5 Marks Each

Question 15 Marks

Explain the working of consumer protection institutions and non-government organization for protection and maintenance of consumer’s protection.

Answer

Role of Consumer Union and Non-Government Organizations $(NGOs):$

In India, there are several consumer unions and Non-Government Organizations that are actively working for maintaining and protecting the interests of consumer.
$NGOs$ are non-profit organizations. They work for the welfare of the people on their own.
$NGOs$ have their own independent constitution. The workers follow this constitution and work accordingly for public welfare.
Government does not interfere with the workings of $NGOs.$

$NGOs$ that work specially for consumer welfare perform the following functions:

Educating consumers about their rights through seminars, conferences and workshops.
Publishing periodicals, notices, booklets, etc. to spread awareness regarding problems faced by consumers, for legal awareness, eligibility of compensation and other favourable information.
Consumers are informed about the comparison of various products and services available in the market, quality analysis by the authorized laboratories and their reports.
Support to provide legal information to the consumers and aid for the legal formality.
Essential support is provided to the consumers to oppose unethical, exploitative and unfair sales practices of the sellers.
Complaints are registered in the consumer court to protect the interest of the consumer.
Provide complete assistance to consumers who want to complain in the Consumer Court.
Consumer satisfaction and their related information are compiled and published.
Releasing films and information for educating consumers.
Consumer education programmes are organized in schools and colleges and students are educated for consumer protection.
Awareness is created against food adulteration.
Providing support to government institutions which work for spreading consumer awareness.

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Question 25 Marks

What type of relief and compensation are available to the consumer according to consumer protection act.

Answer

Introduction:

If the consumer is dissatisfied or feels injustice done to him and file claim in the court and the claim is accepted according to consumers protection act 1986, following relief remedies are available to him in favour of the claimant.

Prevalent remedies / relief available for consumers :

If the court finds it proper the consumer can get one or more than one of the following relief.
It can remove the existing defect in the product of service.
It can direct to refund the money paid for [product or service.
Defective product can be replaced with new good product.
It can direct to pay compensation for the damage or harm done due to negligence.
It can compel to pay for the damage caused,
It can discontinue improper and prohibitive trade policy or order to stop its repetition.
It can prevent the production and sale of dangerous products.
It can stop the sale of dangerous products, when they are being sold.
If product is found defective or deficiency is found in service, at least 5% of the amount of the total sales is deposited in consumers protection fund or to any institution or person with the condition to utilize the amount for specific purpose.
It can compel to remove misleading advertisements and introduce improved advertisement.
It can direct to pay reasonable expense to the party.

Conclusion :

Consumers protection act 1986 can recommend court any one or more than one relief to the consumer who has suffered injustice.

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Question 35 Marks

Explain : Three tier dispute settlement system according to the consumer protection act.

Answer

Introduction :

Government has setup three layer redressal system to settle consumer’s complaints instantly and to make the procedure easy from administrative point, under consumer protection act.
Three layer organization has three important components, as motioned below.

District level form :

District level is know as district form.
In each district this forum is setup by the concerned state government.
Experienced person from judiciary is appointed as president.
There are three member in the forum.
One is an expert from business or education field and minimum one lady member is there.
This forum, settles the matter up to $Rs. 20$ lakh.
District forum listens to both the parties and as per requirement considering the laboratory report of the product settles the grievances.
If the party is not satisfied with the judgment party can appeal at the state level commission for reconsideration within $30 $ days of judgment of district level forum.

State level commission :

This commission is formed in each state.
Is the responsibility of the state to form this commission.
Minimum three persons including president are appointed in this commission.
One of the member is a lady in this commission.
This commission settles the disputes of above $Rs. 20$ lacs. And below $1$ crore.
If the party is not satisfied with the judgment, the matter can be taken to national level commission within $30$ days of the judgment.

National level commission :

Responsibility to setup this commission is of the central government.
Along with president there are minimum $4$ member’s means in all there are $5$ members of this commission.
They all are appointed members who include one lady member.
President is appointed from judiciary.
If there is any objection against state level judgment, the matter is taken to national level commission.
In national level commission if the amount of compensation exceeds $Rs. 1$ crore then only the settlement is handled it.
If the party is not satisfied with the judgment of national level commission it can appeal for re-examination with the supreme court.

