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Marketing Aptitude Study Material – Consumer Protection

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Marketing Aptitude Study Material – Consumer Protection

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Consumer protection means safeguarding the interests and rights of consumers. In other words, it refers to the measures adopted for the protection of consumers from unscrupulous and unethical malpractices by the business and to provide them speedy redressal of their grievances.

The most common business malpractices leading to consumer exploitation are given below

  • Sale of duplicate goods.
  • Sale of sub-standard goods.
  • Sale of spurious goods.
  • Sale of adulterated goods.
  • Use of false weights and measures leading to underweight.
  • Hoarding and black-marketing, leading to scarcity and rise in price.
  • Charging more than the Maximum Retail Price (MRP) fixed for the product.
  • Misleading advertisements, e., advertisements falsely claiming an inferior product or service to be of superior quality, grade or standard.
  • Supply of inferior services, i.e., quality of service lower than the quality agreed upon.

Consumer Protection Act (CPA), 1986

This Consumer Protection Act was passed in 1986 and it came into force from 1st July, 1987. The main objectives of the Act are to provide better and all round protection to consumers and effective safeguards against different types of exploitation such as defective goods, deficient services and unfair trade practices.It also makes provisions for a simple, speedy and inexpensive machinery for redressal of consumer’s grievances.

Salient Features, of CPA, 1986

  1. It applies to all goods, services and unfair trade practices unless specifically exempted by the central government.
  2. It covers all sectors-private, public or co-operative.
  3. It provides for establishment of consumer protection councils at the central, state and district levels to promote and protect the rights of consumers.
  4. It provides a statutory recognition to the six rights of consumers.

Goods and Services Covered Under CPA, 1986
The term ‘goods’ under this Act has the same meaning as under the Sale of Goods Act. Accordingly. it covers all types of movable property other than money and includes stocks and shares,growing crops, etc.

The term ‘service’ means service of any description made available to potential users and includes banking, financing, housing construction, insurance,entertainment, transport, supply of electrical another energy, boarding and lodging, amusement, etc.The services of doctors, engineers, architects,lawyers, etc are also to be included under the Provisions of Consumer Protection Act.

Some Acts Related to Consumer Protection

  • The Sale of Goods Act, 1930
  • Agricultural Products (grading and marketing) Act, 1937
  • Drug Control Act, 1950
  • Industries Development and Regulation Act, 1951
  • Prevention of Food Adulteration Act, 1954
  • Essential Commodities Act, 1955
  • Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act)
  • The Prevention of Black Marketing and Maintenance of Essential Supplies Act, 1980
  • Bureau of Indian Standard Act, 1986
  •  Consumer Protection Act, 1986
  • Trademark Act, 1999
  • Competition Act, 2002

Rights of Consumers

The Consumer Protection Act provides following rights of consumers

  • Right to Safety: It is the right of the consumers to be protected against goods and services, which are hazardous to health or life. Food additives and colours, dangerous toys, flammable fabrics, unsafe appliances are examples of such goods.
  • Right to be Informed: It means the consumer must be provided with adequate and accurate information about quality, potency, quantity, purity, standard and the price of the goods and services. Such information helps the consumers in their buying decisions and use of the products.
  • Right to Choose: It provides that the consumer must be assured, whenever possible, access to a variety of goods and services at competitive prices. Free competition and wide variety of products enable consumers to choose the best goods.
  • Right to be Heard: This right means that consumers have a right to approach government and public bodies when decisions and policies are made which can hamper consumer interests.Also, consumers have a right to be heard by manufacturers, dealers and advertisers about their opinion on production, marketing decisions and any grievances of the consumers.
  • Right to Seek Redressal: The consumers have been given the right of redressal of their grievances relating to the performance, grade, quality, etc of the goods and services. The Consumer Protection Act has duly provided for a fair settlement of genuine grievances of the consumers.It has also set-up a proper mechanism for their redressal at district, state and national levels.
  • Right to Consumer Education: It means the consumer has the right to receive knowledge to become informed consumer. In this direction, the consumer associations, educational institutions and policy-makers can play an important part.

In India, 24th December is celebrated as National Consumer Day because on 24th December 1986, Consumer Protection Act. 1986 was applied. Along with it, from the year 2000.15th March is celebrated as World Consumer Day.

MRTP ACT

Now-a-days there is a tendency in the businessmen to exploit customer by giving the misleading advertisments. Sometimes impossible things are guaranteed, also the advertised things to the monopoly.To protect the consumers from this type of exploitation, central government has prepared Monopolies and Restrictive Trade Practices Act, it is abbreviated as MRTP. Consumers need to complain to MRTP Commission about such matter so that necessary action can be taken.

What can be the Complaints?

  • In case of loss due to the use of improper/ restricted techniques
  • Defect in the goods purchased
  • Problems in the hired or used services
  • Price charged than the indicated prize
  • In case of violation of law and a good is being sold to public which can cause their life

Who can File a Complaint?

