CBSE Class 12 Board Examination

Chapter 3: Consumer Protection

Summary

Consumer protection means safeguarding the interests of consumers against unfair and exploitative trade practices such as adulteration, sale of counterfeit, sub-standard or duplicate goods, false weights and measures, hoarding, black-marketing, overcharging and misleading advertisements. It is important from the consumer's point of view because consumers are ignorant, unorganised and widely exploited; and from the business point of view because of the long-term interest of business, the use of society's resources, social responsibility, moral justification and the avoidance of government intervention. The Consumer Protection Act, 2019 (which replaced the 1986 Act) protects consumers through speedy and inexpensive redressal of grievances. A consumer is a person who buys goods or avails services for a consideration, including a user with the buyer's approval, but not one who buys for resale or commercial purposes. The Act provides six consumer rights: the right to safety, the right to be informed, the right to be assured (choose), the right to be heard, the right to seek redressal and the right to consumer education. It also expects consumers to fulfil responsibilities such as being aware, buying standardised goods, reading labels, asking for a cash memo and filing complaints. The objective of consumer protection can be achieved through self-regulation by business, business associations, consumer awareness, consumer organisations and government action including legislation. For redressal, the Act sets up a three-tier machinery — the District Commission, State Commission and National Commission — with jurisdiction based on the value of goods and services, along with reliefs and the role of consumer organisations and NGOs.

Key terms

Important questions

Explore interactively