Conclusion :

It is very clear from the above information that if the party or consumer is dissatisfied with the judgment of district level forum, he can approach state level commission.
If he is dissatisfied with state level commission.
If he is dissatisfied with state level commission it can approach national level commission.
If he is dissatisfied with state level commission it can approach national level commission.
He can take the matter to the supreme court if he is not satisfied.

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Question 45 Marks

Explain the responsibilities of consumers according to consumer protection act.

Answer

Introduction :

In free economy, consumer is a king.

As he is not united and conscious.
He is exploited by traders and manufactures.
In these circumstances if he wants to stop being exploited, he should obey certain responsibilities.
Rights and responsibilities are two sides of one coin.
Some social and moral responsibilities are mentioned below.

Conscious use of rights :

Consumer should have full details and information about his rights,
After having al such information, he should communicate to other.
Due to ignorance about rights consumers are exploited.

Beware of misleading advertisement :

Consumers should beware of misleading advertisement of soft drinks, products of entertainment, milk power, perfume etc.
He should not be mislead by advertisement.
He should buy only required things.
It is necessary to draw the attention of advertiser towards improper advertisement.
If discrepancies are found between the information provided in the advertisement and actual product, it should be reported to the advertiser.

Care during purchase :

Consumer should remember the slogan ‘buyer beware.’ consumer should insist on necessary information regarding purchase, e.g. Name of the manufacturer, address, quantity, price, quality, ingredients, expiry date, method of using the product, method to preserve, time duration of guarantee or warrantee period, and its conditions, so that no problem arises in future.

Solicit for a bill :

Consumer should insist on having bill while purchasing product or service.
It is required to present as evidence if the quality while purchasing product or service.
He should purchase products having is ‘Hall Mark’ in ornaments.

Registration of genuine complains :

After purchasing product or any service f there is any violation of rights, consumer should launch a complaint to proper level organization.
Generally no complaint is launched for minor damage and so the traders get opportunity to exploit consumers.
It is equally unjust to demand high compensation for minor loss or damage.

Spread of consumerism :

Organized movement of consumers is consumerism.
every consumer should actively participate in establishment and management of consumer protection committee.
And they should participate in preserving interest of consumers and their rights.

Environment protection :

After having used the product, waste should be properly discharged and disposed without having done any harm to environment.
In short no problem of pollution should arise.

No involvement in unethical activities :

Consumer should consider legal matter while purchasing any product or service.
He should not get himself involved in any activity encouraging black marketing, hoarding etc.

Conclusion :

Consumers protection act has availed many rights.
Consumers should fulfill certain responsibilities before exercising their rights.
Beware while purchasing any product or service, not to be misled by fake advertisement, insist on taking bill and quality product, instant registration of genuine complaint, to preserve environment etc. Are the responsibilities of consumers.
Government repeatedly educates and informs consumers regarding their responsibilities and rights, through mass media with the judgment.
Party can appeal at the state level commission for reconsideration within 30 days of judgment of district level forum.

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Question 55 Marks

How can you say that India is marching towards consumer awareness?

Answer

A lot of work has been done in the field of consumer awareness.
Rise in education has resulted in an increase in consumer awareness regarding their rights.
Consumer rights have been included in the syllabus of school and college.
Government has also made necessary changes in the laws.
Government publishes several advertisements in the newspaper to educate the consumers.
Government is making effort for speedily solving the cases in consumer courts.
Several NGOs and other organizations are also putting a lot of effort to help the consumers.

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Question 65 Marks

Mention four functions of $NGO$ that specifically work for consumer protection.

Answer

Educating consumers about their rights through seminars, conferences and workshops.
Publishing periodicals, notices, booklets, etc. to spread awareness regarding problems faced by consumers, for legal awareness, eligibility of compensation and other favourable information.
Consumers are informed about the comparison of various products and services available in the market, quality analysis by the authorized laboratories and their reports.
Support to provide the consumers legal information and aid for the legal formality.

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Question 75 Marks

Insistence upon bill of a product is not an individual benefit but also of the whole nation. Explain.

Answer

Many consumers do not take the bill for the products purchased. They either forget or do not care, or avoid the bill to get hidden benefits.
When the consumer does not take bills, the seller may not show the sales proceedings in his book of accounts. Similarly, the consumer too will not show the expense in his accounts.
The purchase and sale of products come with a host of government taxes both for the buyer as well as seller. By not issuing the bills, both the buyer and the seller escape from paying the tax.
The tax money that the government gets is in fact put back into economy by means of raising and maintaining infrastructure in the nation. The money is also put in various projects for the development of the nation which then generates employment and keep the economy running and growing. So, directly or indirectly, the money benefits the individual too.
Thus, insistence upon bill of a product is not an individual benefit but also of the whole nation.

