INDE

A CONSUMER...................................................................................................................2
 Need For Consumer Protection:.......................................................................................4
THE CONSUMER PROTECTION ACT, 1986...................................................................6
 Important Salient Features...............................................................................................7
 As per the Consumer Protection Act, 1986 are given below:...........................................7
 Objective Of Consumer Protection Act 1986:...................................................................9
 Rights & Responsibilities Of a Consumer......................................................................11
CONSUMER EXPLOITATION.........................................................................................16
CONSUMER AWARENESS............................................................................................24
A COMPLAINANT............................................................................................................29
 Details, Procedure & Steps............................................................................................29
 Steps to file a complaint:................................................................................................30
CONSUMER DISPUTE...................................................................................................33
THREE TIERS.................................................................................................................34
 District Forum:............................................................................................................... 34
 State Commission:......................................................................................................... 35
 National Commission:....................................................................................................36
CONSUMER GUIDANCE SOCIETY OF INDIA (CGSI)..................................................36
 Objective of the Society.................................................................................................37
 Membership................................................................................................................... 39
 Activities of CGSI........................................................................................................... 40
 Landmark Achivements Of CGSI:..................................................................................42
 Graphical Representation...............................................................................................45
INDIAN CONSUMER PROTECTION ACT VS SOUTH AFRICAN CONSUMER
PROTECTION ACT.........................................................................................................49
CASE STUDIES..............................................................................................................52
 Union of India Vs. Chairman, Madras Provincial Consumers’ Association.....................52
 Akhil Bhartiya Grahak Panchayat Vs. Life Insurance Corporation of India.....................53
 Consumer Education Research Center Vs. Godrej Soaps Ltd............................................53
 Consumer Unity and Trust Society Vs. The Chairman & MD, Bank of Baroda...............54

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  Indian Medical Association Vs. V. P. Shanta...................................................................55

NEED FOR CONSUMER PROTECTION ACT (1986)

IN AN ERA OF FREE COMPETITION WHERE CONSUMER IS A KING SO HE

NEEDS PROTECTION.

A CONSUMER
In layman’s terms the term of consumer can be explained as follows:

A person has to satisfy the following conditions in order to be a consumer:-

 The person must have purchased goods for some value i.e. he must have paid
money
 A person who has not himself purchased the goods but who uses the goods with
the approval of the buyer is also a consumer
 A person must not have bought goods for resale or commercial purpose. But a
person buying goods for self-employment is a consumer.

According to law the most basic definition of the term consumer is as follows:

In Legal Terms:
A ‘consumer’ is considered to be any natural person or legal entity to which a product or
service offered on the market is addressed. The person or legal entity deemed to be a
consumer in this sense should make use of the product or service, provided that it
constitutes the end user of such product or service.

In Economic Terms

A Consumer is a person or organization that uses economic services or commodities.

In economic systems consumers are utilities expressed in the decision to trade or not.

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 In each case, a person or entity is declared to be a consumer (or not otherwise a
consumer) based on two criteria:

 The power of the supplier to negotiate with the person or entity.

 The possibility of abusive use of legal protection by the particular person or

entity.

In Business Terms:

An individual who buys products or services for personal use and not for manufacture
or resale. A consumer is someone who can make the decision whether or not to
purchase an item at the store, and someone who can be influenced by marketing and
advertisements. Any time someone goes to a store and purchases a toy, shirt,
beverage, or anything else, they are making that decision as a consumer.

The consumer is supposed to be the ruler of the global markets in the present era, in
spite of which the consumer is being exploited in various ways. Along with the
awareness on the commercial terms of purchase and sale of goods, the consumer must
be made aware of the health and security aspects of each purchase made. If the
customers are made aware they can effectively exercise their rights and practise their
duties in the economy.

One of the most significant and crucial milestones in the Consumer Movement in India
has been the compliance of the Consumer Protection Act, 1986 that mainly focuses on
safeguarding the interests of the customers. The compliance of this act has impacted
India to a very great extent.

Further, we will look into the significance of the consumer awareness for the betterment
of the consumers and deals with the various elements of consumer protection

Today, consumer is called the king of the market. He is now at the centre stage of all
market activities in the economy. Even though so many rules, regulations, policies and
acts are made to protect the consumer, still the consumer is being exploited.

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Need For Consumer Protection:
 Consumers play a vital role in the economic system of any nation. Consumers
are the key players in the market place and their consumption patterns greatly
influence the society and the economy.

 In the modern philosophy of marketing consumer is supposed to be the king and

the business is expected to provide maximum possible satisfaction to
consumers. Technology has made available a variety of goods and services to
the consumers from all over the world, which are only a click away.

 New products and services throng the market every day, many of which
disappear very soon. With the revolution in Information Technology the
consumers are facing new challenges, such as cybercrime, plastic money,
unsustainable consumption etc. which affects them in a number of ways.

 The industrial revolution and the development in international trade and

commerce have led to the vast expansion of business and trade.

 As a result a host of services has been made available to the consumers like
insurance , transport , electricity , housing , entertainment , fiancé and banking .

 A well-organized sector of manufacturers and traders with better knowledge of

markets has come into existence, thereby affecting the relationship between the
traders and the consumers making the principle of consumer sovereignty almost
inapplicable.

 The Consumer who is actually referred to as the "King" is actually a "Victim “of
the various market malpractices.

 Producers and sellers have only one motto; to maximize profits by engaging in all
sorts of deleterious practices and producing products that do not meet
acceptable quality standards.

For the welfare of the public, the glut of adulterated and substandard articles in the
market has to be checked.

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  Therefore, it is necessary to protect the customers from exploitation, top save
them from adulterated subs standard goods and services, and to safeguard their
interests.

Though there have been many laws to protect the interests of the consumers but in
order to provide for better protection of the interests of the consumers “The Consumer
Protection Act” was enacted in 1986.

An analysis of marketing management has made it clear that consumer is the a king pin
in the market

The producer should produce goods keeping in mind the requirements of the
consumers and satisfy the consumers but it is observed that this obligation is
neglected by some businessman and they are involved in the unfair practices such
as supply of substandard quantity , adulteration etc. .

So, there is a need for consumer protection. Hence, consumer protection means
protecting the interest of the consumers.

A Person Is Not Considered A Consumer

Following are the certain points to be taken into consideration while distinguishing
whether a person is considered to be a consumer or not a consumer

 Persons buying goods either for resale or for use in large scale profit making activity
will not be considered as consumers entitled to protection under the consumer
protection law.

 A lottery ticket holder is not considered as a consumer within the ambit of the
definition of a consumer.

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 Applicant who merely applies for allotment of shares in a company is not considered
to be a consumer.

 The insurance company is not a consumer. Hence, the consumer complaint by

insurance company is not maintained.

 A Licensee to run a phone is not considered to be consumer.

THE CONSUMER PROTECTION ACT, 1986

In the constitution of India, social and economic justice is an important part in which a
consumer justice and protection is also a part. There are number of legislations were
passed by the Indian Parliament such as Drugs (Control) Act, 1950; Prevention of Food
Adulteration Act, 1954; Essential Commodities Act, 1955; Essential Services
Maintenance Act, 1968; Trade and Merchandise Marks Act, 1958; MRTP Act, 1969, etc.
But all these acts failed to protect the interest of small consumers. The procedures
under these acts are typical and litigations, also time consuming and costly. At the same
time there are so many facilities of these acts but due to procedure and lengthy time,
common man (consumer) will avoid it. The United Nations General Assembly passed a
resolution No. 39/248 on 8/4/1985 adopting guidelines relating to consumer protection.
Which further provide a framework for the Governments of the developing countries, for
formulation of consumer protection policies and legislations.

Finally in 1986, the Indian Parliament passed the Consumer Protection Act, 1986, as
the name suggests, to protect the interest of the consumers and to provide them a
mechanism for easy, quick and cheap redressal of grievances against the mighty and
unscrupulous producers/ traders and service providers.

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The Consumer Protection Act extends to the whole of India except the State of Jammu
and Kashmir.

After liberalization of economic policy, consumer goods have flooded the market as
never before. Both foreign and India companies are introducing new products and
brands with glossy and fancy packing as the middle and lower income groups are taking
loans to-Companies still do not pay attention to the quality of their products and also do
not value customer satisfaction.

Very often a customer may get taken in by a misleading advertisement making tall claim
as to the high quality and after-sales service. The consumer may discover later that the
goods purchased by him are not up to the claims made by the manufacturer.

Companies are not willing to invest in efficient after-sales service so long as their sales
keep increasing. Newspaper columns can be seen to be full of complaints and many
companies do not care to rectify the complaints.

To enable the consumer to have his right to a deal, the consumer protection Act was
passed in 1986. The Act promises to rectify all that and make accountant both the
manufacture; s and providers of service.

Important Salient Features

As per the Consumer Protection Act, 1986 are given below:

1. The Act provides speedy redressal to consumer complainants. The Bill provides for
setting up of a Consumer Redressal Forum in every district, a commission at the state
level and the National Commission at the Centre. The Forum in the District will have
original jurisdiction to redress complaints up to claim of Rs. 1 lakh (after amendment up
to 10 lakhs).

The State Commission will be original jurisdiction to settle claims up to the amount Rs.
10 lakhs (after amendment 20 lakhs). The National Commission can entertain any claim
for damages above Rs. 10 lakhs (after amendment above 20 lakhs). The State
Commission will be vested with appropriate Appellate and Revisional powers.

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2. To promote voluntary consumer movement and to ensure involvement of consumers.
The Bill provides for the establishment of Consumer Protection Councils at centre and
in the states. These Councils will have both non-official and official members. The
objects of the Councils will be to promote and protect the rights of the consumers.

3. It shall apply to all goods and classes of goods or all services or classes of services
except those which are specially exempted by notification by the central government.

4. The provisions of the Bill shall be in addition to and not in derogation of any other law
for the time being in force.

