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The Ethics of Consumer Protection
Customer’s information needs The information needs of customers are: ,[object Object],[object Object]
Noise, odour and other nuisances/problems associated          with use of the product/service;
Design for recycling;
Biodegradability of products and packaging;
Unusual life cycle costs;,[object Object]
Content, additives and treatments of food and medicines, sufficient to allow reasonably-informed consumers to make rational market decisions and to protect themselves and their families; and
Hidden characteristics,[object Object]
the purpose of purchase of goods should not be for resale or    any commercial purpose (except self-employment).
the services availed does not include free service or services under a personal contract.Consumer Protection refers to the steps necessary to be taken or measures required to be accepted to protect consumers from business malpractices
Parties to Consumer Protection Consumers: should know their rights and exercise them  Businessmen: producers, distributors, dealers, wholesalers as well as retailers should pay due attention to consumer rights in their own interest, by ensuring supply of quality goods and services at reasonable prices Government: the government should enforce various laws and amend existing laws to protect consumer interests
History and growth of consumer protection ,[object Object]
1930's: growth of consumer cooperatives, the first federal consumer agency, Food and Drug Administration, demands for labelling of products and the introduction of USDA stamps.,[object Object]
1950's: The American Council of Consumer Interests was established by 750 members from universities, schools and consumer research organizations. ,[object Object]
He called for the accountability of carmakers
He worked towards improved environment, healthcare, insurance, pension and disability rights.
He is the founder of numerous non-profit organizations ,[object Object]
He started the U.S. Public Interest Group (PIRG)
He founded the Center for Study of Responsive Law, Center for Auto Safety, the Disability Rights Center, the Pension Rights Center, the Project for Corporate Responsibility, and the Clean Water Action Project.,[object Object]
Consumer Duties and Responsibilities (Contd.) Be Well Informed  Understand the Grievances Redressal process  Avoid Impulsive Buying  Buy Goods from Authorized Agents
How are Indian consumers exploited? Exorbitant Prices of Products and Services  Deceptive Selling Practices  False and Misleading Advertisements  Defective Quality, Higher Prices  Sale of Hazardous Products to Ignorant Consumers  Suppression of Material Information
How are Indian consumers exploited? (Contd.) False Product Differentiation  Producers’/Sellers’ Collusion  Supply of Adulterated and Substandard Products  Cheating Consumers by Giving Lesser Quantity for the Price  Dishonoured Guarantees and Warranties Poor Redressal of Customers’ Genuine Grievances
How are Indian consumers exploited? (Contd.) Creating a Scare out of Scarcity  Making Consumer buy Unwanted Goods  Misleading Representation on Utility of Products  Manipulating Conditions of Delivery  Customers pay for Numerous Intermediaries  Fall in Prices Never Passed to Consumers
How are Indian consumers exploited? (Contd.) Buying unaffordable goods  Advertisement cost  Counterfeits: These constitute a substantial quantity of goods on store shelves  Hoarding and Blackmarketing Tie-in-Sales  Gifts for products/services
Legal protection to consumers A number of laws have been passed by the Government of India over the years to protect the interest of consumers.  Agricultural Products (Grading and Marketing) Act, 1937  Industries (Development and Regulation) Act, 1951  Prevention of Food Adulteration Act, 1954  Essential Commodities Act, 1955
Legal protection to consumers (Contd.) The Standards of Weights and Measures Act, 1956  Monopolies and Restrictive Trade Practices Act, 1969  Prevention of Black-marketing and Maintenance of Essential Supplies Act, 1980  Bureau of Indian Standards Act, 1986  Consumer Protection Act, 1986
CONSUMER PROTECTION ACT 1986 The Consumer Protection Act  (COPRA), 1986, conferred a legal right to the individual consumer to seek legal redress or recover costs and damages for injury or loans suffered by him/her as a result of faulty, defective goods and services, bought or secured for valuable consideration.

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Becg 3 6

  • 1. The Ethics of Consumer Protection
  • 2.
  • 3. Noise, odour and other nuisances/problems associated with use of the product/service;
  • 6.
  • 7. Content, additives and treatments of food and medicines, sufficient to allow reasonably-informed consumers to make rational market decisions and to protect themselves and their families; and
  • 8.
