Consumer protection

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Consumer protection is a form of government regulation which protects the interests of consumers. For example, a government may require businesses to disclose detailed information about products—particularly in areas where safety or public health is an issue, such as food. Consumer protection is linked to the idea of consumer rights (that consumers have various rights as consumers), and to the formation of consumer organizations which help consumers make better choices in the marketplace.

Consumer law

Consumer protection law or consumer law is considered an area of public law that regulates private law relationships between individual consumers and the businesses that sell those goods and services. Consumer protection covers a wide range of topics including but not necessarily limited to product liability, privacy rights, unfair business practices, fraud, misrepresentation, and other consumer/business interactions.

Such laws deal with credit repair, debt repair, product safety, service contracts, bill collector regulation, pricing, utility turnoffs, consolidation, personal loans that may lead to bankruptcy and much more.

In specific countries

United States

File:Cdcacarrepairnotice.jpg

Consumer protection laws often mandate the posting of notices, such as this one which appears in all automotive repair shops in California

Best Answer - Chosen By Voters

i am also a student of class 10 making a project on consumer awareness Introduction THE PROCESS of development along with the expanding globalisation and liberalisation process has increased the number of consumer related issues. Consumer protection has earned an important place in the political, economic and social agendas of many nations. In India, the Government has taken many steps including legislative, to protect consumers. Education is a life long process of constantly acquiring relevant information, knowledge and skills. Consumer education is an important part of this process and is a basic consumer right that must be introduced at the school level. Consumers by definition include all citizens who are, by and large the biggest group, who are affected by almost all government, public or private decisions. The most important step in consumer education is awareness of consumer rights. However, consumer education is incomplete without the responsibilities and duties of consumers, and this influences individual behaviour to a great extent.

Definition Consumer awareness is making the consumer aware of His/Her rights. Consumer awareness it a marketing term. It means that consumers note or are aware of products or services, its characteristics and the other marketing P's (place to buy, price, and promotion).

Usually commercials and ads increase consumer awareness, as well as "word of mouth" (a comment from someone you know about a product or service).

1 Need : we need it so we will not be misled by producers,it explains if what we buy is worth to our money..and not harmful to us and to environment .

Many people are ignorant of their rights to get protected against the exploitation by so many others. So when there is a forum for such redress of grievances there seems to be no such exploitation by many; and becomes a rare one. So in order to get a clear picture of the level of exploitation of consumers, the awareness is required.

Role of producers proper labeling, full information, health warnings, handling information, expiration date, etc. keep to requirements, norms, standards labelproducts according requirements, providing true facts They have to produce and deliver the goods/services of rght quality at right price at right time at right place at right quantity with right face

If they are providing a service they should carry it out with due skill and care. They must also make sure that any materials they provide as part of this service are fit for the purpose. It is also illegal for a supplier to cut off, or threaten to cut off, supply to a reseller (wholesale or retail) because they have been discounting goods or advertising discounts below prices set by the supplier ARE YOU A CONSUMER?

Q) Who is a consumer? A) According to the Consumer Protection Act, any person/entity who buys goods or hires a service for personal use for consideration can be termed as a "consumer". It would however not include goods bought for commercial purposes or resale but if you are an entrepreneur or are self employed and the goods used, are for the purpose of self-employment, (i.e. personally by you) you will be termed a consumer. The term "consumer" also includes any person who uses goods with the consent of the person who buys goods. A person who hires services or a beneficiary of such hired services would also be termed as a consumer of such service.

Q) What Are My Rights As A Consumer ?