5. Necessary penal and punitive provisions have been corporate to ensure that the
proposed legislation is effective in protecting consumers.

6. The complaint can be filed by a consumer or an organization being a society

registered under the Societies Registration Act, or a company registered under the
Companies Act, representing consumers or by the central or state government.

7. The complaint can be filed on account of any unfair trade practices resulting in loss or
damage, defect in the goods, deficiency in the services, prices charged in excess of the
prices fixed by or under any law or displayed on the goods/packets.

The Indian government is also taking an active interest in protecting consumer rights
and promoting effective consumer movements. In 2003, the Planning Commission of
India identified “Consumer Awareness, Redressal, and Enforcement of the Consumer
Protection Act of 1986[iv]” as a priority, and as a result of this, a national action plan was
prepared. The consumer forum created by the Consumer Protection Act, 1986 have
proven to be efficient, disposing of thousands of cases with few legal formalities, and
leading the way toward well-founded consumer jurisprudence in India. Consumer
Protection Act is amended by Act no.34 of 1991, Act no.50 of 1993 and Act no.62 of
2002. Amendment made in 1991 was mainly to incorporate provisions for the quorum of
District Forum, appointing people to preside over State Commissions/District Forums, in
case of absence of President to enable the court function uninterruptedly. In 1993, the
Act was again amended to address the inadequacies in the coverage of the main Act. It

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aimed to plug loopholes and enlarge the scope of areas covered and interest more
power to the redressal agencies under the Act.

Few profound amendments to the original Act, i.e. consumer protection Act made in the
year 2002. By enacting the Amendment Act, the name of the Act renamed as
Consumer Protection (Amendment) Act, 2002. Also, the Act was again amended to
facilitate quicker disposal of complaints, boosting the capability of redressal agencies,
powering them, streamlining the procedure and widening the scope of the Act to make it
more functional and efficient.

One important and essential amendment made in the amendment Act was conferment
of conferred the First Class Magistrate’s powers to the Consumer Forums or
Commissions, however, Gazette notification in this regard not yet issued, without which,
the Consumer Forums could not exercise such powers conferred on them by the Act,
this is one lacuna.

Objective Of Consumer Protection Act 1986:

The principal objective of the Consumer Protection Act is to grant shield for the
improved safeguard to the consumers. Unlike prevailing laws, which are disciplinary or
precautionary in nature, the provisions of this act are compensatory in nature.

The act is aimed to afford simple, quick and economical redressal to the consumer
grievances, and reliefs of a particular nature and award of damages wherever
appropriate to the consumer.

The Consumer Protection Act has been revised in 1993 both to extend its coverage
and its scope and to augment the powers of the redressal. The fundamental rights of
the consumers as per the consumer protection act

 Following are the main objectives of introducing the Consumer Protection Act:

1. To Be Shielded against Promotion of Goods and Services which are risky to

life and property.

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 2. To Be Conversant regarding the wholesomeness, standard quality, standard
quantity, potency, and the value of goods, or services so as to shield the buyer
against the unfair trade practices.

3. To Be Ensured, access to range of goods and services at viable prices wherever

possible.

4. To Be Informed and to be ensured that consumers benefit will be due to

consideration at appropriate level.

5. To Search for redressal against unjust trade practices or restraining trade

practices or deceitful exploitation of consumers.

6. To Consumer Education.

Proper enlightenment of consumers is very important. Unless the consumers

are educated about their rights it is difficult for them to know their future step.

 Widening the scope and amplifying the provisions of the Act.

 Facilitating quicker disposal of complaints.

 Rationalizing the qualifications and procedure of selection of the Presidents

and Members of Consumer Forum.
 Strengthening penal provisions/enforcement orders of Consumer Forum

In case of businessmen the objective of consumer protection act is to survive for a long
term by taking into consideration the interest of the consumer

They have to give due importance to consumer if they want to prosper in the market in
the long run as the market is a very competitive one.

Consumer Protection Bill 2011

The Standing Committee Report[vi] on Consumer Protection (Amendment) Bill, 2011

observed that a cooperative approach between Central and State Governments will
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result in uniform implementation of consumer protection laws and rules across all
jurisdictions. A need for updating of the quality of goods and standards of services
provided to consumers so as to conform to the international standard is also stressed
upon. It also draws attention towards strong need to spread awareness in order to
educate the consumer about their rights as provided under the Act. Committee
recommended that Consumer Forum should be given power to grant punitive damages
of not less than five times of the loss or compensation awarded to aggrieved consumer
by the defaulting Companies.

Consumer Protection Bill 2015

The main objectives of the Consumer Protection (Amendment) Bill, 2015 are:

The Act was amended to misleading advertisements, tele-marketing, multi-level

marketing, direct selling and e-tailing pose new challenges to consumer protection
Hence, there was a need to modernise the act to address the situation effectively.

The bill also has several provisions aimed at simplifying the consumer dispute
resolution process in the consumer forum. Mediation is put forth as an alternative
dispute resolution mechanism. The mediation will be under the supervision of consumer
courts. The National Commission or a State Commission or a District Commission, as
the circumstances may be, will appoint a mediator who shall attempt to resolve the
dispute between the parties by facilitating discussion between parties directly by guiding
the parties in identifying issues, reducing misunderstandings, exploring different ways to
compromise all in all generating options in an attempt to solve the dispute.

Furthermore, the bill also includes provisions for the enhancement of the pecuniary
jurisdiction of the redressal agencies, power to review their own records by the state
and district commissions. The bill also seeks to establish a circuit bench to facilitate
quicker and an efficient disposal of complaints. To increase the efficiency further, the bill
provides the consumers electronic ways over the internet to file complaints in consumer
courts that have jurisdiction over the place of residence of the complainant. The
complaints will be deemed as admissible if the question of admissibility is not decided
within 21 days. Furthermore, the complaint has to be dealt with within 90 days thereby,
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increasing the efficiency of the juridical proceedings. The new bill is expected to
enhance the quality and safety of products and services adding the proposed law has
much-needed provisions ensuring fair equitable and consistent outcomes for
consumers.

Rights & Responsibilities Of a Consumer

As per the Consumer Protection Act 1986

We often come across many people who complaint of having been supplied with inferior
or adulterated goods for which they have paid full price. Similarly some people are seen
grumbling that they have paid full fare but the seats of bus and train provided were very
un-comfortable. So many a times people do not get the full worth of their money. They
do not have a right to get the full value of their money spent for the goods and services
they want to avail of. Sometimes, people themselves are responsible for the
inappropriate goods and services that are provided to them. Many a times, they do not
know full details of the products or services they are interested in. Sometimes, they take
the delivery of goods or avail the services without caring for their quality. Is it not their
responsibility to give full details of the goods and services required by them

Let us now discuss the various rights of consumers that are provided in the Consumer
Protection Act 1986 :

Rights:

There are four basic rights:

i Right to safety: Consumers have a right to be protected against marketing of

goods which are injurious to health and life. As a consumer if you are conscious
of this right, you can take precautions to prevent the injury or if injury is caused in
spite of precaution, you have a right to complain against the dealer and even
claim compensation.

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 Example if you buy any medicine, the pharmacy selling it can be held
responsible if the medicine proves harmful because it was substandard. Again if
gas cylinder is used for cooking, you have to check that it does not leak when it
is supplied to you. If it starts leaking afterwards, the supplier will be liable to pay
compensation if the leakage of gas leads to fire and causes injury or death to
anyone.

ii Right to be informed: Consumers also have the right to be informed about the
quantity, quality, purity, standard or grade and price of the goods available so
that they can make proper choice before buying any product or service. Also,
wherever necessary, the consumer must be informed about the safety
precautions to be taken while using the product to avoid loss or injury.

Example .Consumers have right to be informed about the drugs/Medicines

which they are buying or the chemical too. They also need to know what all side
effects they have.

iii Right to choose: Every consumer has the right to choose the goods needed
from a wide variety of similar goods. Very often dealers and traders try to use
pressure tactics to sell goods of inferior quality. Sometimes, consumers are also
carried away by advertisements on the TV. These possibilities can be avoided if
consumers are conscious of this right.

Example: A consumer wanting to buy mobile phone has various options to

choose from. All the mobile phone producing companies advertising about
different mobile phones that they produce in large number & try to sell it to the
customers using pressure tactics but the ultimate choice remains to customers.

iv Right to be heard: This right has three interpretations. Broadly speaking, this
right means that consumers have a right to be consulted by Government and
public bodies when decisions and policies are made affecting consumer
interests.

Expansion to eight rights:

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v Right to seek redressal: If and when any consumer has a complaint or
grievance due to unfair trade practices like charging higher price, selling of
inferior quality or unsafe products, lack of regularity in supply of services etc. or if
he has suffered loss or injury due to defective or adulterated products, he has
the right to seek remedies. He has a right to get the defective goods replaced or
money refunded by the seller or dealer. He also has the right to seek legal
remedies in the appropriate courts of law. Through this right the consumers are
assured that their complaints will receive due attention. This right also provides
for due compensation to consumers if they have suffered a loss or are put to
inconvenience due to the fault of the supplier or manufacturer.

Example: A consumer should be able to go to consumer court against mobile

phone companies that put hidden charges on the bill that were not previously
explained, or activate ringtones without the consumer's permission.

vi Right to consumer education: To prevent market malpractices and exploitation

of consumers, consumer awareness and education are essentially required. For
this purpose, consumer associations, educational institutions and Government
policy makers are expected to enable consumers to be informed and educated
about (a) the relevant laws which are aimed at preventing unfair trade practice;
(b) the ways in which dishonest traders and producers may try to manipulate
market practices to deceive consumers; (c) how consumers can protect their
own interest; and (d) the procedure to be adopted by consumers while making
complaints.

