Concepts, Importance of Consumer Protection &
Framework for Consumer Protection in India
3 Marks Question
9. State any three points of importance of consumer protection from the point of
view of business. (Compartment 2014)
Ans. A business must lay emphasis on consumer protection because of the following
reasons:
(i) Long-term interest of business It is in the long-term interest of business to satisfy
their customers.
Satisfied customers not only leads to repeated sales, but also helps in increasing the
customer base.
(ii) Social responsibility It is the social responsibility of every business to take care of
the interest and protection of its consumers.
(iii) Moral justification It is the moral duty of any business to take care of consumer’s
interest and avoid any form of their exploitation.
4/5 Marks Questions
10. State with the help of any four points, why is it important for a business to lay
emphasis on consumer protection. (Compartment 2014)
Ans. A business must lay emphasis on consumer protection because of the following
reasons:
(i) Long-term interest of business It is in the long-term interest of business to satisfy
their customers.
Satisfied customers not only leads to repeated sales, but also helps in increasing the
customer base.
(ii) Social responsibility It is the social responsibility of every business to take care of
the interest and protection of its consumers.
(iii) Moral justification It is the moral duty of any business to take care of consumer’s
interest and avoid any form of their exploitation.
(iv) Government intervention A business engaged in any form of exploitation would
invite government intervention or action.
11. What is meant by consumer protection? Also state how consumer protection
is important from the point of view of consumers. (Compartment 2014)
or
What is meant by consumer protection? State any three points of importance of
the consumer protection from the consumers’ point of view. (All India 2010)
Ans. Consumer protection is a very wide term. It includes providing information to the
consumers about their rights and responsibilities and helps in getting their grievances
redressed. Consumer is treated as a king in the market, therefore, producers produce
goods as per their need and want. (1) Importance of consumer protection from
consumer’s point of view are:
(i) Consumer ignorance Due to widespread ignorance of consumers about their rights
and reliefs available to them, they need to be made aware in this regard. Consumer
protection provides information to the ignorant consumers regarding their rights and
reliefs available to them.
(ii) Unorganised consumers Consumers need to be organised for safeguarding their
interests. In developing countries like India, consumers are not organised. There are
very few consumer organisations which are working to protect the interests of
consumers. Consumer protection encourages establishment of more consumer
organisations.
(iii) Widespread exploitation of consumers Consumers are exploited by
unscrupulous, exploitative and unfair trade practices of sellers. They might be exploited
by unfair trade practices like defective and unsafe products, adulteration, hoarding,
black marketing, etc. Consumers need protection, against such unfair trade practices.
Consumer Rights & Responsibilities as per CPA, 1986
1 Mark Questions
1. ’The consumer has a right to acquire knowledge and be a well-informed
consumer throughout life’. State what type of knowledge is required by the
consumer in the above Stated right. (Compartment 2014)
Ans. The consumer has a right to acquire knowledge about his rights, responsibilities
and the reliefs available to him in case of a product or service falling short of his
expectations.
2. Give any one responsibility of a consumer in addition to obtaining a cash
receipt while purchasing a washing machine. (All India 2012)
Ans. Buy only ISI certified washing machine as it provides quality assurance.
3. State what is to be informed to the consumer under right to be informed. (Delhi
2011c)
Ans. Right to be Informed Every consumer has a right to be informed about the
ingredients, date of manufacture, expiry date, directions for use, quantity, etc, to be put
on the label of product. The right provides complete information to consumer about the
product he intends to buy. The legal framework in India requires such information on the
package and label of the product.
4. Why should a consumer look for ISI mark on electrical goods? (Delhi 2010)
Ans. The consumer should look for ISI mark on electrical goods because it gives an
assurance that the product meets quality certifications.
[Link] a responsible consumer, how will you ensure about the quality of a juice
packet purchased by you? (Hots; Delhi 2010c)
or
Rita wants to buy a packet of juice. As an aware customer, how can she be sure
about the quality of juice she plans to buy? (HOTS; All India 2008)
Ans. A person can check for FPO mark/standardisation mark which is granted to the
processed food products which satisfy the specification and quality control
requirements. Secondly, he/she can also check expiry date and storage condition of the
juice packet.
6. What is meant by right to be heard to a consumer? (Delhi 2009)
Ans. Right to be heard means a consumer has a right to file a complaint and to be
heard in case of dissatisfaction with regard to a good or a service. Even business firms
have set up their own grievance cell to impart this right to consumers.