  • Consumer itself
  • Volunteer consumer organisation which is registered under committee register act 1860 or company act 1951 or registered under law applied currently.

Central or State Government can take this matter in its 1 cognition.

Where to File a Complaint?

Where to file a complaint depends on the cost of service or amount demanded as compensation.

  • If the amount is less than 20 lac, then complain can be filed in distric forum.
  • If the amount is more than 20 lac and less than 1 crore, then complain can be filed in state commission.
  • If the amount is more than 1 crore, then commission can be filed in national commission.

How to File a Complaint?

  • Consumer can file a complaint on plain paper
  • Details of the consumer and opposite party
  • Facts related to the complain, like when and where
  • Documents supporting the complaint
  • Signature of authorised agent

There is no need of lawyer for these types of complaints, a nominal court fee is charged for it.

Compensation: Compensetion includes the cost to you i caused by a problem with products or services. This is usually financial costs, but can include other costs such as lost time or productivity.

Tit-Bits

  • Consumer association, education institutions and policy makers can play an important role for the right to consumer education.
  • Under hiring type of agreement for a contract, the buyer has a right to return the goods at any time.

Check Your Skills

1. Which of the following day is celebrated as world consumer right day?

  1. 15th March
  2. 20th March
  3. 15th April
  4. 20th April
  5. None of these

2. Which of the following rights of consumer protects the consumer against goods and services hazardous to health or life?

  1. Right to choose
  2. Right to safety
  3. Right to be informed
  4. Right to seek redressal
  5. None of the above

3. Which of the following is/are right/rights of consumer?

  1. Right to safety
  2. Right to choose
  3. Right to be informed
  4. Right to be heard
  5. All of the above

4. Which of the following can play an important role for the right to consumer education?

  1. Consumer association
  2. Education institutions
  3. Policy makers
  4. All of the above
  5. None of the above

5. The Consumer Protection Act came into force in

  1. 1986
  2. 1987
  3. 1988
  4. 1990
  5. None of these

6. Which of the following day is celebrated as national consumer day?

  1. 10th December
  2. 24th January
  3. 24th December
  4. 15th March
  5. None of the above

7. Under which type of agreement for a contract, the buyer has a right to return the goods at any time?

  1. Hiring
  2. Agency
  3. Bailment
  4. Sale
  5. None of these

8. MRTP stands for

  1. Market Research Technique Process
  2. Monopolies and Restrictive Trade Practices
  3. Member of Restrictive Trade Practices
  4. Measurement and Research of Testing Process
  5. None of the above

9. CPA stands for

  1. Consumer Prevention Act
  2. Customer Prevention Act
  3. Consumer Precaution Act
  4. Consumer Protection Act
  5. None of the above

10. Under the Consumer Protection Act, 1986, ‘goods’ means

  1. every kind of movable property only
  2. every kind of immovable property only
  3. every kind of movable property other than money
  4. All of the above
  5. None of the above

11. Under which of the following rights, the consumer must be provided the quality detail of product?

  1. Right to safety
  2. Right to be informed
  3. Right to choose
  4. Right to education
  5. None of these

12. Goods under CPA, 1986 covers

  1. all movable property
  2. stocks and shares
  3. growing crops
  4. All of the above
  5. None of the above

13. Which of the following rights provides a fair settlement of genuine grievances of the consumers?

  1. Right to seek redressal
  2. Right to consumer education
  3. Right to be heard
  4. Right to be informed
  5. None of the above

14. MRTP Act came into existence in

  1. 1969
  2. 1972
  3. 1975
  4. 1985
  5. None of these

15. Consumer protection means

  1. safeguarding interest of consumers
  2. safeguarding rights of consumers
  3. protection against unethical malpractices
  4. All of the above
  5. None of the above

16. Consumer Protection Act came into existence in

  1. 1946
  2. 1966
  3. 1976
  4. 1986
  5. 1996

17. The time of the central consumer protection council under the Consumer Protection Act, 1986 is

  1. 3 years
  2. 4 years
  3. 5 years
  4. 6 years
  5. None of these

18. Which of the following is not included in the term ‘person’ under Consumer Protection Act, 1986?

  1. Hindu undivided family
  2. A co-operative society
  3. Firm
  4. AH of the above
  5. None of the above

19. The most common business malpractice leading to consumer exploitation include

  1. sales of duplicate goods
  2. sales of sub-standard goods
  3. hoarding and black marketing
  4. charging more than MRP
  5. All of the above

20. In case goods are purchased for resale, these goods under the Consumer Protection Act, 1986 are

  1. meant
  2. for business
  3. for sale
  4. for commercial purpose
  5. All of the above
  6. None of the above

21. The Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities Act was passed in

  1. 1980
  2. 1982
  3. 1985
  4. 1986
  5. 1990

22. Consumers preferably purchase quality marked products, like products with ISI, Agmark. It is their

  1. right to be informed
  2. right to safety
  3. right to be heard
  4. right to choose
  5. None of the above

Answer Key

Marketing Aptitude Study Material - Consumer Protection-key15

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