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Question 85 Marks

Give few examples of consumers getting fooied/exploited under misleading advertisements.

Answer

Examples of misleading advertisements to fool/exploit consumers:
$1.$ Buy one get one offer:
In such offer, the second product is not free, it is given only when the first product is purchased.
$2.$ Hidden charges:
The consumer may not be aware about some charges while buying the service, because those are not mentioned initially. For example, administrative charges in hospital when a patient is admitted are rarely known, the sim card may be free, but there might be charges for its activation, the price mentioned on menu card of restaurant do not show taxes that will be charged, etc.
$3.$ Going out of the way to generate business:
The products such as clothes may be priced more than their original price and then discount may be offered to lure the consumers.
$4.$ Changing the weight:
At times, the malls and large stores display discounted price of products $($such as ketchup, jam, etc.$)$ but in fact they sell less weight. For example, the store may advertise as $1\ kg$ ketchup just for $Rs. 130,$ but in fact the packet may contain only $950\ gm$ ketchup.

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Question 95 Marks

United we stand, divided we fall. Explain with respect to consumer protection.

Answer

Consumer exploitation is quite rampant these days.
Even if a consumer knows he is been cheated, he is not able to raise his voice many a times due to his ignorance or frustration or fear to stand up and fight for his rights.
When the producer or seller is strong and has high reputation as well as political power, the consumer may fear to fight him. Moreover, his single voice may not be even heard.
In such cases, a single consumer may find himself weak, but if consumers unite, they can become more powerful and fight against the injustice done to consumers.
The group can form a consumer protection forum. The forum can fight for the right of all those consumers who get cheated and it will be easier and effective, to protect the interests of the consumers.
Hence, it can be rightly said that if consumers unite, they can stand together but if they divide, they might fall i.e. they may be deprived of justice.

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Question 105 Marks

Why are consumers exploited?

Answer

Consumers are exploited due to a variety of reasons.
The greed of producer and seller to earn maximum leads him to enter into false practices. The false practices could be over-pricing, under-measurement, producing sub-standard products, not giving bills, etc.
On the hand, consumer also gets exploited due to their own reasons. Many a time they do not insist on bill, they do not check the expiry date of the product, ingredients, etc.
Many consumers become lured to the false claims of manufacturers and advertisers and purchase products.

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Question 115 Marks

What has the business unit to do with the utilization of public resources and wealth?

Answer

Every producer or seller is also a consumer for things he does not produce.
The business unit forgets this fact and continuously and haphazardly utilizes public i.e. national resources and wealth.
The producer forgets that by exploiting the resources extensively ignoring the needs of the society and the future generation, he is digging his own grave. Since, producer is a consumer too, if he does not produces goods and services responsibly, he too will suffer the dangers caused by such practices.

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Question 125 Marks

Give a brief idea about $CCC$ and $DCA.$ OR Write a note on Consumer Coordination Council and Department of Consumer Affairs.

Answer

Consumer Coordination Council $(CCC)$ is the national level apex body for all consumer organizations in India. It co-ordinates the work of various other institutions working for consumer protection.
Various private organizations which work towards consumer protection are members of Consumer Co-ordination Council.
The consumer department of India known as Department of Consumer Affairs ‘ $(DCA)$ also undertakes several activities for spreading awareness among consumers.
$DCA$ also prints several advertisements under the heading ‘Jago Grahak Jago’, and providing National Consumer Helpline $(NCH)$ tollfree number, web site, etc. to help the consumers.

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Question 135 Marks

Enlist few institutions/organizations that are working in the field of consumer awareness.

Answer

Few of the institutions working in the field of consumer awareness are listed below:

Consumer Education and Research Centre $(CERC),$ Ahmedabad.
Consumer Protection Council $(CPC),$ Ahmedabad.
Voluntary Organization in Interest of Consumer Education $(VOICE),$ Delhi.
Consumer Guidance Society of India $(CGSI),$ Mumbai.
Consumer Unity and Trust Society $(CUTS),$ Jaipur.

Consumer Coordination Council $(CCC)$ is the national level apex body for all consumer organizations in India.
The consumer department of India known as Department of Consumer Affairs $(DCA)$ also undertakes several activities to for spreading awareness among consumers.

