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ASSIGNMENT-2

TMA-2
Course Code: ACS-02
Assignment Code: Asst-2/ TMA-1/2019
Total Marks: 100
Answer all questions in each category. Write answers in your own words.
DCQ: Answer in about 500 words each. (2×20=40 Marks)
1. Discuss and define the term ‘Unfair Trade Practice’ alognwith decided case laws on
Misleading Advertisement and False Representation.
2. Discuss in detail the remedies available for negligence in ‘Banking Service’.
3. Discuss in detail ‘Institutional Assistance’ available for redressal of Consumer Grievances
in India.
4. Discuss in detail various ‘Activities of an Organisation’ dealing with Consumer Problems
and issues.
MCQ: Answer in about 250 words each. (4×10=40 Marks)
5. Discuss the Limitations of the Consumer Protection Act, 1986 and difficulties faced in its
implementation.
6. Highlight the difference between ‘Condition’ and ‘Warranty’.
7. Discuss the important provisions of Drugs and Cosmetics Act, 1940.
8. Discuss in brief the Consumer Disputes Redressal Agencies created under the Consumer
Protection Act, 1986.
9. Discuss the strategies of effective ‘Campaign and Advocacy Programmes’.
10. Discuss the meaning of Consumer with the help of decided case laws.
SCQ: Answer in about 50 words each (4×5=20 Marks)
11. Write a note on ‘Duties of Consumers as a Corollary to Consumer Right’.
12. Discuss in brief the important provisions of ‘Sale of Good Act, 1930’.
13. Discuss a case law against Misleading Advertisement.
14. Discuss the manner of taking cognizance of PIL.
15. Discuss in brief the concept and ‘structure of an Organisation’.
16. Discuss in brief the structure and purpose of Consumer International (CI).

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Answers
DCQ: Answer in about 500 words each. (2×20=40 Marks)
1. Discuss and define the term ‘Unfair Trade Practice’ alognwith decided case laws on
Misleading Advertisement and False Representation.
Ans.: The Constitution of India, in its essay in building up a just society, has mandated the
State to direct its policy towards securing that end. Articles 38 and 39 of the Constitution of
India, which are part of the Directive Principles of State Policy, mandate the state to direct its
policy towards securing: that the ownership and control of material resources of the
community are so distributed as to best sub serve the common good; and that the operation of
the economic system does not result in concentration of wealth and means of production to
the common detriment.
Accordingly, after independence, the Indian Government assumed increased responsibility
for the overall development of the country. Government policies were framed with the aim of
achieving a socialistic pattern of society that promoted equitable distribution of wealth and
economic power. However, even as the economy grew over the years after independence,
there was little evidence of the intended trickle-down. Concerned with this, the Government
appointed a Committee on Distribution of Income and Levels of Living (Mahalanobis
Committee) in October 1960. The Committee noted that big business houses were emerging
because of the “planned economy” model practised by the Government and recommended
looking at industrial structure, and whether there was concentration. Subsequently, the
Government appointed the Monopolies Inquiry Commission (MIC) in April 1964, which
reported that there was high concentration of economic power in over 85 percent of industrial
items in India.
The MIC observed that big businesses were at an advantage in securing industrial licences to
open or expand undertakings. This intensified concentration, especially as the Government
did not have adequate mechanisms to check it. Subsequently, the Planning Commission of
India, in July 1966, appointed the Hazari Committee to review the operation of the industrial
licensing system. The report echoed previous concerns regarding skewed benefits of the
licensing system. Following this, the Government, in July 1967, appointed the Industrial
Licensing Policy Inquiry Committee, which felt that licensing was unable to check
concentration, and suggested that the Monopolies and Restrictive Trade Practices (MRTP)
Bill (as proposed by the MIC) be passed, to set up an effective legislative regime.
With this backdrop, the MRTP Act, India’s competition law, was enacted in December 1969
to check concentration of economic power, control the growth of monopolies and prevent
various trade practices detrimental to public interest. It came into force in June 1970 and the
MRTP Commission, a regulatory authority to deal with offences falling under the statute, was
set up in August 1970.
UTPs encompass a broad array of torts, all of which involve economic injury brought on by
deceptive or wrongful conduct. The legal theories that can be asserted include claims such as
trade secret misappropriation, unfair competition, false advertising, palming-off, dilution and
disparagement. UTPs can arise in any line of business and frequently appear in connection

