PROJECT ON

CONSUMER PROTECTION

AND

CONSUMER OBLIGATION

Submitted by:
TARANJEET SINGH
Enrollment no.12919103910
MBA 1st SEM
 ACKNOWLEDGEMENT

It’s an opportunity to acknowledge the Mrs. Sandeepa

Kaur. She is the one who provided me continues source of information under her
great guidelines and support. I had tried to make the project possible and desirable
as she wanted.

I am very thankfull for her kind support.

 INDEX

SR.NO CONTENTS
1 DEFINITION

2 INTRODUCTION
3 CONSUMER PROTECTION
4 CONSUMER RIGHTS
5 CONSUMER RESPONSIBILITIES
6 INDIA GLOBAL REPUTATION

7 CONSUMER BEHAVIOUR

CONCLUSION
9
 INTRODUCTION

Consumers play a vital role in the economic system of a nation because in the
absence of effective demand that emanates from them, the economy virtually
collapses. Mahatma Gandhi said, "A consumer is the most important visitor on our
premises. He is not dependent on us, we are on him. He is not an interruption to
our work, he is the purpose of it. We are not doing a favour to a consumer by
giving him an opportunity. He is doing us a favour by giving us opportunity to
serve him. But, of late, unfortunately cheating by way of overcharging, black
marketing, misleading advertisements, etc has become the common practice of
greedy sellers and manufacturers to make unreasonable profits. In this context, it is
the duty of the government to confer some rights on consumers to safeguard their
interests.
CONSUMER PROTECTION
o Removal of defects in goods or deficiency in service.

o Replacement of defective goods with new goods of similar description which

shall be free from any defect.

o Return of price paid by the consumer.

o Payment of compensation for any loss or injury suffered by the consumer.

o Discontinue the restrictive, or unfair trade practice, and not to repeat it.

o Withdraw the hazardous goods from being offered for sale and not to offer them
for sale.

o Provide for adequate cost to the aggrieved party.

The Consumer Production Act provides for a threetier system of redressal

agencies: one at district level known as District Forum, second at state level known
as 'State Commission', and third at national level known as 'National Commission'.
A complaint is to be made to the district forum of the concerned district where the
value of goods and services and compensation, if any, is up to Rs 20 lakhs, to the
'State Commission' between Rs 20 lakhs and Rs 100 lakhs, and to the National
Commission for more than Rs 100 lakhs. Interestingly, there is provision for
appeals against the orders of a particular redessal forum by the aggrieved party
before the next higher echelon and even from the findings of the National
Commission before the Supreme Court.

CONSUMER RIGHTS

1. Right to Safety: The right to be protected against goods which are hazardous to
life and property.

2. Right to Information: The right to be informed about the quality, quantity,

purity, price and standards of goods.

3. Right to Choose: The right to be assured access to a variety of products at

competitive prices, without any pressure to impose a sale, i.e., freedom of choice.

4. Right to be Heard: The right to be heard and assured that consumer interests will
receive due consideration at appropriate forums.

5. Right to Seek Redressal: The right to get relief against unfair trade practice or
exploitation.

6. Right to Education: The right to be educated about rights of a consumer.

Protection of Consumer Rights

Consumer protection means safeguarding the rights and interests of consumers. It

includes all the measures aimed at protecting the rights and interests of consumers.
Consumers need protection due to the following reasons:

1. Illiteracy and Ignorance: Consumers in India are mostly illiterate and ignorant.
They do not understand their rights. A system is required to protect them from
unscrupulous businessmen.

2. Unorganised Consumers: In India consumers are widely dispersed and are not
united. They are at the mercy of businessmen. On the other hand, producers and
traders are organized and powerful.
3. Spurious Goods: There is increasing supply of duplicate products. It is very
difficult for an ordinary consumer to distinguish between a genuine product and its
imitation. It is necessary to protect consumers from such exploitation by ensuring
compliance with prescribed norms of quality and safety.

4. Deceptive Advertising: Some businessmen give misleading information about

quality, safety and utility of products. Consumers are misled by false advertisement
and do not know the real quality of advertised goods. A mechanism is needed to
prevent misleading advertisements.