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Question 145 Marks

What are eco-friendly products? Why would business units produce them?

Answer

Products that cause least harm to the environment are called eco-friendly products.
Industrial units producing products with such standards are allowed to use $ECOMARK$ on their products.
Today’s consumer is getting aware about consumer protection and so in coming times he will prefer product having $ECOMARK.$ As a result, industries will have to start producing environment friendly products.

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Question 155 Marks

What is $ECOMARK?$ Which industries are allowed to use it? How does it motivate industries?

Answer

$ECOMARK$ is a certification mark given by the Department of Environment, Government of India to products conforming to a set of standards aimed at the least impact on the ecosystem.
Industrial units producing products with such standards are allowed to use $ECOMARK$ on their products.
Consumers aware about environment protection will be inclined to use products carrying $ECOMARK.$ This will in turn motivate more industries to start producing environment friendly products.

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Question 165 Marks

How do big industrial units organize Lok Adalats?

Answer

Most industrial units and companies organize Lok Adalat for the genuine complaints of their consumers. For example, Bharat Sanchar Nigam Ltd. $(BSNL)$ regularly organizes Lok Adalat.
The consumer who has a complainre presents his case in this court.
In most of the cases, the company tries to redress the situation on the spot.
Thus, such a concept of Lok Adalat enables quick and effective redressal of the consumer complaints that too at a low cost.

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Question 175 Marks

What reliefs can the consumer get in case he wins the case in the consumer court?

Answer

If the court gives the judgment in the favour of the consumer, it can give one or more reliefs listed below to the consumer:

The court can direct to remove the defects existing in the product or the service.
It can direct to refund the money for the defects in the product or the service.
It can order to exchange defective product with the new $($fresh$)$ product.
If due to the negligence on part of the seller the consumer has to suffer any loss or injury, he can be compensated for the same.
The court can also penalize the seller.
The court can order to stop unfair and prohibitive business practices and also order not to repeat such activities in future.
Production and sales of harmful products can be stopped.
If products already present in market are found harmful, they can be banned.
If defective product or deficiency in service is found, at least $5\%$ of amount of total sales should be ordered to deposit in Consumer Protection Fund or to any institution or person working with the objective of utilizing the amount for a specific purpose.
It can direct to remove misleading advertisements and introduce improvised advertisements.
It can order to make reasonable payment to the affected party $($consumer$)$ by way of compensation.

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Question 185 Marks

Write a note on National Level Commission $($National Consumer Disputes Redressal Commission$).$

Answer

National Level Commission $($National Consumer Disputes Redressal Commission$):$

The National Consumer Disputes Redressal Commission $– NCDRC$ is the highest level Commission for resolving cases of consumers.
The responsibility of setting up this commission lies with the Central Government.
The National Commission consists of minimum five members. One of the members is appointed as the president of the forum. The president shall be either existing or a retired judge of the Supreme Court. Moreover, at least one , of the three members should be a woman.

Process of complain and redressal:

The National Level Commission undertakes disputes wherein the compensation claimed is ? $1$ crore or more. Moreover, a consumer who is dissatisfied over the judgment of the State Commission can apply to the National Level Commission within a period of 30 days of the judgment of the State Commission.
Once the National Commission receives complain, it sends it to the accused i.e. the producer/seller against whom the complain is filed. If needed, the Commission can also send the product for laboratory testing.
The Commissionthen listens to both the parties and also studies the laboratory report if included in the case. Based on the discussions and evidences, the Commission passes a judgment.
If the judgment of the National Level Commission does not satisfy either of the parties, they can appeal for re-examination with the Supreme Court in a specific time.

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Question 195 Marks

Write a note on State Level Commissions $($State Consumer Disputes Redressal Commissions$).$

Answer

State Level Commission $($State Consumer Disputes Redressal Commissions$):$

The State Level Commissions take care of the consumer redressal at state level.
It is the responsibility of the State Government to set up a State Level Commission.
This forum consists of minimum three members. One of the members is appointed as the president of the forum. The president shall be a person who is or has been a Judge of a High Court. Moreover, at least one of these three members should be a woman.

