In regulatory jurisdictions that provide for it (comprising most or all developed countries with free market economies), consumer protection is a group of laws and organizations designed to ensure the rights of consumers as well as fair trade, competition and accurate information in the marketplace. The laws are designed to prevent the businesses that engage in fraud or specified unfair practices from gaining an advantage over competitors. They may also provide additional protection for those most vulnerable in Society. Consumer protection laws are a form of government regulation that aim to protect the rights 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 and to the formation of consumer organizations, which help consumers make better choices in the marketplace and get help with consumer complaints. Other organizations that promote consumer protection include government organizations and self-regulating business organizations such as consumer protection agencies and organizations, ombudsmen, the Federal Trade Commission in America and Better Business Bureaus in America and Canada, etc.
A consumer is defined as someone who acquires goods or Services for direct use or ownership rather than for resale or use in production and manufacturing. Consumer interests can also be protected by promoting competition in the markets which directly and indirectly serve consumers, consistent with economic efficiency, but this topic is treated in competition law. Consumer protection can also be asserted via non-government organizations and individuals as consumer activism.
Bills and acts and other systems by central government to protect consumer rights
National Consumer Disputes Redressal Commission
The National Consumer Disputes Redressal Commission (NCDRC), India is a quasi-judicial commission in India which was set up in 1988 under the Consumer Protection Act, 1986. Its head office is in New Delhi. The commission is headed by a sitting or retired judge of The Supreme Court of India. The present head is Justice R K AGRAWAL, former judge of the Supreme Court of India.
Section 21 of Consumer Protection Act, 1986 describes, the National Consumer shall have jurisdiction:- to enter a complaint valued more than 1 crore and also have Appellate and Revisional jurisdiction from the orders of State Commissions.
to entertain:
complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees one crore; and
appeals against the orders of any State Commission; and
to call for the records and pass appropriate orders in any consumer dispute which is pending before or has been decided by any State Commission where it appears to the National Commission that such State Commission has exercised a jurisdiction not vested in it by law, or has failed to exercise a jurisdiction so vested, or has acted in the exercise of its jurisdiction illegally or with material irregularity.
The consumer protection act 1986
One of the most important milestones in the area of consumer protection/consumer movement in the country has been the enactment of the Consumer Protection Act, 1986. It was a progressive and comprehensive pieces of legislation of its time, covering all goods and services. The Act ensures the rights of consumer for safety, information, choice, representation, and redressal and consumer Education, and provides for a simple, speedy and inexpensive redressal to the consumers’ in the nature of a specific nature and also Awards compensation, wherever appropriate, to the consumer. An exclusive three tier redressal machinery as an alternative to the Civil Court and other legal remedies available in the country has been established under the Act, wherein an aggrieved consumer can seek redressal against any defect in the goods purchased or deficiencies in services availed, including restrictive/unfair trade practices adopted by such manufacturer and trader of goods/service provider. In the past thirty years more than 4.3 million consumer cases were adjudicated and decided by the consumer fora.
The Consumer Protection Bill, 2018
Highlights of the Bill
The Bill replaces the Consumer Protection Act, 1986. The Bill enforces consumer rights, and provides a mechanism for redressal of complaints regarding defect in goods and deficiency in services.
Consumer Disputes Redressal Commissions will be set up at the District, State and National levels for adjudicating consumer complaints. Appeals from the District and State Commissions will be heard at the next level and from the National Commission by the Supreme Court.
The Bill sets up a Central Consumer Protection Authority to promote, protect and enforce consumer rights as a class. It can issue safety notices for goods and services, order refunds, recall goods and rule against misleading advertisements.
If a consumer suffers an injury from a defect in a good or a deficiency in service, he may file a claim of product liability against the manufacturer, the seller, or the service provider.
The Bill defines contracts as ‘unfair’ if they significantly affect the rights of consumers. It also defines unfair and restrictive trade practices.
The Bill establishes Consumer Protection Councils at the district, state and national levels to render advise on consumer protection.
Key Issues and Analysis
The Bill sets up the Consumer Disputes Redressal Commissions as quasi-judicial bodies to adjudicate disputes. The Bill empowers the central government to appoint members to these Commissions. The Bill does not specify that the Commissions will comprise a judicial member. If the Commissions were to have members only from the executive, the principal of Separation of Powers may be violated.
