PROJECT

ON
CONSUMER
RIGHTS
 Certificate
This is to certify that the Project work
entitled “Consumer Rights” is a Bonafede
record of independent project work done
by S.Ramasamy under my supervision and
submitted to Laurel Senior Secondary
School.
 Acknowledgement
I am using this opportunity to express my
gratitude to my teacher D. Selvapriya as well as
our principal Mr. Swaminathan who gave me
this golden opportunity to do such a good
project on the topic, “Consumer Rights”. I am
thankful to everyone who supported me for the
completion of this project and gave me their
aspiring guidance, friendly advice and
invaluable feedback during the project. I am
sincerely grateful to all of my friends, co-
partners, family and guide who shared their
truthful and illuminating views on a number of
issues related to the project by devoting their
precious time.

Thank you, S.Ramasamy

 Contents
1. Introduction
2. Objective
3. Who is a Consumer?
4. Consumer Protection and Common Problems
faced by a Consumer in Market Place
5. Consumer Movement in India
6. Consumer Protection Act, 1986
6.1 Three-tier System
6.2 Consumer Rights
7. Learning to become a well-informed
Consumer
7.1 Consumer Responsibilities
7.2 Quality Standard Marks
8. Conclusion

1. Introduction:
We go to market and buy a variety of
goods and avail services required in or
day-to-day life. In exchange of these
goods and services, we pay money and
derive satisfaction by consuming them.
But sometimes, we feel dissatisfied
due to poor quality, high prices, false
promises made in advertisements,
hidden information and costs, etc. and
so on. This is done because we are not
aware of our rights as a consumer.

2. Objective:
 The objective of the project is to
reduce consumer exploitation by making
them aware about their rights as a
consumer.
3. Who is a Consumer?
Under the Consumer Protection Act, a
consumer is defined as:
Any person who buys any goods for a
consideration, which has been paid or
promised, or partly paid and partly
promised, or under any scheme of
deferred payment. It includes any user of
such goods, when such use is made with
the approval of the buyer, but does not
include a person who obtains goods for
resale or any other commercial purpose.
Any person who hires or avails of any
service, for a consideration which has
been paid or promised, or partly paid and
partly promised, or under any system of
deferred payment. It includes any
beneficiary of services when such services
are availed of with the approval of the
person concerned, but does not include a
person who avails of such services for any
commercial purpose.
4. Consumer Protection and Common
Problems faced by a Consumer in Market
Place
Consumer protection refers to the
measures adopted to safeguard the
interest and rights of consumers and to
help them in getting their grievances
redressed. Consumer protection means
protecting the consumers from
unscrupulous, exploitative and unfair
trade practices of a seller or a producer
for maximizing their profits.
The importance of consumer protection
from consumer’s point of view can be
understood from the following points:
• Consumer’s Ignorance:
In the light of widespread ignorance
of consumers about their rights and reliefs
available to them, it becomes necessary
to make them aware about their rights
and redressal available.
• Unorganized Consumers:
Generally, in India, though we have
NGOs and Consumer organizations,
consumers are not organized. Thus, to
protect and promote their interest,
adequate consumer protection is
required.