Process of complain and redressal:

The State Level Commission undertakes disputes where in the compensation claimed is more than $₹ 20$ lakh but less than $₹ 1$ crore. Moreover, a consumer who is dissatisfied over the judgment of the District Level Forum can apply to the State Level Commission within a period of $30$ days of the judgment of the District forum.
Once the State Commission receives complain, it sends it to the accused i.e. the producer/seller against whom the complain is filed. If needed, the Commission can also send the product for laboratory testing.
The Commission then listens to both the parties and also studies the laboratory report if included in the case. Based on the discussions and evidences, the Commission passes a judgment.
If either of the parties is unhappy with the judgment, he can appeal at the National Level Commission for re-examination within 30 days of the judgment of State Level Commission.

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Question 205 Marks

Write a detailed note on the functioning of the district forum.

Answer

District Forums $($District Consumer Disputes Redressal Forum $(DCDRF)):$

The District Level Forums or District Consumer Disputes Redressal Forum $(DCDRF)$ are the lowest level or the primary level forum for solving the consumer complains.
Government has set-up this forum in every district.
This forum consist a minimum of three members appointed by the State Government. One of the members is appointed as the president of the forum. The president is or has been a judge in the District Court. Moreover, at least one of these three members should be a woman.

Process of complain and redressal:
The district redressal forum undertakes disputes where in the compensation claimed is less than ? $20$ lakh.

Once the District Level Forum receives complain, it sends it to the accused i.e. the producer/seller against whom the complain is filed. If needed, the district forum can also send the product for laboratory testing.
The forum then listens to both the parties and also studies the laboratory report if included in the case. Based on the discussions and evidences, the forum passes a judgment.
If either of the parties is unhappy with the judgment, he can appeal at the State Level Commission for re-examination within 30 days of the judgment of District Level Forum.

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Question 215 Marks

Which additional rights has the $UNO$ asked to give the consumers? Explain them.

Answer

Over and above these six rights, The United Nations Organization $(UNO)$ has issued a directive recommending two more rights for the consumers.They are:

Basic Needs
Hygienic Environment.

$1.$ Basic needs:
This Right says that every person is entitled to basic needs such as adequate food, water, clothing, shelter and health care required for survival.
$2.$ Hygienic environment:

As per this Right, every individual has the right to get pollution-free air, water, food and land.
Hygienic environment gives the person a good quality of life free from diseases.

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Question 225 Marks

Enlist the rights and responsibilities of a consumer.

Answer

The Act has given several rights and responsibilities to the consumer.
They are:
$(A)$ Rights:

Safety
Information
Choice
Representation
Redressal
Consumer education

$(B)$ Responsibilities:

Conscious use of the Rights
Beware of the misleading advertisements
Care during purchase
Solicit for a bill
Solicit a high quality
Registration of genuine complaints
Spread of consumerism
Environmental protection
Not to involve in unethical activities

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Question 235 Marks

Introduce Consumer Protection Act, $1986$ and state the rights and responsibilities of the consumer as stated in the Act.

Answer

Consumer Protection Act, $1986$ is an Act of the Parliament of India enacted in $1986$ to protect the interests of the consumers in India. Of the various measures adopted for consumer protection, Consumer Protection Act is the . , most important one.
This Act protects consumers from defective products, services, irrelevant business policies and cheating.
Under the aegis of this Act and Indian legal system, a three level $($tier$)$ complain redressal system has been set up. The three tier includes complainredressal at:
$(a)$ District level,
$(b)$ State level and
$(C)$ National level.
Consumers who feel cheated can complain at courts set-up at these three levels and obtain quick solution that too at very less expense.
The Consumer Protection Forum which has been set up under the direction of Consumer Protection Law, encourages and protects the rights of consumers.

The Act has given several rights and responsibilities to the consumer.
They are:
$(A)$ Rights:

Safety
Information
Choice
Representation
Redressal
Consumer education

$(B)$ Responsibilities:

Conscious use of the Rights
Beware of the misleading advertisements
Care during purchase
Solicit for a bill
Solicit a high quality
Registration of genuine complaints
Spread of consumerism
Environmental protection
Not to involve in unethical activities

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Question 245 Marks

State the two views to classify importance of consumer protection.

Answer

The importance of consumer protection can be broadly classified with respect to two views. They are:
$(A)$ Importance of consumer protection from the View point of business
$(B)$ Importance of consumer protection from the View point of consumer

The list of functions to be done under consumer protection is quite long and exhaustive.
The function of consumer protection is not limited to spreading awareness regarding consumers’ rights and responsibilities but also solving their genuine complaints.

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Question 255 Marks

Who is a consumer as per Consumer Protection Act?