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with the more traditional intellectual property claims of patent, trademark and copyright
infringement. Specific types of UTPs prohibited in domestic law depend on the law of a
particular country. The World Bank (WB) and the Organisation for Economic Cooperation
and Development (OECD) Model Law, for example, lists the following trade practices to be
unfair:
 distribution of false or misleading information that is capable of harming the business
interests of another firm;
 distribution of false or misleading information to consumers, including the
distribution of information lacking a reasonable basis, related to the price, character,
method or place of production, properties, and suitability for use, or quality of goods;
false or misleading comparison of goods in the process of advertising;
 fraudulent use of another’s trade mark, firm name, or product labelling or packaging;
 unauthorized receipt, use or dissemination of confidential scientific, technical,
production, business or trade information.
The dictionary meaning of ‘unfair trade practice’ is: a trade practice which, for the purpose of
promoting the sale, use or supply of any goods or for the provision of any service, adopts any
unfair method or unfair or deceptive.
2. Discuss in detail the remedies available for negligence in ‘Banking Service’.
Ans.: Consumer protection is the need of the hour. Parliament of India had enacted various
legislations in the interests of consumers for transparency, for fair competition, and for
preventing the businesses to indulge in unfair practices or fraud. In 1986, the Consumer
Protection Act was passed.

There have been many reforms in the banking sector like dilution of government stakes,
deregulation etc that resulted in greater competition. Today banking has moved from class to
mass and this has resulted in numerous problems. But more attention also needs to be given
to consumer protection in regard with the banking sector. Competition helps consumer
because it promotes choice, helps brings quality services or products at low rates by reducing
inefficiencies. There is reduction in the cost of banking services and consumers need to make
use of the facilities available in the changing environment to avail the reduced cost, like use
of ATMs, internet or telephone banking.
India has a law specifically focused on consumer protection (Consumer Protection Act 1986)
but that is not explicitly for consumers of the financial sector. Matrix for financial consumer
protection:
 Banking Codes the standards Bureau, India, (BCSBI) or the fair practices code
followed by respective banks.
 The in-house complaint redressal mechanism set by banks
 Ombudsman office

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Courts of law: The various functions and the roles of different institutions may be
overlapping at times. Where the customer chooses to complain depends on customer’s ease,
location.
Consumer protection act 1986
Under this Act, Section 2(1) (o) defines what service is and “deficiency” is defined under
Section 2(1) g. Banking service is also covered under the various services mentioned under
this Act. Banking Service” here can include receiving of deposits, payment of premium,
money lending, locker facilities etc. Deficiency in respect of such services provided by bank
can be brought before Consumer forums. As per section 2(1) (d), Consumer includes a person
who avails or hires a service for consideration. Hence any person who owns an account in
bank or takes a service form bank can file complaints under this act for “deficiency” or
regarding unfair practices by the banks. Consumer courts not only compensate for the defect
but also for the mental agony suffered or harassment faced. Listed are the few deficiencies in
banking services as laid down by consumer commissions and courts of law :
 Refusing or holding back the amount that was due on fixed deposit after maturity
 Delay in the payment of amount on term deposits after maturity
 Dishonor of cheques because of mistake or negligence by bank.
 Dishonoring of demand drafts because of omission by bank officials.
 Refusing grant of loans without any bonafide reason
 Causing undue delay in discharging installments of loan
 Charging interest at higher rate than what has been specified in loan agreement.
 Failure in returning securities even after the loan is repaid.
 Bank’s failure to honour guarantee, if demand was as per guarantee.
 Liability is on bank if articles in locker are lost
 loss to customers due to unavailability of securities in bank premises
 Closing bank account without any instructions in that regard from the account holder
 Refusing cheque book facility to customer just because of the fact that the minimum
balance has not been maintained
 Failure of bank cashier to account for money deposited at the counter with
him(vicarious liability)
 Rude behavior of bank officials resulting in discomfort or mental agony to customers
 Without even demanding repayment giving notice to “face the auction or make
payment”.
 Failure at returning the dishonored cheque.
3. Discuss in detail ‘Institutional Assistance’ available for redressal of Consumer Grievances
in India.
Ans.: Grievance Redressal is a management- and governance-related process used commonly
in India. While the term "Grievance Redressal" primarily covers the receipt and processing of
complaints from citizens and consumers, a wider definition includes actions taken on any
issue raised by them to avail services more effectively. The traditional approach to Grievance