5. Malpractices of Businessmen: Fraudulent, unethical and monopolistic trade

practices on the part of businessmen lead to exploitation of consumers. Consumers
often get defective, inferior and substandard goods and poor service. Certain
measures are required to protect the consumers against such malpractices.

6. Freedom of Enterprise: Businessmen must ensure satisfaction of consumers. In

the long run, survival and growth of business is not possible without the support
and goodwill of consumers. If business does not protect consumers' interests,
Government intervention and regulatory measures will grow to curb unfair trade
practices.

7. Legitimacy for Existence: Business exists to satisfy the needs and desires of
consumers. Goods are produced with the purpose of selling them. Goods will, in
the long run, sell only when they meet the needs of consumers.

8. Trusteeship: Businessmen are trustees of the society's wealth. Therefore, they

should use this wealth for the benefit of people.

Methods of Consumer Protection

There are four main methods of protecting the interests of consumers:

1. Business Self-regulation: The business community itself can help in achieving

consumer protection and satisfaction through self -discipline. Businessmen can
regulate their own behaviour and actions by adopting higher ethical standards.
Trade associations and chambers of commerce can check unfair trade practices
used by some businessmen.

2. Consumer Self-help: Every consumer must be alert as self-help is the best help.
He should educate himself and know his rights. He should not allow unscrupulous
businessmen to cheat him.
3. Consumers' Associations: Consumers should form voluntary associations. These
associations can educate and awaken consumers. They can take organized action
and put pressure on businessmen to adopt fair trade practices.

4. Government Regulations: The State can ensure consumer protection through

legislative, executive and judicial actions. The laws enacted by the Government
must be strictly enforced by the executive. Government of India has enacted
several laws to protect the interests and rights of consumers. Some of these laws
are as follows:

o The Essential Commodities Act, 1955 which aims to regulate and control the
production, supply and distribution and prices of essential commodities.

o The Prevention of Food Adulteration Act, 1954 which aims to check adulteration
in food items and eatables.

o The Drugs and Cosmetics Act, 1940 which seeks to ensure purity and quality in
drugs and cosmetics.

o The Standards of Weights and Measures Act, 1956 which aims at ensuring that
consumers get the right weight and measurement in products.

o The Household Electrical Appliances (Quality Control) Order, 1976 which seeks
to ensure safety and quality in the manufacture of electrical appliances.

o The Consumer Protection Act, 1986 which seeks to provide speedy and
inexpensive redressal to the grievances of consumers.
 CONSUMER RIGHTS AND ITS EXPANSION
RIGHTS AND RESPONSIBILITIES

India has been observing 15 March since 1989 as the National Consumers’ Day.
This day has a historic importance as it was on this day in 1962, when the Bill for
Consumer Rights was moved in the US Congress. During his speech President
John F. Kennedy had remarked:

“If a consumer is offered inferior products, if prices are exorbitant, if drugs are
unsafe or worthless, if the consumer is unable to choose on an informed basis, then
his dollar is wasted, his health and safety may be threatened, and national interest
suffers.”

John F. Kennedy had equated the rights of the ordinary American consumer with
national interest. He gave the American consumer four basic rights:

1. The Right to Safety - to be protected against the marketing

of goods which are hazardous to health or life.
2. The Right to Choose - to be assured, wherever possible,
access to a variety of products and services at competitive
prices: and in those industries where competition is not
workable and Government regulation is substituted, an
assurance of satisfactory quality and service at fair prices.
3. The Right to Information - to be protected against fraudulent,
deceitful or grossly misleading information, advertising,
labeling, or other practices, and to be given the facts s/he
needs to make an informed choice.
4. The Right to be Heard - to be assured that consumer
interests will receive full and sympathetic consideration in
the formulation of Government policy, and fair and
expeditious treatment in its administrative tribunals.
Kennedy recognised that consumers are the largest economic
group in the country’s economy, affecting and affected by almost
every public and private economic decision. But they were also
the only important group who were not effectively organised,
whose views were not heard.

Therefore, the Federal Government, by nature the highest spokesman for all
people, had a special obligation to the consumer’s needs. Thirteen years later
President Gerald Ford felt that the four rights constituted in Kennedy’s Bill of
Rights were inadequate for a situation where most consumers are not educated
enough to make the right choices. So he added the Right to Consumer Education,
as an informed consumer cannot be exploited easily.

