Consumer

From Wikipedia, the free encyclopedia

This article is about consumers in social systems. For other uses, see Consumer
(disambiguation).

Consumers buying fruit in Nanjing, China

A consumer is a person or organization that uses economic services or commodities.[1]
In economic systems consumers are utilities expressed in the decision to trade or not.

Contents

1 Economics and marketing

2 Law and politics

3 Public reaction

4 See also

5 References

6 External links

Economics and marketing

The consumer is the one who pays to consume goods and services produced. As such, consumers
play a vital role in the economic system of a nation. Without consumer demand, producers would
lack one of the key motivations to produce: to sell to consumers. The consumer also forms part
of the chain of distribution.
Recently in marketing instead of marketers generating broad demographic profiles and Fisiographic profiles of market segments, marketers have started to engage in personalized marketing,
permission marketing, and mass customization.[2]
Largely due the rise of the Internet, consumers are shifting more and more towards becoming
"prosumers" consumers that are also producers (often of information and media on the social
web) or influence the products created (e.g. by customization, crowdfunding or publishing their
preferences) or actively participate in the production process or use interactive products.[3][4][5]

Law and politics

The law primarily uses the notion of the consumer in relation to consumer protection laws, and
the definition of consumer is often restricted to living persons (i.e. not corporations or
businesses) and excludes commercial users.[6] A typical legal rationale for protecting the
consumer is based on the notion of policing market failures and inefficiencies, such as

inequalities of bargaining power between a consumer and a business.[7] As of all potential voters
are also consumers, consumer protection takes on a clear political significance.
Concern over the interests of consumers has also spawned activism, as well as incorporation of
consumer education into school curricula.[citation needed] There are also various non-profit
publications, such as Which?, Consumer Reports and Choice Magazine, dedicated to assist in
consumer education and decision making.
In India, the Consumer Protection Act 1986 differentiates the consummation of a commodity or
service for personal use or to earn a livelihood. Only consumers are protected per this act and
any person, entity or organization purchasing a commodity for commercial reasons are exempted
from any benefits of this act.[8]

Public reaction
While use of the term consumer is widespread among governmental, business and media
organisations, many individuals and groups find the label objectionable because it assigns a
limited and passive role to their activities.

Consumer Rights in India

The definition of Consumer right is 'the right to have information about the quality, potency,
quantity, purity, price and standard of goods or services, as it may be the case, but the consumer

is to be protected against any unfair practices of trade. It is very essential for the consumers to
know these rights.
However there are strong and clear laws in India to defend consumer rights, the actual plight of
consumers of India can be declared as completely dismal. Out of the various laws that have been
enforced to protect the consumer rights in India, the most important is the Consumer Protection
Act, 1986. According to this law, everybody, including individuals, a firm, a Hindu undivided
family and a company, have the right to exercise their consumer rights for the purchase of goods
and services made by them. It is significant that, as consumer, one knows the basic rights as well
as about the courts and procedures that follow with the infringement of ones rights.
In general, the consumer rights in India are listed below:

The right to be protected from all kind of hazardous goods and services

The right to be fully informed about the performance and quality of all goods and
services

The right to free choice of goods and services

The right to be heard in all decision-making processes related to consumer interests

The right to seek redressal, whenever consumer rights have been infringed

The right to complete consumer education

The Consumer Protection Act, 1986 and several other laws like the Weights, Standards &
Measures Act can be formulated to make sure that there is fair competition in the market and free
flow of correct information from goods and services providers to the ones who consume them. In
fact, the degree of consumer protection in any country is regarded as the right indicator of the
progress of the country.There is high level of sophistication gained by the goods and services
providers in their marketing and selling practices and different types of promotional tasks viz.
advertising resulted in an increasing requirement for more consumer awareness and protection.
The government of India has realized the condition of Indian consumers therefore the Ministry of
Consumer Affairs, Food and Public Distribution has incorporated the Department of Consumer
Affairs as the nodal organization to protect the consumer rights, redress the consumer grievances
and promote the standards governing goods and services provided in India.
If there is infringement of rights of consumer then a complaint can be made under the following
circumstances and reported to the close by designated consumer court:

The goods or services purchased by a person or agreed to be purchased by a person has

one or more defects or deficiencies in any respect

A trader or a service provider resort to unfair or restrictive practices of trade

A trader or a service provider if charges a price more than the price displayed on the
goods or the price that was agreed upon between the parties or the price that was
stipulated under any law that exist

Goods or services that bring a hazard to the safety or life of a person offered for sale,
unknowingly or knowingly, that cause injury to health, safety or life.