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Redressal, which is handled through letters and complaint forms, has very little appeal and its
usage rarely reflects the actual state of customer satisfaction or lack thereof.
The Indian government is committed to ensure and protect the welfare and rights of the
consumers in the country so that easy availability of commodities is made accessible to them
and they are protected from any exploitation. The Department of Consumer Affairs under the
Ministry of Consumer Affairs, Food and Public Distribution is responsible for the
formulation of policies for Consumer Cooperatives, Consumer Movement in the country,
monitoring Prices, and availability of essential commodities, and Controlling of statutory
bodies like Bureau of Indian Standards (BIS) and Weights & measures.
In order to provide prompt Consumer Resource and Grievance Redressal service, the
Government of India is facilitating an online registration process whereby the consumer can
easily register their complaints without any hassle.
CORE (Consumer Online Resource and Empowerment) Centre is the only Indian Consumer
Resource and Grievance Redressal System funded and supported by the Government.
With a vision of Consumer Sovereignty, the centre represents the Interest of Consumers by
readdressing their complaints and avoiding unnecessary litigation for brands. It can be
effectively used as a one point source for redressal as well as a nodal agency to protect the
interests of Indian Consumers.
The Consumer Coordination Council, which is a premier organization in the field of
consumer movement of India, recommended the setting-up of CORE Centre with an
objective to provide better accessibility of professional advise to the consumer.
CORE was set up in 2005 as an institutional framework with appropriate infrastructure,
systems and methodologies for studying various aspects of consumer issues in India, with the
assistance from the Ministry of Consumer Affairs, Food and Public Distribution and
Department of Consumer Affairs, Government of India.
The fundamental principle of the project is based on the premise that Information and
Communication Technologies (ICT) can be effectively used for:
 Generating Awareness
 Development of Consumer Rights
 Focusing corporate attention on consumer needs, preferences and problems
 Orienting government functioning vis-à-vis Citizens
 Seeking enforcement of Citizen Charters
Apart from providing a platform for the consumers to lodge their complaints online, CORE
Centre also runs Customer Retention Programme by offering partnership to select large
companies to help them retain their customers and build their brand around unique customer
retention strategies as developed by the Centre.
By accessing the online Complaint Redressal System in the CORE Website (http://core.nic.in
- External website that opens in a new window), the consumers can register themselves and
lodge their grievance online. These complaints are then categorized, based on the nature of
product or service for faster redressal.
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Complaint once registered is forwarded to the complaint manager, who goes through the
same to check the legitimacy of the complaint. If the complaint is found to be genuine, an
alert is sent to the Brand (provider of the product or service) for resolution, simultaneously it
is published as a blog on the CORE website.
The Brand on receipt of the alert responds to the complaint online, the response is directly
published below the complaint in the stipulated area. Once response is published, system
sends automatic alert to the consumer to check the response. Complainant is then asked to
comment on his /her satisfaction with the response. If complainant is satisfied, the case is
treated as closed.
Alternatively, if the complainant is not satisfied, he/she can write back to Core in confidence.
Concerned Core complaint manager accordingly once again takes up the issue with the brand
for amicable resolution
4. Discuss in detail various ‘Activities of an Organisation’ dealing with Consumer Problems
and issues.
Ans.: Even the best companies in the world cannot avoid the occasional snafu in the quality
of their products or services. The smart ones ensure that they have an efficient redress
mechanism in place to ensure customer satisfaction and continued loyalty. Things get
complicated when the customer is rebuffed at this stage. What is the next step? Which is the
best forum to ensure quick redress? What will it cost? And is it worth the effort? It is the
confusion over these decisions which discourages most consumers from filing complaints.
Here are a few committed organisations that would guide and advise you on the most
effective redressal mechanism to suit your objective.
Consumer Education and Research Centre (www.cercindia.org): This is an Ahmedabad-
based NGO that has worked on protecting the rights and interests of consumers through
redressal, advocacy, research and media exposure for over 28 years. You can register your
problems on this website by becoming a member by paying a fee. It has a formidable success
record and also helps consumers to file appropriate litigation. Its website posts interesting
success stories that encourage consumers to sign up as members. It also publishes a useful
magazine called Insight and also has a product-testing laboratory.
Consumer Guidance Society of India (http://www.cgsiindia.org): It was set up in 1966 and
has a long record of consumer advocacy, grievance redressal and also offers guidance on
filing lawsuits in consumer courts. It publishes a consumer magazine called Keemat. Its
website has a forum that offers a step-by-step guide on how to file complaints to make them
effective. A ‘Know Your Rights’ section provides different problem scenarios and how to
deal with them. People are encouraged to become members to avail of a slew of benefits
including access to its library and other data.
Consumer Voice (http://www.consumer-voice.in): Delhi-based Consumer Voice is a
consumer advocacy group that also publishes a magazine by the same name as well as an e-
newsletter. It informs and educates consumers about their rights and advises on grievance
redressal. It has a strong comparative product section and is among the few NGOs that openly
offers ‘best buy’ suggestions for a range of products which have been tested and verified. It

