UPSC MainsMANAGEMENT-PAPER-II201910 Marks
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Q12.

Who is a consumer under Consumer Protection Act? What are the basic rights of consumers?

How to Approach

This question requires a clear understanding of the Consumer Protection Act and its provisions. The answer should begin by defining who a consumer is according to the Act, highlighting the amendments made in 2019. Subsequently, it should detail the six basic rights of consumers, explaining each with examples. A structured approach, using headings and bullet points, will enhance clarity and readability. Focus on recent developments and judicial interpretations to demonstrate a comprehensive understanding.

Model Answer

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Introduction

The concept of consumer protection has gained significant importance in India with the increasing complexities of the market and the rise in consumer disputes. The Consumer Protection Act, initially enacted in 1986, and subsequently amended in 2019, aims to provide a robust framework for safeguarding consumer interests. The Act recognizes every person who buys any goods or avails any services for a consideration as a consumer. Understanding who qualifies as a consumer and the rights afforded to them is crucial for ensuring fair trade practices and empowering citizens.

Who is a Consumer under the Consumer Protection Act?

The Consumer Protection Act, 2019 defines a ‘consumer’ as a person who buys any goods or avails any services for a consideration. This definition has been broadened compared to the 1986 Act. Key aspects of the definition include:

  • Any person: This includes individuals, firms, companies, and even the government.
  • Goods or Services: Covers a wide range of products and services, including online transactions.
  • Consideration: Implies a payment made, either directly or indirectly, for the goods or services.
  • Exclusions: The Act excludes those who obtain goods for resale or commercial purposes, and those who render any unsolicited service under a contract. However, the 2019 Act clarifies that users of services with commercial intent are also covered.

The 2019 amendment also introduced the concept of ‘unfair trade practices’ and ‘restrictive trade practices’ to further protect consumer interests.

Basic Rights of Consumers

Consumers are endowed with six fundamental rights under the Consumer Protection Act, designed to empower them and ensure fair dealings in the marketplace:

1. Right to Safety

This right guarantees protection against goods and services that are hazardous to life and property. Manufacturers and service providers are responsible for ensuring the safety of their offerings. Example: A faulty pressure cooker exploding and causing injury violates this right. The Bureau of Indian Standards (BIS) plays a crucial role in setting safety standards.

2. Right to be Informed

Consumers have the right to be provided with complete and accurate information about the quality, quantity, potency, purity, standard, and price of goods or services. This enables them to make informed choices. Example: Food products must display ingredient lists, nutritional information, and expiry dates. The Food Safety and Standards Authority of India (FSSAI) regulates this.

3. Right to Choose

This right assures consumers the freedom to select from a variety of goods and services at competitive prices. It protects against monopolies and restrictive trade practices. Example: Consumers should not be forced to buy a particular brand or service; they should have options.

4. Right to be Heard

Consumers have the right to express their grievances and concerns and to have them addressed fairly. This is facilitated through consumer forums and redressal mechanisms. Example: Filing a complaint with a consumer court regarding a defective product.

5. Right to Seek Redressal

This right entitles consumers to seek compensation for unfair trade practices, defective goods, or deficient services. The Consumer Protection Act provides a three-tier redressal mechanism: District Commission, State Commission, and National Commission. Example: Receiving a refund or replacement for a faulty electronic appliance.

6. Right to Consumer Education

Consumers have the right to acquire knowledge and skills to make informed choices and exercise their rights effectively. This includes awareness campaigns and educational programs. Example: Government initiatives promoting financial literacy and consumer awareness.

Right Description Remedy
Safety Protection against hazardous goods/services Compensation for injury, product recall
Information Access to accurate product details Legal action against misleading advertising
Choice Freedom to select from various options Complaint against restrictive trade practices
Heard Opportunity to voice grievances Consumer forums, complaint mechanisms
Redressal Compensation for unfair practices Refund, replacement, damages
Education Knowledge to make informed decisions Awareness campaigns, educational programs

Conclusion

The Consumer Protection Act, 2019, represents a significant step towards strengthening consumer rights and promoting fair trade practices in India. By clearly defining who a consumer is and outlining their fundamental rights, the Act empowers citizens to protect their interests and seek redressal against exploitation. Continued awareness campaigns, effective enforcement mechanisms, and proactive consumer education are essential to realize the full potential of this legislation and build a consumer-centric marketplace.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

Caveat Emptor
A Latin phrase meaning "Let the buyer beware," traditionally placing the onus on the buyer to examine goods before purchase. The Consumer Protection Act shifts this onus towards sellers and service providers.
Deficient Service
Any deficiency in the quality, nature, and manner of performance which is required to be maintained by or provided by any service provider.

Key Statistics

According to data from the National Consumer Helpline (as of December 2022), over 5.5 lakh consumer complaints were registered in the financial year 2022-23.

Source: National Consumer Helpline

As per a 2021 report by LocalCircles, approximately 60% of Indian consumers have faced issues with online shopping, including fake products, delayed deliveries, and poor after-sales service.

Source: LocalCircles

Examples

Maggi Noodles Recall (2015)

In 2015, Nestle India recalled Maggi noodles after tests revealed excessive levels of lead and MSG. This case highlighted the Right to Safety and the importance of product quality control.

Frequently Asked Questions

What is the difference between a complaint and a dispute under the Consumer Protection Act?

A complaint is a formal expression of dissatisfaction regarding a good or service. A dispute arises when the seller or service provider denies the complaint or fails to provide a satisfactory resolution, leading to a need for adjudication by a consumer forum.

Topics Covered

LawConsumer AffairsConsumer ProtectionConsumer RightsLegal Framework