[Link] is meant by right to choose to a consumer? (All India 2009)
Ans. A right to choose means that a consumer has a right to choose from a variety of
goods and services at competitive prices available in the market.
8. Ahmad wants to buy an iron. As an aware customer, how can he be sure about
the quality of iron? (Hots; Delhi 2008)
Ans. He should buy an ISI mark iron.
9. Mention when as a consumer, you are not in a position to resolve your
grievances under Consumer Protection Act. (Hots; All India 2008)
Ans. If we do not have cash memo regarding purchase of goods or services, we are not
in a position to solve our grievances because cash memo serves as a proof of the
purchase made. Another aspect in this regard is that the complaint should be genuine.
4/5 Marks Questions
10. Explain the following rights of consumers.
(i) Right to Safety
(ii) Right to Consumer Education (Delhi 2012,2008; All India 2008)
Ans. (i) Right to Safety A consumer has a right to be protected against goods and
services which are hazardous to life and health. For instance, electrical appliances
which are manufactured with sub-standard products do not confirm to the safety norms,
might cause serious injury. Thus, consumers are educated that they should use
electrical appliances which are ISI marked, as this would be an assurance of such
products meeting quality specifications.
(ii) Right to Consumer Education The consumer has a right to acquire knowledge and
to be a well-informed consumer throughout life. Many consumer organisations and
some business are actively educating consumer. He should be aware about his rights
and the reliefs available to him in case of a product or service falls short of his
expectations.
11. Explain the following Rights of Consumers
(i) Right to be Informed
(ii) Right to Seek Redressal (Delhi 2012)
Ans. (i) Right to be Informed The consumer has a right to have complete information
about the product, he intends to buy including its ingredients, date of manufacture,
price, quality, quantity, directions for use, etc.
(ii) Right to Seek Redressal The consumer has a right to get relief in case the product
or service falls short of his expectations. The consumer protection provides a number of
reliefs to the consumers including replacement of the product, removal of defect in the
product, compensation paid for any loss or injury suffered by the consumer, etc.
[Link] the following Rights of Consumers
(i)Right to Choose
(ii)Right to be Heard (Delhi 2010,2008; All India 2008)
Ans. (i) Right to Choose A consumer has a right to choose from a wide variety of
products at competitive prices. This implies that the marketers should offer a wide
variety of products in terms of quality, brand, prices size, etc and allow the consumer to
make a choice amongst them.
(ii) Right to be Heard A consumer has a right to file a complaint and to be heard in
case of dissatisfaction with regard to a good or a service. It is because of this reason
that many enlightened business firms have set up their own consumer service centres
and grievance cells. Many consumer organisations are also working towards this
direction and helping consumers in redressal of their grievances.
13. Explain any four responsibilities of the consumer to safeguard his interests.
(All India 2009)
or
What precautions should a consumer take while buying a product or service?
Explain. (HOTS; Delhi 2009)
Ans. Consumer Responsibilities are: (Any four)
(i) Consumer must exercise his rights Consumers must be aware of following rights
with regard to the products or services they buy from markets
Right to Safety
Right to Choose
Right to be Heard, etc
(ii) Cautious consumers Before purchasing, consumer must insist on getting all
information on the quality, quantity, price, utility, etc of the goods/services. This will
ensure a better purchase as he will not depend entirely on a seller.
(iii) Filing complaint Sometimes, consumers ignore the deception of traders believing
that the loss is small but this attitude encourages corrupt business practices to continue.
On the other hand, some consumers also make excessive claims for compensation on
small defects in goods which are not justified.
(iv) Quality conscious This is the only way to eradicate the problems of adulteration
and spurious goods. While making purchases, consumers must look for standard quality
certification marks like ISI, Agmark, FPO, Wool mark, etc.
(v)Insist on cash memo Ask for a cash memo on purchase of goods or services. This
would serve as a proof of the purchase.
[Link] any four rights available to a consumer under the Consumer
Protection Act, 1986. (All India 2008)
Ans. (i) Right to Safety A consumer has a right to be protected against goods and
services which are hazardous to life and health. For instance, electrical appliances
which are manufactured with sub-standard products do not confirm to the safety norms,
might cause serious injury. Thus, consumers are educated that they should use
electrical appliances which are ISI marked, as this would be an assurance of such
products meeting quality specifications.
(ii) Right to Consumer Education The consumer has a right to acquire knowledge and
to be a well informed consumer throughout life. Many consumer organisations and
some business are actively educating consumer. He should be aware about his rights
and the reliefs available to him in case of a product or service falls short of his
expectations.
