July 27, 2022

WHY WAS CONSUMER PROTECTION ACT INTRODUCED?

When someone enters a room, they immediately begin to consume. He requires food, water, clothing, milk, soap, oil, and many other things, and these requirements change throughout the course of his existence. As a result, we are all consumers in the truest meaning of the word. When a customer approaches the market, we demand value for our money, which includes the proper quality, quantity, and pricing as well as details about the mode of usage. However, there could be times when a customer is bullied or defrauded.

The government recognised the need to safeguard customers against dishonest vendors, and many laws were created to do this. To some extent, consumer interests are protected by laws like the Indian Contract Act, Sale of Goods Act, Dangerous Drugs Act, Agricultural Produce (Grading and Marketing) Act, Indian Standards Institution (Certification Marks) Act, Prevention of Food Adulteration Act, Standards of Weights and Measures Act, etc. However, these regulations demand that the consumer file a civil lawsuit, which involves a drawn-out legal process and takes a lot of money and time.

To make the process of resolving customer complaints simpler and faster, the Consumer Protection Act of 1986 was passed. The Act established the term “customer” for the first time and granted him explicit extra rights. It’s interesting to note that the Act doesn’t aim to defend every consumer in the strictest sense of the word. The protection is intended for everyone who satisfies the Act’s definition of a “consumer.”

Now that we know it, the Consumer Protection Act offers ways to shield customers from being taken advantage of or harassed by suppliers. How would a customer seek protection, one wonders?The answer is the Act has provided a piece of machinery whereby consumers can file their complaints which the Con­sumer Forums will entertain with special powers so that action can be taken against erring suppliers. The possible compensation may be awarded to consumers for the hardships he has undergone. No court fee is required to be paid to these forums, and there is no need to engage a lawyer to present the case.

Consumer protection makes markets work for both businesses and consumers.

Consumers 

Consumers must have access to reliable, unbiased information about the goods and services they choose to buy. They are able to make the best decisions based on their interests as a result, and firms cannot take advantage of them or deceive them. By guaranteeing that firms may be held accountable, consumer protection laws, rules, and regulations assist to improve consumer welfare.

Businesses

Businesses with a solid reputation for treating customers fairly will become more in demand. This boosts their profitability and competitiveness, which will ultimately contribute to economic growth. Policies, rules, and regulations pertaining to consumer protection ensure that firms are held accountable.

Competitiveness and economic growth

Consumer protection helps create thriving marketplaces where firms can expand. Innovation and economic growth are driven by consumer demand because firms must maintain fair prices and high standards for their goods and services.

Integration of Regions

Cross-jurisdictional cooperation on consumer protection is becoming essential with the rise of cross-border and digital trade. By creating the ASEAN Strategic Action Plan for Consumer Protection (ASAPCP) 2025, ASEAN has been making an effort to address these problems.

Consumer protection laws are crucial for shielding customers from subpar services, deceptive advertising, and potentially dangerous products. Consumer protection laws and regulations are crucial for the wellbeing of consumers in a number of ways, including:

  • To safeguard the consumer against the poor quality of the product. To ban the wrong practices started by the producers and sellers.
  • Illiteracy and ignorance by the consumers as the consumers from the undeveloped area are poor and illiterate; thus, they can be easily cheated by the producers.
  • Consumers in our country are not united however; the businessmen and traders are indeed united and powerful.
  • At the present time, there is an increase in the supply of duplicate products. Hence, it is problematic for the consumer to differentiate between an original product and the fake one. So, it is essential to protect the consumers from misuse by assuring compliance with recommended rules of quality and safety.
  • Several times, consumers pay heavily but don’t get pure and quality goods. The sellers give them the adulterated products for their heavy profit. In such cases, consumers should file a complaint against the producers.
  • Another major problem faced by consumers is the shortage of goods. The firm or the producers create an artificial scarcity of essential products by hoarding these goods resulting in increased prices.
  • Other various problems include malpractices of the sellers and companies, unreliable and ambiguous activities, black marketing and deceitful warranties and guarantees.

The consumer forum, their rights, and its protection are currently well known to consumers. Consumers should always request the bill out of respect for their safety and be cautious about the product’s quality, quantity, and purity. The government is making a lot of effort to protect customers from fraud, improve their safety, and improve consumer conditions. Consumer protection has been beneficial for the growth and economy of the nation thanks in large part to consumer awareness raised by consumer education, consumer advocates, and NGO’s.

REFERNCES

Consumer Protection Act, 1986

Commentary on Consumer protection Act by NCDRC available at http://ncdrc.nic.in/bare_acts/1_1_2.html.

Consumer Protection Act, 2019

BWagon(2020), COPRA, 2019 to Come into Force, https://www.financialexpress.com/brandwagon/consumer-protection-act-to-come-into-force-from-july-20/2027171/

PIB,Landmark Consumer Protection Bill, 2019 gets Parliamentary approval https://pib.gov.in/newsite/PrintRelease.aspx?relid=192499

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