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II Year_Business Studies_Chapter 12, , CHAPTER 12, , CONSUMER PROTECTION, Consumer Rights: The Consumer Protection Act provides for six rights of consumers., a) Right to Safety: The consumer has a right to be protected against goods and services which, are hazardous to life and health. Thus consumers should be educated about their rights of, safety., b) Right to be Informed: Consumer has the right to know all information about the product he, wish to buy. It includes ingredients, date of manufacture, price, quantity, direction for use,, etc. The manufactures should provide such information on the package of goods., c) Right to Choose: Consumer has the right to choose a product from variety of products at, competitive prices. Marketers should offer a wide variety of products in terms of quality,, brand, prices, size, etc. and allow the consumer to choose according to his requirement., d) Right to be Heard: Consumer has a right to file a complaint and to be heard in case of, dissatisfaction with a good or a service. Some business has grievance cell., e) Right to seek Redressal: Consumer Protection Act provides a number of reliefs to the, consumers like replacement of the product, removal of defect in the product, compensation, paid for any loss or injury suffered by the consumer, etc., f) Right to Consumer Education: Consumer has the right to acquire knowledge about his, rights and reliefs available to him in case a product or service failed to fulfil his satisfaction., Redressal Agencies under Consumer Protection Act, 1. District Forum: District Forum consists of a President and two other members, one of, whom should be a woman appointed by the state government. A complaint with value of goods, and compensation not exceeding Rs. 20 lakhs can be made to the District Forum. District, Forum refer the complaint to the concerned parties and if required they can sent the goods to, laboratory for test. After hearing the concerned parties and test report, District Forum pass an, order. If the consumer is not satisfied with the order of District Forum, he can appeal before the, State Commission within 30 days of order. There are 644 district commissions in India., 2. State Commission: State Commission consists of a President and not less than two other, members, one of whom should be a woman appointed by the state government. A complaint, with value of goods and compensation exceeds Rs. 20 lakhs and not exceeds Rs. 1Crore can, be made to the State Commission. The appeals against the orders of a District Forum can also, be filed before the State Commission. State Commission refer the complaint to the concerned, parties and if required they can sent the goods to laboratory for test. After hearing the, concerned parties and test report, State Commission pass an order. If the consumer is not, satisfied with the order of State Commission, he can appeal before the National Commission, within 30 days of order. There are 365 district commissions in India., 3. National Commission: National Commission has territorial jurisdiction over the whole, country, except the state of Jammu and Kashmir. National Commission consists of a President, and at least four other members, one of whom should be a woman appointed by central, government. A complaint with value of goods and compensation exceeds Rs. 1 crore can be, made to the State Commission. The appeals against the orders of a State Commission can also, be filed before the National Commission. National Commission refer the complaint to the, concerned parties and if required they can sent the goods to laboratory for test. After hearing, the concerned parties and test report, National Commission pass an order. If the consumer is, not satisfied with the order of National Commission and the value of goods and compensation, exceeds Rs.1 crore only can be taken to the Supreme Court of India., , Prepared By Dr.K.R.Rajesh Babu, GHSS, Thottada, Kannur (9447793940, 8848951808)

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II Year_Business Studies_Chapter 12, , Legal Protection to Consumers:, 1. The Consumer Protection Act, 1986: Provides safeguards to consumers against defective, goods, deficient services, unfair trade practices, and other forms of their exploitation., 2. The Indian Contract Act, 1872: The Act specifies the remedies available to parties in case of, breach of contract., 3. The Sale of Goods Act, 1930: Provides safeguards and protection to the buyers of the goods, when the goods purchased do not satisfy the implied conditions or warranties., 4. The Essential Commodities Act, 1955: Control the production, supply and distribution of, essential commodities, preventing inflationary trend in their prices and ensuring equal, distribution of essential commodities., 5. The Agricultural Produce (Grading and Marking) Act, 1937: Act provides conditions for, the use of standard lays down the procedure for grading, marking and packing of agricultural, produce. AGMARK is the quantity mark provided under this Act., 6. The Prevention of Food Adulteration Act, 1954: Act prevents the adulteration of foods and, ensure their purity., 7. The Standards of Weights and Measures Act, 1976: Act ensures protection to consumers, against the malpractice of under- weight or under-measure., 8. The Trade Marks Act, 1999: Act prevents the use of fraudulent marks on products and thus,, provides protection to the consumers against such products., 9. The Competition Act, 2002: Act provides protection to the consumers in case of practices, adopted by business firms which hamper competition in the market., 10. The Bureau of Indian Standards Act, 1986: Bureau of Indian Standards was established to, provide quality standards for goods and their certification through the BIS certification scheme., Bureau has a grievance cell where consumers can make a complaint about the quality of, products carrying the ISI mark., , Prepared By Dr.K.R.Rajesh Babu, GHSS, Thottada, Kannur (9447793940, 8848951808)