Banking Marketing Aptitude Consumer Protection Marketing Aptitude - Consumer Protection

Introduction

Consumer protection means safeguarding the interests and rights of consumers. In other words, it refers to the measures adopted for the protection of consumers from unscrupulous and unethical malpractices by the business and to provide them speedy redressal of their grievances.

The most common business malpractices leading to consumer exploitation are given below

• Sale of duplicate goods.
• Sale of sub-standard goods.
• Sale of spurious goods.
• Sale of adulterated goods.
• Use of false weights and measures leading to underweight.
• Hoarding and black-marketing, leading to scarcity and rise in price.
• Charging more than the Maximum Retail Price (MRP) fixed for the product.
• Misleading advertisements, i.e., advertisements falsely claiming an inferior product or service to be of superior quality, grade or standard.
• Supply of inferior services, i.e., quality of service lower than the quality agreed upon.

Consumer Protection Act (CPA), 1986

This Consumer Protection Act was passed in 1986 and it came into force from 1st July, 1987. The main objectives of the Act are to provide better and all round protection to consumers and effective safeguards against different types of exploitation such as defective goods, deficient services and unfair trade practices. It also makes provisions for a simple, speedy and inexpensive machinery for redressal of consumer s grievances.

• Salient Features of CPA, 1986
• It applies to all goods, services and unfair trade practices unless specifically exempted by the central government.
• It covers all sectors-private, public or co- operative.
• It provides for establishment of consumer protection councils at the central, state and district levels to promote and protect the rights of consumers.
• It provides a statutory recognition to the six rights of consumers.

• Goods and Services Covered Under CPA, 1986

The term 'goods' under this Act has the same meaning as under the Sale of Goods Act. Accordingly, it covers all types of movable property other than money and includes stocks and shares. Growing crops, etc. The term 'service' means service of any description made available to potential users and includes banking, financing, housing construction, insurance. entertainment, transport, supply of electrical and other energy, boarding and lodging, amusement, etc. The services of doctors, engineers, architects, lawyers, etc. are also to be included under the Provisions of Consumer Protection Act.

• Some Acts Related to Consumer Protection
• The Sale of Goods Act, 1930
• Agricultural Products (grading and marketing) Act, 1937
• Drug Control Act, 1950
• Industries Development and Regulation Act, 951
• Prevention of Food Adulteration Act, 1954
• Essential Commodities Act, 1955
• Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act)
• The Prevention of Black Marketing and Maintenance of Essential Supplies Act, 1980
• Bureau of Indian Standard Act, 1986
• Consumer Protection Act, 1986
• Trademark Act, 1999
• Competition Act, 2002

• Rights of Consumers

            The Consumer Protection Act provides following rights of consumers

• Right to Safety

It is the right of the consumers to be protected against goods and services, which are hazardous to health or life. Food additives and colours, dangerous toys, flammable fabrics, unsafe appliances are examples of such goods.

• Right to be Informed

It means the consumer must be provided with adequate and accurate information about quality, potency, quantity, purity, standard and the price of the goods and services. Such information helps the consumers in their buying decisions and use of the products.

• Right to Choose

It provides that the consumer must be assured, whenever possible, access to a variety of goods and services at competitive prices. Free competition   and wide variety of products enable consumers to choose the best goods.

• Right to be Heard

This right means that consumers have a right to approach government and public bodies when decisions and policies are made which can hamper consumer interests. Also, consumers have a right to be heard by manufacturers, dealers and advertisers about their opinion on production, marketing decisions and any grievances of the consumers.

• Right to Seek Redressal

The consumers have been given the right of redressal of their grievances relating to the performance, grade, quality, etc. of the goods and services. The Consumer Protection Act has duly provided for a fair settlement of genuine grievances of the consumers. It has also set-up a proper mechanism for their redressal at district, state and national levels.

• Right to Consumer Education
• It means the consumer has the right to receive knowledge to become informed consumer. In this direction, the consumer associations, educational institutions and policy-makers can play an important part.
• In India. 24th December is celebrated as National Consumer Day because on 24th December 1986. Consumer Protection Act, 1986 was applied. Along with it, from the year 2000. 15th March is celebrated as World Consumer Day.

MRTP ACT

Now-a-days there is a tendency in the businessmen to exploit customer by giving the misleading advertisements. Sometimes impossible things are guaranteed, also the advertised things to the monopoly. To protect the consumers from this type of exploitation, central government has prepared Monopolies and Restrictive Trade Practices Act, it is abbreviated as MRTP. Consumers need to complain to MRTP Commission about such matter so that necessary action can be taken.

• What can be the Complaints?
• In case of loss due to the use of improper/ restricted techniques
• Defect in the goods purchased
• Problems in the hired or used services
• Price charged than the indicated prize
• In case of violation of law and a good is being sold to public which can cause their life

• Who can file a Complaint?
• Consumer itself
• Volunteer consumer organization which is registered under committee register act 1860 or company act 1951 or registered under law, applied currently Central or State Government can take this matter in its cognition.

• Where to File a Complaint?

            Where to file a complaint depends on "the cost of service or amount demanded as compensation.

• If the amount is less than 20 lac, then complain can be filed in distric forum.
• If the amount is more than 20 lac and less than 1 crore, then complain can be filed in state commission.
• If the amount is more than 1 crore, then commission can be filed in national commission.

            All the address are available on www.fcamin.nic.in

• How to File a Complaint?
• Consumer can file a complaint on plain paper
• Details of the consumer and opposite party
• Facts related to the complaint, like when and where
• Documents supporting the complaint
• Signature of authorised agent

There is no need of lawyer for these types of complaints, a nominal court fee is charged I for it.

• Compensation

Compensation includes the cost to you caused by a problem with products or services. This is usually financial costs, but can include other costs such as lost time or productivity.

Tit-Bits

• Consumer association, education institutions and policy makers can play an important role for the right to consumer education.
• Under hiring type of agreement for a contract, the buyer has a right to return the goods at any time.