While these rights served the interest of the American consumer well enough, they
did not cover the whole gamut, because a global consumer did need, apart from
them, other well-defined rights like basic needs, a healthy environment and
redress.

The Consumers International (CI), former International Organisation of Consumer

Unions (IOCU), the umbrella body, for 240 organisations in over 100 countries,
expanded the charter of consumers rights contained in the US Bill to eight, which
in a logical order reads:

1. Basic Needs
2. Safety
3. Information
4. Choice
5. Representation
6. Redress
7. Consumer Education and
8. Healthy Environment.

This charter had a universal significance as they symbolised the

aspirations of the poor and disadvantaged. On this basis, the
United Nations, in April 1985, adopted its Guidelines for Consumer
Protection.
BIRTH OF CONSUMERS’ DAY

Considering the importance of Kennedy’s speech to the US Congress on this day,

and the resultant law, the CI took a decision in 1982 to observe 15 March as the
World Consumer Rights Day from 1983. Peculiar though it may sound, 15 March
is not observed as a special day in the world’s largest and most pulsating consumer
society - the US. But at home in India the Government, adopted 15 March as the
National Consumer’s Day.

India is a country, which never fell behind in introducing progressive legislation -

we were among the first in the world to introduce universal adult franchise for
women.

Gandhi had rightly said:

“A customer is the most important visitor on our premises. He is not dependent on

us. We are dependent on him. He is not an interruption in our work - he is the
purpose of it. We are not doing him a favour by serving him. He is doing us a
favour by giving us the opportunity to serve him.”

BIRTH OF ‘COPRA’

The right to redress lead to the passing of the Consumer Protection Act (COPRA)
in 1986 in India which has been defined as the Magna Carta of consumers but, it
recognises only six of these eight rights:

1. Safety;
2. Information;
3. Choice;
4. Representation;
5. Redress and
6. Consumer Education.

Besides this statutory recognition, COPRA has succeeded in

bringing about revolutionary judicial reforms by providing juristic
quasi-judicial courts solely for redressal of consumer grievances
(where a price has been paid), for adjudication within a limited
time frame of 90 to 150 days.
The rights of basic needs and healthy environment could not be provided in
COPRA as these symbolised the aspiration of the poor and the disadvantaged, and
were not the subject matter of priced commodities and services available in the
market place. However, these are the backbone of peoples’ movements in both the
developing and the developed worlds.

Yet, inspite of pulsating movements, the rights of consumers could and were
trampled on and often. There existed a vacuum in the definition of rights. It was
often seen that boycotts would be spontaneous or organised in an adversarial
situation, examples of, which are numerous. On an occasion in Calcutta a boycott
of fish was successfully organised and the marketing cartel had to bow down, by
cutting the inflated prices, rather than store rotting fish.

RIGHT TO BOYCOTT

Taking a leaf out of India’s freedom movement, when Mahatma Gandhi had
successfully organised various boycotts of foreign cloth, salt etc. we at CUTS,
declared and adopted the 9th Consumer Right on India’s Independence Day - 15
August 1990: “The right to resist and boycott any person, goods or services in the
event of conflict with consumer’s interest”.

This right was the ultimate one, to be used when all methods fail. And many a
times they do: the seller does not heed, the administration does not listen, and the
judiciary fails. This right inherently signifies consumer unity as an individual
consumer can be helpless or even apathetic, and it is a collective action that
succeeds.

While the right to boycott epitomises the enability of consumer rights, the right to
basic needs remained abstract. It only defined a consumer’s necessities required to
survive and live a dignified life but it did not demand the means to obtain them -
the right to work.

However, the right to work is also vague, as this colloquially meant easy jobs, and
did not feature in the existing charter of Consumer’s Rights. In the interlude, a new
Union Government in India raised a debate to recognise the right to work, as a
fundamental right on the one hand, and advocating self employment schemes for
everyone, including the poor, on the other.

Observing the societal disarray created by government job and dole schemes,
whether permanent or temporary, and how they maim the spirit of enterprise which
prevails in the mass humanity of India, ‘CUTS’ was inspired to declare and adopt
the 10th (enabling) Consumer Right on 26 January 1991: “The right to
opportunities to acquire basic needs which will enable one to work and to earn a
living, without exploitation.”