Example: A recent example of consumer education was during the recession

that hit the Unites States between 2009 and 2011. The recession had an effect
on the economy as a whole. Thousands of people lost their jobs and homes and
families had to make immediate financial decisions. They were forced to
implement strict budgets and reduce their spending tremendously. With less
money being circulated into the market and economy it made a difference in
business growth and created a downward spiral.

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 It was important that consumers were educated and given information by the
government, media, and businesses. Consumers needed to know how
businesses were doing in order to determine how to invest their money and they
also they needed to know where to look for employment.

vii Right to environmental health : Consumers should be protected from the

devastating effects of air, earth, and water pollution that may result from the
performance of daily marketplace operations. Consumers have the right to live
and work in an environment that does not threaten the well-being of present and
future generations.

Example: Water that we drink should not be contaminated due to the

industries/factories situated in the nearby area, the environment should be
pollution free.

viii Right to basic needs: The basic needs are those goods and services which are
necessary for a dignified living of people.

Example: Food, clothing and shelter.

RESPONSIBILITIES OF A CONSUMER:

There is a well-known saying that ‘there cannot be rights without responsibilities’.

Having examined the consumer rights and the purpose served by them, it is
necessary to consider whether consumers should also be responsible enough to
be entitled to exercise their rights. For instance, to be able to exercise their right
to be heard, consumers should avail of the opportunities to know and keep
informed about consumer problems. To exercise their right to seek redressal of
complaints, consumers must take all precautions to choose the right goods at
the right price and learn how to use the products to prevent injury or loss.
Specifically, the responsibilities of consumers may include the followings:

i Critical Awareness: The responsibility to be more alert and questioning about

the price and quality of goods and services we use.
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 Example: (a)Buying the bisleri bottle/ any bottle water in remote places where
the price is too high & quality is low.

ii Action - The responsibility to assert ourselves and act to ensure that we

get a fair deal. As long as we remain passive consumers we will be exploited.

Example: Check the price of the product before buying it.

iii Social concern - The responsibility to be aware of the impact of our

consumption on other citizens, especially the disadvantaged or powerless groups
whether in the local, national or international community.

Example: Wastage of water, electricity in urban areas, whereas its need widely in
remote/ rural places.

iv Environmental Awareness - The responsibility to understand the environmental

and other consequences of our consumption. We should recognize our individual
and social responsibility to conserve natural resources and protect the earth for
future generations.

Example: Not to throw plastic on road, switch off the lights whenever not
needed.

v Solidarity - The responsibility to organize together as consumers to develop the

strength and influence to promote and protect our interest.
Example: Jaago grahak jaago initiative taken by government of india.

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CONSUMER EXPLOITATION

Majority of the Indian consumers are poor, illiterate, ignorant, passive, unaware, or
helpless. Due to illiteracy, unawareness, traditional or passive outlook the consumer is
being exploited in different ways. The manifestation of consumer neglect are evident in
the adulterated food we eat, the spurious, unsafe and substandard products we buy, the
repeated shortage of essential commodities accompanied by black marketing and
profiteering, the hazardous drugs banned in some of the countries that are pushed
through the counter, the glossy, unethical and manipulative advertisements with which
we are bombarded, the humiliation, indignity and harassment that we are subjected to
by public sector undertakings such as railways, transport corporations, nationalized
banks insurance companies, etc. and the polluted water we drink and air we breathe.

Business firms spend huge amount of money on advertising their products and
services. Most of these advertisements contain exaggerated and unprovable claims.

For ex. The advertisements of tooth-pastes, cosmetics, tonics, body-building, figure

improving and height increasing instruments make unrealistic claims that are bound to
attract the customers.

Though these advertisements do not explain how the products that are claimed to be of
good quality produce the benefit. The consumer believes them because of the
appealing presentation of the product. Ultimately the consumer feels cheated.

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Consumer exploitation can take place in any of the following forms:

1 Unfair trade practices.

 When a consumer is cheated or not informed adequately about the product. They
are also being exploited when they get incomplete or wrong information. Under
weighing and under measurement of the commodities purchased by them. It is for
the complainant to establish that he has suffered loss by damage on account of
unfair trade practice adopted by any trader. Unfair trade practice relates to both
purchase of goods and also rendering of services.

It includes any of the following practices, namely:

1 Making statements:

A trader adopts the practice of making any statements whether orally or in writing
or by visible representation which-

 Falsely represents that the good are of particular standard, quality,

quantity, greed, composition, style or model;

 Falsely represents the services are of particular standard, quality or greed;

 Falsely represents any rebuilt, secondhand, renovated, reconditioned or

old goods, as new goods;

 Represents that good or services have sponsorship approval,

performance, characteristics, accessories, uses or benefits which such
goods or services do not have;

 Represents that the seller or the supplier has a sponsorship or approval of

affiliation which such seller or supplier does not have;

 Makes a false or misleading representation concerning the need for, or the

usefulness of, any goods or services;

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  Gives to the public any warranty or guarantee of the performance,
efficiency or length of life of a product or of any goods that is not based on
an adequate or proper test thereof;

 Gives false or misleading facts related to the goods, services or trade of

another person.

Example: Complaint no: 483787

Consumer has Airtel D2H connection, customer id is 3007635475. His complaint is that
a movie has been booked on his account and when complained it has been told that it
has been done by mistake. So he had to recharge his account again but after recharge
he found that again 3 movies have been booked in his account and balance got
deducted. When he called customer care, he has been told that movies have been
booked from his mobile no. but actually he has not booked any movie.

Why is it Interesting-

There are frequent such complaints where amounts are deducted by DTH operators for
services which has never been requested by the consumer. This case also highlights
the same unfair practice being followed by the DTH operators something similar to VAS
by telecom operators. Secondly no DTH operator provides the copy of registration form
to the consumer at the time of taking connection and consumers’ needs to be very
careful in verifying all the entries before accepting the connection.

2 Spiralling prices.
Being over charged for a particular commodity. It is for the complainant to establish that
the trader has charged for the goods mentioned in the complaint, a price in excess of
the price-

 Fixed by or under any law for the time being in force; or

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 Displayed on goods; or

 Displayed on any package containing such goods.

A trader can therefore be charged for having collected price in excess of what is
displayed or published.

Example: Complaint against: Retail Store

The Consumer purchased packed bread along with other items from a Retail Store in
New Delhi. Maximum Retail Price (MRP) mentioned on the packet was Rs. 25/-
(Inclusive of all taxes) but the store charged Rs. 28/-. Cash Receipt provided by the
Retail Store provided details of Rs. 28/- as follows:

Price Rs. 24.89

Tax (12.5%) Rs. 3.11
Total Rs. 28.00

Why is it Interesting-

 As per The Legal Metrology (Packaged Commodities) Rules, 2011-“ No retail dealer
or any other person including manufacturer, packer, importer and wholesale dealer
shall make any sale of any commodity in packed form at a price exceeding the retail
sale price thereof.” i.e. no overcharging on MRP.
• As per above rules offender shall be punished with fine of two thousand rupees.
• The Retail Store adopted an illegal and non-consumer friendly practice.

3 Adulteration.

One of the most common way of exploiting the customer is when he is provided with
impure, adulterated and harmful substances. In respect of goods which are hazardous
to life and safety, traders shall display information regarding the contents, manner and
effect of use of such goods. Such goods offered for sale without such display can be a
case of complaint

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 For eg: Adulteration of Petroleum Products

4 Deficiency in goods and services

Providing a customer unsatisfactory after sales services for high cost items like
electronics and cars require constant and regular service. Deficiency means any
fault, imperfection, shortcoming or inadequacy in the quality, nature and manner
of performance which is required to be maintained by or under any law for the
time being in force or has been undertaken to perform by a person in pursuance
of a contract or otherwise in relation to any service.

Example:

Complaint no: 533824

The Complainant had booked a return flight from Aurangabad to New Delhi on SpiceJet
three months earlier for travel on 11.09.2014 with PNR F6D8QM but she received a
SMS from Spicejet on 09.09.2014 in evening regarding cancellation of the flight. The
complainant tried calling SpiceJet Customer Care mentioned in SMS for an alternate
flight. She spoke to one employee of Spice jet on phone who informed her that an
alternate flight is not available for the same day, but later he told they are trying to
arrange an alternate flight on 12th Sep 2014. However, the same was also not
confirmed by him. As she did not receive any intimation from the airlines regarding any
alternate flight, she booked another flight from Mumbai to New Delhi and paid Rs.
10,000 for the same. Her complaint is that she was not informed about any alternate
flight which the airlines had arranged. She had written a mail to Spice jet on 09.09.2014
regarding the same issue; however they have replied after a long time that they had
already booked an alternate flight on 12.09.2014.. As the same was not confirmed to
her, she had no option but to book another flight.

Why is it Interesting-

21
This case seems to be interesting as it shows miscommunication & deficiency in
services from the airlines. They informed the consumer very casually by message that
her flight has been cancelled but she was not informed that an alternate flight has been
arranged for her in lieu of the cancelled flight. The complainant was not informed of this
& when she asked for the refund Spicejet said that the same is not applicable as it was
case of ‘no show’ on the alternate flight. Due to this, consumer faced financial loss. As
per DGCA rules, Airlines are required to refund the ticket value in case consumer is not
willing to travel on its alternate or subsequent flight, or on another airline’s flight.

Caselet:

Complaint no: 533824

The Complainant had booked a return flight from Aurangabad to New Delhi on SpiceJet
three months earlier for travel on 11.09.2014 with PNR F6D8QM but she received a
SMS from Spicejet on 09.09.2014 in evening regarding cancellation of the flight. The
complainant tried calling SpiceJet Customer Care mentioned in SMS for an alternate
flight. She spoke to one employee of Spice jet on phone who informed her that an
alternate flight is not available for the same day, but later he told they are trying to
arrange an alternate flight on 12th Sep 2014. However, the same was also not
confirmed by him. As she did not receive any intimation from the airlines regarding any
alternate flight, she booked another flight from Mumbai to New Delhi and paid Rs.
10,000 for the same. Her complaint is that she was not informed about any alternate
flight which the airlines had arranged. She had written a mail to Spice jet on 09.09.2014
regarding the same issue; however they have replied after a long time that they had
already booked an alternate flight on 12.09.2014.. As the same was not confirmed to
her, she had no option but to book another flight.