A) Right to Safety - from harm caused by defective goods & services Right to be Informed - about the goods being purchased & services availed Right to Choose - from a variety of goods and services Right to be Heard - about defective goods purchased or services rendered Right to seek Redressal - from competent judicial or quasi judicial authorities Right to Consumer Education - in order to enable you to exercise your rights freely

Q) What do I need to know about my rights as a consumer? A) Consumer rights relate to that right of consumer to be protected from and be informed about the various goods purchased & services availed of. This is irrespective of the fact whether the consumer pays for the same directly or indirectly. Firstly the consumer has a right to be protected from defective goods & service. You must always have a right to be informed about and the right to choose from a variety of goods and services. A consumer also has the right to be informed about whether a particular good is dangerous or not. The consumer also has a right to be heard and to seek redressal in case of a deficiency or defect in the goods or services purchased. It is important for all consumers to know their rights and to be able to be exercise them freely. Q) What are the special features of the Consumer Protection Act 1986? A) The Act of 1986 is a special piece of legislation for the better protection of the interests of consumers. In District Fora, State Commission and the National Commission, extensive participation is given to non-legal or non-judicial persons to be members of the District Fora, State Commission or National Commission. The Act has been enacted to give succor and relief to the affected or aggrieved consumers quickly with nil or no expense. The Forum created under the Act of 1986 is uninhabited by the requirement of Court-fee or the formal procedures of Court, civil or criminal. The consumer himself need not necessarily file complaint. Any recognised consumers association can espouse his cause. Where a large of consumers have a similar complaint, one or more can file a complaint on behalf of all. Even the Central Government or State Government can act on his/their behalf. Q) What does the term ‘service’ mean ?

A) A consumer avails of numerous services in his/her day-to-day activity in return for a consideration, which has been paid or promised, or partly paid and partly promised, or under any system of deferred payment. The definition of "service" under the Act does not include the rendering of any service free of charge or under a contract of personal service. A few examples of services would include banking, financing, insurance, transport, processing, supply of electrical or other energy, boarding or lodging or both, housing construction, entertainment, amusement or the purveying of news or other information. Also services by and large, include those provided by professionals such as Doctors, Engineers, Architects and Lawyers etc. Q) What does the term “Deficiency” mean ?

A) Under the Act, "deficiency" means any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance of a service. In order to file a complaint against deficiency in service, such service should necessarily have been rendered for consideration. Such consideration may however been paid or promised, or partly paid and partly promised, or the service may have been rendered under any system of deferred payment. Q) What does the term ‘Goods’ mean ?

A) The term "goods" under the Consumer Protection Act means goods as defined in the Sale of Goods Act, 1930. The sale of Goods Act defines goods as every kind of movable property other than actionable claims and money; and includes stock and shares, growing crops, grass, and things attached to or forming part of the land, which are agreed to be severed before sale or under the contract of sale. Q) What does the term ‘Defect’ mean ?

A) Defect means any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard which is required to be maintained by or under any law for the time being in force or under any contract which express or implied or as is claimed by the trader in any manner whatsoever, in relation to any goods. Q) What does the term ‘Restrictive Trade Practice’ mean ?

A) Restrictive trade practice means a trade practice which tends to bring about manipulation of price or its conditions of delivery or to affect flow of supplies in the market relating to goods or services in such a manner as to impose on the consumers unjustified costs or restrictions and shall include – a) delay beyond the period agreed to by a trader in supply of such goods or in providing the services which has led or is likely to lead to rise in the price; (b) any trade practice which requires a consumer to buy, hire or avail of any goods or, as the case may be, services as condition precedent to buying, hiring or availing of other goods or services Q) What does ‘Unfair Trade Practice’ mean?

A) Unfair trade practice" means any unfair or deceptive method/practice adopted by a seller for the purpose of promoting the sale, use or supply of any goods or for the provision of any service. Such unfair trade practice will among others will include: - (a) Making false or misleading representations that goods/services are of a particular standard/quality/quantity/grade,

(b) Falsely represents any re-built, second-hand, renovated, reconditioned or old goods as new goods

(c) Representing that goods/ services have characteristics/ uses/ accessories/ sponsorships etc. which they do not have or giving any guarantee as to performance/efficacy that is not based on an adequate or proper test’

(d) Representing that the seller or the supplier has a sponsorship or approval or affiliation which such seller or supplier does not have

(e) Misleading the public concerning the price at which products & services are sold or misleading the public concerning the need for, or the usefulness of, any goods or services;

(f) Gives to the public any warranty or guarantee of the performance, efficacy or length of life of a product or of any goods that is not based on an adequate or proper test thereof