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allows consumers to register their complaints online and also provides a complaint status. It
has a discussion forum that is, however, not very active.
The Consumer Coordination Council (http://www.corecentre.co.in): It is a government
organisation that was set up with the support of the Ministry of Consumer Affairs and tries to
bring together all the consumer organisations. It also has its own complaint registration
section but sees its role as being one of information gathering on consumer-related issues,
empowering consumer groups and influencing policy.
The International Consumer Rights Protection Council (http://www.icrpc.org): This is an
NGO that helps consumers file complaints against companies, irrespective of their country of
residence. It has a discussion forum that allows people to discuss the quality of products and
services of different companies. It also provides an accurate and detailed procedure for filling
out consumer complaints and cases against companies.
www.watchoutinvestors.com: The website funded by the Investor Education and Protection
Fund (IEPF) of the Ministry of Corporate Affairs is a registry covering nearly 90,000 entities
including companies, intermediaries and individuals who have been indicted for an economic
default and/or have been non-compliant of laws/guidelines and/or are no longer in the
specified activity. It covers the orders of several regulatory and enforcement agencies as well
as stock exchanges. It also has crucial information on name changes by all corporate entities
and individuals.
www.mouthshut.com: This is an interesting review site. It does not help resolve grievances,
but because of the high level of activity and reviews posted by consumers and users, it
provides an excellent feedback mechanism for anyone who wants to crosscheck information
before opting for a wide range of new products or services listed on the site. You can even
check movie and music reviews posted by viewers if you are among those who think that
most media critics are too critical!
MCQ: Answer in about 250 words each. (4×10=40 Marks)
5. Discuss the Limitations of the Consumer Protection Act, 1986 and difficulties faced in its
implementation.
Ans.: The Consumer Protection Act, 1986, is now in operation for more than a decade. The
Act was amended in 1993 for enlarging its scope. However, there are certain shortcomings in
the Act. There are :
 Presently, the position is that only those services come within this Act for which
specific payment is made, such as electricity, telephones, banking, etc. Thus the
doctors as well as hospitals including those where treatment is given free such as
government hospitals do not come within the ambit of the Act. Also, the mandatory
civil services, such as sanitation, water supply, etc. provided by the State or local
authorities are not covered by the Act.
 The Government cannot remain a silent spectator to the sorry state of affairs in the
government hospitals. The government hospitals doctors have failed to improve
themselves in extending satisfactory services to the public.

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 The Consumer Protection (Amendment) Act, 1993 incorporated two clauses regarding
supply of harmdous goods, but it does not in pose astrict liability on those who supply
such goods.
 Further, the consumer Protection Act, 1986, does not give any definition of safety
requirements and permitted hazard levels.
 Whatever safety regulations are dready prescribed under some law or the other would
have to he gone into as to whether they have been violated or not.
 In fact, the Act itself should incorporate certain product safeties requirements. Under
the Act, a consumer can seek redressal only he has suffered a loss on a damage as a
result of the unfair trade practice or deficiency in service or the unfair trade practices
resorted to by a trader.
 However, the per se rule is not invoked. The per se rule ensures that any act or
practice which prima facie appears to be unfair shall be regarded as unfair and against
consumer interest as such, pending its justifications by the opposite party.
 The Act does not empower the Consumer Redressal Fora to issue either interim
injunction, or "case and desist orders". These powcrs are vested in the Monopolies
and Restrictive Trade Practices Commission under the Monopolies and Restrictive
Trade Practices Act, 1969.
 The Act docs not empower the Consumer Redressal Forums to take up cases slto rnm.
The Monopolies and Restrictive Trade Practices Act, 1969 empowers and M.R.T.P.
Commissions to inquire into any unfair practices upon its own knowledge or
information.
 The Act does not empower consumer fora to publisll the names of manufacturers,
traders, and dealers whose goods are found to be hazardous to public safety.
 This empowerment, if made, will work as a deterrent to the erring business
community and make the consumers informed.
 The Act does not permit a consumer to lodge a complaint'with the Consumer Fora if a
alternative remedy is available under some other law.
 The Consumer Protection Act, 1986 clearly lays down that its provisions are in
addition to and not in derogation of any other law for the time being in force. In many
cases of complaints brought before the consumer forums, the complainants were
directed to seek relief in a Civil Court, on the ground that the complaints were of such
a nature that they involved recording of voluminous evidence and expert opinion.
 The mere fact that witnesses may have to be examined and their cross-examination
may also be necessary carinot by itself a valid ground for refusing adjudication of a
dispute before the Consumer Courts.
 Thus Consumer grievances redressal agencies are evading cases of complex nature on
the specious plea that the matter could into be disposed within the time frame. The
Act does not impose liability on the chief executive, manager or director where an
offense is shown to have been committed by an organisation.
 The Act specifies a time frame within which the dispute is to be disposed of. The
period specified is 90 days, but the actual time taken is much longer. In some cases,

