Class 12 students can refer to Chapter 12 Consumer protection notes given below which is an important chapter in the class 12 Business Studies book. These notes and important questions and answers have been prepared based on the latest CBSE and NCERT syllabus and books issued for the current academic year. Our team of Business Studies teachers has prepared these notes for class 12 Business Studies for the benefit of students so that you can read these revision notes and understand each topic carefully.

Consumer protection Notes Class 12 Business Studies

Refer to the notes and important questions given below for Consumer protection which is really useful and has been recommended by Class 12 Business Studies teachers. Understanding the concepts in detail and then solving questions by yourself will help you to learn all topics given in your NCERT Books.

Consumer Protection: Concept, Consumer Protection Act 1986: Meaning of consumer Rights and responsibilities of consumers Who can file a complaint?
Redressal machinery ,Remedies available.

CONSUMER PROTECTION

Consumer Protection: Definition
Consumer protection refers to not only providing education to consumers about their rights and responsibilities, but also helping them in getting their grievances redressed Importance of Consumer Protection from Businessman’s Point of View

♦ Long-term Interest of Business is assured.
♦ Business uses society’s resources so they need to safeguard consumer’s interests.
♦ Social Responsibility towards consumers as an important interest group.
♦ It is the moral obligation of the businessmen to give due consideration to the consumer’s interest.
♦ To avoid government intervention in business.
Importance of Consumer Protection from Consumers’s Point of View

♦ Consumer Ignorance needs to be removed
♦ Unorganised Consumers need a mechanism to unite themselves.
♦ Widespread Exploitation of Consumers needs to be checked.
Ways and Means of Consumer Protection

♦ Self Regulation by enlightened business firms.
♦ Business Associations have laid down code of conduct for businesses.
♦ Consumer Awareness promotes consumerism.
♦ Consumer Organisations provide support to the consumers.
♦ Government provides necessary framework to safeguard the interest of consumers.

Consumer: Definition
A ‘consumer’ is generally understood as a person who uses or consumes goods or avails of any service. A person who buys goods for commercial purpose or resale will not be considered to be a consumer.

CONSUMER PROTECTION ACT, 1986
Who can file a complaint?

♦ Any consumer
♦ Any registered consumer’s association
♦ The Central Government or any State Government. One or more consumers, on behalf of numerous consumers having the same interest.
♦ A legal heir or representative of a deceased consumer.

Rights Available to a Consumer

♦ Right to Information.
♦ Right to Choose.
♦ Right to be Heard.
♦ Right to Seek Redressal.
♦ Right to Consumer Education.
♦ Right to Safety.

Reliefs Available to a Consumer

♦ To remove the defect in goods or deficiency in service.
♦ To replace the defective product with a new one, free from any defect.
♦ To refund the price paid for the product, or the charges paid for the service.
♦ To pay a reasonable amount of compensation for any loss or injury suffered by the consumer due to the negligence of the opposite party.
♦ To pay punitive damages inappropriate circumstances.
♦ To discontinue the unfair/restrictive trade practice and not to repeat it in the future.
♦ Not to offer hazardous goods for sale.
♦ To withdraw the hazardous goods from sale.
♦ To cease manufacture of hazardous goods and to desist from offering hazardous services.
♦ To pay any amount (not less than 5% of the value of the defective goods or deficient services provided), to be credited to the Consumer Welfare Fund or any other organisation/person, to be utilised in the prescribed manner.
♦ To issue corrective advertisement to neutralise the effect of a misleading adverstisement.
♦ To pay adequate costs to the appropriate party.

Responsibilities of a Consumer

♦ Be aware about various goods and services available in the market.
♦ Buy only standardised goods and check for standardisation mark.
♦ Be aware about the risks associated with the products and services and use them prudently.
♦ Read the labels carefully.
♦ Assert yourself to ensure that you get a fair deal.
♦ Be honest in your dealings.
♦ Ask for a cash memo on purchase of goods or services.
♦ File a complaint in an appropriate consumer forum in a case of a shortcoming in the quality of goods purchased or services availed.
♦ Form consumer societies which would play an active part in educating consumers and safeguarding their interests.
♦ Show concern for the environment

CONSUMER PROTECTION
Role of Consumer Organisations and NGOs in Promoting Consumer Protection

♦ Educating the general public about consumer rights.
♦ Educating consumers through various publications.
♦ Conducting comparative testing of consumer products.
♦ Encouraging consumers to strongly protest wherever necessary.
♦ Filing complaints in appropriate consumer courts on behalf of the consumers.
♦ Providing legal assistance to consumers in seeking legal remedy. ,
♦ Being proactive in filing cases in consumer courts in the interest of the general public.

Names of a few Consumer Organisations and NGOs

♦ Consumer Coordination Council, Delhi
♦ Common Cause, Delhi
♦ Voluntary Organisation in Interest of Consumer Education (VOICE), Delhi
♦ Consumers’ Association, Kolkata.

REDRESSAL AGENCIES UNDER THE CONSUMER PROTECTION ACT
District Forum

♦ A complaint can to be made to the appropriate District Forum when the value of the goods or services in question, along with the compensation claimed, does not exceed ? 20 lakhs.
♦ In case the aggrieved party is not satisfied with the order of the District Forum, he can appeal before the State Commission within 30 days of the passing of the order

State Commission

♦ A complaint can to be made to the appropriate State Commission when the value of the goods or services in question, along with the compensation claimed, exceeds Rs. 20 lakhs but does not exceed Rs. 1 crore.
♦ The appeals against the orders of a District Forum can also be filed before the State Commission.
♦ In case the aggrieved party is not satisfied with the order of the State Commission, he can appeal before the National Commission within 30 days of the passing of the order.

National Commission

♦ The National Commission consists of a President and at least four other members, one of whom should be a woman.
♦ All the members are appointed by the Central Government.
♦ A complaint can to be made to the National commission when the value of the goods or services in question, alongwith the compensation claimed, exceeds Rs. 1 crore.
♦ The appeals against the orders of a State Commission can also be filed before the National Commission and no further.
♦ An order passed by the National Commission in a matter of its original jurisdiction is appealable before the Supreme Court if the aggrieved party was not satisfied with the order of the National Commission.

MIND MAP