ROLE OF THE CONSUMER PROTECTION ACT IN INDIA

 

ROLE OF THE CONSUMER PROTECTION ACT IN INDIA

WRITTEN BY: VAISHNAVI K. PARATE
3^RD YEAR LLB  SHRI. NATHMAL GOENKA LAW COLLEGE, AKOLA

EDITED BY: YASH JAIN
5^TH YEAR BBA LLB(H)
AMITY LAW SCHOOL, NOIDA

 

 

INTRODUCTION

Consumers were utilized up to the nineteenth century as a counterbalance to producers. This point of view has persisted in the majority of capitalist democracies where consumers have a second-class connection with the commodities and services, they must use but did not produce. However, in today's dominant market economy, consumers are considered "marginal groups." The market has become far more pervasive and influential in consumers' lives. Gandhi Ji famously proclaimed that the "consumer is king" in the market, as time has proven. Many businessmen, including the late Jamanlal Bajaj and J.R.D. Tata contributed to the inclusion of an ethical code for business operations that will aid in closing the gap between corporations and consumers. An international focus on consumer rights protection and promotion has emerged as a result of the expanding interdependence of the global economy and the nature of many business activities. The consumer movement in India was born out of the need to defend and advance consumers' rights in the face of unfair or unethical business practices. Therefore, to stop these actions and safeguard the interests of consumers Both houses of the parliament approved the 1986 Consumer Protection Bill, and on December 24th, the President gave his assent. THE CONSUMER PROTECTION ACT, 1986 [68 OF 1986] is how it first appeared in the Statutes Book.

AN UNDERSTANDING OF CONSUMER RIGHTS

It has long been understood that consumer rights must be recognized on a global scale. The degree of consumer awareness in a nation can be used to measure that nation's development. To safeguard the customer, certain consumer rights have been established. The majority of businesses are highly successful, but these accomplishments also bring a host of challenges for customers, including high prices, hazardous products, subpar service for the disadvantaged, and a host of other problems. As a result, it was deemed that there was a need for legal protection against customer exploitation.

The Consumer Protection Act of 1986 established a distinct agency in both the federal and state governments to safeguard consumer rights. The expansion of consumer rights promotion and protection has become a universal focus due to the expanding interdependence of the global economy and the international nature of many corporate operations. Throughout the world, consumers, clients, and customers are wanting better value for their money in the shape of high-quality products and services.

 

Without a doubt, advancements in modern technology have had a significant impact on the standard, accessibility, and security of goods and services. The consumers are nonetheless, however, the victims of dishonest and unethical business tactics.

CONSUMER’S AWARENESS

The phrases "consumer is sovereign" and "customer is the king" are nothing more than urban legends in today's world, especially in developing nations. However, it has become clear—and rightly so—that consumer protection is a socioeconomic initiative that businesses and the government should both promote because both parties stand to gain from customer happiness. However, in this situation, it is the government's primary duty to safeguard the interests and rights of consumers through sensible administrative, legal, and regulatory frameworks. By utilizing a specific product, consumers engage in the market.

Without consumers, there would be no business. In terms of consumer rights, the standing of the customer is essentially pitiful. Examples include under-weight store owners and businesses that make deceptive claims on their packaging. Then there are the neighborhood vendors of sweetmeats who falsify the ingredients used to make laddoos or barfis. You may remember the incident of dropsy brought on by tainted mustard oil. If you dare to complain, the shopkeeper is likely to respond rudely regardless of how poor the product is.

 

CONSUMER RIGHTS PROTECTION IN RURAL AREAS

In this case, it is necessary to safeguard rural consumers by educating them about their rights and giving them the knowledge, they need to make informed judgments about the goods or services they choose. Consumer awareness has primarily been focused on metropolitan areas up until now, but when the market moves into rural areas, it should also move there. Reaching rural customers is a significant undertaking that requires the participation of Panchayati Raj Institutions. It is possible to educate rural populations about their rights as consumers during sabha meetings. The majority of the consumer base is rural, so safeguarding their rights should be a main priority. In recent years, rural markets have become more significant in countries like India as economic growth has raised rural populations' purchasing power.