(d) Advertising the supply of goods/services at bargain prices, when in fact they are not meant to be offered for sale at such bargain prices;

(e) Offering of gifts, prize with the intention of not providing them as offered or if the price of the gift/prize is actually included fully or partly in the item sold;. (f) Non-compliance of product safety standard;

(g) Hoarding or destruction of goods. Q) What does the term ‘Consideration’ mean? A) Consideration under the Consumer Protection Act is defined in the same manner as it is under the Indian Contract Act, which defines Consideration as follows: When, at the desire of the promisor, the promisee, or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise is called a consideration for the promise. The basic meaning of the above definition is that if as a consumer you promise to pay or do anything that can be reasonably construed as a payment or part of a payment (for a good or a service) then you have given adequate consideration for the good you wish to buy or the service you wish to avail of. The same is true for lending of your goods to a third party or letting a third party avail of the services for which you have paid.

Q. What should I do in case my Rights as a Consumer are violated?

A)Before you start to take legal action it is important to try and resolve the problem yourself. Make sure you are calm. Be clear and reasonable. If you are not sure what you are entitled to do under the law, ask for advice first. Do not loose your temper. Talk to all the concerned persons. All this would hold you in good stead if and when your case goes to court.

Q. What are some other useful tips in case of defective products?

A lot of times, some simple tips like getting back to the seller or trader would save you a lot of time, money and tension. Most respectable manufacturers/ shop keepers have an exchange or money back policy which could be availed of. The following tips would be handy- Tell the trader/ service provider as soon as you discover the fault so that you could exchange the product or get the appropriate remedy immediately. Do not delay in regard to return back to the seller or trader. A lot of products have a limited warranty period and if the complaint is within time then you may be able to get the remedy you want quickly. Stop using the item! If you continue to use it despite knowing the defect then it would be difficult for you to get any kind of compensation or relief from the opposite party or the consumer courts. Always give the trader or organization the chance to sort out your problem, before resorting to Court action. Q. What are the required documents and facts?

A) Always keep copies of your bills, written contracts, estimates, receipts, warranties, and other documents that are related to the complaint. Keep detailed written notes of all conversations with the business including names and dates.. Keep copies of any letters you send. Never throw away or misplace any of these documents after you make your purchase as most people often do.

Q. What are my legal rights?

A)Firstly the consumer has a right to be protected from defective goods & service. You have a right to be informed about and the right to choose from a variety of goods and services. The consumer also has a right to be heard and to seek redressal in case of a deficiency or defect in the goods or services purchased. It is important for all consumers to know their rights and to be able to be exercise them freely. Therefore you are entitled to approach a consumer court for justice.

Q. Have I exhausted all other remedies?

A) It is important to have exhausted all other remedies before filing a complaint . This will be viewed positively in a consumer court .Going to court is a big step and should not be taken lightly. What you will have to do is –

Make sure you have complained to the right person

Find out where their Head office located .

Then proceed to write to the customer service manager who is authorized deal with all complaints.

If any one from the local branch has not followed up with your complaint the mention it in your letter or phone call.

It is of course, better to write and mail your complaint as you can keep a record of it for future reference.

Remember, do not threaten or abuse any one. Always be polite but firm.

If not ,the opposite party will mention it in their response to your complaint if the matter reaches court.

If all this fails then look to consumer organizations for advice for dealing with your complaint. Some of them may take up the matter on your behalf and will follow it up. Many of them have the necessary experience to deal with these matters. Q. Can I still go to Court if my complaint is redressed in part?

A) Yes, if you feel that the remedy provided by the trader is not what you had asked for then you may approach the consumer courts. For example, upon detecting some defect in a new washing machine you had just purchased you approach the seller & inform that you would like to have it replaced with a new one. The seller however, offers to have only the defective part repaired. If you are still not satisfied with this offer you may approach the courts for the relief that you originally wanted. This is of course subject to the terms and conditions of the purchase or agreement between parties.