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the complainants waited for about two years, attended the Consumer Courts several
times before they were formed that the Courts would not be able to handle their cases.
 One of the reasons for not adhering to this time frame is piling up a cases.
 Secondly the court is under obligation to straight away send the complaint to the other
party for reply.
 The court does into find out whether the complaint falls within the scope of the Act
and, therefore, should it be pursued or not. The reason for not adhering to the time
frame is because of a rider to the effect, included in the Consumer Protection Rules :
"As far as possible".
6. Highlight the difference between ‘Condition’ and ‘Warranty’.
Ans.: In a contract of sale, the subject matter is ‘goods’. There are millions of sale
transactions which occur in the normal course, all around the world. There are certain
provisions which need to be fulfilled because it is demanded by the contract. These
prerequisites can either be a condition and warranty. The condition is the fundamental
stipulation of the contract of sale whereas Warranty is an additional stipulation.
In other words, condition is the arrangement, which should be present at the time of
happening of another event. Warranty is a written guarantee, issued to the buyer by the
manufacturer or seller, committing to repair or replace the product, if required, within
specified time. Check out this article, in which we have presented the difference between
condition and warranty in sale of goods act.
Certain terms, obligations, and provisions are imposed by the buyer and seller while entering
into a contract of sale, which needs to be satisfied, which are commonly known as
Conditions. The conditions are indispensable to the objective of the contract. There are two
types of conditions, in a contract of sale which are:
Expressed Condition: The conditions which are clearly defined and agreed upon by the
parties while entering into the contract.
Implied Condition: The conditions which are not expressly provided, but as per law, some
conditions are supposed to be present at the time making the contract. However, these
conditions can be waived off through express agreement. Some examples of implied
conditions are:
The condition relating to the title of goods.
 Condition concerning the quality and fitness of the goods.
 Condition as to wholesomeness.
 Sale by sample
 Sale by description.
 Definition of Warranty
A warranty is a guarantee given by the seller to the buyer about the quality, fitness and
performance of the product. It is an assurance provided by the manufacturer to the customer
that the said facts about the goods are true and at its best. Many times, if the warranty was

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given, proves false, and the product does not function as described by the seller then remedies
as a return or exchange are also available to the buyer i.e. as stated in the contract.
A warranty can be for the lifetime or a limited period. It may be either expressed, i.e., which
is specifically defined or implied, which is not explicitly provided but arises according to the
nature of sale like:
 Warranty related to undisturbed possession of the buyer.
 The warranty that the goods are free of any charge.
 Disclosure of harmful nature of goods.
 Warranty as to quality and fitness
7. Discuss the important provisions of Drugs and Cosmetics Act, 1940.
Ans.: The Drugs and Cosmetics Act, 1940 (hereinafter referred as the "Act") is mainly
concerned with maintaining the quality of drugs and cosmetics and provides for the
establishment of a board of technical experts to advise the central and the state governments
on technical matters. It gives specific guidelines about the control of the import, manufacture,
sale and distribution of drugs and cosmetics. The provisions about the regulation of ayurueda,
siddha and unani drugs have been incorporated in the Act separately.
The standards for manufacture, sale, distribution and import of drugs and cosmetics have
been mentioned in two separate schedules appended to the Act. Guidelines have also been
provided about the stocking, exhibition for sale and distribution of cosmetics. The Act is an
attempt to ensure that no substandard drugs or cosmetics are sold in the market and no one
would sell even a genuine drug without a licence.
For the purposes of the Act, the term "drug" has been defined to include:
(i) all medicines for internal or external use of human beings or animals and all
substances intended to be used for or in the diagnosis, treatment, mitigation or
prevention of any disease or disorder in human beings or animals, including
preparations applied on human body for the purpose of repelling insects like
mosquitoes; and
(ii) such substances (other than food) intended to affect the structure or any function
of the human body or intended to be used for the destruction of vermin or insects
which cause disease in human beings or animals;
(iii) all substances intended for use as components of a drug including empty gelatin
capsules; and
(iv) such devices intended for internal or external use in the diagnosis, treatment,
mitigation or prevention of disease or disorder in human beings or animals;
Manufacturing means any process or part of a process for making, altering, ornamenting,
finishing, packing, labeling, breaking-up or otherwise treating or adopting any drug or
cosmetic with a view to sell or distribute it. But, it does not include the compounding or
dispensing of any drugs, or the packing of any drug or cosmetic in the ordinary course of
retail business.

