels and present a choking hazards for children under three years.
Many toys available in the market globally are hazards to health & life of children's.
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THANK YOU
THANK YOU
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