WOMEN’S COLLEGE JHARSUGUDA

SESSION 2023-2024

GROUP – B

BUSINESS STUDIES AND MANAGEMENT (BSM) PROJECT

PROJECT WORK ON –

Importance on consumer protection

SUBMITTED BY

NAME -

CLASS +2 2nd year commerce Internal Signature

Roll no. –

Student Signature Date of submission

 CERTIFICATION FROM THE GUIDE

This is certifying that ________________ of class +2 2nd year

Commerce Roll No. ___________ Women’s college, Jharsuguda has
successfully complete this project as per the instruction provided by me

________________

Student Signature Internal Signature

Date of submission
 PREFACE

I am presenting a project assignment like on the topic of relation

between mean, median and mode.

I have tried to give all the important points regarding this topic. I am
thankful to everyone who all supported me to complete this project on
this.

I am equally thankful to my teachers who gave me a normal support

and guided me to complete this project on time. He also guide me in
different matters regarding this projects. While doing this project. I
came to know about many things.

Last but not the least, I would like to thank my parents who helped me
a lot.

Precaution are taken to avoid mistakes over all some mistake may be
possible.
 ACKNOWLEDGEMENT

I would like to express may special thank of gratitude to my

teacher ______________ as well as our principle
_______________ who gave me the golden opportunity to do
this wonderful project on this
________________________________________, which also
helped me in doing a lot of research and I came to know about
so many new things.

I am really thankful to them.

I am making this project not only for marks but also to increase
my knowledge.

THANKS AGAIN TO ALL WHO HELPED ME.

 CONTENTS

⮚ INTRODUCTION

⮚ WHO IS A CONSUMER ?

⮚ CONSUMER PROTECTION ACT

⮚ CONSUMER RIGHTS

⮚ CONSUMER RESPONSIBILITIES

⮚ WHO CAN A FILE COMPLAINT?

⮚ ROLE OF CONSUMER ORGANISATIONS AND NGOS

⮚ CASE STUDY

⮚ QUANLITY STANDARD MARKS

⮚ CONCULSION
⮚ BIBLIOGRAPHY
 INTRODUCTION
The consumer movement in India is as old as trade and commerce. In
Kautilya‟s Arthashastra, there are references to the concept of
consumer protection against exploitation by the trade and industry,
short weighment and measures, adulteration and punishment for these
offences. However, there was no organized and systematic movement
actually safeguarding the interests of the consumers. With the advent
of the 20th century due to rapid industrialization and multifaceted
development in India after the Independence, there appeared a flood of
consumer goods and services in the Indian Market, which almost
changed the relationship between the consumer and the trader. Lack of
consumer awareness, illiteracy, poverty, etc. further led to the
exploitation of consumers.
Awareness of consumer rights varies in different regions in the
country.. The consumer has to be aware of his rights and play a key
role. The success of consumerism is a strong function of consumer
awareness and to avoid exploitation consumer must become
knowledgeable

WHO IS A CONSUMER ?
The end-user of any product or service is known as the consumer. A
consumer is someone who consumes a product or service without the
consent of the buyer who purchased it.

A customer is any individual or group of individuals who, in addition to

the buyer of the product or services, uses the product with his or her
consent. To put it another way, the consumer is the one who uses the
goods or services.

CONSUMER PROTECTION ACT

Consumer Protection Act, 1986 was passed in 1986 and enforced
from July 1st ,1987 with the motive to protect the interest of
consumer of being exploited by shopkeepers or markets to maximum
profits which ultimately harm the well- beings of the consumer and
the society.

It has a wide agenda. It not only includes educating consumers about

their rights and responsibilities, but also helps in getting their
grievances redressed. At the same time, consumer protection has a
special significance for businesses too.
From Consumers’ point of view

The importance of consumer protection from the consumers’ point of

view can be understood from the following points:

(i) Consumer Ignorance: In the light of widespread ignorance

of consumers about their rights and reliefs available to them, it
becomes necessary to educate them about the same so as to
achieve consumer awareness.
(ii) Unorganized Consumers: Consumers need to be organized
in the form of consumer organizations which would take care
of their interests. Though, in India, we do have consumer
organizations which are working in this direction, adequate
protection is required to be given to consumers till these
organizations become powerful enough to protect and
promote the interests of consumers.
(iii) Widespread Exploitation of Consumers: Consumers might be
Compensation for impurities in cold drinks exploited by unscrupulous,
exploitative and unfair trade practices like defective and unsafe
products, adulteration, false and misleading advertising, hoarding,
 black-marketing etc. Consumers need protection against such
malpractices of the sellers

CONSUMER RIGHTS

The Consumer Protection Act provides for six rights of consumers. The
consumer protection councils set up under the Act are intended to
promote and protect the various rights of consumers. These rights
include the following:

1. Right to Safety: The consumer has a right to be protected against

goods and services which are hazardous to life and health..

