THE ETHICACY OF CONSUMER PROTECTION ACT- A STUDY

INTRODUCTION
Competition in a market promotes efficiency, increases consumer welfare, offers wider choice, better products and services, and contributes to the progress of an economy. In an industry where there is intense competition, often, there is a tendency, that the industry would become better and efficient. This happens because competition eliminates the poor performing products or services and leaves only good and outstanding products for the general masses to consume. This particular advantage of competition is more likely to benefit the general population, since they would have better quality products and services for cheaper prices. As there exists competition in the market, the market players try their best to provide consumers what they need. Consumers need good quality products at lower prices. If there is Competition in the market, the market players in order to survive will be compelled to bow down to the demands of the consumer, i.e. quality products at lower prices. Competition law, therefore, is designed for the regulation of competition, thereby ensuring economic growth. It is commonly believed that competition law is ultimately concerned with the interest of the consumers. The kind of protection accorded to consumers under the Competition Act and the Consumer Protection Act can be inferred from the definition of the word consumer under the two statutes. The definition of consumer under the Consumer Protection Act, 1986, includes any buyer or user of goods or services but does not include a person who obtains such goods for resale or for any commercial purpose. However, the definition under the Competition Act, 2002, recognizes a person who buys or uses goods or services for commercial purpose or for resale, as a consumer. In this way, the Competition Act aims to protect the larger public interest from anticompetitive practices.

THE ETHICACY OF CONSUMER PROTECTION ACT- A STUDY

OBJECT OF THE ACT

The objects of the Act are as follows:

1. Better protection of interest is of consumers The Act seeks to provide for better protection of the interests of consumers. For better the Act. Makes provision for the establishment of consumer Councils and other authorities for the settlement of consumer dispute and for matters connected therewith. 2. Protection of rights of consumers The Act seeks, inter alia, to promote and protect the rights of consumers such as a. The right to be protected against marketing of goods or services. b. The right to be informed about the quality, quantity, potency, purity, standard and price of goods or services c. The right to be assured, wherever possible, access to goods and service at competitive prices. 3. Consumer Protection Councils. The above objects are sought to be promoted and protected by the Consumer protection councils established of the central and state levels. 4. Quasi-judicial machinery or speedy redressal of consumer disputes. The Act seeks to provide speedy and simple redressal of consumer disputes.

THE ETHICACY OF CONSUMER PROTECTION ACT- A STUDY

OBJECTIVES OF CONSUMER PROTECTION COUNCIL A. Central Consumer Protection Council.

1. The central Govt. 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 (hereinafter referred to as the central council) 2. The central council consists of the following members, namely central Govt., who shall be its chairman, and The number of other official or non-official members representing such interests as may be prescribed.

B. State Consumer Protection Council

1. The state Govt. shall, by notification, establish with effects from such date as it may specify in such not notification a council to be known as the consumer protection council for (herein after referred to as the state council) 2. The state council shall consist of the following members, namely. The minister in charge of consumer affairs in the state Govt. who shall be its chairman. Such number of other official or non-official member representing such interests as may be prescribed by the state Govt. Such number of other official or no-official members not exceeding ten, as may be nominated by Central Govt. The state council shall meet as and when necessary but not less than two meeting shall be held every year. The state council shall meet at such time and place as the chairman may think fit and shall observe such procedure in regard to the transaction of its business as may be prescribed by the state Govt.

THE ETHICACY OF CONSUMER PROTECTION ACT- A STUDY

Consumer Disputes Redressal Agencies

There shall be established for the purposes of this Act, the following agencies namely. A. a Consumer disputes redressal forum to be known as the District forum established by the state Govt. in each district of the state by notification: Provide that the state Govt. May, if it deems fit establish more than one District forum in a district. B. a consumer dispute Redressal commission to be known as the State Commission established by the state Govt. in the state by notifications and C. A National consumer Disputes Redressal Commission established by the central Govt. by the central Govt. by notifications.

JURUISDICTION
Jurisdiction of District Forum 1. Subject to the other provision of this Act. The District forum shall have jurisdiction to entertain complaints, if any, claimed does not exceed or services and the compensations, it 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 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

THE ETHICACY OF CONSUMER PROTECTION ACT- A STUDY

parties who donot 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, whilly or in part arise Jurisdiction of State Council 1. 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 service and compensation, if any claimed exceeds rupees twenty lakhs but does not exceed rupees one crore 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 commission that such district forum has exercised a jurisdiction illegally or with material irregularity. Jurisdiction of National Council: Subject to the other provisions of this Act the national commission shall have jurisdiction. A. To entertain i. Complaints where the value of the goods rupees one core and ii. Appeals against the orders of any state commission. B. To call for the records and pass appropriate orders in any consumer dispute which is pending before or has been decided by any state commission where it appears to the National Commission that such state commission has exercised a jurisdiction not vested in it by law or has failed to exercise a jurisdiction so vested or has acted in the exercise of its jurisdiction illegally or with material irregularity.