The Bill empowers the central government to appoint, remove and prescribe conditions of service for members of the District, State and National Consumer Disputes Redressal Commissions. The Bill leaves the composition of the Commissions to the central government. This could affect the independence of these quasi-judicial bodies.
Consumer Protection Councils will be set up at the district, state, and national level, as advisory bodies. The State and National Councils are headed by Ministers in-charge of Consumer Affairs. The Bill does not specify whom the Councils will advise. If the Councils advise the government, it is unclear in what capacity such advice will be given.
State Commission
• Each state has one State Commission.
• It consists of a President, who is or has been a Judge of a High Court and two other members, one of whom shall be a woman.
• Complaints can be filed in State Commission where the value of claim is above ` 20 Lakhs upto ` one Crore.
• Appeals against the Orders of the District Forums can also be filed in the State Commission.
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Consumer protection is a set of laws and regulations designed to protect consumers from unfair, deceptive, or fraudulent business practices. Consumer protection laws are enforced by government agencies, such as the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB).
Consumers have a number of rights under consumer protection laws. These rights include the right to be informed about the products and services they are buying, the right to choose from a variety of products and services, the right to be treated fairly by businesses, and the right to be compensated if they are harmed by a business’s actions.
Consumers have a number of remedies available to them if they believe their rights have been violated. These remedies include filing a complaint with a government agency, filing a lawsuit, or taking other legal action.
Consumer complaints can be filed with a number of government agencies, including the FTC, the CFPB, and the state Attorney General‘s office. Consumer complaints can also be filed with private organizations, such as the Better Business Bureau.
Consumer protection agencies are responsible for enforcing consumer protection laws. These agencies investigate consumer complaints, bring lawsuits against businesses that violate the law, and educate consumers about their rights.
Consumer education is important for helping consumers understand their rights and how to protect themselves from unfair, deceptive, or fraudulent business practices. Consumer education can be provided by government agencies, private organizations, and businesses.
Consumer advocacy is the act of speaking out on behalf of consumers and their rights. Consumer advocates work to improve consumer protection laws and regulations, and to hold businesses accountable for their actions.
Consumer boycotts are a form of consumer advocacy in which consumers refuse to buy products or services from a particular business. Boycotts can be effective in pressuring businesses to change their practices.
Consumer product safety is the regulation of products to ensure that they are safe for consumers to use. Consumer product safety laws are enforced by the Consumer Product Safety Commission (CPSC).
Food safety is the regulation of food to ensure that it is safe for consumers to eat. Food safety laws are enforced by the Food and Drug Administration (FDA).
Product liability is the legal responsibility of a manufacturer or seller for injuries caused by a defective product. Product liability laws are designed to compensate consumers who are injured by defective products.
Truth in advertising is the requirement that advertisers provide accurate and truthful information about their products and services. Truth in advertising laws are enforced by the FTC.
Deceptive advertising is advertising that is false, misleading, or unfair. Deceptive advertising laws are enforced by the FTC.
Bait-and-switch advertising is a type of deceptive advertising in which a business advertises a product at a low price, but then tries to sell the consumer a different, more expensive product. Bait-and-switch advertising is illegal in most jurisdictions.
Unfair trade practices are business practices that are unfair to consumers. Unfair trade practices can include deceptive advertising, bait-and-switch advertising, and price gouging.
Pyramid schemes are illegal business schemes in which participants earn Money by recruiting new participants into the scheme. Pyramid schemes are based on the principle that new participants will always be needed to keep the scheme going, and eventually, most participants will lose money.
Multi-level Marketing schemes are legal business schemes in which participants earn money by selling products or services and by recruiting new participants into the scheme. Multi-level marketing schemes are not pyramid schemes, but they can be similar in some ways.
Telemarketing fraud is a type of fraud that involves using the telephone to deceive consumers into giving away money or personal information. Telemarketing fraud is illegal in most jurisdictions.
Internet fraud is a type of fraud that involves using the internet to deceive consumers into giving away money or personal information. Internet fraud is illegal in most jurisdictions.
Identity theft is a crime in which someone steals your personal information, such as your name, Social Security number, or credit card number, and uses it to commit fraud or other crimes. Identity theft can have a devastating impact on your life.
Credit card fraud is a type of fraud that involves using someone else’s credit card without their permission. Credit card fraud can occur when someone steals your credit card, or when they make unauthorized charges on your credit card account.
Debit card fraud is a type of fraud that involves using someone else’s debit card without their permission. Debit card fraud can occur when someone steals your debit card, or when they make unauthorized charges on your debit card account.
