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.
Eg. Illiterate people in India often buy Nokai
mobile phones considering it as nokia brand.
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.
Eg. Consumers in India often agree to buy substitute
products which are relatively cheaper than the standard products. Tooth brush
which are not branded but cheaper are introduced to consumers possessing low
purchasing power.
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.