Why is it Interesting-

This case seems to be interesting as it shows miscommunication & deficiency in

services from the airlines. They informed the consumer very casually by message that
her flight has been cancelled but she was not informed that an alternate flight has been
arranged for her in lieu of the cancelled flight. The complainant was not informed of this
& when she asked for the refund Spicejet said that the same is not applicable as it was

22
case of ‘no show’ on the alternate flight. Due to this, consumer faced financial loss. As
per DGCA rules, Airlines are required to refund the ticket value in case consumer is not
willing to travel on its alternate or subsequent flight, or on another airline’s flight.

NCH Advice

The consumer was advised to complain to the Sugam Portal of Director General of Civil
Aviation (DGCA) for resolution.
5 Consumer Harassment
 Unpleasant behaviour and uncomfortable conditions like the harassment in a
consumer can face while taking a service

Example:

Complaint no: 461735

Complainant purchased a flat from a Government authority and map was also passed
and he is living in this flat and he converted his house from lease hold to freehold but
Now Govt authority has gave an advertisement in newspaper for its auction and asked
general public to visit the said flat. Due to this he was unnecessary bothered by visitors
He sent the legal notice to that Government authority in Feb. 2013 and demanding the
compensation for this harassment.

Why is it Interesting-

Complainant is having all the legal documents of the flat with regard to its ownership
and Government Authority has no records. Due to mismanagement and carelessness,
Authority has issued a notice for its auction and asked general public to visit the flat.

This case reflects sheer negligence and careless attitude prevailing in Government
offices. Owner is living in the flat since last twenty years and got registered with
competent authority and Authority is issuing notice for its auction. Authority has done the
blunder and consumer is suffering. The consumer is unnecessary harassed by the
visitors

23
From the above mentioned cases we can see how if a consumer does not have
complete knowledge or information regarding his purchase gets exploited. Hence, it is
crucial for the consumers to be aware of the different ways he can be cheated in so as
to refrain from it. A consumer must be made aware of his rights and duties as
consumers. Even the law provides protection to every consumer, and it becomes his
duty to be completely cautious of his surroundings and be aware as to not get
exploited.as consumers, and it becomes our duty as well to be completely cautious and
not get exploited.

6 Spurious goods:
A manufacturer of spurious goods or offering such goods for sale or adopting
deceptive practices in the provision of services.

CONSUMER AWARENESS

24
Consumer awareness means making the consumer aware of rights that have
been given to them.

The understanding by an individual of their rights as a consumer concerning available

products and services being marketed and sold. The concept involves four categories
including safety, choice, information, and the right to be heard. Consumer awareness is
a term which means that consumers are aware of products or services they purchase
and their characteristics.

 Need for the awareness in the consumers

 The high levels of illiteracy in our country necessitates the consumer to be made
aware of their rights and duties. Increasing levels of unemployment is a great factor
that stresses on the presence of an educated consumer.
 People living below the poverty line who do not have the basic knowledge are most
vulnerable and must be protected.
 Unorganized structure of consumers also is a major reason as some consumers
have the required knowledge and some remain unaware of the various happenings
taking place around them.
 Increasing number of malpractices by the businessmen also creates the need for the
consumers to become more cautious about their surroundings.
 In the current world where advertisements play a major role in influencing the
consumer’s choices, deceptive advertising leads to misguiding the consumers and if
they lack awareness which can lead to huge losses.
 Supply of duplicate and fake goods to consumer must also be taken care of.

Safety Advocates Applaud IKEA Recall, Emphasize Need for Consumer

Awareness

Tuesday, June 28, 2016

25
WASHINGTON, D.C.—The Consumer Product Safety Commission (CPSC) and IKEA
announced the recall of 29 million IKEA Malm dressers responsible for the deaths of
three toddlers in tip-over incidents.

The American Academy of Pediatrics, Consumers Union, Consumer Federation of

America, Kids In Danger, the National Center for Health Research, Public Citizen, and
Shane’s Foundation issued the following joint statement:

“This recall is critically important to protect children and prevent future injuries and
deaths caused by these dangerous IKEA dressers. While we wish that this safety
hazard had been addressed sooner to protect young lives, we’re pleased that this recall
will stop the sale of these dressers and give consumers options for a refund or the
assistance to make these products safer by anchoring them to the wall. This recall is
significant—involving 29 million products and exceptional remedies available to
consumers. We commend staff at the CPSC for their hard work to secure a recall that
also commits IKEA to designing and selling furniture that meets safety standards going
forward. IKEA must now pull out all the stops and do everything it can to ensure
consumers know about the recall, are aware of their options, and can easily take action
to make their homes safer. We urge consumers to take the steps to remove or repair
these dressers, and minimize all furniture and appliance tip-over hazards in their
homes.”

The groups recently sent letters to CPSC Chairman Elliot Kaye, calling on the safety
agency to take strong, immediate action to better protect children from the tip-over
hazard of certain IKEA Malm dressers. The letter followed a Philadelphia Inquirer report
of the February death of a 22-month-old boy in Apple Valley, Minnesota, who died when
the Malm dresser in his room tipped over on him. His death was the third confirmed tip-
over death from IKEA Malm dressers.

Creating consumer awareness is very essential and an important element in order

to safeguard the consumer’s interests by educating them about their rights and
privileges.

26
 Few of the ways by which a consumer can be made aware:

Advertising: Using the advertising medium and websites of the producers help the
company in creating awareness about the various features of the product. Frequent
advertisement of the product or public service announcement on radio stations that
reach the target audience can also be adopted as one of the biggest mediums.
Promotion of the product through the various mediums can also help in creating
awareness among the consumer’s giving advertisements in the newspaper in the
business section or in a section related to particular product can also be a very good
source to reach to the customer’s.

Logo: Unique logo of the product creates its specific identity and helps the consumer to
identify the product and differentiate it with other brands. It also helps the consumer
identify the original from the fake lookalike.

Brochure: Producers can provide the customers a small booklet containing necessary
information about producer’s product or information that the producers would want to
distribute to their potential customers.

Public Exposure: Schedule seminars at schools, office complexes or manufacturing

plants to provide information that maybe vital to students or workers, discussing the
particular topic and explain the steps people can take to resolve any particular issues
and be aware of what to expect.

Brand Awareness: Making the advertisement reach the audience frequently in the
early stages of product introduction to build brand awareness among consumers are
some of the great ways to educate the consumers.

 Consumer Remedies

Laws protecting consumers vary in the remedies they provide to consumers for violation
Many federal laws merely provide for public agencies to enforce consumer regulations
by investigating and resolving consumer complaints.

27
Example: In the case of a false advertisement, a common remedy is the FTC-ordered
removal of the offensive advertisements from the media. In other circumstances,
consumers may be entitled to money damages, costs, and attorney fees, these
remedies can be effective in a case involving a breach of warranty. Depending on the
amount of damages alleged, consumers may bring such actions in small claims courts,
which tend to be speedier and less expensive than trial courts.

Alternative Dispute Resolution (ADR)

Is another option for consumers. Some states pass consumer protection statutes that
require some form of ADR—usually Arbitration or mediation—before a consumer can
seek help from the courts. Finally, when a large number of consumers have been
harmed in the same way as a result of the same practice, they may join in a Class
Action, a single lawsuit in which one or more named representatives of the consumer
group sue to redress the injuries sustained by all members of the group.

In response to public frustration over telephone solicitations, many states and the FTC
began to set up systems to bar unwanted telephone sales calls. The FTC, in 2002,
amended the Telemarketing Sales Rule (TSR) to give consumers the option of placing
their phone numbers on a national "Do Not Call" registry.

It will be illegal for most telemarketers to call a number listed on the registry. The
registry was scheduled to go into operation in July 2003, but telephone marketing
companies promised a lawsuit to contest the rules, arguing that they violated the First
Amendment.

Ministry of Consumer Affairs, Food & Public Distribution National consumer day
celebrations to be inaugurated by Shri Ram Vilas Paswan

In India, 24th December is being observed as National Consumer Day. On this day the
Consumer Protection Act, 1986 had received the assent of the President. It should be
also noted that World Consumer Rights Day is observed on 15th March every year.

28
The Department of Consumer Affairs, Ministry of Consumer Affairs Food and Public
Distribution, Government of India celebrated the National Consumer Day 2015 with the
theme “Safe & Healthy Food: Combating Food Adulteration.” on 22nd December, 2015
in Vigyan Bhavan, New Delhi.

The programme was inaugurated and presided over by Shri Ram Vilas Paswan, Union
Minister of Consumer Affairs, Food and Public Distribution. While Justice D.K. Jain,
President, National Consumer Disputes Redressal Commission (NCDRC), New Delhi
delivered the key note address, Shri Ashish Bahuguna, Chairman, Food Safety
Standards Authority of India delivered the theme address.

The National Consumer Rights Day is an annual occasion for celebration and solidarity
within the national consumer movement and is an opportunity to promote the basic
rights of all consumers.

In view of increasing reports of food adulteration there is a need to build the capacity of
the consumers as well as the community to fight this menace. Educating the consumers
about food safety and hygiene, food adulteration and the way to detect food adulteration
is the best way to protect them.

On the occasion the Department had organized a poster making competition among
school children on the theme consumer awareness. Cash prizes were given to the prize
winning six school children. Importantly, two podcasts on food safety are being
launched which will have sign language interpretation.

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.

