HOW THE CONSUMER RIGHTS PROTECTED

A power Point Lesson From

Trivandrum International SchoolVisit :www. trinscommerce11.wikispaces.com

18 OCTOBER 2011 11 ISC COMMERCE

Aravind wants to buy an Ice cream from yuvraj’s shop (sole proprietorship

concern)

Aravind visited the shop and gave order for an ice cream.

Yuvraj accepted money from Aravind and gave

One Babas Ice cream.

What is the story?

Yes ! When Aravind finished his ice cream, he began to feel a severe stomach ache

• Aravind was admitted in the hospital and the medical record showed some poison was mixed in the Ice cream

Here who is the customer ?

No doubt Aravind is the customer

Then, who should protect the interest of Aravind as a customer ?

Customer satisfaction level a diagram

Dissatisfaction 70%Dissatisfaction 70%7070

The satisfaction 30%The satisfaction 30%

30 30

Aravind (as a customer) can approach consumer court for the justice……

What is marketing?“Marketing is the performance of

Business activity that direct the flowOf goods and services from the

Producers to consumers or Users” (American marketing Association)

Consumer satisfactionIs the most important aspect in the Marketing strategy of any

business enterprise.The business must have certain

social responsibilities…..

We are going to discuss the consumer protection in India

India

The modern marketing is consumer – oriented.

The consumer’s right is protected in India through the law of Consumer protection Act of 1987.

Its purpose is to protect consumer’s against defective goods, unsatisfactory services etc…

Implication of India model – Consumption led

41%

45%45%

59%

U.S.

China

Brazil

India

33%

People Friendly:Consumption as % of GDP

People Friendly, Less inequality: Gini Index

58%

42%64%

Europe

China

India

Will India become the next big consuming economy after the U.S.?

Reasons for success

India’s success is market-led whereas China’s is state-induced

The entrepreneur is at thecentre of the Indian model

Rise of globally competitive Indian companies

Why are the consumers exploited ?

a) Consumers are un organised

b) Most of the consumers are illiterate

c) Traditional attitude of of the Indian ‘to suffer

in silence’

d) difficult to organise in a country like ours

The consumer protection Act works at three level

■ District forum

■ State commission

■ National commission

Meaning and Importance of Consumer Protection

• Who is a consumer ?

A consumer is defined as any person who buys

any product or hires or avails of any service

The services covered by the consumer protection include supply of Electricity,Banking,Financing,Transport,Communication,Construction etc…..

What is Consumer Protection ?

■ Consumer protection implies assurance against anti –consumer trade

practices by the producers or traders.

Anti-consume trade practices include adulteration, substandard quality, fractional weights and measures,overcharging,misleading advertisements ,etc..

RATIONALE OF CONSUMER PROTECTION

■ The new economic policy 1991 considered as the stepping stone to make changes for the consumers behaviour.

■ Globalisation and Liberalisation played predominant role for the total changes in the mindset of consumers behavior.

Some of the unfair practices that justify government’s role in consumer protection are as a follows;

■ The traders may sell goods that do not conform to the claimed quality,size,weight etc…

■ The traders may supply inferior or duplicate products to the consumers.

■ The goods supplied to the consumers may not be safe for human consumption

■ The producers may advertise a low price for the goods on offer. but when approach the trader he charged high rate than the actual advertisement.

Some of the unfair practices that justify government’s role in consumer protection are as a follows;

■ The consumers may find goods weighing less than the quantity printed on the package.

■ Producers may cause ecological or environmental hazards for the consumers and the society by causing water,air,and noise pollution.

■ Some producers promote goods that are injurious to public health through strong advertisement.

Need and significance of Consumer

Protection.

1) Business is a means to consumer satisfaction:

Business without consumers has no relevance.

Consumer is the foundation of any business.

So consumer satisfaction is very important.

The needs and wants to be fulfilled by giving good

quality products.

Need and significance of consumer protection

• Business is run to pursue multiple objectives

It has Both economic and social responsibilities.

The economic objective is obviously the

profit maximisation.

Social responsibilities includes provide good

quality goods at reasonable rate.

Need and significance of consumer protection

• Business is a part of society and so has ethical obligations;

Business must guided by social ethics and norms.

Provide right quality goods at right place at right time.

Need and significance of consumer protection

• Business must offer value for money to the customers;

sometimes the consumer feels cheated as he does not get value for money paid for a product.

It cause bad health due to adulteration

Through consumer protection we can avoid that.

Need and significance of consumer protection

• Consumer awareness is increasing;

The consumers are becoming more and more powerful of their rights against the business.

Education and information through news papers,radio,T.V influence them a large extent.

Is there any violation of consumer protection They will act for justice.