Answer

According to the Consumer Protection Act,“A consumer is a person who receives goods or services against an exchange, who pays or agrees to compensate partly or fully or promises to compensate on a future date or has participated in some future payment plan. Any user of the product or service who uses it on the basis of the permission of the purchaser is a consumer. But the one who purchases on a resale basis or for further production is not included under the definition of a consumer.”

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Question 265 Marks

What is consumer protection? Explain.

Answer

Consumer protection:
The act of providing shield to consumer from the unethical, exploitative and unlawful practices of sellers or manufacturers is called consumer protection.

Consumer protection also refers to the measures taken against the manufacturers and sellers who adopt various means to exploit consumers for earning high profits to fulfill their greed.
In most of the cases, consumers either do not have the capacity to unite and become aware or do not have information regarding the legal measures and consumer rights which can provide them justice in case of exploitation.

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Question 275 Marks

Write a note on National Level Commission $($National Consumer Disputes Redressal Commission$).$

Answer

National Level Commission $($National Consumer Disputes Redressal Commission$):$

The National Consumer Disputes Redressal Commission $– NCDRC$ is the highest level Commission for resolving cases of consumers.
The responsibility of setting up this commission lies with the Central Government.
The National Commission consists of minimum five members. One of the members is appointed as the president of the forum. The president shall be either existing or a retired judge of the Supreme Court. Moreover, at least one , of the three members should be a woman.

Process of complain and redressal:

The National Level Commission undertakes disputes wherein the compensation claimed is ? $1$ crore or more. Moreover, a consumer who is dissatisfied over the judgment of the State Commission can apply to the National Level Commission within a period of $30$ days of the judgment of the State Commission.
Once the National Commission receives complain, it sends it to the accused i.e. the producer/seller against whom the complain is filed. If needed, the Commission can also send the product for laboratory testing.
The Commissionthen listens to both the parties and also studies the laboratory report if included in the case. Based on the discussions and evidences, the Commission passes a judgment.
If the judgment of the National Level Commission does not satisfy either of the parties, they can appeal for re-examination with the Supreme Court in a specific time.

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Question 285 Marks

Write a note on State Level Commissions $($State Consumer Disputes Redressal Commissions$).$

Answer

State Level Commission $($State Consumer Disputes Redressal Commissions$):$

The State Level Commissions take care of the consumer redressal at state level.
It is the responsibility of the State Government to set up a State Level Commission.
This forum consists of minimum three members. One of the members is appointed as the president of the forum. The president shall be a person who is or has been a Judge of a High Court. Moreover, at least one of these three members should be a woman.

Process of complain and redressal:

The State Level Commission undertakes disputes where in the compensation claimed is more than $₹ 20$ lakh but less than $₹ 1$ crore. Moreover, a consumer who is dissatisfied over the judgment of the District Level Forum can apply to the State Level Commission within a period of $30$ days of the judgment of the District forum.
Once the State Commission receives complain, it sends it to the accused i.e. the producer/seller against whom the complain is filed. If needed, the Commission can also send the product for laboratory testing.
The Commission then listens to both the parties and also studies the laboratory report if included in the case. Based on the discussions and evidences, the Commission passes a judgment.
If either of the parties is unhappy with the judgment, he can appeal at the National Level Commission for re-examination within $30$ days of the judgment of State Level Commission.

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Question 295 Marks

Write a detailed note on the functioning of the district forum.

Answer

District Forums $($District Consumer Disputes Redressal Forum $(DCDRF):$

The District Level Forums or District Consumer Disputes Redressal Forum $(DCDRF)$ are the lowest level or the primary level forum for solving the consumer complains.
Government has set-up this forum in every district.
This forum consist a minimum of three members appointed by the State Government. One of the members is appointed as the president of the forum. The president is or has been a judge in the District Court. Moreover, at least one of these three members should be a woman.

Process of complain and redressal:
The district redressal forum undertakes disputes where in the compensation claimed is less than ? $20$ lakh.

Once the District Level Forum receives complain, it sends it to the accused i.e. the producer/seller against whom the complain is filed. If needed, the district forum can also send the product for laboratory testing.
The forum then listens to both the parties and also studies the laboratory report if included in the case. Based on the discussions and evidences, the forum passes a judgment.
If either of the parties is unhappy with the judgment, he can appeal at the State Level Commission for re-examination within 30 days of the judgment of District Level Forum.

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Question 305 Marks

Introduce Consumer Protection Act, $1986$ and state the rights and responsibilities of the consumer as stated in the Act.