(iii) Right to be Informed The consumer has a right to have complete information about
the product, he intends to buy including its ingredients, date of manufacture, price,
quality, quantity, directions for use, etc.
(iv) Right to Seek Redressal The consumer has a right to get relief in case the product
or service falls short of his expectations. The consumer protection provides a number of
reliefs to the consumers including replacement of the product, removal of defect in the
product, compensation paid for any loss or injury suffered by the consumer, etc.
(v) Right to Choose A consumer has a right to choose from a wide variety of products
at competitive prices. This implies that the marketers should offer a wide variety of
products in terms of quality, brand, prices size, etc and allow the consumer to make a
choice amongst them.
(vi) Right to be Heard A consumer has a right to file a complaint and to be heard in
case of dissatisfaction with regard to a good or a service. It is because of this reason
that many enlightened business firms have set up their own consumer service centres
and grievance cells. Many consumer organisations are also working towards this
direction and helping consumers in redressal of their grievances.
Ways & Means of Consumer Protection, Redressal
Agencies under Consumer Protection Act, 1986
1 Mark Questions
1. Besides a ‘consumer’, name any two parties who can file a .complaint before
the appropriate consumer forum. (Compartment 2014)
or
Who can file a complaint under the Consumer Protection Act, 1986? (Delhi 2009)
Ans. A complaint under Consumer Protection Act, 1986 can be made by: (Any two)
(i) Any consumer.
(ii) Any registered consumers’ association.
(iii) The Central Government or any State Government.
(iv) One or more consumers, on behalf of numerous consumers having the same
interest.
(v) A legal heir or representative of a deceased consumer.
2. How many members are required to constitute ‘District consumer dispute
redressal forum’? (Compartment 2014)
Ans. The District Forum consists of a President and two other members, one of whom
should be a woman:
3. How can Business Associations act as a means of consumer protection?
State.(Delhi 2012)
Ans. Business Associations act as a means of consumer protection as they lay down
guidelines for their members in dealings with the customers.
4. Give any one relief available to a consumer who suffers due to consumption of
an expired date medicine. (Delhi 2012)
Ans. Relief available to consumer: (Any one)
(i) To refund the price paid for the medicine.
(ii) To pay a reasonable amount of compensation for any loss or injury suffered by the
consumer.
(iii) To withdraw the defective good from sale.
5. State how self-regulation by business acts as a means of consumer protection.
(All India 2012, 2009; Delhi 2009 C)
Ans. Self-regulation by business acts as a means of consumer protection by
(i) Establishing ethical standards and practices in dealing with their consumers.
(ii) Setting up their customer service and grievance cells to redress the problems and
grievances of their consumers.
6. When can a consumer get more than one relief for a complaint? (All India 2011)
Ans. If the Consumer Court is satisfied about the genuineness of the complaint, a
consumer can get more than one relief for a complaint.
7. Which kind of cases can be filed in the State Commission under the
Consumer Protection Act, 1986? (Delhi 2010 c)
Ans. Those cases can be filed in the State Commission under the Consumer Protection
Act, 1986 in which compensation claimed exceeds Rs 20 lakh but does not exceed
Rs1crore.
8. Which cases can be filed in the National Commission under Consumer
Protection Act, 1986. (All India 2010)
Ans. Those cases can be filed in the National Commission under Consumer Protection
Act, 1986 in which the value of the goods or services in question, along with the
compensation claimed, exceed? 1 crore.
9. Which claims can be appealable bore the Supreme Court under Consumer
Protection Act? (All India 2009)
Ans. An order passed by the National Commission in a matter of its original jurisdiction
is appealable before the Supreme Court. It means only those appeals where the value
of goods and services in question, along with the compensation claimed exceed ? 1
crore and where the aggrieved party was not satisfied with the order of the National
Commission can be taken to the Supreme Court.
10. Who can file a complaint on behalf of a deceased consumer? (Delhi 2009 c)
Ans. A legal heir or representative of a deceased consumer.
11. Is self-regulation by business necessary for consumer protection? How?
(Delhi 2008C)
Ans. Yes, self-regulation by business is necessary for consumer protection because it
is in their long-term interest to serve the customers well.
12. Mohit filed a case against Domestic Collings Ltd in the District Forum, but he
was not satisfied with the orders of the district forum. Where can he appeal
further against the decisions of district forum? (Hots; Delhi 2008)
Ans. Mohit can further appeal at the State Commission against the decision of the
District Forum.