This inherently demands execution of the state’s singular responsibility to provide

productive infrastructure, work ethos, job opportunities, social justice and
economic equity. Both these rights were adopted at the Third National Convention
of Consumer Activists at Calcutta during 1-3 November 1991, calling and urging
the now (CI) IOCU to recognise and take suitable steps in expansion of the
Consumer Rights internationally.

INDIA’S GLOBAL REPUTATION

Laws, rules, regulations and orders (for which India has unparalleled distinction in
the Guinness book of records) alone do not protect consumers, but it is the rights’
movement of people which produce results in a democracy.

One of the greatest achievements of the Indian consumer movement is the

enactment of the dynamic consumer law: COPRA. Coming 39 years after
Independence, it has acknowledged the rampant consumer abuses, including those
of the government owned public utilities like telephones, transport, power etc.
These utilities, in the first place, were created as state monopolies ostensibly to
protect consumers!

Critics of COPRA rightly conclude that it can’t do anything about rising prices, but
it has succeeded in bringing about fairplay in the supply of goods and services
available in the market place, giving substance to the adage: Customer is King.
Also, COPRA has encouraged active consumer bodies to demand, and perhaps see
in the near future, independent Public Utility Regulatory Commissions to debate
costing, pricing and promote competition.

This confidence emanates from the empowerment of voluntary organisations in

COPRA and other consumer laws. While right to information is enshrined in
COPRA, addition of the enlarged Right to Know in the fundamental rights chapter
of the Indian Constitution would only result in meaningful empowerment - no
more tight rope walking, but total glasnost.

In fact the Central Consumer Protection Council has recommended to the

Government to enact a Freedom of Information Act on the pattern of a similar law
in the US. Another major achievement of the Indian consumer movement in the
context of the world scenario, was to get the government in 1989, to adopt 15
March, the World Consumer Rights Day, as the National Consumers’ Day. Unlike
the Labour Day on 1 May, which has roots in the US, the Consumer Rights Day,
which also has roots in the US, is not even observed there.

Today India is the only country in the world, which has exclusive courts for
consumer redressal. At the IOCU’s 13th World Congress held in Hong Kong
during 7-13 July 1991 it came in for praise and developed countries were called
upon to emulate. In the same year, these developments inspired Jim Sugarman, a
noted US consumer activist and a close associate of Ralph Nader, to candidly
observe: “India is getting a global reputation for the rapid development of its
consumer movement.”

BUREAUCRAT’S REVENGE

COPRA, which was amended by an ordinance in June 1993, is a mixture of sad

and happy tidings. And tragic because of one surprise which our bureaucrats
sprung onto the bill, a matter which was not even discussed in the high power
working group of the Central Consumer Protection Council.

The law then proposed a limitation of one year to file complaints, where none
existed. An utter nonsense, which goes beyond the principles of our well
established Limitations Act of 1963, wherein courts cannot be approached after the
expiry of three years of the last cause of action.

Since there was no limitation period prescribed under COPRA, in one matter, the
apex consumer court, the National Commission had pronounced that the principles
of the Limitations Act do not apply but can be relied upon, though not religiously.

This proposal would not only have put consumers at a terrible disadvantage but
also annoy them badly. Most warranties and guarantees on goods expire in one
year, and manufacturers often drag on many consumers during this period by
attending to complaints, instead of setting it right or replacing or refunding the
price of the defective goods. They will thus be deprived of the easy redressal
avenue by this one-year ‘deadline’.

Consumers will be angry because the rule on the time limit of 90/150 days
provided in COPRA for disposal of cases are practiced more in the breach, and
cases drag on for years. Under this situation, expecting consumers to meet a
deadline will be very irritating. Granted that delayed complaints can be entertained,
but that would mean a set of lengthy arguments on just the admissibility of the
case.

Fourthly, the law also enables consumers to file class action complaints, which
incidentally always existed, but there can be no basis to determine the deadline in
such matters. For instance, if the Motor Vehicles Act, 1988 provides for certain
mandatory safety features which have been ignored by manufacturers; after
research, we decide to file a complaint what would be the limitation period?

