Revision: Business Finance and Marketing >> Consumer Protection Business Studies Commerce (English Medium) Class 12 CBSE

Under the Consumer Protection Act 2019, a consumer is a person who buys any goods or avails services for a consideration, which has been paid or promised, or partly paid and partly promised, or under any scheme of deferred payment.

Any allegation in writing made by the complainant for obtaining relief w.r.t restrictive trade practice, defect in goods or deficiency in services provided, overcharging of price or offer of goods or service injurious to life and safety. 

A trade practice which manipulates price or affect the flow of supplies in the market relating to goods and services in such a manner that an unjustified cost is imposed on the consumer. 

 Any fault, imperfection, shortcoming or inadequacy in quality, nature and manner of performance in relation to goods or a product.

Any fault, imperfection, shortcoming or inadequacy in quality, nature and manner of performance in relation to in relation to any service and includes act of negligence or omission or commission or withholding relevant information which causes loss or injury to the consumer. 

Any harm illegally caused to any person in body, mind or property. 

Any article or goods or substance or raw material or any extended cycle of such product either in gaseous , liquid or solid state possessing intrinsic value capable of delivery either as assembled or a component produced or manufactured to trade. It does not include human tissues, blood, blood products and organs. 

Any person in the course of business imports, sells, distributes, leases, installs, prepares, labels, markets, repairs, maintains or otherwise involved in placing the product for commercial use or a service provider. 

Complainant: means one or more consumers, or any voluntary consumer association, central or state government or the central authority or a legal heir or legal representative or a parent or legal representative in case of a minor.

A trade practice for the purpose of promoting sale, use or supply of any goods or service falsely represents its quality, standard, quantity, composition, style or model.

Responsibility of a product manufacturer or seller of any product or service to compensate for any harm caused to a consumer by defective product manufactured or sold or by deficiency in services.

• Long-term Interest of Business – Customer satisfaction leads to repeat sales and long-term profits.
• Use of Society’s Resources – Businesses use public resources, so they must act in public interest.
• Social Responsibility – Businesses have a duty to protect the interests of consumers as key stakeholders.
• Moral Duty – It is morally right for businesses to avoid unfair and exploitative practices.
• Avoid Government Action – Protecting consumers helps businesses avoid legal action and damage to reputation.

• The Consumer Protection Act, 2019 protects and promotes the interests of consumers.
• It provides speedy and inexpensive redressal of consumer grievances.
• It applies to the whole of India.
• It covers all types of businesses, including manufacturers, traders, service providers, and e-commerce firms.
• It grants certain rights to consumers to empower and safeguard them.

• The Consumer Protection Act, 2019 protects consumers from unfair trade practices and replaces the 1986 Act.
• Consumer protection safeguards against adulteration, counterfeit goods, overpricing, black marketing, defective goods, and misleading advertisements.
• It ensures physical safety, access to correct information, and fair prices for consumers.
• It promotes consumer satisfaction and social justice in the market.
• Businesses must follow corporate social responsibility and provide quality goods and services.
• Consumers should be aware of their rights and take action against exploitation.
• Consumer protection includes legal redressal of grievances and formation of consumer associations.

• Self-Regulation by Business – Ethical firms follow fair practices and set up grievance cells to solve customer complaints.
• Business Associations – Trade bodies like FICCI and CII provide guidelines for fair dealings with customers.
• Consumer Awareness – Informed consumers can protect themselves; campaigns like Jago Grahak Jago spread awareness.
• Consumer Organisations – These organisations educate consumers and protect them from exploitation.
• Government Measures – The government protects consumers through the Consumer Protection Act, 2019, CCPA, helpline services, and a three-tier redressal system.

• Right to Safety – Protection against hazardous goods and services.
• Right to be Informed – Right to get complete information about the product (price, quality, ingredients, etc.).
• Right to Choose – Freedom to select from a variety of products at competitive prices.
• Right to be Heard – Right to file complaints and be heard in case of dissatisfaction.
• Right to Seek Redressal – Right to get relief such as replacement, repair, or compensation.
• Right to Consumer Education – Right to gain knowledge about consumer rights and remedies.

• Be Aware – Consumers should know about different products and make wise choices.
• Buy Standardised Goods – Always check quality marks like ISI, FPO, Hallmark, etc.
• Read and Follow Instructions – Read labels carefully and use products safely.
• Demand Proof and Take Action – Ask for a cash memo and file a complaint if needed.
• Act Responsibly – Be honest, avoid unfair practices, form consumer groups, and protect the environment.

• The Act provides a three-tier redressal system – District, State, and National Commissions.
• District Commission – Up to ₹50 lakh (appeal to State Commission).
• State Commission – ₹50 lakh to ₹2 crore (appeal to National Commission).
• National Commission – Above ₹2 crore (appeal to the Supreme Court).
• The system ensures speedy redressal and mediation of consumer complaints.

• Consumer organisations and NGOs work for the protection and promotion of consumer interests.
• They educate consumers about their rights through seminars, workshops, and publications.
• They conduct comparative testing of products and publish results for consumer benefit.
• They provide legal help and file complaints in consumer courts on behalf of consumers.
• They encourage consumers to protest against unfair trade practices and promote consumer unity.