2. Right to be Informed: The consumer has a right to have complete

information about the product he intends to buy including its
ingredients, date of manufacture, price, quantity, directions for use, etc.

3. Right to Choose: The consumer has the freedom to choose from a

variety of products at competitive prices. This implies that the
marketers should offer a wide variety of products in terms of quality,
brand, prices, size, etc. and allow the consumer to make a choice from
amongst these.

4. Right to be Heard: The consumer has a right to file a complaint and

to be heard in case of dissatisfaction with a Good or a service
5. 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 a number of reliefs to the consumers including
replacement of the product, removal of defect in the product,
compensation paid for any loss or injury suffered by the consumer, etc.

6. Right to Consumer Education: The consumer has a right to acquire

knowledge and to be a well informed consumer throughout life. He
should be aware about his rights and the reliefs available to him in case
of a product or service falling short of his expectations.

CONSUMER RESPONSIBILITIES

A consumer should keep in mind the following responsibilities while

purchasing, using and consuming goods and services.
(i) Be aware about various goods and services available in the
market so that an intelligent and wise choice can be made.
(ii) Buy only standardised goods as they provide quality assurance.
Thus, look for ISI mark on electrical goods, FPO mark on food
products, Hallmark on jewelry etc.
(iii) Learn about the risks associated with products and services,
follow manufacturer’s instructions and use the products safely.
(iv) Read labels carefully so as to have information about prices, net
weight, manufacturing and expiry dates, etc.
(v) Assert yourself to ensure that you get a fair deal
(vi) Be honest in your dealings. Choose only from legal goods and
services and discourage unscrupulous practices like black-
marketing, hoarding etc.
(vii) Ask for a cash memo on purchase of goods or services. This
would serve as a proof of the purchase made.
(viii) 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.
(ix) Form consumer societies which would play an active part in
educating consumers and safeguarding their interests.
Who can file a complaint?:

A complaint before the appropriate consumer forum can be made by:

(i) Any consumer;

(ii) Any registered consumers’ association;

(iii) The Central Government or any State Government;

(iv) One or more consumers, on behalf of numerous consumers having

the same interest; and
(v) A legal heir or representative of a deceased consumer. Let us now
see how the consumer grievances are redressed by the threetire
machinery under the Consumer Protection Act.

1. District Forum: The District Forum consists of a President and two

other members, one of whom should be a woman. They all are
appointed by the State Government concerned. A complaint can to be
made to the appropriate District Forum when the value of the goods or
services in question, along with the compensation claimed, does not
exceed Rs. 20 lakhs. On receiving the complaint, the District Forum
shall refer the complaint to the party against whom the complaint is
filed. If required, the goods or a sample thereof, shall be sent for testing
in a laboratory. The District Forum shall pass an order after
considering the test report from the laboratory and hearing to the party
against whom the complaint is filed. In case the aggrieved party is not
satisfied with the order of the District Forum, he can appeal before the
State Commission within 30 days of the passing of the order.
2. State Commission: Each State Commission consists of a President
and not less than two other members, one of whom should be a
woman. They are appointed by the State Government concerned. A
complaint can to be made to the appropriate State Commission when
the value of the goods or services in question, along with the
compensation claimed, exceeds Rs. 20 lakhs but does not exceed Rs. 1
crore. The appeals against the orders of a District Forum can also be
filed before the State Commission. On receiving the complaint, the State
Commission shall refer the complaint to the party against whom the
complaint is filed. If required, the goods or a sample thereof, shall be
sent for testing in a laboratory. The State Commission shall pass an
order after considering the test report from the laboratory and hearing
to the party against whom the complaint is filed. In case the aggrieved
party is not satisfied with the order of the State Commission, he can
appeal before the National Commission within 30 days of the passing
of the order.