A COMPLAINANT

Complainant means
- A consumer to whom goods are sold or delivered or agreed to be sold or
delivered or such services provided or agreed to be provided.
- Voluntary Consumer Organisation.
- The Central Government.
- The State Governments or Union Territory Administration.
- One or more consumers, where there are numerous consumers having the
same interest.
-In case of death of a consumer, his legal heir or representative

Details, Procedure & Steps

For filing Consumer complaints:

People/ organizations who can file a Consumer Complaint in India:

The Consumer Protection Act provides a list of persons who can file a complaint under
the Act & they are as follows:

 A Consumer

 Any voluntary Association Registered under the Companies Act, 1956

 The Central government or the State Government

 One or more consumers, having the same interest.

Besides the above list the following can also file a consumer complaint:

 Any person who is a beneficiary of the goods/services

 Legal representatives of deceased consumers

 Legal heirs of the deceased consumer

30
  Husband/Wife of the consumer

 Relative of the consumer

Ease and Convenience of filing a Complaint: Now since the legislature intended to
make the process of filing complaint simple and easy, the first question to be answered
was: Can the complaint be filed without engaging the services of any lawyer? The
answer to this question is YES

You don’t need to engage the services of any Advocate and can file your complaint of
your own. The consumer protection Act has provided a very simple procedure to file the
complaint that even a layman who is not from the law background, can file the complaint
of its own.

Even there is no requirement of any court fee to be paid at the time of filing any
complaint in the Act.

Steps to file a complaint:

Before formally filing a Consumer Complaint, it is desired that the Consumer gives
notice to the opposite party of the fact of any deficiency in service or of unfair trade
practice etc to see if the trader is willing to make good the loss suffered by either
replacing the commodity or returning the value of the purchase. If yes, the issue
resolves then and there. But if the trader refuses or neglects here then the consumers
need to approach the Consumer Court and do the following.

1 At first identify the Jurisdiction of the Forum where the complaint is to be filed. This
issue needs to be identified from two angles of jurisdiction i.e. Territorial and
Pecuniary.

The Consumer has to take into consideration both the territorial and pecuniary
jurisdiction of the tribunal in mind before filing his complaint and has to choose the
correct forum.

Territorial Jurisdiction of the Consumer Forums :-

31
A complaint shall be instituted in a District Forum or State Commission or National
Commision within the local limits of whose jurisdiction —

 The opposite party resides or caries on business or has a branch office or personally
works for gain, or

 If there are more than one opposite parties, then any one of the opposite parties
resides, or carries on business or has a branch office, or personally works for gain,

Provided that in such case the permission of either District Forum, State
Commission or National Commission as the case may be, or the opposite parties
who do not reside in such place or carry on business or have a branch office or
personally works for gain as the case may be, must be obtained , or

 The cause of action arose.

Pecuniary Jurisdiction of consumer forums:

Pecuniary means relating to or consisting of money Pecuniary jurisdiction refers to

the jurisdiction of a court over a suit based on the amount or value of its subject
matter.

Sr. No. Forums Amount

1 District Forum Up to Rs. 20 lakhs

2 State Commission Rs 20 Lakhs to 1 Crore
3 National Forum Exceeding Rs 1 Crore

2 You will be required to pay a prescribed fee along with your complaint before the
District Forum, State Commission & the National Commission as the case may be.

3 Then you have to draft your complaint stating facts necessary to establish a cause of
action.

32
4 At the end of the complaint you have to put your signatures. In case any other
person is authorized to file the complaint then complaint has to be accompanied with
authorization letter.

5 Don’t forget to mention the name, description and address of the complainant and
the name, description, address of the opposite party or parties against whom relief is
claimed.

6 Copies of all the documents supporting your allegations. In this you can put on
record the copy of the bill of the goods bought, warranty and guarantee documents
and also a copy of the written complaint and notice made to the trader requesting
him to rectify the product.

7 You can also ask for compensation costs which should be specifically alleged in the
complaint. Besides compensation, a consumer can also ask for the refunds,
damages, litigation costs, and interest amount. You must give the breakup of amount
claimed under different heads but do remember to claim compensation or other relief
as per the pecuniary value of the forums.

8 Explain in your complaint as to how the case falls within the jurisdiction of this forum.

9 Complaint must clearly state as to what relief is sought against the opposite party.

10 The Act provides for limitation period of two years from the date of cause of action.
In case there is delay in filing the complaint, please explain the delay which can be
condoned by the Tribunal.

11 You are also required to file an affidavit along with the complaint that facts stated in
the complaint are true and correct.

12 The complainant can present the complaint in person or by his/her authorized

representative without engaging any advocate. The complaint can be sent by
registered post. A minimum of 5 copies of the complaint is to be filed in the forum.
Besides this you have to file additional copies for each opposite party.

33
13 When the product needs to be tested to prove a defect, it must be taken to a
laboratory approved by the Central or state government for analysis. Based on the
findings, the complaint is decided.

Consumer needs to be more aware of the malpractices followed by the trader and
should stand up for their rights.

“CONSUEMRS BEWARE” is the slogan of the day.

CONSUMER DISPUTE

On a complaint before the consumers redressal forums against a person, who denies or
disputes the allegations contained in a complaint a consumer dispute arises. Separate
allegations may form separate disputes requiring separate finding on each dispute.

What is a complaint

In legal terminology, a complaint is any formal legal document that sets out the facts
and legal reasons that the filing party or parties believes are sufficient to support a claim
against the party or parties against whom the claim is brought.

A Complaint should contain the following information:

(a) The name, description and address of the complainant;

(b) The name, description and address of the opposite party or parties;

(c) The facts relating the complaint and when and where it arose;

(d) Documents ‘if any’ in support of allegations and

(e) The relief which the complainant is seeking.

The complaint should be signed by the Complainant or his/ her authorised agent.

A complaint is any allegation in writing made by a complainant that –

1. An unfair trade practice or a restrictive trade practice has been adopted by any
trader or service provider.

34
Example: Ramesh sold a six months old car to Sameer representing it to be a new one.
Here Sameer can make a complaint against Ramesh for following an unfair trade
practice.

2. The goods bought by him or agreed to be bought by him suffers from one or more
defects.

Example: Raj bought a computer from Suprit. It was not working properly since day one.
Raj can make a complaint against Suprit for supplying him a defective computer.

3. The services hired or agreed to be hired suffers from deficiency.

Example: Pratik hired services of an advocate to defend himself against his landlord.
The advocate did not appear every time the case was scheduled. Pratik can make a
complaint against the advocate.

4. Goods which will be hazardous to life and safety when used are being offered for
sale to the public.

Example: Rajesh bought a tin of disinfectant powder. It had lid which was to be opened
in a specific manner. Trader did not inform Rajesh about this. While opening the lid in
ordinary way, some powder flew in the eyes of Rajesh which affected his vision. Here
Rajesh can make a complaint against the trader.

5. A trader or the service provider has charged for the goods or for the services
mentioned in the complaint, “a price in excess” of the price.

Example: Sagar bought a sack of cement from Mayur who charged him Rs. 100 over
and above the reserve price of the cement declared by the Government. Here Sagar
can make a complaint against Mayur.

35
 THREE TIERS

District Forum:
District forum consists of a president and two other members. The president can be a
retired or working judge of District Court. They are appointed by state government. The
complaints for goods or services worth Rs 20 lakhs or less can be filed in this
agency .The agency sends the goods for testing in laboratory if required and gives
decisions on the basis of facts and laboratory report. If the aggrieved party is not
satisfied by the jurisdiction of the district forum then they can file an appeal against the
judgment in State Commission within 30 days by depositing Rs 25000 or 50% of the
penalty amount whichever is less.

The District Forum can entertain complaints where the value of goods or services and the
compensation, if any, claimed is less than rupees five lakhs. However, in addition to jurisdiction
over consumer goods services valued upto Rs. 5 lakhs, the District Forum also may pass orders
against traders indulging in unfair trade practices, sale of defective goods or render deficient
services provided the turnover of goods or value of servicesdoes not exceed rupees five lakhs.
A complaint shall be instituted in the District Forum within the local limits of whose jurisdiction -
(a) the opposite party or the defendant actually and voluntarily resides or carries on business or
has a branch office or personally works for gain at the time of institution of the complaint; or
(b) any one of the opposite parties (where there are more than one) actually and voluntarily
resides or carries on business or has a branch office or personally works for gain, at the time of
institution of the complaint provided that the other opposite party/parties acquiescence in such
institution or the permission of the Forum is obtained in respect of such opposite parties; or

(c) the cause of action arises, wholly or in part.

State Commission:

It consists of a president and two other members. The president must be a retired or
working judge of high court. They all are appointed by state government. The

36
complaints for the goods worth more than Rs 20 lakhs and less than Rs 1 crore can be
filed in State Commission on receiving complaint the State commission contacts the
party against whom the complaint is filed and sends the goods for testing in laboratory if
required.In case the aggrieved party is not satisfied with the judgment then they can file
an appeal in National Commission within 30 days by depositing Rs 3500 or 50% of
penalty amount whichever is less. The State Commission also has the power to call for
the records and appropriate orders in any consumer dispute which is pending before or
has been decided by any District Forum within the State if it appears that such District
Forum has exercised any power not vested in it by law or has failed to exercise a power
rightfully vested in it by law or has acted illegally or with material irregularity.

National Commission:

The national commission consists of a president and four members one of whom shall
be a woman. They are appointed by Central Government. The complaint can be filed in
National Commission if the value of goods exceeds Rs 1 crore. On receiving the
complaint the National Commission informs the party against whom complaint is filed
and sends the goods for testing if required and gives judgment.If aggrieved party is not
satisfied with the judgment then they can file a complaint in Supreme Court within 30
days.

The National Commission shall have jurisdiction :-

a. to entertain complaints where the value of the goods or services and the
compensation, if any, claimed exceeds rupees twenty lakhs:
b. to entertain appeals against the orders of any State Commission; and
c. 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 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.

