Page 1 - Lesson Note 2

SAI INTERNATIONAL SCHOOL
CLASS-12TH

BUSINESS STUDIES
Chapter 12: Consumer Protection
Topic: The Consumer Protection Act, 1986, Consumer Rights & Responsibilities

(Lesson Note- 49)

THE CONSUMER PROTECTION ACT, 1986

The Consumer Protection Act (CPA) seeks to protect and promote the consumers’ interest
through speedy and inexpensive redressal of their grievances.

The scope of the Act is very wide. It is applicable to all types of undertakings, big and small,
whether in the private or public sector, or in the co-operative sector, whether a manufacturer or a
trader, and whether supplying goods or providing services. The Act confers certain rights to
consumers with a view to empowering them and to protect their interests.

CONSUMER RIGHTS

The Consumer Protection Act provides for six rights of consumers. The consumer protection
councils set up under the Act are intended to promote and protect the various rights of
consumers. These rights include the following:

1. Right to Safety: The 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
substandard products or do not conform 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.

2. 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, quantity,
directions for use, etc. It is because of this reason that the legal framework in India requires the
manufactures to provide such information on the package and label of the product.

3. Right to Choose: The consumer has the freedom to choose from a 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 from amongst
these.

4. Right to be Heard: The consumer has a right to file a complaint and to be heard in case of
dissatisfaction with a good or a service. It is because of this reason that many enlightened
business firms have set up their own consumer service and grievance cells. Many consumer