13. Amrit filed a case against Volvo Ltd in the State Commission but he was
not satisfied with the orders of the State Commission. Name the authority to
which he can appeal against the decisions of State Commission. (hots; All India
2008)
Ans. Amrit can approach National Commission to appeal against the decision of the
State Commission.
14. How does a business use self-regulations for consumer protection?
Ans. Enlightened business firms realise that it is in their long-term interest to serve the
customers well. Socially responsible firms follow ethical standards and practices in
dealing with their customers. Many firms have set up their customer service centres and
grievance cells to redress the problems and grievances of their customers.
3 Marks Questions
15. How are consumer grievances redressed by the three-tier machinery under
CPA, 1986? Explain. (Foreign 2014)
Ans. The three-tier-machinery under CPA, 1986 consist of District Forum, State
Commission and the National Commission. A consumer can file a case in District Forum
if the value of goods and services along with the compensation claimed, does not
exceed Rs 20 lakh, in the State Commission if the value of goods and services along
with the compensation claimed is over Rs 20 lakh but less than rs 1 crore, and in the
National commission, if the value of goods and services along with the compensation
claimed is above Rs 1 crore. On receiving the complaint, the District Forum/State
Commission/National Commission shall refer the complaint to the party against whom
the complaint is filed. If required, the goods or a sample, thereof, shall be sent for
testing in a laboratory. The court shall pass an order after considering the test report
and hearing to the party against whom the complaint is filed.
16. Give the definition of ‘Consumer’ as per CPA, 1986. (Compartment 2014)
Ans. Under the Consumer Protection Act, 1986, the term ‘consumer’ has been defined
as any person who buys goods or hires or avail any service for a consideration which
has been paid or promised or partly paid and partly promised or under any system of
deferred payment. It also includes any user of such goods with the approval of the
buyer or any beneficiary of services when such goods or services are availed of with the
approval of the person concerned but does not include a person who avails such
services for any commercial purpose.
4/5 Marks Questions
17. State any eight reliefs available to a consumer under the provision of CPA,
1986. (Compartment 2014)
Ans. The reliefs available to a consumer under the CPA, 1986 are:
(i) To remove the defects in goods or deficiency in services.
(ii) To replace the defective product with a new one, free from any defect.
(iii)To refund the price paid for the product.
(iv) To pay a reasonable amount of compensation for any loss suffered.
(v)To pay punitive damages in appropriate circumstances.
(vi) Not to offer hazardous goods for sale.
(vii)To withdraw the hazardous goods from sale.
(viii) To cease the manufacture of hazardous goods.
18. Anita purchased a book from Satish book stores. While reading the book, she
found that ten pages were missing. She approached the book seller and
complained about the missing pages. The seller promised that if the publisher
was ready to change the book, he would change the same. After one week, the
seller informed Anita that the publisher had refused to change the book.
Where can Anita file a complaint against the seller of the book? Give reason in
support of your answer. Also, explain who is a consumer as per Consumer
Protection Act, 1986. (hots; Delhi 2011 c)
Ans. Anita can file a complaint against the seller of the book in the District Forum.
District Forum is established by the State Government in each district. In District Forum,
only such complaints can be filed in which the value of goods or services and the
compensation claimed is not more than Rs 20 lakhs. Consumer as per CPA,
1986 Under the Consumer Protection Act, 1986, the term ‘consumer’ has been defined
as any person who buys goods or hires or avail any service for a consideration which
has been paid or promised or partly paid and partly promised or under any system of
deferred payment. It also includes any user of such goods with the approval of the
buyer or any beneficiary of services when such goods or services are availed of with the
approval of the person concerned but does not include a person who avails such
services for any commercial purpose.
19. Harish purchased a medicine from Bhatia Medical Stores for his son, who had
high fever. Even after giving the medicine his son’s condition did not improve
and he had to be hospitalised. Doctor informed Harish that medicine given to his
son was spurious. Harish complained about this to Bhatia Medical Stores. As-a
result, Bhatia Medical Stores decided to file a complaint against the manufacturer
in the consumer court. Can Bhatia Medical Stores do this? Give reason in support
of your answer. Also, explain who is a consumer as per Consumer Protection Act,
1986. (HOTS; Delhi 2011 C)
Ans. ‘Bhatia Medical Stores’ cannot file a complaint against the manufacturer in the
consumer court because Bhatia Medical Stores is not a consumer in this case. He is not
a user but has obtained medicine for resale purpose/commercial purpose.