37
CONSUMER GUIDANCE SOCIETY OF INDIA (CGSI)

Since Independence, India has been striving to develop and strengthen its industrial
base. In this pursuit of ‘‘self-sufficiency’’, however, the consumer has made to endure
sub-standard products and services like adulterated foods, short weights and measure,
spurious and hazardous drugs, exorbitant prices, endemic shortages leading to black
marketing and profiteering, unfulfilled manufacture guarantees, and a host of other ills.
In one infamous case, forty persons were struck with dropsy and glaucoma after
consuming groundnut oil adulterated with toxic Agremone oil. The culprits were never
brought to justice. This outrage energized nine ladies to organize a movement to fight
for consumer rights. They formed the Consumer Guidance Society of India(CGSI) to
resist consumer exploitation of all forms.

CONSUMER GUIDANCE SOCIETY OF INDIA

The name of the Society is Consumer Guidance Society of India, hereinafter referred to
as “CGSI”.

Objective of the Society

 To inform, educate and organise consumers in order to secure, protect and
preserve their interest and assert their rights as consumers of goods and
services.
 To protect consumers against marketing of goods (including agricultural
products and product) which are hazardous to life and property.
 To inform, protect and secure consumers about the quality, quantity, purity,
standard and price of goods so as to protect consumers against unfair trade
practices.
 To assure that consumers of goods (including agricultural products and produce)
and services has access to a variety of goods at competitive prices.
 To send representatives of CGSI on Councils, Forums and any other body
established by Government or any Semi Government bodies or Consumer
Association or Societies both in India and abroad.

38
 To undertake consumer research to determine the needs of consumers and to
circulate amongst the concerned persons information about the evaluation of
consumer goods, products and needs.
 To co-operate with and assist various organisations and public authorities both in
India and abroad in the formation and adoption of quality standards for
consumer products and services, as well as of such standards as are necessary
form the safety and health aspect in the interest of consumers.
 To act in general as the Voice of Consumer and to do all such things as would
inform, educate, guide, protect, promote and secure consumer interest.
 To protect consumer against environmental hazards caused by industry, trade
and Government.
 To do all such acts and deeds as are required to be done and to exercise all
such rights as are given to consumer organisation under the Consumer
Protection Act, 1986 and all other enactments, including amendments, passed
from time to time.

39
CONSUMER GUIDANCE SOCIETY OF INDIA.

Membership
There shall be the following categories of members of the Society.
Categories of Membership
a) Patrons,
b) Founder Members,
c) Life Members,
d) Ordinary Members,
e) Associate Members,
f) Institution Members,
g) Registered Consumer Co-operative Societies.
 Patron: Any adult person paying to the Society, a lump sum of Rs. 2,000/- may be
enrolled as Patron of theSociety. The patron shall be a member of the Society for
life.
 Life Member: Any adult person paying to the Society a lump sum of Rs. 1800/- may
be enrolled as a Life Member of the Society. A Life Member shall be a member of the
Society for his life.
 Ordinary Member: Any adult person agreeing to pay an yearly subscription of Rs.
180/- may be enrolled as an Ordinary Member of the Society.
 Associate member: Any Company, firm or other trading, commercial or
manufacturing organisation, body or association agreeing to pay to the Society an
yearly subscription of Rs. 6,000/- may be enrolled as an Associate Member of the
Society.
 Institution Member/Registered Consumer Cooperative Societies: Any Society
registered under the Societies Regulation Act or an Association registered under the
Companies Act 1956 as an association not for profit, or any other similar association
or institution, any Consumer Society whether registered or not, but engaged in non-
commercial or non-trading activities and agreeing to pay to the Society an yearly
subscription of Rs. 375/- may be enrolled as an Institution Member of the Society.

40
 For registered consumer co-operative societies the annual subscription will be Rs.
375/-.
 Entrance Fees: An Entrance Fee of Rs. 10/- shall be payable by Ordinary,
Associate, Institution, Registered Consumer Co-operative Societies and Affiliate
Members but not by Patron, life and Honorary Members.
 Honorary Member for Life: The Managing Committee may enrol any person of
distinction or any person who has rendered outstanding service to the cause of
consumer guidance as an Honorary Member. Such member may attend a General
Meeting but shall have no right to vote at any General Meeting.

Activities of CGSI
CGSI's activities include:

a) Consumer Education

b) Holding talks and exhibitions to spread consumer rights awareness among urban
poor and rural areas

c) Consumer Complaints Redressal

d) Testing of Consumer Products

e) Publication of "KEEMAT" a bi-monthly news magazine now published for over 20

years having articles of general consumer awareness, for CGSI members and general
public.

 Consumer Education:
CGSI started a rural project in the villages of Thane and Raigad districts (Maharashtra)
in 1997, with a staff of six and funding from Action Aid. By 1999, CGSI had given
consumer training to consumers in 112 villages. Over 32,300 people have received
consumer education through 750 talks and demonstrations in the 2 years of the project,
107 training programs were organized and special training in consumer activism given

41
to 5,767 potential activists. Many local consumer groups have been set up in different
areas by the consumers themselves that are now actively organizing exhibitions,
holding talks and redressing complaints. In the years 2005–06 and 2006–07, CGSI
conducted consumer clubs in 25 schools each in Thane & Raigad District with the help
of Maharashtra State Government. CGSI trained a total of 2500 students and teachers
in the subject of consumer awareness.

 Holding talks and exhibitions to spread consumer rights awareness among

urban poor and rural areas :

CGSI’s main thrust is in rural areas where consumer rights awareness is very low. With
the help of its dedicated volunteers and their expertise in various fields, CGSI has been
organizing consumer camps, exhibitions, imparting consumer education to school and
college students, etc. Today, CGSI programs reach out to more than 20,000 consumers
in a year. Now with the help of more and more experts from various fields, CGSI imparts
knowledge about prudent investment, Telecom Services, food adulteration detection,
medical negligence, mediation, legal redressal of complaints, etc.

 Consumer Complaints Redressal:

CGSI handles consumer complaints and offers legal guidance to those wishing to file
suits in the Consumer Courts. In cases where there are a larger number of complaints
against a particular party, both sides are brought together to resolve the issue. The
CGSI'S Complaints Committee meets twice a week. CGSI has redressed many
thousands of consumer grievances over the years, with 70-80% success in favor of the
consumers. complaints cover medical/surgical malpractice and negligence; insurance
non-payment; sub-standard drugs and medicines; home remedies; defective household
appliances; poor quality foods and drinks; misleading advertising claims; and
grievances concerning investments, real estate, insurance, telephones, electricity
supply, etc. CGSI handled over 400 complaints during the year through personal

42
counseling sessions, correctly guiding complainants, sometimes even clearly saying
that they do not have a case to fight for without wrongfully leading them on.

 Testing of Consumer Products :

As early as 1977, CGSI established formal product testing to evaluate quality by

drawing samples directly from the market without involving the manufacturers in the
testing process. Test results were a revelation for quality control regulatory authorities. It
first assessed the safety and performance of domestic pressure stoves and found that
two-third of the samples tested failed in safety Parameters. CGSI sent the results to the
government and Indian Standards Institution (ISI) now Bureau of Indian Standards
(BIS), with a demand for mandatory certification. In 1986, with the passing of the
Pressure Stoves Quality Control Order, ISI Certification for pressure stoves became
mandatory. Subsequently CGSI did tests on electrical appliances and fittings - irons,
immersion heaters, culminating in the enactment of the Household Electrical Appliances
(Quality Control) Order. CGSI has developed a food adulteration testing kit and a milk
adulteration testing kit for use by the lay consumers. Many other products were tested
and reports published in the Society's monthly Journal, "KEEMAT": edible oils,
powdered spices, 'surma' (kohl), geysers, clinical thermometers, plastic water bottles,
rubber teats, milk, mineral water, breads, soft drinks, bath soaps, fabric detergents, and
toothpastes.

 Publication of "KEEMAT" a bi-monthly news magazine for CGSI members and

general public for general consumer awareness :

KEEMAT India’s first monthly consumer magazine is now in its 43rd year of
publications. CGSI distributes KEEMAT to all its members. KEEMAT is also available as
a free download to the public from dedicated CGSI website www.cgsiindia.org. CGSI
has also produced a number of Consumer Guides on subjects like Electrical Appliances,
Edible Oils, Pesticides, Food, Adulteration, Safety at Home, Safe Blood, etc

43
Landmark Achivements Of CGSI:

 CGSI is the earliest consumer organization in India, founded in 1966.

 CGSI was the first organization to demand a ‘Consumer Protection Act’ with
‘Consumer Courts’ to implement it. This became a reality in 1986.

 To date, CGSI has redressed more than 80% of the thousands of complaints
referred to it by consumers.

 CGSI was the first to establish formal ‘Consumer Product Testing’ in India.

 CGSI was the first to publish a monthly magazine "KEEMAT" carrying information
of importance to consumers.

 CGSI was the first to promote consumer education; initiate training projects in
rural areas; promote publicity drives; and represents consumer interests with
Government and other regulatory bodies.

 CGSI received the National Award for Consumer Protection in 1991.

 CGSI participates in a large number of technical committees and Government

decision-making bodies.

 CGSI is a member of the Maharashtra State Consumer Protection Council.

 CGSI has produced a documentary film “Grahakpal” on consumer rights for easy
dissemination to consumers.

 CGSI is among the top two states in terms of number of complains handled
amongst nine states conducting consumer helpline project.

 Over 32,000 people received consumer education in two years, through talks,
demonstrations and exhibitions.

44
 107 training programmes were organized and 5,700 potential activists were given
special training in consumer activism. This resulted in many local consumer groups
in remote villages, set up by the consumers themselves

With the number of queries and requests increasing steadily, and the eagerness to
cover more and more consumers, CGSI is also conducting educational seminars in
other states like Bihar, Jharkhand and Delhi apart from Maharashtra. During the last few
years, CGSI is conducting nearly 250 seminars each on Telecom, Banking, Financial
Awareness, Food Safety etc. CGSI has ambitious targets to reach more and more
consumers through its consumer education programs and make India, a country of
aware consumers resulting in flourishing markets with quality products and services.