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The definition of the term "drug" in the Act is comprehensive enough to cover not only
medicines but also substances intended to be used for treatment of diseases of human beings
or animals. This definition introduces a distinction between medicines and substances which
are not medicines strictly so called. The expression "substances", therefore, must be
something other than medicines but which are used for treatment. For example, the bandages
and gauze are the substances falling within the meaning of the said expression because these
things are used for or in treatment. The definition has been, thus, extended to cover the
substances, which are necessary aids for treating surgical or other cases. The definition of
drugs also include the substances, which can be used for the preparation of medicine.
8. Discuss in brief the Consumer Disputes Redressal Agencies created under the Consumer
Protection Act, 1986.
Ans.: Consumer Protection Act, 1986 is an Act of the Parliament of India enacted in 1986 to
protect the interests of consumers in India. It makes provision for the establishment of
consumer councils and other authorities for the settlement of consumers' disputes and for
matters connected therewith also.The act was passed in Assembly in October 1986.
This statute is regarded as the 'Magna Carta' in the field of consumer protection for checking
the unfair trade practices and ‘defect in goods’ and ‘deficiencies in services’ as far as India is
concerned. It led to the establishment of a widespread network of consumer forums and
appellate courts all over India. It has significantly impacted how businesses approach
consumer complaints and empowered consumers to a great extent.
Consumer Protection Councils are established at the national, state and district level to
increase consumer awareness.[2]

Various Consumer Organisations


To increase the awareness of consumer, there are many consumer organisations and NGOs
that established, such as- (1) Consumer Education And Research Centre (Ahmedabad) (2)
Bureau Of Indian Standard (3) Federation Of Consumer Organisation In Tamilnadu (4)
Mumbai Grahak Panchayet (5) Consumer Voice (New Delhi) (6) Legal Aid Society
(Kolkata) (7) Akhil Bhartiya Grahak Panchayat

The Central Consumer Protection Council


The Central Government shall by notification establish with effect from (w.e.f) such date as it
may specify in such notification a Council to be known as the Central Consumer Protection
Council

Consumer Disputes Redressal Agencies


Main article: Consumer Court

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District Consumer Disputes Redressal Forum (DCDRF): Also known as the "District Forum"
established by the State Government in each district of the State. The State Government may
establish more than one District Forum in a district. It is a district level court that deals with
cases valuing up to Rs. 2 million (US$28,000).
State Consumer Disputes Redressal Commission (SCDRC): Also known as the "State
Commission" established by the State Government in the State. It is a state level court that
takes up cases valuing less than Rs. 10 million (US$140,000)
National Consumer Disputes Redressal Commission (NCDRC): Established by the Central
Government. It deals with matters of more than 10 million.
Objectives
Objectives of Central Council: The objectives of the Central Council is to promote and to
protect the rights of the consumers such as:
 The right to be protected against the marketing of goods and services which are
hazardous to life and property.
 The right to be informed about the quality, quantity, potency, purity, standard and
price of goods or services, as the case may be so as to protect the consumer against
unfair trade practices;
 The right to be assured, wherever possible, access to a variety of goods and services at
competitive prices ;
 The right to be heard and to be assured that consumer's interest will receive due
consideration at appropriate forums;
 The right to seek redressal against unfair trade practices or restrictive trade practices
or unscrupulous exploitation of consumers; and
 The right to consumer education.
Jurisdiction
Jurisdiction of District Forum: Subject to the other provisions of this Act, the District
Forum shall have jurisdiction to entertain complaints where the value of the goods or services
and the compensation, if any, claimed does not exceed rupees twenty lakhs.
A complaint shall be instituted in a District Forum within the local limits of whose
jurisdiction:-
a) – the opposite party or each of the opposite parties, where there are more than one, at
the time of the institution of the complaint, actually and voluntarily resides or carries
on business or has a branch office or personally works for gain, or
b) – any of the opposite parties, where there are more than one, at the time of the
institution of the complaint, actually and voluntarily resides, or carries on business or
has a branch office, or personally works for gain, provided that in such case either the
permission of the District Forum is given, or the opposite parties who do not reside, or
carry on business or have a branch office, or personally work for gain, as the case may
be, acquiesce in such institution; or
c) – the cause of action, wholly or in part, arises.