Answer

Consumer Protection Act, $1986$ is an Act of the Parliament of India enacted in $1986$ to protect the interests of the consumers in India. Of the various measures adopted for consumer protection, Consumer Protection Act is the . , most important one.
This Act protects consumers from defective products, services, irrelevant business policies and cheating.
Under the aegis of this Act and Indian legal system, a three level $($tier$)$ complain redressal system has been set up. The three tier includes complainredressal at:
$(a)$ District level,
$(b)$ State level and
$(C)$ National level.
Consumers who feel cheated can complain at courts set-up at these three levels and obtain quick solution that too at very less expense.
The Consumer Protection Forum which has been set up under the direction of Consumer Protection Law, encourages and protects the rights of consumers.

The Act has given several rights and responsibilities to the consumer.
They are:
$(A)$ Rights:

Safety
Information
Choice
Representation
Redressal
Consumer education

$(B)$ Responsibilities:

Conscious use of the Rights
Beware of the misleading advertisements
Care during purchase
Solicit for a bill
Solicit a high quality
Registration of genuine complaints
Spread of consumerism
Environmental protection
Not to involve in unethical activities

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Question 315 Marks

Explain the rights of consumers obtained under consumer protection act.

Answer

Introduction :

Customer pays and purchase product or services.
Consumer protection act has provided consumer certain rights related to product.
As the consumers buy product or services to satisfy their requirement, it is their legal right to get complete information regarding the products, to select the products and to get the product.
Business firm is responsible for the damage caused by the product to the consumer if the detail is hidden while it is sold.

Rights of consumer :

Under consumers protection act total six rights are availed.
Consumer forum is appointed which protects rights of the consumers and provides encouragement.

Safety :
It provides protection against products and services causing harm to hygiene and human life e.g. Tobacco, cigarette, Gutakha is harmful to human life so warning against its use should be given to consumers.
It is their right to get warning.
Information :
Consumer has the right to have complete information regarding the product or service he desires to buy.
E.g. Ingredients of the products, price, date of manufacturing, expiry dates quantity, purity, quality etc.
It is statutory to indicate all these details on the label or packing or the product.
Choice :
Every customer has right to choose product or service.
He is at liberty to buy the product or service from various things at competitive price.
Due to customer’s right to choose producers, it ring variety in size, price, weight of the product and services and provide wide range of selection to consumers.
Representation :
Consumer has legal right to represent his positive or negative opinion about desired product.
He can suggest too.
Business units set up redressal cell for the complaints of their customers.
Redressal :
Under consumers protection act, many complaints are received and customers do get much relief.
E.g. Replacement of goods or services, and right to complaint and redressal.
Consumer education :
Every consumer has the right to get right quality, quantity at the given time, place and at an ideal time.
To get assurance of all these things, he has right to education too.
Many business units and institutions associated to consumer protection are active to educate consumers regarding their rights.
Rights favored by united nations organization $(U.N.O) :$
$UNO$ has issued a directive recommending two more rights :
Primary needs and Hygienic environment right is favored.
Primary (Basic Needs) :
Basic needs means product and services required for decent living and right get this facility.
Hygienic environment :
Hygienic environment means protection from various types of pollution so that everybody can lead quality life.
Every individual has right to pollution free air, water, food and land.

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Question 325 Marks

State the importance of consumer protection from the view point of consumer.

Answer

Introduction :

It is universally accepted today that business will be at risk of there are no customers.

All customer are not educated.
Some business units take disadvantage of ignorance of customers try various techniques and cheat them.
Considering this fact in $1986$ consumer protection act is passed for protection & consumer.

Importance of consumer protection from the view point of consumer :

Extensive exploitation of consumers :

Business units try to gain more profit by exploiting consumers through, adulteration in the product, unsafe products, misleading and illusory advertisement, duplicate products, fake products, substandard products etc.
It is necessary to protect consumer’s interest and to stop such malpractice.

Ignorance of consumer :

Consumer lack sufficient information regarding their rights.
They hesitate to take any legal steps.
Consumers should be made aware of their legal rights.
They should have legal literacy.

Lack of unity among consumers :

Individual is proved weaker to protest against exploitation.
But if the consumer are united and their union is registered, they can protect their interest very well.
Organizations are formed for consumer protection in India.
Yet it is highly necessary that consumers do get legal protection.