Q. If some one performs a free service for me which is defective can I still approach the courts for any relief ?

A) No, not if the service provided to you if absolutely free. If the person who performed the service has not received any money or ‘pay’ for the service performed then it does not fall within the definition of service under the Consumer Protection Act. Therefore you would not be able to make him liable under the act or be able to take him to a consumer court. However in certain circumstances, like in the case of a government hospital or doctor ,you could file a complaint even though the service provided to you is free. The doctor or hospital could still be liable in case of any deficiency of service because even though you have not paid any money they would still receive a remuneration from the government for providing this service. The fact that they get paid for their work , whatever the source of the pay, entitles you to file a complaint against them & make them liable. The detailed position is as under-

(i) Where services are rendered free of charge, with no payment received directly or indirectly, the Act does not apply. (ii) But, where the fees charged are required to be paid by every body availing of the services, then the Consumer Protection Act, applies. (iii) Where charges are required to be paid by persons availing of services, but certain categories of persons (who cannot afford to pay) are not charged for services, then also, the Act applies.

Q. What relief can I expect on my complaint for defective products?

A) You will have to carefully consider what is the appropriate relief you want or expect from the trader or the seller, viz.-

Do you wish to have your money refunded.?

Do you want the product repaired?

Do you want the product replaced?

Do you want any compensation?

Do you want them to discontinue the sale of goods in question?

Do you want a simple apology from the trader or service provider?

Don’t be vague. When you are absolutely sure of what you want, you must mention it clearly to the trader, manufacturer or to the consumer courts as the case may be. Q. What are the questions that would help you sustain your case?

A) The following questions would give you a good idea as to whether your case is maintainable and could be agitated in a court or consumer forum-

Firstly you have to consider whether your complaint is justified?

Secondly have you complained to the right person?

Thirdly have you made out a sustainable legal ground?

Fourthly it is important to know if you have marshaled all your facts properly?

And lastly what are the relief’s you are seeking from your complaint?

Q. What Does The Act Apply To?

A) The Act applies to all goods and services unless specifically exempted by the Central Government. It covers all the sectors whether private, public or cooperative.

Q. Can I Argue And Present My Complaint In Court Myself?

A) Yes, You do not have to be a lawyer to argue before consumer courts, or for that matter any civil Court. However if the matter is a complicated one it is always advisable to engage someone including a lawyer with necessary experience in such matters. By a series of judgments, the Courts have granted a party to the proceeding before the District Forum/State Commission the right to authorise a person of his choice to represent him and also to examine and cross-examine the witnesses, address the Court and take part in the proceedings as the case may be

The Consumer Protection Act, 1986, guarantees the following statutory rights to the consumers- 1. The right to be protected against the marketing of goods and services which are hazardous to life and property: To simplify this it can be said that it is the duty of the manufacturers and the distributor not to supply any goods to the consumers which fails to comply with the general safety requirements in all circumstances. It is important to know that safety standards are published from time to time by the relevant authorities in relation to many types of consumer goods. 2. 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; by simplifying this right it can be said that consumers are given the right to information. This is intended to save the consumers from unfair trade practices like false and misleading descriptions about the nature and quality of goods, exaggerated statements about their power or potency, for example, that the hair oil is capable of promoting hair growth or preventing hair loss where there is no such power to an appreciable extent. It may be noted that a victim of unfair trade practices would be able to come before a Consumer Forum only if he is a consumer within the meaning of the Act. Other buyers would have to go to the Monopolies Commission under MRTP Act. 3. The right to be assured, wherever possible, access to a variety of goods and services at competitive prices; For the convenience of the consumers the Central Council has been charged with the responsibility of bringing about the organization of markets and market practices in such a way that all dealers are supplied with a variety of goods for the benefit of the consumers and that the goods with a variety are being offered at competitive prices. It is only then the consumers will have access to variety and will be able to enjoy the benefit of competitive prices. 4. The right to be heard and to be assured that consumer's interest will receive due consideration at appropriate forums; Right to be heard is not only the the foremost right of consumers it is a principle of natural justice also. The Central Council is charged with the responsibility of assuring to consumers that they would be heard as of right by appropriate forums and consumers will receive due attention and consideration from such forums. 5. The right to seek redressal against unfair trade practices or restrictive trade practices or unscrupulous exploitation of consumers; The consumers have been given the right to seek redress against restrictive/unfair trade practices or unscrupulous exploitation. The right can be explained clearly by following example - where money was deposited in advance for the supply of a car within two months and the car was actually supplied some time after two months, in such situation retention of money beyond the period of two months is an unfair trade practice and the consumers can claim proper interest on the deposit for the period of delay. 6. The right to consumer education. This right is most important right because once the people are rendered conscious of their power, they may perhaps, feel energized to struggle against exploitation by manufacturers and traders. The Central Council has been charged with the responsibility to provide to the people proper education in terms of their remedies under the Act. It can be hoped that people's awareness is likely to prove a better tool for putting the trade on some level of discipline than tons of Government controls. However, consumer's strongest and the most precious right, which he keeps to the last, is the 'refusal to buy' and withdraw the patronage from the seller who always craves for it because, without it, he has none to sell.