Due to these arguments and lobbing the time limit was revised to two years, when
the ordinance was put on the table of the parliament.

BELYING EXPECTATIONS

The law belied the consumer affairs Minister, A K Antony’s note in the statement
of objects and reasons, wherein he says the working of the redressal agencies has
helped to arouse the expectations of the people on several other grounds as well.

Housing by way of plots or flats or houses has been covered under the definition of
‘services’ under COPRA. Rather than adopt the words: ‘real estate’, as defined
under the MRTP Act, 1969 from which the whole definition clause of services was
borrowed in the first instance, a new jargon: ‘housing construction’ is added. This
would mean that the consumer courts will only entertain complaints relating to:
flats, land, houses purchased or to be purchased.

In a beacon case involving a plot: Garima Shukla vs. UP Avas evam Vikas Nigam,
the National Commission had held that the dispute is covered as a deficiency in the
service of housing. The Supreme Court upheld the orders of the National
Commission.

Among several other recommendations of the Central Council, another major one
has also been diluted. In view of several protests by consumers, the council had
agreed to recommend incorporation of an open, democratic and a transparent
process of selection of the non-official members of consumer courts.

The recommendation was that a selection committee headed by the minister and
consisting of the secretary in charge of the department, a nominee of the chief
justice of the state high court and two consumer activists (one a woman) would be
the right form. The bill now proposes a committee headed by the President of the
state commission and the consumer affairs secretary and the state law secretary.

It is thus heavily loaded against transparency. I have seen many a president of the
State Commission sitting in the chamber of the secretary, especially when s/he is a
retired high court judge. By and large the secretary has to follow the minister’s
orders, therefore the transparency sought in the selection process will be doubtful.
Presence of two activists would have perhaps changed the odds.

However the president of the State Commission can only be appointed after
consultation with the Chief Justice of the concerned high court, but those who
know, consultation does not mean consent or concurrence. On several occasions, in
spite of opposition, people have been appointed, after the so-called consultation.

THE BROOM STICK

The Council had made several other vital recommendations after long deliberations
and critical debates, but they have been given the broomstick. These were:

1. Consumer rights were to be put in a separate chapter so that

violations of the same could be an additional ground, if not
the basis of a complaint. These will now continue as
decorations in COPRA, for the central council to ‘talk, about -
only once in a year, as against twice as recommended’.
2. Services rendered by public health care system and civic
bodies were to be covered, as they are not charities but are
run from the taxpayer money. So that consumer could get
value for money and these white elephants are brought to
heel. The union health ministry prevailed.
3. Lawyers were to be debarred except when the complainant
had engaged one, or with his consent or if the consumer
court directed the parties to engage lawyers, when questions
of law were involved. This was recommended because
lawyers often delay the settlement of cases by court craft
etc. Apparently the belligerent lawyers lobby proved
stronger.
4. Writ jurisdiction of high courts has to be excluded by
bringing COPRA under Article 323B of the constitution as
their interference, particularly the Calcutta High Court,
 delays the proceedings especially when an hierarchy of
appeals is provided under COPRA where the Supreme Court
is the ultimate arbiter.
5. Empowering Consumer Courts by giving them the authority
to order cease and desist, or interim injunction or take suo
motu action (of its own accord and on its own information)
like the MRTP Commission, so as to meet the ends of justice
have not been incorporated. For, bureaucrats felt that it
would give unbridled power to over 450 district fora and 30
state commissions and that would have created havoc.

Some readers might remember the case of ITC LTD’s Wills brand
being injuncted by a Gangtok district judge, which cost ITC a large
sum of money to get it vacated from the Supreme Court under its
extraordinary jurisdiction. This type of case is a freak but without
such power our consumer courts will be hamstrung in protecting
the consumers interest, as it were.

Section 1(4) of COPRA says this Act will apply to all goods and services, therefore
under the definition of services, where illustrations are given, it was understood
that it was an all inclusive definition and exclusions had to be specified.

To correct the anomaly, especially in view of the hectic lobbying by the medical
fraternity and other professional groups, it was proposed to put a semi-colon, and
add, “not limited to” before the illustrations. But this has also not been inserted in
the amendment bill.

