NEED FOR CONSUMER PROTECTION ACT IN INDIA
Consumer
Protection Act, 1986 is an act to
provide for better protection of the interest of consumers and for that purpose
to make provisions for the establishments of consumer councils and other authorities
for the settlement of consumer’s disputes and for matters connected therewith. Consumer
is considered as the most powerful motivating force and also the purpose of
production. At the same time
consumer is equally liable to higher penalties segment of the whole marketing
system. There were attempts to safe guard the interest of the consumer in a
sporadic (occasional) way till 1986 until the Government of India enacted a
comprehensive legislation-Consumer Protection Act. The act applies to all the
goods and services excluding goods for resale or for commercial purpose and
services rendered free of charge and under a contract for personal service. The
provisions of the Act are compensatory in nature. It covers public, private,
joint and cooperative sectors. Consumer
Protection Councils are established at the national, state and district level
to increase consumer awareness.
NEED FOR CONSUMER PROTECTION ACT IN INDIA:
The main reasons for the need for consumer protection in India can be
explained as follows:
1. Illiteracy and
Ignorance: Consumers in India are mostly illiterate and ignorant. They do
not understand their rights. A system is required to protect them from
unscrupulous businessmen.
2. Unorganized
Consumers: In India consumers are widely dispersed and are not united. They
are at the mercy of businessmen. On the other hand, producers and traders are
organized and powerful.
3. Spurious Goods: There
is increasing supply of duplicate products. It is very difficult for an
ordinary consumer to distinguish between a genuine product and its imitation.
It is necessary to protect consumers from such exploitation by ensuring
compliance with prescribed norms of quality and safety.
4. Deceptive
Advertising: Some businessmen give misleading information about quality,
safety and utility of products. Consumers are misled by false advertisement and
do not know the real quality of advertised goods. A mechanism is needed to
prevent misleading advertisements.
5. Malpractices of
Businessmen: Fraudulent, unethical and monopolistic trade practices on the
part of businessmen lead to exploitation of consumers. Consumers often get
defective, inferior and substandard goods and poor service. Certain measures
are required to protect the consumers against such malpractices.
6. Freedom of
Enterprise: Businessmen must ensure satisfaction of consumers. In the long
run, survival and growth of business is not possible without the support and
goodwill of consumers. If business does not protect consumers' interests, Government
intervention and regulatory measures will grow to curb unfair trade practices.
7. Legitimacy for
Existence: Business exists to satisfy the needs and desires of consumers.
Goods are produced with the purpose of selling them. Goods will, in the long
run, sell only when they meet the needs of consumers.
8. Trusteeship: Businessmen
are trustees of the society's wealth. Therefore, they should use this wealth
for the benefit of people.