45
The other few consumer prominent group in india other than CGSI are :

 Mumbai Grahak Panchayat : MGP is the largest voluntary consumer organization

in India with a membership of 24500 families. It has been engaged in activities of
consumer protection and education for the last 33 years. Its collective group buying
system provides a best practice model for a sustainable consumption.

 Consumer Utility and trust society : CUTS international began its journey in 1983
in Rajasthan, from a rural development communication initiative. It is one of the
largest consumer group in india with overseas centres in Geneva, Lusaka and
Nairobi. CUTS has now completed 30 glories years.

 Voluntary Organization in the intrest of consumer education ( VOICE ) : VOICE

has initiated a program of educating farmers in DELHI-NCR on farming without using
pesticides.

Caselets :

1 Ajay Sahani, a consumer bought a refrigerator form Whirlpool through Croma Stores
located at Malad-West in 2014; he started facing problems in the equipment since
December 2014 which continued for till August 2015. When he approached the
Whirlpool outlet, his complaint was juggled from one serviceman to another, all
giving contradictory suggestions. The consumer was mentally exhausted by this
vicious cycle and approached CGSI. With CGSI’s intervention the equipment was
repaired in December 2015 without any service charges as the refrigerator was still
in the warranty period.

2 9th May 2015, the consumer withdrew an amount of Rupees 500 from the ICICI
Bank ATM at Kandarpada, Mumbai. To her surprise her ICICI Bank account was
debited by Rupees 20,000. After approaching the ICICI Bank I.C. Colony Branch

46
 manager, her complaint was not given due attention. She later filed an F.I.R
regarding the same at the nearest police station and along with this she approached
CGSI regarding the same. With CGSI’s intervention the problem was resolved and
the consumer received the wrongly debited amount of Rupees 20,000 in her account
on 3rd November 2015.

3 Case from the real estate sector, a consumer had paid Rs 300000 to P.S.Arcade to
buy 1BHK apartment @ Titwala. The Total amount being Rs 6,50,000. The 1st
installment was paid on 6/4/2014 amount being Rs 50,000; 2nd Instalment was paid
on 4/5/2014 amount being Rs 50,000 ; and 3rd Instalment paid on 19/05/2014
amount being Rs 200000/-, this was considered as booking amount. On being asked
to pay Rs 200000 as unaccounted cash funds and also the 1BHK was now
converted to 1RK by the Builder, the consumer backed out from the deal. To make
matters worse the builder refused to sign a proper registered and stamp duty paid
agreement. With CGSI sending a letter to the builder, the consumer‘s problem was
solved. The total amount of Rs 3 lakhs was paid-back to the consumer by the
builder.

47
Graphical Representation

National Helpline received 1.72 lakh complaints in 2015-16

The National Consumer helpline received 1.72 lakh complaints in 2015-16, up from 1
lakh odd complaints in 2013-14. The state help lines also received 54827 complaints in
2015-16. Most complaints on the National helpline were received from Delhi followed by
Uttar Pradesh and Maharashtra. The state help lines in Gujarat, Maharashtra &
Rajasthan received more than 10000 complaints each in 2015-16.

National Consumer helpline and State Consumer help lines provide telephonic advice,
information, guidance and grievance redressal procedure to consumers relating to their

48
complaints and forward their complaints to companies and regulators concerned for
taking necessary action.

National Consumer Helpline has tied up with more than two hundred companies as part
of its convergence program for resolution of consumer complaints. Convergence is an
alternate dispute resolution mechanism to resolve grievances promptly. As per
government data, 53185 consumer complaints were sent to companies as a part of the
convergence program and 80% of these complaints have received full or partial
response from the respective companies.

More than 90000 complaints were filed in the National & State Consumer forum in
the past 3 years

Consumers who are not satisfied with the response of the respective company usually
approach the consumer forum setup at the district, state and national level. While
it appears that the number of cases filed in the national & state forum has come down in
2015, this is due to non-availability of data for more than 10 state consumer forum. The
disposal rate has also come down from 2013 to 2015.

49
In the district consumer fora across the country, 1.21 lakh cases were filed in 2015
compared to 1.45 lakh in 2013. This again is due to the non-availability of data from
over 10 states. Within the states, the trends are mixed. While the number of cases filed
has decreased in Uttar Pradesh, it has increased in Maharashtra and Madhya Pradesh
from 2013 to 2015.

50
 INDIAN CONSUMER PROTECTION ACT VS SOUTH AFRICAN CONSUMER
PROTECTION ACT

Indian Rights Vs South African Rights

AS per As per
Consumer consumer
RIGHTS OF CONSUMERS
protection Act protection Act
1986 2008
Right to Equality NO YES

Right to seek redressal YES NO

Right to be heard YES NO

Right to choose YES YES

Right to disclosure of information YES YES

Right to fair and responsible maketing YES YES

Right to fair value, good quality and safety YES YES

Right to accountability NO YES

Right to fair just and reasonable terms and conditions NO YES

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The Consumer Protection Act, 2008

The Consumer Protection Act applies to the following:

 Every transaction occurring within the Republic of South Africa;
 Promotion or supply of any goods and services occurring within the Republic;
and
 Goods or services that are supplied or performed, in the Republic, in terms of
transactions mentioned in the Act

South African Rights provided to the Consumer

These include the following:

Consumer Right No. 1

Right to Equality in the Consumer Market and Protection Against Discriminatory
Marketing Practices
Your right to free and unlimited access to goods and services
 Suppliers are not permitted to limit access to goods and services.
 Suppliers are not permitted to prioritise any consumer groups over others
when marketing, selling or distributing their goods and services.

Your right to high-quality goods and services

 Suppliers are not permitted to vary the quality of their goods and services in a
discriminatory manner.
 Consumers have the right to query the inferior quality of goods and services.

Your right to fair pricing of goods and services

 Suppliers are not permitted to charge unfair prices for the same goods and
services.
 Consumers should be treated equally, irrespective of gender, race, socio-
economic status or geographic location.

Your right to lodge complaints

 The Equality Court has jurisdiction in respect of alleged contraventions:
 Proceedings may be instituted before an Equality Court.
 Consumer complaints may be filed with the National Consumer Commission,
the latter of which is required to refer such complaints to the Equality Court, if
they appear to be valid.

Consumer Right No. 2

Right to Privacy
What does this mean for the ordinary consumer?

Your right to restrict unwanted direct marketing

52
  Consumers have the right to protect their privacy and confidentiality in respect
of unwanted or unsolicited correspondence.
 Consumers have the right to refuse unwanted sms’s, telephone calls, letters or
‘spam’ e-mail.

Your right to discontinue receipt of direct marketing at any time

 Consumers have the right to opt out of receiving unsolicited direct marketing
services by blocking the relevant supplier/marketer.
 Consumers have the right to accept, restrict or refuse unwanted direct
marketing.
 Companies and suppliers are not permitted to continue any unsolicited direct
marketing of goods and services, once consumers have opted out.

Consumer Right No. 9

Right to Accountability from Suppliers
For the ordinary consumer it means
Your right to protection in lay-bye agreements

Consumers are entitled to the following, in lay-bye agreements:

 Purchase goods and services via lay-bye agreements. In this case, if the
suppliers fail to deliver any goods, these suppliers must, at the discretion of
the consumers, supply equivalent or superior products;
 Full refund of money paid, plus interest; and
 Keep their deposits in an interest-bearing account.

Your right to protection with regard to prepaid certificates, credits and

vouchers, and access to prepaid services and service facilities

Suppliers in possession of any prepaid certificates, credits, vouchers,

membership fees or other money belonging to the consumers, must do the
following:
 Not treat such property as theirs;
 Exercise care, diligence and skill; and
 Assume liability for any losses suffered by consumers in this regard.

53
 CASE STUDIES

Union of India Vs. Chairman, Madras Provincial Consumers’ Association

In this case, a complaint was filed by a voluntary consumers’ association, the grievance
of the complaint being that whilst the catering department of the Southern Railway was
supplying three kinds of meals (vegetarian, non-vegetarian and economy meals),
passengers ordering the vegetarian or the non-vegetarian meals were served with
drinking water in polythene sachets, but those ordering the economy meal were not
given any drinking water with their meals.

The District forum held that the sale of an economy meal without drinking water would
tantamount to supply of ‘defective goods’ under the Consumer Protection Act and
ordered the railway authorities to serve drinking water with all meals, including economy
meals, from 1st January, 1991. After giving this direction, the District Forum surprisingly
added (in its order) that if this order was not obeyed, “Mr. R. Narasimhan, the General
Manager of Southern Railway, Madras shall be sentenced to one year’s simple
imprisonment under S. 27 of the Consumer Protection Act, 1986”.

On an appeal filed against this order, the National Commission struck down the order of
the District Forum. As regards the punitive part of the order, the National Commission
observed that the question of punishment in advance, it added that even after there was
a violation of the order, that is, when S. 27 of the Act is attracted, he would be heard
before he is sentenced. The National Commission, therefore, held that the District
Forum was not competent to pass such an “inbuilt order of imprisonment” for a future
breach.

It was also held that in the case of any food served, which does not fall in the category
of regular meal (curd and rice, in the present case), there would be no responsibility to
serve drinking water along with such food.

54
Akhil Bhartiya Grahak Panchayat Vs. Life Insurance Corporation of India

In this case, LIC had denied to a policy holder, information about the surrender value,
special surrender value and bonus in respect of insurance policies.