Meaning of Consumer as per Consumer Protection Act, 1986 Anita can file a
complaint against the seller of the book in the District Forum. District Forum is
established by the State Government in each district. In District Forum, only such
complaints can be filed in which the value of goods or services and the compensation
claimed is not more than Rs 20 lakhs.
Consumer as per CPA, 1986 Under the Consumer Protection Act, 1986, the term
‘consumer’ has been defined as any person who buys goods or hires or avail any
service for a consideration which has been paid or promised or partly paid and partly
promised or under any system of deferred payment. It also includes any user of such
goods with the approval of the buyer or any beneficiary of services when such goods or
services are availed of with the approval of the person concerned but does not include a
person who avails such services for any commercial purpose.
20. Explain the following as ways and means of consumer protection
(i)Consumer awareness
(ii)Government (Delhi 2008)
Ans. (i) Consumer awareness A well informed consumer will safeguard himself from
unfair trade practices. A consumer should be well informed about his rights, duties and
reliefs available to him. Only then, he would be in a position to raise his voice against
unfair trade practices and safeguard his interests. In addition to this, an understanding
of his responsibilities would also enable a consumer to safeguard his interest.
(ii) Government The government can protect the interest of the consumers by enacting
various legislations. CPA is one of them which provides 3-tier system of redressal to the
aggrieved consumers. The legal framework in India encompasses various legislations
which provide protection to consumers.
6 Marks Questions
21. Reena purchased one litre of pure desi ghee from a shopkeeper. After using it,
she had a doubt that it is adulterated. She sent it for a laboratory test which
confirmed that the ghee is adulterated. State any six reliefs available to Reena, if
she complains and the consumer court is satisfied about the genuineness of the
complaint. (HOTS; All India 2011; Delhi 2011)
Ans. Reliefs available to Reena are:
(i) To replace the adulterated ghee.
(ii) To refund the price paid for the product.
(iii) To pay a reasonable amount of compensation for any loss or injury/sickness
suffered by her due to the negligence of the manufacturer.
(iv) To pay punitive damages in appropriate circumstances.
(v)To withdraw the adulterated ghee from sale.
(vi)To cease manufacture of adulterated ghee.
22. Prakhar purchased an ISI mark electric iron from Bharat Electricals. While
using, he found that it was not working properly. He approached the seller and
complained for the same. The seller satisfies Prakhar by saying that he will ask
the manufacturer to replace this iron. The manufacturer refused to replace and
Bharat Electricals decided to file a complaint in the consumer court. Can Bharat
Electricals do this. Why? Also explain who is a consumer as per Consumer
Protection Act, 1986. (HOTS; All India 2011; Delhi 2011)
Ans. Bharat Electricals cannot file a complaint. This is because Bharat Electricals is not
a consumer as per Consumer Protection Act, 1986 because they bought the goods for
resale or for commercial purpose. Under the Consumer Protection Act, a consumer is
defined as:
(i) A person who buys goods for consideration which has been paid promised, or partly
paid and partly promised or under any scheme of deferred payment. It includes any
user of such goods, when such use is made with the approval of the buyer but does not
include a person who obtains goods for resale or any commercial purpose.
(ii) Any person who hires or avails any service for consideration which has been paid or
promised or partly paid and partly promised or under any system of deferred payment. It
includes any beneficiary of services when such services are availed of with the approval
of the person concerned but does not include a person who avails of such services for
any commercial purpose.
Role of Consumer Organisations & NGOs
1 Mark Question
1. Name any two Non-Governmental Organisations (NGOs) which are working in
India to protect and promote the consumer interests. (All India 2010)
Ans. (i) Consumer Guidance Society of India (CGSI), Mumbai.
(ii) Voluntary Organisation in Interest of Consumer Education (VOICE), Delhi.
4/5 Marks Question
2. Explain any four functions of consumer organisation and Non-Government
Organisations (NGOs) for protecting and promoting the interest of consumers.
(Delhi 2009)
Ans. Consumer organisations and NGO’s perform several functions for the protection
and promotion of interest of consumers. These include
(i) Educating the general public about consumer rights by organising training
programmes, seminars and workshops.
(ii) Publishing periodicals and other publications to impart knowledge about consumer
problems, legal reporting, reliefs available and other matters of interest.
(iii) Carrying out comparative testing of products and publish results for consumer
welfare.
(iv) Encouraging consumers to strongly protest and take an action against
unscrupulous, exploitative and unfair trade practices of sellers.