  • 9. the purpose of purchase of goods should not be for resale or any commercial purpose (except self-employment).
  • 10. the services availed does not include free service or services under a personal contract.Consumer Protection refers to the steps necessary to be taken or measures required to be accepted to protect consumers from business malpractices
  • 11. Parties to Consumer Protection Consumers: should know their rights and exercise them Businessmen: producers, distributors, dealers, wholesalers as well as retailers should pay due attention to consumer rights in their own interest, by ensuring supply of quality goods and services at reasonable prices Government: the government should enforce various laws and amend existing laws to protect consumer interests
  • 12.
  • 13.
  • 14.
  • 15. He called for the accountability of carmakers
  • 16. He worked towards improved environment, healthcare, insurance, pension and disability rights.
  • 17.
  • 18. He started the U.S. Public Interest Group (PIRG)
  • 19.
  • 20. Consumer Duties and Responsibilities (Contd.) Be Well Informed Understand the Grievances Redressal process Avoid Impulsive Buying Buy Goods from Authorized Agents
  • 21. How are Indian consumers exploited? Exorbitant Prices of Products and Services Deceptive Selling Practices False and Misleading Advertisements Defective Quality, Higher Prices Sale of Hazardous Products to Ignorant Consumers Suppression of Material Information
  • 22. How are Indian consumers exploited? (Contd.) False Product Differentiation Producers’/Sellers’ Collusion Supply of Adulterated and Substandard Products Cheating Consumers by Giving Lesser Quantity for the Price Dishonoured Guarantees and Warranties Poor Redressal of Customers’ Genuine Grievances
  • 23. How are Indian consumers exploited? (Contd.) Creating a Scare out of Scarcity Making Consumer buy Unwanted Goods Misleading Representation on Utility of Products Manipulating Conditions of Delivery Customers pay for Numerous Intermediaries Fall in Prices Never Passed to Consumers
  • 24. How are Indian consumers exploited? (Contd.) Buying unaffordable goods Advertisement cost Counterfeits: These constitute a substantial quantity of goods on store shelves Hoarding and Blackmarketing Tie-in-Sales Gifts for products/services
  • 25. Legal protection to consumers A number of laws have been passed by the Government of India over the years to protect the interest of consumers. Agricultural Products (Grading and Marketing) Act, 1937 Industries (Development and Regulation) Act, 1951 Prevention of Food Adulteration Act, 1954 Essential Commodities Act, 1955
  • 26. Legal protection to consumers (Contd.) The Standards of Weights and Measures Act, 1956 Monopolies and Restrictive Trade Practices Act, 1969 Prevention of Black-marketing and Maintenance of Essential Supplies Act, 1980 Bureau of Indian Standards Act, 1986 Consumer Protection Act, 1986
  • 27. CONSUMER PROTECTION ACT 1986 The Consumer Protection Act (COPRA), 1986, conferred a legal right to the individual consumer to seek legal redress or recover costs and damages for injury or loans suffered by him/her as a result of faulty, defective goods and services, bought or secured for valuable consideration.
  • 28. Rights of consumers under COPRA The SIX RIGHTS of the consumer as enunciated under Section 6 of the COPRA are: The Right to Safety The Right to be Informed The Right to Choose The Right to be Heard The Right to Seek Redressal The Right to Consumer Education
  • 29.
  • 30. A Consumer Disputes Redressal Commission known as the State Commission has been established in each state by the State Government by notification.
  • 31.
  • 32. For the State Commission the limit is Rs. 10 million
  • 33. For the National Commission, the limit is more than Rs. 10 million.
  • 34.
  • 35. In absence of the incumbent president of the District Forum, State Commission or National Commission, the senior member to act as president of the respective bodies.
  • 36.
  • 37. Exclusion of services used for commercial purposes from the purview of consumer courts
  • 38. The court can award punitive damages.
  • 39. Any affected party to deposit 50 percent of the amount awarded to the consumer if appealed against the order of the Forum
  • 40.
  • 41. State Consumer Dispute Redressal Commission
  • 42.
  • 43. OTHER INITIATIVES TO PROMOTE CONSUMER PROTECTION National Awards Publicity measures Customer Service Department of RBI