RECALLING UNSAFE GOODS

So much so for the bureaucratic revenge and/or sabotage. However there are many
welcome steps, though confused as well, which will take the consumer movement
considerably forward. These are:

• Enhancement in the scope of relief under COPRA to stop the

sale of and/or order withdrawing the marketing of hazardous
goods. This will entitle consumers and consumer groups to
challenge harmful goods, provided a law says so, like the
 BVO case when this toxic chemical was banned but
continued to be used in soft drinks like Limca, Gold Spot etc.

But the clause does not empower consumers to challenge hazards

in services. For instance the Electricity Act provides for certain
safety measures to be adopted by the suppliers, but consumers
may not be able to challenge it.

This is more so surprising when in all the consumer rights in COPRA ‘services’
have been added along with ‘goods’, and under the relief section power has also
been given to consumer courts to remove defects and deficiencies in services.

• A major beneficial change has been added to cover

agreements for purchase, as against the earlier provision for
only goods or services actually purchased. This would cover
disputes relating to booking of flats, cars, scooters and
similar contracts, where delivery has not been made.
• Restrictive trade practices have been added, also enabling
the courts to stop these, as well as unfair trade practices.
This means that there would be a mini-MRTP Commission in
every district.
• Monetary jurisdiction of a district forum has been raised to
Rs 5 lakh, while that of a state commission to Rs 20 lakh.
Beyond this, the National Commission. Age limit of the
members of the state commissions has been fixed at 67,
while that of the national commission at 70. No mention of
the age limits of members of the district forums.
• Complaints against goods purchased for commercial purpose
will ordinarily not be adjudicable under COPRA save and
except where such goods in dispute have been purchased by
a self-employed businessperson like a taxi owner-driver.
• Costs would be awardable to consumers or their
organisations that win cases. Simultaneously consumers who
file frivolous or vexatious complaints could be penalised with
a fine of upto Rs 10,000. And if they don’t pay up, they could
face a worse fate of paying a further fine of upto Rs 10,000
and/or undergo imprisonment of upto three years like other
offenders.
 • Following the Supreme Court order, in the Common Cause Vs
Union of India case, administrative control of district fora will
now be under the state commissions, who will in turn report
to the National Commission. A proper reporting system and
procedures will also be incorporated.

Lastly, a quiet change has been incorporated to redefine the

department of civil supplies as consumer affairs, which is what we
in the consumer movement have been shouting for a long time.

Consumer protection laws are designed to ensure fair competition and the free
flow of truthful information in the marketplace. The laws are designed to prevent
businesses that engage in fraud or specified unfair practices from gaining an
advantage over competitors and may provide additional protection for the weak
and those unable to take care of themselves. Consumer Protection laws are a form
of government regulation which aim to protect the interests of consumers. For
example, a government may require businesses to disclose detailed information
about products—particularly in areas where safety or public health is an issue, such
as food. Consumer protection is linked to the idea of "consumer rights" (that
consumers have various rights as consumers), and to the formation of consumer
organizations which help consumers make better choices in the marketplace.

Consumer is defined as someone who acquires goods or services for direct use or
ownership rather than for resale or use in production and manufacturing.[1]

Consumer interests can also be protected by promoting competition in the markets

which directly and indirectly serve consumers, consistent with economic
efficiency, but this topic is treated in Competition law.
Consumer protection can also be asserted via non-government organizations and
individuals as consumer activism.

Private law (Civil law) is that part of a legal system that involves relationships
between individuals. This includes the law of contracts or torts and the law of
obligations. It is distinguished from public law, which deals with law involving the
state, including regulatory statutes, penal law and other law of public order.

In general terms, public law involves interrelations between the state and the
general population, whereas private law involves interactions between private
citizens.

The concept of private law in common law countries is a little more broad, in that
it also encompasses private relationships between governments and private
individuals or other entities. That is, relationships between governments and
individuals based on the law of contract or torts are governed by private law, and
are not considered to be within the scope of public law.