Since the 1980s, the rural markets for FMCG and durable goods have steadily increased and are now larger than the urban ones. 75% of manufacturing spending is concentrated in rural areas, according to an examination of NSS data. A law called the act protects consumer rights and ensures that customers receive the best products and services possible. A consumer is defined by the statute as "one who obtains goods and services for his/her use." Anyone who utilizes such goods and services with the buyer's permission is referred to as a consumer. As a result, all goods and services are covered by this law.

POSITION IN INDIA

The need to defend and advance consumer interests against unethical and unjust business practices in India gave rise to the consumer movement as a "social force." In the 1960s, widespread food shortages, stockpiling, unethical marketing, adulteration of food, and the use of inferior edible oil gave rise to the consumer movement. Consumer organizations primarily focused on publishing papers and hosting exhibitions up until the 1970s. To investigate the fraud in ration stores and the overpopulation in road passenger transportation, they established consumer organizations. India has recently seen an increase in the number of consumer groups. The consumer movement was born out of customers' unhappiness with the sellers' numerous unfair business tactics.

The consumer movement was born out of customers' unhappiness with the sellers' numerous unfair business tactics. Consumers have no recourse to the legal system to safeguard them against unfair business practices. For a very long time, if a customer was dissatisfied with a certain brand of product or store, he or she would typically quit buying from that brand of product or business. It was assumed that buyers should use caution when making purchases of goods or services.

It took a long time for organizations in India and other parts of the world to raise public awareness. As per the case of Ansal Properties & Industries Ltd. v. Veena Khanna, NCDRC (2007) In this instance, the respondent agreed in writing to deliver the flat the complainant had offered to buy from him on January 6, 1999. The apartment, however, was not delivered because it was not built by the deadline. The complainant requested a refund of the deposit amount with interest at a rate of 18% per annum for such a failure in services, but the other party refused. The National Commission noted that it is highly challenging for a consumer to buy a flat at market pricing because of delays in building and delivery of possession. The National Commission ruled that the State Commission must order the builders to hand over the keys to the apartment as soon as it is finished and that the complainant must receive fair compensation for the construction delay.

The complaint only requested the refund amount from the State Commission, but the matter was on hold there for five years while the market value of the real estate significantly increased. The National Commission additionally noted that it was the State Commission's responsibility to instruct the respondents to grant the complaint possession of the apartment or any other apartment of a comparable size together with just compensation.

 

CONCLUSION

How the Consumer Protection Act of 1986, the first significant breakthrough in the field of consumer protection, came about, how numerous advancements occurred in the 20th century, and the role of stakeholders in consumerism in India. The consumer movement changed as a result of globalization, and we now have the Consumer Protection Act of 2019, a new law that is both significant and diversified because it contains a penalty for false advertising and product endorsers. It broadens the definition of a consumer to include those who use the revolutionary idea of e-commerce. Additionally, as the world becomes more virtual and digital, it is crucial to integrate cutting-edge techniques to ensure that no disgruntled consumer is left behind. Consumer rights are always changing and shaping themselves in accordance with the escalating needs of the times. The only thing for which the entire legislation is enacted is a fair, inexpensive, and simple consumer redressal mechanism.

REFERENCES:

1.     Consumer Protection Act, 2019 - iPleaders

2.     Role of Consumer Protection Act in protecting the Rights of Consumers in India – Aishwarya Sandeep

3.     A Study of Consumer Rights under Consumer Protection Act,2019 (legalserviceindia.com)

4.     Role of Consumer Protection Act in protecting the rights of the Consumers in India – Lords of Law

5.     Consumer Protection Law In India (legalservicesindia.com)

6.     THE CONSUMER PROTECTION ACT, 1986

7.     CONSUMER PROTECTION ACT OF 2019

8.     CONSTITUTION OF INDIA