So far, we all must be knowing the meaning of consumers or customers from our previous classes and experiences. But have you ever wondered why a consumer or customer needs to be protected? What is the importance and need of the Consumer Protection Act? What should a consumer do or file a complaint when his or her rights have been exploited? This blog on the study notes for Business Studies’ chapter of Consumer Protection class 12 will let you know the answers to all these questions and a lot more. So get ready with your pen and notebook and be ready to note down important points on this chapter- Consumer Protection class 12.
Consumer and Consumer Protection
As per the chapter of consumer protection class 12, a consumer is said to be a person who uses and buys consumer goods or avails any consumer services. This includes any recipient of such services, but it does not include any person who, for any commercial reason, uses such services.
On the other hand, consumer protection refers to protecting these consumers from any kind of frauds or mishappenings from producers’ or sellers’ end. These frauds can be related to the selling of duplicate or counterfeit products, unsafe products, charging higher prices than the MRP etc.
Importance of Consumer Protection
As per the chapter on consumer protection class 12, the importance of consumer protection from the consumers’ point of view is:
- Consumer ignorance: the majority of the consumers in the society is not even aware of their consumer rights and reliefs that are available, due to which they end up being exploited by the producers or sellers in the market.
- Unorganised consumers: Consumers in India are still unorganised, and there are only a few consumer organisations, so consumer protection is important.
- Widespread Exploitation of Consumers: Consumers are abused and exploited on a wide scale by numerous unfair trade practises, and consumer protection is important to protect them.
From the point of view of business, the importance of consumer protection is:
- Long term Business Interest: It is always in the company’s interest to keep its consumers and customers happy.
- Moral Justification: It is the moral responsibility of every corporation to take care of the interest of the customer and avoid any sort of abuse and unfair trade practises such as faulty & hazardous goods, adulteration, false and misleading ads, hoardings, black marketing, etc.
- Social Responsibility: A organisation has a social responsibility towards different classes, such as shareholders, staff, government, clients, etc.
- Business uses Resources of Society: Each corporation uses society’s resources and it is therefore their duty to consumer education-related district by the state concerned. The important features of district forums are:
- It consists of a President and two representatives, one of whom is a woman, duly appointed by the Government of the State.
- It can only receive customer complaints worth up to Rs. 20 lakhs.
- They shall, upon receipt of the complaint, refer the complaint to the opposite party concerned and send a sample of the products to the laboratory for examination.
- After finding that products are faulty or that there has been some unfair trade practice, the district forum will issue an order to the opposing party ordering him to either replace or refund the price or pay compensation.
- If the aggrieved party is not happy with the district forum’s decision, the consumer has 30 days from the date of the order to file an appeal with the state forum.
- State Commission: a state commission is being set up in each state by the government concerned and has the following features:
- Each committee consists of a president and a minimum of 2 members appointed by the government of the state.
- The state commission will receive complaints worth at least Rs. 20 lakhs but not more than Rs. 1 crore.
- The state commission may also refer the complaint to the opposing party and send the products to be checked in a laboratory after receiving the complaint.
- After being satisfied, the state commission will order the opposite party to either substitute or refund or pay compensation.
- If the aggrieved party is not satisfied, they can appeal within 30 days of the order being issued before the national commission.
- National Commission: The national commission is set up by the central government and has salient features as following:
- It is composed of a President and at least four representatives appointed by the Central Government.
- All allegations relating to products and services of greater value than Rs. 1 crore can be lodged with the national commission.
- The national commission can also refer the complaint to the opposite party and submit the products for testing upon receipt of the complaint.
- The National Commission is allowed to issue orders for the dismissal of a replacement mentor and to pay compensation for damages and loss.
Consumer Protection Class 12: Important Details
Here are some of the most important details that you must be aware of in the chapter of Consumer Protection Class 12.
Ways/Means of Consumer Protection
As per the chapter on Consumer Protection class 12, some of the salient ways or means of consumer protection are mentioned below:
- Self-regulation by business
- Consumer awareness
- Consumer organisation
- Business association
Remedies and Relief Available To Consumers
As per the chapter on Consumer Protection class 12, there are certain remedies and reliefs provided to consumers. Some of them are listed below:
- Removal of defects in products
- Replacement of the goods
- Refund of the reimbursed price
- Compensation for a wrongful injury suffered
- Removal of deficiency in service
- Unfair trade practises must not be permitted to proceed
- Putting an end to the selling of dangerous goods
- Hazardous products must be withdrawn from the market
- Pay an amount to be used in a specified manner to the consumer protection fund/person (not less than 5 per cent)
- Issuing corrective advertising to neutralise the effects of misleading commercials
- To pay sufficient costs to the parties
Rule of Consumer Organisations
As per the chapter on Consumer Protection class 12, the rule of Consumer organisations says that there are numerous consumer groups and NGOs in India that have been set up to protect and promote the interests of consumers. These associations perform the following tasks:
- Creating brochures, articles, and other publications
- Spreading awareness among the customers
- Collecting data from different product
- On behalf of customers and consumers, the filing of suits or grievances
- Educating the customer so that they can assist themselves
- Encouraging customers and consumers to take on strict legal actions against unfair trade practices.
- Educating women with regards to consumerism
The following are some of the most important consumer groups and non-governmental organisations (NGOs) working to defend and protect consumer interests and rights:
- Consumer coordination council, Delhi
- Consumer Association, Kolkata
- Consumer Unity and Trust Society Jaipur
- Mumbai Grahak Panchayat, Mumbai
- Voluntary organization in Interest of Consumer Education, Delhi
This brings us to the end of this blog. We hope that you are have made notes on the chapter of Consumer Protection class 12 while reading this blog and are all set to give your next Business Studies exam. Check out more study notes and interesting/amazing reads on Leverage Edu, your one destination for all your education-related problems and queries. We wish you all the best for your exams. Score high with Leverage Edu!!