3. National Commission: The National Commission consists of a

President and at least four other members, one of whom should be a
woman. They are appointed by the Central Government. A complaint
can to be made to the National Commission when the value of the
goods or services in question, along with the compensation claimed,
exceeds Rs. 1 crore. The appeals against the orders of a State
Commission can also be filed before the National Commission. On
receiving the complaint, the National Commission shall refer the
complaint to the party against whom the complaint is filed. If required,
the goods or a sample thereof, shall be sent for testing in a laboratory.
The National Commission shall pass an order after considering the test
report from the laboratory and hearing to the party against whom the
complaint is filed. An order passed by the National Commission in a
matter of its original jurisdiction is appealable before the Supreme
Court. This means that only those appeals where the value of goods and
services in question, along with the compensation claimed, exceeded
Rs. 1 crore and where the aggrieved party was not satisfied with the
order of the National Commission, can be taken to the Supreme Court
of India. Moreover, in a case decided by the District Forum, the appeal
can be filed before the State Commission and, thereafter, the order of
the State Commission can be challenged before the National
Commission and no further.

ROLE OF CONSUMER ORGANISATIONS AND NGOS

In India, several consumer organizations and non-governmental
organizations (NGOs) have been set up for the protection and
promotion of consumers’ interests. Nongovernmental organizations are
nonprofit organizations which aim at promoting the welfare of people.
They have a constitution of their own and are free from government
interference. Consumer organizations and NGOs perform several
functions for the protection and promotion of interest of consumers

CASE STUDY-1
Manjeet Singh Vs. National Insurance Company
Ltd. & Anr:
In this case, the appellant had purchased a second - hand truck under
a Hire Purchase agreement. The vehicle was insured by the
respondent insurance company. One day when he was driving the
truck, a passenger asked him to stop the truck and give him a lift.
 When he stopped the truck, the passenger brutally assaulted the driver
and fled with the vehicle. An FIR was lodged and the respondent
finance company was intimated about the theft. However, the
insurance company rejected the claim on the ground of breach of
terms of the policy. The complainant approached District Consumer
Disputes Forum, State Commission and National Commission to
compensate him for the loss. All of them had rejected the case. So,
finally he approached the Supreme Court.

Judgment:
The Supreme Court held that the appellant was not at all in fault. It can
be considered as a breach of the policy, but not a fundamental breach to
bring the insurance policy to an end and terminate the insurance policy.
The two - judge bench of Supreme Court directed the respondent
insurance company to pay 75% of the insured amount along with 9%
interest p.a. from the date of filing the claim. The court also directed the
insurance company to pay sum of Rs. 1, 00, 000 as compensation.

CASE STUDY-2

2. National Insurance Company Ltd. Vs. Hindustan Safety

Glass Works Ltd. & Anr.
In this case, the insurance company had refused to compensate the
respondent because of damage caused due to heavy rain during a
mentioned period. The Insurance Company admittedly denied relief to
the insured on the basis of one of the conditions of the policy which
stated that National Insurance would not be liable for any loss or damage
12 months after the event of the loss or damage to the insured. The
insured filed a complaint with the National Commission under the
provisions of the Consumer Protection Act, 1986.

Judgment:
The National Commission held that the claim made by the insured is
actionable. It also observed that the goods were insured at the time of
incident and he asked for the claim next day. It rejected all the
contentions urged by National Insurance and ordered the insurance
company to award an amount of Rs. 21, 05,803.89 with interest at 9%
per annum.

QUANLITY STANDARD MARKS

ISI Mark
Indian standard institute marks

AGMARK
Agriculture Marks

FPO Marks
Food Process Order Marks

FSSAI Marks
Food safety and standards
Authority of India

Eco Marks
 Vegetarian and
NON- Vegetarian Marks

CONCULSION

It can be concluded that both the government and the consumer

should make efforts collectively to create awareness about the
sights and the responsibilities of the consumers and to reduce
exploitation of consumer.
India has been observing 24 December as the “National
Consumer” Day as on this day. Indian GORVENMENT enacted
consumer protection act,1986. There are today about 20-25 well
organized and recognized consumer group in India out of 100.
In India, after consumer movement consumer awareness were
spreading very slowly ,but after the enactment of consumer
protection act,1986 it took a little speed though slowly in our
country..
For the speedy progress of the consumer movement, we requires
a voluntary effort and active participation of the people.

BIBLIOGRAPHY

For successfully completing my project file. I have taken help

from the following website links:-

● www.google.com

● www.wikipedia.com

● www.buyjus

● www.youtube.com
BOOK :- Business studies and management (BSM)
(+2 2nd year commerce, CHSE)