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9. Discuss the strategies of effective ‘Campaign and Advocacy Programmes’.
Ans.: According to the Concise Oxford Dictionary Campaign means "an organised course of
action for a particular purpose, especially to arouse public interest". Advocacy means "to seek
support through arguments and other means for a cause policy etc." We can also dwell upon
what Dr. Nirmala S. Pandit, Exedutive Director of National Centre for Advocacy Studies
(NACS), Pune has to say on the subject: 'Advocacy is an act of giving support to a cause. A
lawyer advocates his clients' interest in the court. By persuasion he tries to convince the judge
about the clients' point of view. This helps in resolving the conflict between his client and his
opponent. This technique of solving, a conflict or a problem has come to be known as
advocacy. (Nirmala S. Pandit, Advocacy : A Tool for Social change, Consumer Network,
Vol. 2, No. 4, December. 1995, New Delhi..
Thus, Campaign and Advocacy together in relation to Consumer Movement, imply
identification of various consumer related issues that require attention. This can be either in
terms of change or continuation or introduction of an organised course of action (campaign)
for influencing and obtaining widespread support. Both among consumer groups for whom
the charges in question are considered important as also effectively ' persuading the policy
makers and the authorities concerned to bring about and implement the necessary changes
through such a programme (advocacy). Campaign and Advocacy are thus a means to an end,
involving mobilising men, resources and information and identification of proponents, (i.e.
those who are known to be in support of the issues in question), opponents (individuals or
groups who are known to be not in favour of the proposals) and the fence sitters (neutrals
who have not yet made up their mind either in support or against the proposal) and drawing
up of a clear time bound plan of action best suited to obtain the desired objectives of
influencing the policy makers and the authorities concerned to bring about the required
change.
10. Discuss the meaning of Consumer with the help of decided case laws.
Ans.: According to Article 1(4) of the Consumer Protection Law (2251/1994) (as amended by
Law 3587/2007), 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.
Whether a particular consumer is subject to protection under Law 2251/1994 depends on the
circumstances and factual background of each particular case. 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; and
 the possibility of abusive use of legal protection by the particular person or entity.
The substantive criterion in order for a person or entity to be deemed a consumer, and thus
able to enjoy the protection of the law, is whether the particular user of the product or
services is professionally involved in the supply of the product or service. The end user of the
product should not be professionally involved in supplying products or services.
Consequently, it should not repeat transactions of a particular kind and should not have

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obtained knowledge, experience or specialist negotiating ability in comparison to the
supplier.(2) Accordingly, in order to outline and limit the definition of a 'consumer', the
protective scope of the law should be taken into consideration – that is, the need to protect the
consumer where it is the weaker contracting party.
The plaintiff – who claimed to be a housewife – and her husband – a businessman engaged in
international transactions – conducted long-term transactions with the defendant – a Swiss-
based bank – which, as well as carrying out common banking transactions, was active in
portfolio management and modern banking products. The plaintiff opened two bank accounts
in order to deposit her own money and invest in securities (eg, bonds and shares), while
appointing her husband as her proxy to manage her portfolio. Some time thereafter, the
plaintiff decided to borrow additional funds from the bank in order to proceed with further
investments and securities transactions, and offered as security a pledge over her accounts
and the securities and investments which she acquired from the loan proceeds. In other
words, the plaintiff entered into a combination of credit agreements (with a right to overdraw)
and pledge agreements with the bank. The purpose of such borrowing was to use the credit
amounts for systematic, long-term and repeated speculation through the purchase of securities
on the international stock markets; as admitted in the lawsuit, the exclusive purpose of the
loans was to carry out investment activities (ie, to purchase shares, bonds and precious
metals). This type of loan, having investment as its object, is known as 'leverage'. This means
that the money borrowed by the investor will be used as a lever to maximise profits.
According to the plaintiff's claims, such leverage entailed no risks to her own funds deposited
in the bank. She entered into two loan agreements, while in both agreements it was agreed
that as security, any debt balance of the accounts should be covered by the assets pledged in
favour of the bank. In both the loan agreements and the pledge agreements, the parties
submitted any disputes to the jurisdiction of the Swiss courts and selected Swiss law as
applicable law.
SCQ: Answer in about 50 words each (4×5=20 Marks)
11. Write a note on ‘Duties of Consumers as a Corollary to Consumer Right’.
Ans.: Consumers are one of the important factor in the development of economy of any
nation.But unfortunately many time we heard about the duplicity and cheating by way of
overcharging, black marketing, misleading advertisements, etc has become the common
practice of greedy sellers and manufacturers to make unreasonable profits. In this context, it
is the duty of the government to confer some rights on consumers to safeguard their interests.
Along with the Rights of consumer here are the some responsibilities of the consumer which
should be followed..
 Illiteracy and Ignorance: Consumers in India are mostly illiterate and ignorant. They
do not understand their rights. So its our duty to know about our rights and to use it in
the right place.
 Unorganized Consumers: In India consumers are widely dispersed and are not united.
They are at the mercy of businessmen. On the other hand, producers and traders are
organized and powerful.