Consumer Court
From Wikipedia, the free encyclopedia

This article has multiple issues. Please help improve it or discuss these issues
on the talk page. (Learn how and when to remove these template messages)
This article may require cleanup to meet Wikipedia's quality standards. (January
2009)

The examples and perspective in this article may not represent a worldwide
view of the subject. (September 2011)

Consumer Court[1] is the special purpose court, mainly in India, that deals with cases regarding
consumer disputes and grievances. These are judiciary set ups by the government to protect the
consumer rights. Its main function is to maintain the fair practices by the sellers towards
consumers. Consumers can file a case against a seller if they are harassed or exploited by sellers.
The court will only give a verdict in favour of the consumers/customers if they have proof of
exploitation, i.e., bills or other documents. If a consumer does not have the proper documents
required for filing a case then it would be very difficult for the consumer to win or even file a
case.[2]
Contents

1 India

1.1 Types

1.2 Consumer movement

2 Objectives

3 See also

4 References

India
Types
1. National Consumer Disputes Redressal Commission (NCDRC): A national level
court works for the whole country and deals with amount more than 10
million (US$150,000).[2]
2. State Consumer Disputes Redressal Commission (SCDRC): A state level court
works at the state level with cases valuing less than 10 million
(US$150,000).[2]
3. District Consumer Disputes Redressal Forum (DCDRF): A district level court
works at the district level with cases valuing up to 2 million (US$30,000).[2][3]
Consumer movement

The consumer movement as a social force originated with the necessity of protecting and
promoting the interests of consumers against unethical and unfair trade practices. Rampant food

shortages, hoarding, black marketing, adulteration of food and edible oil gave birth to the
consumer movement in an organised form in the 1960s.
The movement succeeded in bringing pressure. A major step was taken in 1986 by the Indian
government with the enactment of the Consumer Protection Act of 1986 (COPRA).[2]
Objectives

The main function of consumer court is to provide some extra privilege to the consumers and to
maintain fair practice by the seller or the service provider towards the consumer. Submitting
complaint is very simple and consumer has no need to hire any lawyer. Approaching a consumer
court is very simple and extremely cheap as you can represent yourself without having to hire a
lawyer and not required to pay any court fee but just a nominal fee.[2]

Consumer awareness is about making the consumer aware of his/her rights.It is a marketing term
which means that consumers are aware of products or services, its characteristics and the other
marketing Ps (place to buy, price, and promotion).Though the first consumer movement began
in England after the Second World War, a modern declaration about consumers rights was first
made in the United States of America in 1962, where four basic consumer rights (choice,
information, safety and to be heard ) were recognized. Ralph Nadar, a consumer activist, is
considered as the father of consumer movement. March 15 is now celebrated as the World
Consumer Rights Day. The United Nations in 1985 adopted, , certain guidelines to achieve the

objectives of maintaining protection for consumers and to establish high level ethical conduct for
those engaged in production and distribution of goods and services.
High prices, duplicate articles, underweight and under measurements, rough behavior, undue
conditions, artificial scarcity are some of the ways by which consumers are exploited by
manufacturers and traders. Limited information, limited supplies and low literacy are factors
causing exploitation of consumers.
In India, the concept of consumer protection is not new. References to the protection of
consumers interest against exploitation by trade and industry, underweight and measurement,
adulteration and punishment for these offences, were made in Kautilyas Arthashastra.
However, an organized and systematic movement to safeguard the interest of consumers, is a
recent phenomenon. The consumers have to be aware not only of the commercial aspects of sale
and purchase of goods, but also of the health and security aspects. Food safety has become an
important element of consumer awareness these days. In case of food products, its quality
depends not only on its nutritional value, but also on its safety for human consumption.
Consumption of contaminated or adulterated food is a major cause of human illness and
suffering.
This called for strong legal measures to ensure that the manufacturers and sellers observe
uniformity and transparency in prices, stocks and quality of their goods.Enactment of Consumer
Protection Act, 1986 was one of the most important steps taken to protect the interests of
consumers. The provision of the Act came into force, with effect from July 1, 1987. The act
recognizes consumers right to seek redresses and right to consumer education. The salient
features of the Act are as follows:-

Applies to all goods and services unless specifically exempted by the Union Government;

Covers all the sectors whether private, public or cooperative;

Enshrines the consumers rights related to safety, information, choice, representation and
redress and consumer education.

The act gives consumers an additional remedy besides those which may be available to
them under the provisions of other existing laws and they are free to choose the remedy.

Empower consumers seeking discontinuance of certain unfair and restrictive trade

practices, defects or deficiencies in services and stopping in services or withdrawal of
hazardous goods from the market.

There are no legal formalities for filing the complaint. Suppose, you find yourself cheated by
trader or a manufacturer and wish to make a complaint to consumer court, you can write the
details on a plain paper. Attach the supporting documents, that is, guarantee or warrantee card
and cash memo with the complaint and submit it in the district consumer court. You do not have
to go to any lawyer or professional for legal assistance. You yourself can plead the case in the
consumer court.Since, the enactment of the Consumer Protection Act and even before that,
newspapers and magazines have been responding to the needs of consumers. Apart from
publishing articles, columns etc newspapers have also tried to come to the rescue of harassed
consumers. The Indian Express was one of the first newspapers to start a consumer complaint
column.