Consumer protection act $– 1986 :$

Main objective of consumer protection act is to protect consumers interest and to protect their rights.
Consumer protection act protects consumer against defective goods, inefficient services, improper trade policies, and technique through which customers are cheated.
Three level system is established through consumer protection act.
Its aim is the redressal of complaints at district level, state level and national level, with less cost and immediately.
Consumer protection act is the most important step in the direction of consumer protecting.

Conclusion :

The very word ‘consumer protection’ suggests that consumer is protected through the act.
In India many consumers of rural and urban area are exploited by business units.
Consumers protection act is an important step taken by the government to protest against exploitation and to get compensation of loss.

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Question 335 Marks

Explain the meaning of consumer protection and mention its importance from business point of view.

Answer

$1. $ Introduction : Consumers are victimized due to business competition. To exist in competition, business units adopt various fake techniques and sell the product at higher price to the consumers and exploit them.

Their products are duplicate, fake, of weaker quality, adulterated or of expiry date. Black marketing and hording are responsible. Sometimes advertisement too are misleading.
There is provision for 'Buyer Be aware' But every customer does not have information of every product. That is why to protect the interest of consumer, Consumer Protection Act is formed and passed.

$2.$ Meaning of Consumer :

According to Consumer Protection Act a Consumer is a person who goods or service against and exchange.
He pays or agrees to compensate partly or fully or promises to compensate on a future date or has participated in some future payment plan.
Any user of the product or service who uses it on the basis of the permission of the purchaser is a consumer.
But the one who purchases on a resale basis or for further production is not included under the definition of a consumer."

$3. $ Meaning of Consumer Protection : Consumer protection refers to the measures taken against the manufacturers and sellers who adopt various means to exploit consumers for earning high profits to fulfill their greed.
$4.$ Types of Exploitation of Consumer :
$(1)$ Physical and Metal Exploitation :

Health can be adversely affected when weaker quality material or improper material is used in the product.

Not only this, due to the sale of fake products, consumer also gets frustrated and experiences the feeling of aggressiveness.

$(2)$ Economic Exploitation :

Higher than printed price of the product or service is recovered from the consumers.
Due to black marketing and hoarding, consumers are economically exploited.

$(3)$ Against Public interest:

Due to manufacturing process toxic gases are emitted in air which pollutes environment if it is not treated well and discharged.
It damages public interest.

$5.$ Importance of Consumer Protection from the Business Point of View :

Consumer should be protected in current competitive market.
Consumer interest should be protected.
Business units too are active in providing maximum satisfaction to consumers and to protect them against fraud and fake goods.
Importance of consumer protection from business view point is as below:

$(1)$ Use of resources and wealth :

Business is started and developed with the resources of community.
It is the responsibility of business firm to provide the product through which the Standard of living of the consumer raises.

$(2)$ Social Responsibility :

Business holds social responsibility towards all groups having interest in business.
Consumer too is a part of community.
Like other groups, business units should fulfill its responsibility towards consumers.

$(3)$ Part of Community :

Every Business is a part of community.
Each trader is a customer of bigger trader or producer.
He should not be exploited.
Consumer's trust should be won.

$(4)$ Impression on community :

The activities of business firm create favourable or adverse effect on community.
Through advertisement effect on lifestyle, habits, food-habits, concept ideology etc are affected.
So business units are responsible to hear moral responsibility and form just and fair policy in public interest.

$(5)$ Consumers Protection is good for Business :

Consumer - Business firm find it necessary to protect their objectives of business.
Without knowing the taste of consumer, if the product is manufactured, Consumer will turn to competitors products.
So it is necessary to protect consumer and to know his liking preferences and demand for developed and interest of business.

$(6)$ Principle of Trusteeship and Consumer Protection :

According to Gandhi's principle of trusteeship, those who are given wealth by society, should utilize it for poor and needy people of the society.

Gandhiji presents his views on consumer saying - "Consumer is the most important person in business. He is not an outsider but an integral part of business. Consumers are not business based. He is not an obstacle in our business but purpose of our business. He is not an outsider in our business but a part of our business. We are not favouring him by providing goods desired by him but he favours us by giving opportunity to do so."

$6.$ Conclusion :

Consumer protection is important for existence of business.
Customers are kings of the market. Their interest must be preserved.
Fraud, cheating, adulteration through which they are cheated and exploited will not be tolerated Abraham Lincoln has said, "You can cheat few people many times, many people for sometime but.. cannot cheat many people many times."
If exploitation of customers is continued.
Community will not allow to survive.

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