In the United States there are a variety of laws at both the federal or state levels that regulate consumer affairs. Among them are the federal Fair Debt Collection Practices Act, the Fair Credit Reporting Act, Truth in Lending Act, Fair Credit Billing Act, and the Gramm-Leach-Bliley Act. Federal consumer protection laws are mainly enforced by the Federal Trade Commission and the U.S. Department of Justice.

At the state level, many states have a Department of Consumer Affairs devoted to regulating certain industries and protecting consumers who regularly use goods and services from those industries.

For example, in the U.S. state of California, the California Department of Consumer Affairs regulates about 2.3 million professionals in over 230 different professions through its 40 regulatory entities. In addition, California encourages its consumers to act as private attorneys general through the liberal provisions of its Consumers Legal Remedies Act, Cal. Civil Code § 1750 et seq. California has the nation’s strongest consumer protection laws due in part to the rigorous advocacy and lobbying by groups such as Utility Consumers' Action Network, Consumer Federation of California and Privacy Rights Clearinghouse.

European Union

The European Union has been very active in the field of consumer protection, producing a considerable volume of Directives which require member states to regulate consumer protection to a particular standard (which may or may not allow a higher standard of regulation). A very important innovation has been the Unfair Commercial Practices Directive. Also Directives on Unfair Contract Terms (93/13/EC) and Electronic Commerce (2000/13/EC). There exists a European Commissioner for Consumer Protection, a post currently held by the Bulgarian Meglena Kuneva.

Germany

The Federal Republic of Germany is a member state of the European Union and is bound by the consumer protection directives of the European Union. Thus a large part of German consumer protection law has been enacted pursuant to European Directives (e.g. the directives on door-to-door sales, consumer credits, distance selling, package tours, product liability etc.). In 2002, a large part of this legislation was integrated into the German Civil Code ("Bürgerliches Gesetzbuch").

A minister of the federal cabinet is responsible for consumer rights and protection (Verbraucherschutzminister). In the current cabinet of Angela Merkel, this is Horst Seehofer.

When issuing public warnings about products and services, the issuing authority has to take into account that this affects the supplier's constitutionally protected economic liberty (article 12 Basic Law, see Bundesverwaltungsgericht (Federal Administrative Court)Case 3 C 34.84, 71 BVerwGE 183.

United Kingdom

The United Kingdom is a member state of the European Union and so is bound by the consumer protection directives of the European Union. Domestic (UK) laws originated within the ambit of contract and tort but, with the influence of EU law, it is emerging as an independant area of law. In many circumstances, where domestic law is in question, the matter judicially treated as tort, contract, restitution or even criminal law.

Consumer Protection issues are dealt with when complaints are made to the Director-General of Fair Trade. The Office of Fair Trading will then investigate, impose injunction or take the matter to litigation. The Office of Fair Trading also acts as the UK's official consumer and competition watchdog, with a remit to make markets work well for consumers, and at a local, municipal level by Trading Standards departments..

Other Commonwealth countries

In New Zealand, the corresponding agency is the Ministry of Consumer Affairs and the New Zealand Commerce Commission . In Australia the corresponding agency is the Australian Competition and Consumer Commission or the individual State Consumer Affairs agencies.