Ordering LIC to pay compensation for the mental and financial loss suffered by the
policy – holder who pays premium to an insurance company is a ‘consumer’ of
insurance services; there is nothing offending if he seeks information from the company
(as contented by LIC). In such cases, a contractual relationship as a consumer is
established between the corporation and the policy – holder and as a service
organization, the corporation is bound to extent the necessary courtesy and supply the
information to him. The hostile and indifferent attitude of LIC was held to be ‘deficiency
in services’ under the Consumer Protection Act and compensation of Rs. 20,000 was
therefore ordered to be paid to the consumer.

Consumer Education Research Center Vs. Godrej Soaps Ltd.

The Consumer Education Research Center (CERC), Ahmedabad, filed a complaint

against Godrej Soaps Ltd., a leading manufacturer of consumer products, alleging that it
was selling a hair-dye which was injurious to its users. It was contended that the dye
contained a substance called ‘P-pd’ which when used with hydrogen peroxide was
carcinogenic (cancer causing) and caused adverse effects upon the health and safety of
human life. Additionally, the company was also advertising the product using the words
“total safety”.

In response, the company took the stand that there was no scientific data which had
established that P-pd was carcinogenic. In reply, CERC argued that, in such cases, one
cannot wait for people to die and then issue a health warning. It was, therefore, argued
that, in order to prevent a future tragedy, the manufacturer should not be allowed to sell
any product which is likely to cause injury to human beings, that is, hazardous to human

55
life. In the alternative it was urged that the hair-dye should at least carry a warning on
the pack itself.

The Gujarat State Commission partly accepted CERC’s contention and suggested that
the company drop the words “total safety” from its advertisements. The manufacturer
readily accepted this suggestion and the matter was thus closed.

The outcome in this case is a reflection of the tendency prevalent in modern times when
huge corporates prefer to modify their behavior rather than engage in long-drawn
litigation. However, consumer activists were not all satisfied with the end result of this
case and felt that the Commission ought to have directed the company to affix
mandatory warnings on the product itself – as is done in the case of cigarettes – and
that such an order would have better served the larger interests of consumers.

Consumer Unity and Trust Society Vs. The Chairman & MD, Bank of Baroda

In this case, The Respondent bank suspected its business operations for some time on
accounts of an illegal strike of its employees. The complaint society (CUTS) filed a claim
of rs 110 crores on behalf of the customers of the bank on the ground that these
account-holders had been to great inconvenience and loss by reason of the suspension
of the bank’s business during this period.

In its reply, the bank contended that the illegal strike of the workers – which lasted for
more than three weeks – had disabled it from rendering services to its customers during
this period. There were demonstrations outside the bank, obstructing entry or exit from
its offices. Therefore, it was argued that the suspension of business during this period
was wholly out of its control.

The national commission pointed out that compensation is payable under the Consumer
Protection Act for any loss or injury caused to a consumer due to the negligence of the
respondent. In the present case, the bank employees had gone on strike without any
notice and had obstructed bank officers from entering or leaving the premises.. They
had also held demonstrations which prevented the normal business activities of the
bank. Such acts are punishable offences under the Banking Regulation Act, 1949. The
Commission came to the conclusion that the inability of the bank to conduct banking
56
operations during this period was for reasons beyond its control and was clearly a case
falling under the well-established concept of ‘force majeure’.

The National Commission, therefore, came to the conclusion that there was no
negligence on the part of the bank and the suspension of business by it was the direct
consequence of the illegal strike of its employees. Thus, no compensation was payable
by the bank. Moreover, no particulars had been filed by the complainant as to how the
said figure of Rs. 110 crores was arrived at. The complaint was, therefore, dismissed.

Indian Medical Association Vs. V. P. Shanta

Before the historic decision of the Supreme Court in this case, strong views had been
expressed on both sides on the questions whether doctors and hospitals within the
ambit of Consumer Protection.

The doctor’s lobby had contended that have neither the knowledge nor the experience
to deal with medical issues. On the other hand, the Indian Medical Council (which
branches in various States) consists of medical experts and can handle cases of
medical negligence through its Disciplinary Committees and can initiate disciplinary and
other action against erring doctors. It was also argued that, in any case, doctors are
already liable under other laws of the land, as for instance, that law of torts and the
Indian Penal Code. So, where was the need to have one more dagger hanging over
doctor’s heads?

Supporting the case for including doctors and hospitals within the purview of the
Consumer Protection Act, consumer activists argued that, all over the world, courts of
law (consisting of Judges with no special knowledge of medicine) decided cases
relating to the medical profession. So, why not in India? Again, in our own country
Judges do not have knowledge in nuclear physics or atomic energy – but this does not
prevent them from passing orders in case dealing with such subjects. Again, since
Medical Council consists of persons who are doctors themselves, it is likely that such
persons would be biased in favour of person belonging to their own profession (against

57
whom they are hearing a complaint). It was also pointed out that Medical Councils are
almost defunct in several states and thus, no effective justice can be expected for
patients who have suffered on account of the ‘deficient’ services of a doctor or a
hospital.

Legal luminaries addressed arguments for both sides before the Supreme Court, which
was mainly concerned with whether the services of doctor are “Services” as the term
defined under the Consumer Protection Act as this definition expressly excludes
‘Contracts of Personal Services’, it was strongly urges\d that the medical profession
does not have any “service” and a patient is therefore not a “Consumer” under the Act. It
was pointed out that the relationship between medical practitioner and a patient is one
of trust and confidence and therefore, it is a contract of personal service, which is
expressly excluded from the definition of “service” under the Act.

Rejecting the above contention, the Supreme Court pointed out that such an argument
ignores the well – recognized distinction between a “contract of personal service” and a
“contract for personal service”. A contract for services implies a contract whereby one
party undertakes to render services, for instance, professional or technical services, to
another, in the performance of which he is not subject to any detailed direction, control
or supervision by the person who implies a relationship of master and servant and
involves an its mode of manner pf performance. Thus, a doctor’s contract is a contract
for personal services and not one of personal services. It is, therefore not excluded by
the definition of “service” as contained in the Consumer Protection Act.

The Supreme Court also rejected the contention that the composition of the courts
setup by the consumer Protection Act is such that its members would not be able to
appreciate the complex issues arising in medical cases. Likewise, it found no merit in
the argument that the summary procedure provided by the consumer protection act is
unsuitable for such claims.

The decision of the Supreme Court in this case may be summarized in the form of
following propositions:

58
 1. Service rendered to patient by medical practitioners by way of consultation,
diagnosis and treatment, both medical and surgical would fall within the ambit of
the term “Service” under the Act.
2. The Act that the doctors are subject to the disciplinary control of the medical
council does not exclude the services rendered by them from the ambit of the
Consumer Protection Act.
3. Medical services rendered free of charge to all patients as in a government or
Municipal Hospital- is not “Service” as defined under the Act.
4. If the hospital has free as well as paying patients all the patients – free and
paying- fall within the ambit of the Consumer Protection Act.
5. It cannot be said that the services of a private hospital are without consideration
just because of the patient gets reimbursement of such expenses from his
employers or from an insurance company.

Penalties:

The act contains provisions for failure of a person to comply with orders passed by the
consumer redressal agencies under the Act. It provides that if any trader or any person
against whom a complaint is made or the complainant himself fails or omits to comply
with any order passed by a district forum or state commission or the nation commission,
such a person becomes punishable with imprisonment for a minimum term of 1 month
and a maximum of three years or with fine ranging between Rs. 2000 and Rs. 10000, or
both.

The redressal agency whose order is not complied with is clothed with the powers of a
judicial magistrate of the first class for a trail of offence under the act. Such offences
may be tried in a summary manner by the district forum or the state commission or the
nation commission, as the case maybe.

Earlier, an option was given by the Act to award punishments lower than the minimum
punishments stated above in a fit case. However, this discretion was taken away by the
2002 Amendment of the Act.

Looked at from a particle angle, sec. 27 of the Act can be said to be the most important
section of the Act without which the consumer courts would be nothing more than ‘
paper Tigers’
59
Thus, when the directors of ac construction company sis not comply with an order
passed against them under the Act the National Commission directed them to be
imprisoned for three months.

Again, when in a case where the company which was directed to refund a depositor
failed to do so the national Commission held that the penalties of the Act could be
inflicted personally on the directors who were responsible for the Company’s default.

60
 Conclusion

All the success stories emphasize the fact that effectiveness of any marketing effort lies
in the accurate identification of the consumer’s needs and satisfaction through service
delivery. The present statement arise a very important and common topic for group
discussion “Is the consumer really the King in India?”. Consumer is responsible for
driving the market forces. For example, in sixties and seventies, there were two or three
car manufacturers like Hindustan Motors & Fiat etc. Were ruling over the market.
However, with the entry of new companies like Maruti Suzuki, Hundai, Honda and many
more, those manufacturers are force to modified their products in accordance with the
taste of the customers.

Consumer really the King in India

Every business house has one motive and that is to earn profit in addition to building a
good customer relation. They are spending lots of money to understand consumer
choice and demand and accordingly they produces the gods. Before launching the
product into the rural market, many research is being carried out to understand the
demand of the customer. This itself proves the strength of customer which any
organisation can not overlook. Today there are many products available in the market
and the customer can easily switch over to the other product if he is not satisfied. The
market is driven by the customers rather than producers thus at this stage market
segmentation techniques will play an important role to catch their customers back.

However, in some of the cases where monopoly exists, the customers has no choice
but to accept the product as supply by its manufacturers. However, due to globalization
and entrance of MNCs & FRT in our Indian market, the extent of competition has
increased considerably and now the customers have multiple choice.

If an organisation if failed to understand the needs of customers and failed to produce

the product as per the demand of the market, it is definitely going to heart the main
object of the organization i.e. to earn profit. For this purpose several organisation has

61
introduce the concept of supply chain management. Government has also passed the
law for protection of the customer, which revels the importance of customer.

So in my opinion for “Is the Consumer really the King in India?” customer is really king,
as customer will not change its demand but the company has to change its product
according to the taste of the customers.

62