Consumer Behaviour and Consumer Protection in India

The process of development coupled with increasing liberalization
and globalisation across the country has enabled consumers to
realize their increasingly important role in society and
governance. The consumer movement in India is as old as trade
and commerce. In Kautilya’s Arthashastra, there are references to
the concept of consumer protection against exploitation by the
trade and industry, short weighment and measures, adulteration,
and punishment for these offences. In a developing country like
high and the level of literacy is very low, the people face a volume
of problems, particularly in the context of consumer related
issues. This book brings into focus the role and status of Indian
consumers and their problems arising from the given socio-
economic set up of our society. A critical appraisal of government
policies and programs has also been attempted. Ensuring
consumer welfare is the responsibility of the state. Accepting this,
policies have been framed and the Consumer Protection Act, 1986
was introduced. A separate Department of Consumer Affairs was
also created in the Central and State Governments to exclusively
focus on ensuring the rights of consumers as enshrined in the Act.
This Act has been regarded as the most progressive,
comprehensive and unique piece of legislation. The present book
provides a detailed and comprehensive study of the recent
developments in the Indian consumer protection law, besides
examining the provisions of various other statues dealing with
consumer protection. It also provides further insight into
consumer behaviour to help marketers develop an appropriate
marketing strategy. The book constitutes a rich contribution to an
issue of considerable importance. It is expected to be highly
useful to policy planners, economists, researchers, NGOs and
students.
Contents : Consumer Behavior and Consumer Protection:
Theoretical and Conceptual Issues / Consumer Protection in Indian
Economy / Consumer Organisations and Consumer Protection /
Consumer Behaviour-An Empirical Approach / Consumer
Protection Act, 1986-Ligislative and Judicial Dimensions /
Consumer Organisations-Role and Importance / Consumer
Awareness and Protective Aspects: Global Experiences /
Governmental Role in Consumerism / Buying Behaviour and
Grievance Redressal / Consumer Protection Through Mass
Awareness: Challenges and opportunities in the Global Era /
Consumer Rights and Consumer Protection Act, 1986 / Consumer
Awareness and Government Role / Governmental Role for
Consumer Awareness and Welfare / Protective Aspects of
Consumer Protection / Economic Analysis of Consumer Behavior /
A New Era in Consumerism / Consumer Behaviour,
Communication and Rural Market / Consumer Protection Act,
1986-A Case Study Approach / Consumerism and Role of
Legislation / Banking Services in India and Consumer Protection /
Impact of Advertising on Consumer Education and Behaviour /
Consumer Problems / Consumer Behaviour in Selection and
Purchasing of Clothes / Food Adulteration-A Case Study / WTO and
Indian Pharmaceutical Industry: Implications for Consumer
Welfare / Managing Consumer Expectations through Encouraging
Customer Complaints / Healthcare in India and Consumer
Protection Act / Advertising and Consumer / Globalization and
Consumer Behaviour: Some Gender Issues /
Appendix.

MEANING
Consumers play a vital role in the economic system of a nation because in the
absence of effective demand that emanates from them, the economy virtually
collapses. Mahatma Gandhi said, "A consumer is the most important visitor on our
premises. He is not dependent on us, we are on him. He is not an interruption to
our work, he is the purpose of it. We are not doing a favour to a consumer by
giving him an opportunity. He is doing us a favour by giving us opportunity to
serve him. But, of late, unfortunately cheating by way of overcharging, black
marketing, misleading advertisements, etc has become the common practice of
greedy sellers and manufacturers to make unreasonable profits. In this context, it is
the duty of the government to confer some rights on consumers to safeguard their
interests.

Conclusion
Invariably, consumers are a vulnerable lot for exploitation, more so in a developing
country with the prevalence of mass poverty and illiteracy. India too is no
exception to it. Instances like overcharging, black marketing, adulteration,
profiteering, lack of proper services in trains, telecommunication, water supply,
airlines, etc are not uncommon here. From time to time, the government has
attempted to safeguard consumer's interests through legislations and the CPA 1986
is considered as the most progressive statute for consumer protection. Procedural
simplicity and speedy and inexpensive redressal of consumer grievances as
contained in the CPA are really unique and have few parallels in the world.
Implementation of the Act reveals that interests of consumers are better protected
than ever before. However, consumer awareness through consumer education and
actions by the government, consumer activists, and associations are needed the
most to make consumer protection movement a success in the country.