As consumers, we are worried about our finances, health, safety, and social environment. Nevertheless, as customers, we frequently feel duped and abused. Customers on the receiving end are increasingly being fleeced. False or deceptive ads or claims, price fixing, providing of gifts, prizes, and contents, noncompliance with product safety regulations, and hoarding of commodities all make us victims, intentionally or unwittingly.
After reading the previous units, don't you believe all this occurs because we are powerless or unprotected? Unlike in the past, consumers do not always have to feel powerless. As customers, we are now protected by several laws. These rules give consumers several rights and impose obligations on retailers, producers, and service providers.
Furthermore, these rights are not only social standards; most now have legal consequences. In other words, we now have rights that can be enforced. However, there is a common lack of understanding of these rights.
By consumer rights, we mean those that already exist or that, according to some, should be codified into law to safeguard the interests of consumers. In other terms, they are legal protections meant to guarantee that all customers can buy products and services at affordable costs. According to legal definitions, protecting consumer interests by granting rights also entails imposing some responsibilities and obligations on sellers, producers, and service providers. Thus, disobeying these obligations might result in legal consequences or penalties.
The concept of consumer rights is a contemporary invention. Regarding quality, price, and availability, traders and manufacturers have long disregarded customers' interests. The Consumer Movement was born out of knowledge of this ailment. The United States of America pioneered this in the 1920s, and other nations gradually adopted it. C. Rajgopalachari in India deserves credit for launching the consumer awareness campaign (Rajaji). He established the first Consumer Protection Council in 1950 at Madras. Nowadays, it is widely acknowledged that economic systems function more effectively when the fundamental requirements of consumers, as expressed in these rights, are satisfied.
Together with this realization, several additional consumer rights—in addition to the fundamental four—that were first stated by the US President at the time, John F. Kennedy—the Right to safety, to choice, to be heard, and to information—are about to be adopted and put into practice.
The Indian government has implemented several consumer protection regulations to combat shortages, unfair pricing, adulteration, and other similar acts. Among other laws, you may be familiar with the Essential Commodities Act, the Prohibition of Food Adulteration Act, and the Monopolies and Restrictive Trade Practices Act (which has since been superseded by the Competition Act, 2000).
Consumer law is a general term that refers to these laws and several more that the federal government and state legislatures occasionally pass. The passage of The Consumer Protection Act (CPA) in December 1986 marked a significant turning point in consumer law. The six consumer rights are listed as legal rights in the Consumer Protection Act for the first time.
The Monopolies and Restrictive Trade Practices Act, 1969 (MRTP) was passed in order to ensure that there are no monopolies; prohibit monopolistic, restrictive, and unfair trade practices that are detrimental to the public interest; and ensure that the operation of the economic system does not result in the concentration of economic power to the detriment of all. This legislation's ultimate goal is to end any business practices that might hinder, distort, restrict competition, harm, or cause loss to consumers. The Indian government formed the Monopolies and Restrictive Trade Practices (MRTP) Commission following this Act.
Consumers gain from the following five ways which are −
The prohibition of lying and misrepresenting facts
Opposes disseminating deceptive and fraudulent ads, such as those for sales.
Opposed to contests and prize plans intended to be paid for rather than given out for free.
The prohibition of selling or supplying items that do not adhere to standards.
Opposes price hikes via hoarding or other means.
Regarding the aforementioned rights, the MRTP commission has the authority to take immediate legal action against any unfair or restrictive business practices and to enquire into, hear, and issue orders in response to complaints from trade associations, consumers, or other registered consumer organizations. The Competition Act 2000, which calls for the formation of a completion commission and assumes the duties of the MRTP Commission, has now abolished and replaced the MRTP Act.
Customers are legally entitled to receive the proper amount of products for their money. The Standards of Weights and Measurements Act of 1976 and the Standards of Weights and Measures (Enforcement) Act of 1985 formerly safeguarded this consumer right. These Acts outlawed the use of non-standard weights, measures, or numbers.
Moreover, they included specific provisions for packed goods. Nevertheless, the Central Government recently passed the Legal Metrology Act 2009, which went into effect on April 1, 2011. This Act rationalizes the measuring units to be used in India. The Metric System (meter, kilogram, etc.) to be utilized is also specified by the Act. Standard weights and measurements are similarly governed by it, as are their production, distribution, and usage.
In addition to being necessities for humans, food and medications may mean the difference between life and death. For instance, you may have heard of using inedible colors in beverages or mixing sawdust with chili powder or tea leaves. Similarly, hazardous medications and cosmetics are promoted falsely in advertising or marketed in appealing packaging. Before, regulations like the Prevention of Food Adulteration Act 1940 and the Medicines and Cosmetics Act had been passed in India to safeguard customers from the negative consequences of contaminated food, unnecessary and hazardous medications, and toxic cosmetics.
The Food Safety and Standards Act, 2006, which consolidates multiple Acts & Regulations that have heretofore dealt with food-related concerns in various Ministries and Departments, recently saw the establishment of The Food Safety and Standards Authority of India (FSSAI). The administrative ministry for FSSAI is the Government of India's Ministry of Health & Family Welfare. The Government of India appoints the Chairman and CEO of the Food Safety and Standards Authority of India (FSSAI).
Given that the public's welfare is the ultimate goal of a national food safety system, the primary duty of the food safety regulator is to safeguard the consumer by enforcing compliance with food safety rules and regulations. Maintaining a food regulatory system that provides safe food for the populace, enables customers to make educated decisions, and upholds public faith in the food rules is a problem for food regulators.
The Food Safety and Standards Act, 2006 is a law that
Unifies the laws governing food
Creates the food safety and standards authority of india
Sets science-based standards for food products and governs their production, storage, distribution, sale, and import to guarantee the availability of wholesome, safe food for human consumption, as well as matters related to or incidental to those standards.
Service refers to the offering of amenities. The customer pays for the services they use and the things they buy. They include financial services, insurance, transportation, the provision of power and water, telephone, postal services, amusement, housing, etc. The service industry is covered by rights granted to customers under the Consumer Protection Act.
Moreover, other Acts about various services place obligations on service providers for customer happiness, safety, and restitution. In other words, these obligations and rules provide customers the right to get satisfactory services, complain about service providers who violate the rules, and receive compensation if they suffer any loss, harm, etc.
As a result, laws, rules, and regulations govern things like banks, insurance companies, healthcare providers, electricity providers, railroads, automobiles, post offices, and e-commerce. The most significant impact is that consumers can use the law to obtain proper and pleasant services. Many laws outline service providers' obligations to customers.
Developing consumer rights is one of the most significant components of consumer protection. Significantly during the past five years, these rights have changed. These rights apply to both the selling and buying of goods and services. Several added regulations outline obligations and responsibilities for service providers, makers, and marketers of commodities and products.
Business organizations have voluntarily established several codes of conduct to provide better services and satisfy customers. Consumer rights result from manufacturers' obligations and duties. The universal recognition of consumer rights has prompted several organizations to take action in this regard.