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 Spurious Goods: There is increasing supply of duplicate products. It is very difficult
for an ordinary consumer to distinguish between a genuine product and its imitation.
It is necessary to protect consumers from such exploitation by ensuring compliance
with prescribed norms of quality and safety. Always check the norms of the product.
 False Advertising: Some businessmen give misleading information about quality,
safety and utility of products. Consumers are misled by false advertisement. To stop
this, we the consumer have to know about the product.
 Malpractices of Businessmen: Only consumer can avoid and stop the mal practises of
the businessmen by opposing them. So this is one of the duty of consumer.
12. Discuss in brief the important provisions of ‘Sale of Good Act, 1930’.
Ans.: The Sale of Goods Act, 1930 governs the contracts relating to sale of goods. It applies
to the whole of India except the State of Jammu & Kashmir. The contacts for sale of goods
are subject to the general principles of the law relating to contracts i.e. the Indian Contact
Act. A contract for sale of goods has, however, certain peculiar features such as, transfer of
ownership of the goods, delivery of goods rights and duties of the buyer and seller, remedies
for breach of contract, conditions and warranties implied under a contract for sale of goods,
etc. These peculiarities are the subject matter of the provisions of the Sale of Goods Act,
1930.
13. Discuss a case law against Misleading Advertisement.
Ans.: Under the Consumer Protection Act 2007, advertising is seen as misleading if it
involves false, misleading or deceptive information that is likely to cause the average
consumer to act in a way they might otherwise not. Advertising may also be considered
misleading if important information that the average consumer needs to make an informed
decision is left out. Misleading advertising covers claims made directly to consumers by
manufacturers, distributors and retailers, as well as in advertisements, catalogues, websites
etc.
14. Discuss the manner of taking cognizance of PIL.
Ans.: “Public interest Litigation“, in simple words, means, litigation filed in a court of law,
for the protection of “Public Interest”, such as Pollution, Terrorism, Road safety,
Constructional hazards etc. Any matter where the interest of public at large is affected can be
redressed by filing a Public Interest Litigation in a court of law.
PUBLIC INTEREST LITIGATION is not defined in any statute or in any act. It has been
interpreted by judges to consider the intent of public at large. Although, the main and only
focus of such litigation is “Public Interest” there are various areas where a PUBLIC
INTEREST LITIGATION can be filed.
15. Discuss in brief the concept and ‘structure of an Organisation’.
Ans.: An organizational structure is a system that outlines how certain activities are directed
in order to achieve the goals of an organization. These activities can include rules, roles and
responsibilities. The organizational structure also determines how information flows from
level to level within the company. For example, in a centralized structure, decisions flow

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from the top down, while in a decentralized structure, the decisions are made at various
levels.
16. Discuss in brief the structure and purpose of Consumer International (CI).
Ans.: Initially, a consumer organisation at the international level was set up with the name of
International Organisation of Consumers Unions (IOCU), in the year 1960. The founding
groups were only from five countries i.e. USA, Britain, Australia, Netherlands (then Holland)
and Belgium. After founding the organisation, they formulated four guidelines for conducting
the activities of their member organisations. These guidelines are given below:
 That the members should act in consumer interests.
 That the members should be free from commercial or party or political pressure.
 The organisation should be non-profit making.
 The members should not let their advice and information be used commercially.

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