THE ETHICACY OF CONSUMER PROTECTION ACT- A STUDY

Limited Period: 1. The District forum the state commission or the National Commission shall not admit a complaint unless it is filed within two years from the date on which the cause of action has arisen. 2. Notwithstanding anything contained in sub-section (1) a complaint may be entertained after the period specified in sub-section (1) if the complainant satisfies the District forum, the state Commission or the national commission as the case may be that he has sufficient cause for not filing The complaint within such period: provided that no such complaint shall be entertained unless the National Commission or the District forum as the case may be records its reasons For condoning such delay.

CASE STUDY
To fulfill the objects of the Act the Central Government has established the Central Consumer Protection Council, and the State governments have established the District forums and the State Consumer protection Council in their respective states. A complaint may be made by the consumer, the government, a recognized consumer society or by one or more consumers having a common interest, within two years of the grievance arising.

THE ETHICACY OF CONSUMER PROTECTION ACT- A STUDY

Q. How is my right as a consumer protected under the Consumer Protection Act? The rights of the consumers are invoked in the Indian Legal System through the mechanism provided in the Consumer Protect Act (CPA). The CPA provides for establishment of Consumer Protection Councils Advisory and recommendation bodies The Consumer Protection Councils exist at the National, State and District Level. They are basically advisory bodies who meet at least 3 times a year to discuss and review consumer protection measures and issues. Two thirds of the members of these councils are non-official including representatives of women and consumer organisations. Redressal Forums Courts The CPA provides for a threetier quasi judiciary machinery at the national, state and district levels. The District Forum has jurisdiction to entertain complaints where the value of goods / services complained against and the compensation claimed is less than Rs. 5 lakhs, the State Commission for claims exceeding Rs. 5 lakhs but not exceeding Rs. 20 lakhs and the National Commission for claims exceeding Rs. 20 lakhs. CONSUMER .. COMMERCIAL PURPOSE . A DETAILED CASE STUDY Consumer Protection Act can be described as common mans civil court. The Act is designed to make available cheap and quick remedy to a consumer. The object of the act is to protect the consumer forum the exploitative and unfair trade practices to provide inexpensive, easily accessible and speedy remedy. Basically consumer protection is a social beneficial legislation. Consumer protection Act is a beneficial legislation intended to confer some speedier remedy from being exploited by unscrupulous traders.The main object of the act is to provide for better protection of interests of consumer.

THE ETHICACY OF CONSUMER PROTECTION ACT- A STUDY

THE NEED AND IMPORTANCE OF CONSUMER PROTECTION In India, consumers spread over the entire length and breadth of the country are unorganized. Many of them are illiterate, poor and backward. As against this the producers are relatively much more organized. They have huge resources at their disposal and can deceive and exploit consumers in a number of ways. In a bid to beat competition, increase their market share, and maximize their profits, they, at times, adopt dubious means to push up the sales of their products. The following are the main ways in which the producers and traders can deceive consumers: 1. The sellers may first hike prices and then offer discounts to attract consumers. 2. Prices may be fixed at levels much higher than those dictated by the costs of production. The most important methods for consumer protection are as follows: 1. Imposition of self-regulation and discipline on themselves by the manufacturing and trading community. 2. Voluntary organization of consumers to safeguard their interests. 3. Spreading information and awareness regarding different products. 4. Government legislation to stop the malpractices resorted to by the traders and manufacturers.

THE ETHICACY OF CONSUMER PROTECTION ACT- A STUDY

CONCLUSION
The mandate of consumer protection has been gaining importance since the enactment of the Consumer Protection Act, 1986. Today, almost every sector provides for an in-built redressal mechanism for consumer complaints. The Competition Act, 2002, in particular, lays emphasis on protection of consumer interests, since it is enacted to regulate the markets, of which consumers are an important component. After analyzing the importance of consumer protection under competition law, it can be concluded that it is one of the goals of competition law. While in some countries, it is given paramount importance, in others, it is considered as a consequence of the operation of competition law. India falls in the latter category. The position can be further clarified by considering the redressal mechanisms. Australia, USA and EU provide for a unified redressal agency for competition and consumer issues. Unlike these countries, India has different redressal agencies for competition cases and consumer grievances. The cases relating to competition are dealt by the Competition Commission of India, while consumer complaints are addressed by the Consumer Dispute Redressal Agencies at the National, State and District Level. Consumer interests, proposed the setting up of a unified financial redressal agency, so that the consumers will not have to deal with multiple regulators for grievances regarding the financial sector. This is a significant step taken by the Government, for recognition of consumer rights. The same unified set-up can be considered for the redressal of consumer complaints under the Consumer Protection Act and the Competition Act. Reference : www. Google.com
Methodology of Business Studies

Sources : From Secondary sources