Check fraud is a type of fraud that involves using a check that is not valid. Check fraud can occur when someone steals your check, or when they make a counterfeit check.
Phishing is a type of online fraud in which someone tries to trick you into giving away your personal information, such as your Social Security number or credit card number. Phishing scams often take the form of emails that appear to be from legitimate companies.
Here are some frequently asked questions and short answers about consumer protection and remedies:
What is consumer protection?
Consumer protection is a set of laws and regulations designed to protect consumers from unfair, deceptive, and abusive business practices.
What are some common consumer protection laws?
Some common consumer protection laws include the Truth in Lending Act, the Fair Credit Reporting Act, and the Consumer Product Safety Act.
What are some common consumer rights?
Some common consumer rights include the right to be informed, the right to choose, the right to be heard, and the right to be compensated.
What are some common consumer remedies?
Some common consumer remedies include the right to cancel a contract, the right to return a product, and the right to get a refund.
How can I protect myself as a consumer?
There are a number of things you can do to protect yourself as a consumer, including:
Be informed about your rights and the laws that protect you.
Read contracts carefully before signing them.
Keep records of all transactions.
Be suspicious of any offer that sounds too good to be true.
Report any suspected fraud to the authorities.
What should I do if I believe I have been a victim of consumer fraud?
If you believe you have been a victim of consumer fraud, you should:
Contact the business involved and try to resolve the issue directly.
File a complaint with the appropriate government agency.
Consider hiring an attorney.
What are some Resources available to help consumers?
There are a number of resources available to help consumers, including:
The Federal Trade Commission (FTC): The FTC is a federal agency that enforces consumer protection laws. You can find information about consumer protection on the FTC’s website at www.ftc.gov.
The Consumer Financial Protection Bureau (CFPB): The CFPB is a federal agency that protects consumers from unfair, deceptive, and abusive financial practices. You can find information about consumer protection on the CFPB’s website at www.consumerfinance.gov.
Your state’s consumer protection agency: Your state may have its own consumer protection agency that can help you with consumer complaints. You can find contact information for your state’s consumer protection agency on the FTC’s website at www.ftc.gov/bcp/consumers/state/index.shtm.
The National Consumer Law Center (NCLC): The NCLC is a non-profit organization that provides legal assistance to consumers. You can find information about consumer protection on the NCLC’s website at www.nclc.org.
The Public Citizen Litigation Group (PCG): PCG is a non-profit organization that litigates on behalf of consumers. You can find information about consumer protection on PCG’s website at www.citizen.org/litigation.
1. Which of the following is not a right of a consumer?
(A) Right to be informed
(B) Right to be heard
(C) Right to choose
(D) Right to be safe
2. Which of the following is not a remedy available to a consumer?
(A) Compensation
(B) Refund
(C) Restitution
(D) Retraction
3. Which of the following is not a type of consumer protection law?
(A) Product liability law
(B) Truth-in-Lending Act
(C) Fair Credit Reporting Act
(D) Consumer Product Safety Act
4. Which of the following is not a way to protect yourself as a consumer?
(A) Read the fine print
(B) Be aware of your rights
(C) Shop around
(D) Don’t be afraid to ask questions
5. Which of the following is not a government agency that protects consumers?
(A) Federal Trade Commission
(B) Consumer Financial Protection Bureau
(C) Department of Justice
(D) Department of Commerce
6. Which of the following is not a type of consumer fraud?
(A) Bait-and-switch
(B) Pyramid scheme
(C) False advertising
(D) Deceptive pricing
7. Which of the following is not a way to report consumer fraud?
(A) Contact your state’s attorney general’s office
(B) Contact the Federal Trade Commission
(C) Contact the Consumer Financial Protection Bureau
(D) Contact the Better Business Bureau
8. Which of the following is not a way to get help with a consumer complaint?
(A) Contact the company directly
(B) Contact your state’s attorney general’s office
(C) Contact the Federal Trade Commission
(D) Contact the Consumer Financial Protection Bureau
9. Which of the following is not a way to avoid consumer scams?
(A) Be wary of unsolicited offers
(B) Don’t give out personal information over the phone or online
(C) Don’t click on links in emails from people you don’t know
(D) Don’t pay for anything in advance
10. Which of the following is not a way to protect your identity?
(A) Shred documents that contain personal information
(B) Use strong passwords
(C) Keep your Software up to date
(D) Don’t share your Social Security number with anyone