- Consumer (Goods): A person who buys goods for consideration (paid/promised/partly paid or deferred payment). It also includes any user of those goods with the buyer’s approval.
- Consumer (Services): A person who hires/avails services for consideration (paid/promised/partly paid or deferred payment). It also includes any beneficiary of the service with the hirer’s approval.
- Who is NOT a consumer: A person who takes goods/services for resale or commercial purpose, uses goods without buyer’s approval, gets service benefit without hirer’s approval, or gets goods/services without consideration.
- Who can file a complaint: Consumer, registered voluntary consumer association, Central/State Government, one or more consumers with same interest, or legal heir/representative (if consumer dies).
- What is a complaint: A written allegation seeking relief under the Act about unfair/restrictive trade practice, defective goods, deficient services, overcharging beyond fixed/printed/displayed/agreed price, or hazardous goods/services being offered.
- Defect (in goods): Any fault/imperfection/shortcoming in quality, quantity, potency, purity, or standard as required by law/contract or as claimed by the trader.
- Deficiency (in services) + whom to complain against: Deficiency means fault/inadequacy in the quality, nature, or manner of performance of a service. Complaints can be filed against a trader, manufacturer (maker/assembler/brand-marker claiming goods as his), or service provider/supplier (private, public, or cooperative).
Topics
Unit-1 : Business Environment
Business Environment
Capital - Fixed and Working
- Sources of Finance for Sole Trader
- Sources of Finance for Partnership
- Sources of Finance for Joint Stock Company
- Sources of Finance for Financial Planning
- Concept of Fixed and Working Capital
- Factors Affecting Fixed and Working Capital Requirements
- Comparison Between Fixed and Working Capital
- Overview of Capital - Fixed and Working
Unit-2 : Financing
Sources of Finance for a Joint Stock Company
- Concept of Shares
- Finance for a Joint Stock Company - Bonus Shares
- Finance for a Joint Stock Company - Rights Issue
- Employee Stock Option Plan (ESOP)
- Sweat Equity Shares
- Retained Earnings
- Long-term Sources of Funds
- Advantages and Disadvantages of Debentures
- Concept of Debentures
- Loans from Commercial Banks and Financial Institutions
- Loans from Commercial Banks and Financial Institutions - Advantages and Disadvantages
- Different Types of Short Term Financial Assistance by Commercial Banks
- Short-term Sources of Funds - Public Deposits
- Short-term Sources of Funds - Trade Credit
- Short-term Sources of Funds - Factoring
- Inter Corporate Deposits and Installment Credit
- Advantages and Disadvantages of Various Sources of Funds
- Overview of Sources of Finance for a Joint Stock Company
Unit-3 : Management
Banking - Latest Trends
- Concept of Online Services
- Transfer of Funds Through Real Time Gross Settlement (RTGS)
- Banking Services with Particular Reference - National Electronic Fund Transfer
- Issue of Demand Drafts Online
- Banking
- Advantages and Disadvantages of Online Payments, E-banking
- Advantages and Disadvantages of Mobile Banking
- Debit Cards Vs Credit Cards, ATM (Automated Teller Machine)
- Differences Between Debit Card and Credit Card
- Overview of Banking - Latest Trends
Unit-4 : Marketing
Management - Meaning, Nature and Importance
Principles of Management
Functions of Management and Coordination
Planning
Organising
Staffing
Directing
Controlling
Marketing - Concept and Functions
- Concept of Market
- Types of Market
- Concept of Marketing
- Comparison Between Marketing and Selling
- Importance of Marketing
- Functions of Marketing
- Overview of Marketing - Concept and Functions
Marketing Mix
- Concept of Marketing Mix
- Marketing Mix - Product Mix
- Product Mix - Goods
- Product Mix - Services
- Product Mix - Branding
- Product Mix - Labeling
- Product Mix - Packaging
- Marketing Mix - Price Mix
- Marketing Mix - Place Mix
- Choice of Channels of Distribution and Physical Distribution
- Concept of Promotion (Marketing)
- Elements of Promotion Mix
- Overview of Marketing Mix
Consumer Protection
- Concept of Consumer Protection
- Importance of Consumer Protection
- Methods of Consumer Protection
- Consumer Protection Act, 2019
- Consumer Protection Act 1986 (COPRA)
- Legislative Measures and Consumer Associations/NGOs
- Comparison of Consumer Dispute Redressal Agencies
- Overview of Consumer Protection
CISCE: Class 12
Key Points: Need for Consumer Protection
- Consumer is the purpose of business: Business exists to create, satisfy, and retain customers by providing the right quality, quantity, and price.