There are 500 consumer associations, which are working in the field of consumer protection.
They deal with various aspects of consumer exploitation. Some of the prominent ones are:
Consumer Guidance Society of India, Mumbai; Citizens Action group, Mumbai; Common
Cause, New Delhi; Voice, New Delhi; Consumer Utility and Trust Society, Jaipur.
So next time you find yourself at the wrong end of a purchase dont just sit back and blame, go to
a consumer court and make your claim.

Consumer Protection Act, 1986

From Wikipedia, the free encyclopedia

Consumer Protection Act,

1986

An Act to provide for better protection of the

interests of consumers and for that purpose to
make provision for the establishment of
consumer councils and other authorities for

the settlement of consumers' disputes and for

matters connected therewith.
Citation

Act No. 68 of 1986

Enacted by

Parliament of India

Date commenced

24 December 1986

Status: In force

Consumer Protection Act, 1986 is an Act of the Parliament of India enacted in 1986 to protect
the interests of consumers in India. It makes provision for the establishment of consumer
councils and other authorities for the settlement of consumers' disputes and for matters connected
therewith.
Contents

1 Consumer Protection Council

o

1.1 The Central Consumer Protection Council

2 Consumer Disputes Redressal Agencies

3 Objectives

3.1 Objectives of Central Council

3.2 Objectives of State Council

4 Jurisdiction
o

4.1 Jurisdiction of District Forum

4.2 Jurisdiction of state council

5 References

6 External links

Consumer Protection Council

Consumer Protection Councils are established at the national, state and district level to increase
consumer awareness.[1]

The Central Consumer Protection Council

The Central Govt. shall by notification establish with effect from such date as it may specify in
such notification a Council to be known as the Central Consumer Protection Council
Consumer Disputes Redressal Agencies
Main article: Consumer Court

District Consumer Disputes Redressal Forum (DCDRF): Also known as the

"District Forum" established by the State Government in each district of the
State. The State Government may establish more than one District Forum in a
district. It is a district level court that deals with cases valuing up to 2 million
(US$30,000).[1]

State Consumer Disputes Redressal Commission (SCDRC): Also known as the

"State Commission" established by the State Government in the State. It is a
state level court that takes up cases valuing less than 10 million
(US$150,000)[1]

National Consumer Disputes Redressal Commission (NCDRC): Established by

the Central Government.

Objectives
Objectives of Central Council

The objectives of the Central Council is to promote and protect the rights of the consumers such
as:1. the right to be protected against the marketing of goods and services which
are hazardous to life and property.
2. the right to be informed about the quality, quantity, potency, purity, standard
and price of goods or services,
3. the right to seek redressal against unfair trade practices or restrictive trade
practices or unscrupulous exploitation of consumers; and
4. the right to consumer education.
5. the right against consumer exploitation
6. the right to choose
Objectives of State Council

The objective of every State Council shall be to promote and protect within the State the rights of
the consumers laid down in clauses 1 to 7 in central council objectives.

Jurisdiction
Jurisdiction of District Forum
1. Subject to the other provisions of this Act, the District Forum shall have
jurisdiction to entertain complaints where the value of the goods or services
and the compensation, if any, claimed does not exceed rupees twenty lakhs.
2. A complaint shall be instituted in a District Forum within the local limits of
whose jurisdiction:a) the opposite party or each of the opposite parties, where there are more
than one, at the time of the institution of the complaint, actually and
voluntarily resides or carries on business or has a branch office or personally
works for gain, or
b) any of the opposite parties, where there are more than one, at the time
of the institution of the complaint, actually and voluntarily resides, or carries
on business or has a branch office, or personally works for gain, provided that
in such case either the permission of the District Forum is given, or the
opposite parties who do not reside, or carry on business or have a branch
office, or personally work for gain, as the case may be, acquiesce in such
institution; or
c) the cause of action, wholly or in part, arises.
Jurisdiction of state council

Subject to the other provisions of this Act, the State Commission shall have jurisdiction:a) to entertain
i) complaints where the value of the goods or services and compensation, if
any, claimed exceeds rupees twenty lakhs but does not exceed rupees one
crore (R10 million); and
ii) appeals against the orders of any District Forum within the State; and
b) to call for the records and pass appropriate orders in any consumer
dispute which is pending before or has been decided by any District Forum
within the State, where it appears to the State Commission that such District
Forum has exercised a jurisdiction not vested in it by law, or has failed to
exercise a jurisdiction so vested or has acted in exercise of its jurisdiction
illegally or with material irregularity.