• Widespread Exploitation of the

Consumers:
 Unaware, ignorant consumers might
be exploited by marketer and thus,
consumer protection provides safeguard
to the consumers from such exploitation.
Consumers face problems in market
place due to some common malpractices
by shopkeepers which are given below:
 Sale of adulterated goods i.e., selling
goods by adding something inferior to
the product being sold.
 Sale of spurious goods i.e., selling
something of little value instead of the
real product.
 Sale of sub-standard goods i.e., sale
of goods which do not confirm to
prescribed quality standards.
 Misleading advertisements i.e., false
claims made in advertisements by
marketer.
 Overcharging of price i.e., selling
product at price which is higher than
MRP
 Fake scarcity to raise the price and
black marketing by hoarding of
products
 Sale of defective good
5. Consumer Movement in India
During 1960s, in India, the consumer
movement were originated as social force
to protect the interest of consumers against
the malpractices adopted by marketer.
Some of the main reasons for Consumer
Movement were:
 Lack of legal system to protect the
consumers from exploitation in the
marketplace
 Rampant food shortages
 Black marketing
 Hoarding
 Adulteration of food and edible oil
Till the 1970s, objectives, set at the time
of origin, were not achieved as consumer
organizations largely engaged in writing
articles and holding exhibitions. Then, they
formed consumer groups to look into the
malpractices in ration shops and
overcrowding in the road passenger
transport.
Till the 1970s, consumer organizations
were largely engaged in writing articles and
holding exhibitions. They formed consumer
groups to look into the malpractices in
ration shops and overcrowding in the road
passenger transport.
More recently, India witnessed an
upsurge in the number of consumer groups.
6. Consumer Protection Act, 1986
Consumer Protection Act, 1986 was
passed in year 1986 and was enforced from
July 1st 1987 with the motive to protect the
interest of consumers from being exploited
by shopkeepers or markets to maximize
profits which ultimately harm the well-
being of the consumer and society.
This Act teaches the consumers to make
right choices by educating them about their
rights and responsibilities of being a
consumer and make them aware that how
to seek redressal if they face any kind of
exploitation.
This Consumer Protections Act, 1986:
 applies to all goods, services and
unfair trade practices unless
specifically exempted by the Central
  Government
 covers all sectors-private, public or
co-operative
 provides for establishment of
consumer protection councils at the
central, state and district levels,
 i.e., three tier machinery system
6.1 Three-tier System
District Forum
• A complaint can be made to the
appropriate District Forum when the value
of goods or services in question along with
the compensation claimed does not exceed
` 20 lakh.
• The appeal against the orders of the
District Forum can also be filed before the
State Commission.
State Commission
• A complaint can be made to the
appropriate State Commission when the
value of goods or services in question along
with the compensation claimed exceeds `
20 lakh but does not exceed ` 1 crore.
• The appeal against the orders of the
State Commission can also be filed before
the National Commission.
National Commission
• A complaint can be made to the
appropriate National Commission when the
value of goods or services in question along
with the compensation claimed exceeds ` 1
crore.
• An order passed by the National
Commission in a matter of its original
jurisdiction is appealable before the
Supreme Court.
6.2 Consumer Rights
A consumer is an important participant in
the market. In case of consumer
exploitation, the rights of the consumer
must be protected. There are six consumer
rights as mentioned in the regulatory
Consumer Protection Act of 1986.
Right to Safety
• Consumer has a right to be protected
against marketing of those goods and
services which are hazardous to life, health
and property.
• This states that consumer has a right to
get protection against the risks caused due
to the use of substandard products or
products that do not confirm to the safety
norms.
Right to Choose
• This right gives the freedom to the
consumer to choose goods or avail services
from a variety of products at competitive
prices.
• As per COPRA, to enable the consumer to
make the right choice, the marketers should
offer a wide variety of product in terms of
quality, price, size etc.
Right to be Heard
• If a consumer feels dissatisfied with a
product or a service, he/she has a right to
file a complaint and to be heard in
consumer court.
• It is because of this reason; many firms
have set up their own consumer service and
grievance cells.
Right to Seek Redressal
• The consumer has a right to get relief in
case the product or service falls short of his
expectations.
• The Consumer Protection Act provides
relief to customers such as replacement of
product, removal of defect in the product,
compensation for any loss or injury suffered
by the consumer.
Right to be Informed
• The consumer has a right to have
complete information about the product he
intends to buy such as ingredients, date of
manufacturing, price, quantity, etc.
• It is because of this reason that the legal
framework in India requires the
manufacturers to provide such information
on the package and label of the product.
Right to Consumer Education
• A consumer has a right to acquire
knowledge on matters regarding consumer
protection and their rights and to be a well-
informed consumer.
• A consumer must be aware about the
rights, responsibilities and reliefs made
him/her available in case of a product or
service falling short of his expectations.
7. Learning to become a well-informed
Consumer
7.1 Consumer Responsibilities
A person must his/her responsibilities to
become a well-informed consumer. A
person, as a consumer, should make every
effort to educate himself/herself about
his/her rights.
Responsibilities that a consumer should
discharge while purchasing, using and
consuming goods and services:
• Be aware about various goods and
services available in the market so that an
intelligent and wise
choice can be made.
• Buy only standardized goods as they
provide quality assurance. Thus, look for ISI
mark on electrical
goods, FPO/FSSAI mark on food products,
Hallmark on jewelry etc.
• Learn about the risks associated with
products and services, follow
manufacturer’s instructions and
use the products safely.
• Read labels carefully so as to have
information about prices, net weight,
manufacturing and expiry
dates, etc.
• Assert yourself to ensure that you get a
fair deal.
• Be honest in your dealings. Choose only
from legal source and discourage
unscrupulous practices
like black-marketing, hoarding etc.
• Ask for a cash memo on purchase of
goods or services. This would serve as a
proof of the purchase
made.
• File a complaint in an appropriate
consumer forum in case of a shortcoming in
the quality of goods
purchased or services availed. Do not fail to
take an action even when the amount
involved is small.
• Form consumer societies which would
play an active part in educating consumers
and safeguarding their interests.
• Respect the environment. Avoid waste,
littering and contributing to pollution.