- Business is for human welfare: Business is a means to serve people, and it cannot survive long if consumers are not treated fairly.
- Stakeholder responsibility: Business must protect consumers because they are key stakeholders, along with owners, employees, public, and government.
- Social justice, ethics, and trusteeship: Consumer protection supports social justice (as per constitutional ideals) and is also a moral duty (trusteeship and business ethics).
- Self-interest of business: In a competitive market and under consumer laws, firms must be consumer-oriented; otherwise they may lose customers, goodwill, and face legal action.
CISCE: Class 12
Key Points: Rights of Consumers
- Right to Safety: Consumers must be protected from hazardous goods that can harm life and property; producers/distributors are responsible for product safety.
- Right to be Informed: Consumers should get complete and correct information about quality, quantity, purity/standard, price, ingredients, precautions, risks, and side effects to avoid deception.
- Right to Choose: Consumers must have access to a variety of goods at competitive prices, with freedom to select without pressure or aggressive selling.
- Right to be Heard and Seek Redressal: Consumers can raise complaints at proper forums, and if goods/services are unsatisfactory or unfair practices occur, they can get repair, replacement, refund, or compensation.
- Right to Consumer Education and Healthy Environment: Consumers should be aware of their rights and remedies and also be protected from environmental pollution, ensuring a better quality of life and conservation for the future.
CISCE: Class 12
Key Points: Consumer Responsibilities
- Exercise consumer rights: Consumers should be aware of their rights and use them carefully while purchasing goods and services.
- Ask for complete information: Before buying, consumers must collect full details about quality, utility, price, and terms, instead of depending only on the seller.
- Be quality-conscious: Prefer products with standard quality marks such as ISI, AGMARK, FPO, Woolmark, Pure Cotton, etc., to avoid adulteration and fake goods.
- Insist on proper bills/receipts: Always take a cash memo/receipt and, if applicable, a warranty/guarantee card duly stamped and signed—this acts as proof for reminder/compensation.
- Be alert and complain when needed: Do not get misled by exaggerated advertisements; compare alternatives and report discrepancies. If exploited, file complaints and approach the Consumer Forum for redressal against defective goods, deficient services, or unfair trade practices.
CISCE: Class 12
Key Points: Methods of Consumer Protection
- Self-regulation by business (self-help): Businesses should follow a code of conduct, practise consumer-oriented marketing, and maintain self-discipline. Trade associations and chambers of commerce can help prevent consumer exploitation.
- Consumer awareness: Consumers must be alert, well-informed, and speak/act against exploitation. Self-help is the best protection.
- Consumer associations and NGOs: Consumers should unite and participate in consumer organisations. These groups educate and guide consumers and take collective action, though the movement is still developing, especially in rural areas.
- Government control (laws and enforcement): The government protects consumers through legislative, executive, and judicial actions. It also supports awareness through programmes, journals like ‘Upabhokta Jagaran’, and celebrates World Consumer Rights Day (15 March).
- Support systems for protection and redressal: Government provides schemes and facilities like eco-mark, consumer welfare fund, lok adalats, public interest litigation (PIL), and consumer redressal forums (District Forum, State Commission, National Commission) for speedy and economical settlement of disputes.
CISCE: Class 12
Key Points: Consumer Protection Act, 1986
- Purpose of the Act (1986): It was passed to promote and protect consumer rights and to provide simple, speedy, and time-bound redressal of complaints.
- Remedies available to consumers: Forums can order repair/removal of defects, replacement, refund, compensation, withdrawal of hazardous goods, and stopping unfair/restrictive trade practices.
- Three-tier redressal system: The Act sets up District Forum, State Commission, and National Commission to settle consumer disputes.
- District Forum (up to ₹25 lakh): Set up in every district; has chairman + 2 members and powers like a civil court. It hears cases up to ₹25 lakh and can order refund/replacement/compensation, etc. Appeal → State Commission within 30 days.
- State Commission (₹20 lakh to ₹1 crore): Headed by a High Court Judge (President) + 2 members. It hears cases above ₹20 lakh and up to ₹1 crore, and appeals from District Forums. Appeal → National Commission within 30 days.
- National Commission (above ₹1 crore): Headed by a Supreme Court Judge (President) + 4 members. It hears cases above ₹1 crore and appeals from State Commissions; can order recall of unsafe/defective products and compensation. Appeal → Supreme Court within 30 days.
- Other key features: Applies to most goods and services (unless exempted), covers private/public/co-operative sectors, gives additional remedy besides other laws, complaints can be filed by consumer or registered consumer organisation, must be filed within 2 years, and cases should be decided within 3 months (or 5 months if testing is needed).
CISCE: Class 12
Key Points: Consumer, Complaint and Related Terms (Consumer Protection Act, 1986)
CISCE: Class 12
Key Points: Consumer Protection Act, 2019
- Act in force (2019): The Consumer Protection Act, 2019 came into effect on 20 July 2020 and focuses on stronger consumer rights protection.
- CCPA set up: It creates the Central Consumer Protection Authority (CCPA) to promote, protect and enforce consumer rights and handle unfair trade practices, misleading ads, and rights violations.
- Powers of CCPA: CCPA can investigate, file complaints/prosecution, recall unsafe goods/services, stop unfair practices/misleading ads, and penalise manufacturers/endorsers/publishers for misleading advertisements.
- E-commerce rules (2020): The Consumer Protection (E-commerce) Rules, 2020 are mandatory; platforms must clearly inform consumers about return/refund/exchange, warranty/guarantee, delivery, payment options, grievance redressal, payment security, charge-back, and country of origin.
- No denial of refund/return in valid cases: Sellers cannot refuse return/withdrawal/refund if goods/services are defective, deficient, delivered late, or not as described; e-commerce platforms are also barred from unjustified price manipulation.
- Product liability: Manufacturer/service provider/seller can be made to compensate for injury/damage due to defects or deficient services (e.g., manufacturing/design defects, deviation from specs, breach of warranty, missing instructions, faulty service).
- Dispute handling simplified + mediation: Complaints can be filed online and in the commission where the consumer resides, hearings can use video conferencing, and if admissibility isn’t decided in 21 days, it is treated as admitted. Mediation can be used for early settlement (no appeal against mediated settlement).
CISCE: Class 12
Key Points: Distinction between Consumer Protection Act, 1986 and Consumer Protection Act, 2019
| Basis of distinction | CPA, 1986 (Old Act) | CPA, 2019 (New Act) |
|---|---|---|
| 1. Ambit / coverage | Covers goods & services for consideration; free and personal services excluded | Covers all goods & services (includes telecom, housing construction) and all modes (online, teleshopping, etc.); free and personal services excluded |
| 2. Unfair trade practices | 6 types (e.g., false representation, misleading ads) | Adds 3 more: no bill/receipt, refusal to take return within 30 days, disclosure of personal info given in confidence (except law/public interest); contests/lotteries may be notified outside UTP |
| 3. Product liability | No provision | Yes—claim can be made against manufacturer, service provider, seller (compensation on conditions given in the Act) |
| 4. Unfair contracts | No provision | Defined; lists 6 contract terms that may be treated as unfair |
| 5. Regulator / authority | No regulator | Sets up CCPA with powers like recall goods, stop unfair practices, reimburse price, penalise misleading ads |
| 6. Pecuniary jurisdiction | District: up to ₹20 lakh; State: ₹20 lakh–₹1 crore; National: above ₹1 crore | District: up to ₹1 crore; State: ₹1–₹10 crore; National: above ₹10 crore |
| 7. Alternate dispute redressal | No provision | Mediation cells attached to District/State/National Commissions for settlement |
CISCE: Class 12
Key Points: Role of Consumer Organisations and NGOs
- Consumer organisations/associations are voluntary groups of consumers formed to protect consumer interests (around 500 exist in India, but only a few are prominent).
- Important examples include VOICE, Common Cause (New Delhi), Consumer Guidance Society of India (Mumbai), CERC (Ahmedabad) and CUTS (Jaipur).
- The Consumer Coordination Council works as an apex body to coordinate consumer organisations in India.
- These organisations create awareness by educating consumers about their rights, responsibilities, and available remedies, and by publishing journals/brochures/monographs.
- They support consumers through product testing/data collection, organising seminars/workshops/conferences, exhibitions on spurious/adulterated goods, and running counselling/guidance centres.
- They take action by organising protests and boycotts and also filing complaints, suits and writ petitions in courts on behalf of consumers.
- NGOs are voluntary organisations serving society (e.g., CRY for poor children); the press supports consumer protection via complaint columns, and consumer education is included in schools/colleges (IGNOU has developed a syllabus).
