LAW OF CONSUMER PROTECTION Unit- II

The journey of consumer rights is vital in ensuring people receive fair treatment during transactions. As markets grow and products become more complex, consumer protection has become increasingly crucial. The Consumer Protection Act addresses the many issues faced by consumers and sets up a strong framework to safeguard their rights. In this blog, we will explore what it means to be a consumer under the Consumer Protection Act and take an in-depth look at the structure, objectives, and roles of Consumer Protection Councils at the Central, State, and District levels.

LAW OF CONSUMER PROTECTION Unit- II

Concept and Meaning of Consumer under Consumer Protection Act • Consumer Protection Councils- Central, State and District • Consumer Protection Councils- Composition, Objects and functions of the Councils

Understanding the Concept of a Consumer

Concept and Meaning of 'Consumer' under the Consumer Protection Act

Under the Consumer Protection Act, 2019 (which replaced the 1986 Act), a consumer is defined in Section 2(7):

Definition of Consumer:

A consumer means any person who:

• Buys any goods for a consideration (payment) which has been paid or promised or partly paid and partly promised, or under any system of deferred payment.
• Hires or avails of any service for a consideration (same as above).

Exclusions:

• A person who obtains goods for resale or for commercial purposes is not a consumer.
• However, the term commercial purpose does not include use by a person exclusively for the purpose of earning his livelihood by means of self-employment.

Examples:

• A person buying a TV for home use is a consumer.
• A person buying a photocopy machine to start a small shop for livelihood is a consumer.
• A company buying 100 chairs for its office is not a consumer.

Simply put, a "consumer" is anyone who buys goods or services for personal use and not for resale or commercial purposes. Under the Consumer Protection Act, this definition is expanded to highlight specific rights consumers should enjoy during their buying experiences.

The core principle of the Consumer Protection Act is to empower consumers, enabling them to make informed decisions and seek help when their rights are violated. This empowerment is essential in today's marketplace, where larger companies often hold more power than average consumers.

For instance, with online shopping on the rise, consumers might feel overwhelmed by the numerous options available. The Consumer Protection Act ensures that even when consumers shop online, they receive clear information about products, fair pricing, and the option to return items under specific conditions.

The Role of Consumer Protection Councils

Consumer Protection Councils (CPCs)

The Act provides for the establishment of Consumer Protection Councils at:

• Central Level
• State Level
• District Level

These councils are advisory bodies aimed at promoting and protecting consumer rights.

Consumer Protection Councils were created to raise awareness about consumer rights and responsibilities. These councils serve as advisory bodies, protecting consumer interests on three levels: Central, State, and District.

Central Consumer Protection Council (CCPC)

A. Central Consumer Protection Council (CCPC)

• Constituted Under: Section 3 of the Consumer Protection Act, 2019
• Chairperson: Union Minister in charge of Consumer Affairs
• Members: Officials and representatives from various sectors (industry, consumer organizations, women, farmers, etc.)

Objectives/Functions:

• Promote and protect the rights of consumers, namely:
• Right to safety
• Right to be informed
• Right to choose
• Right to be heard
• Right to redress
• Right to consumer education
• Give advice to the Central Government on policy matters related to consumer protection.

The Central Consumer Protection Council operates nationally and is key in shaping policies for consumer protection. It consists of a diverse group of representatives.

Composition:

The CCPC is chaired by the Minister of Consumer Affairs. Its members include:

• State Ministers in charge of consumer affairs
• Members of Parliament
• Consumer organization representatives
• Consumer affairs experts

Objectives:

The main goals of the CCPC include:

• Promoting consumer rights and interests
• Advising the government on consumer-related issues
• Facilitating consumer education and awareness

Functions:

The CCPC's responsibilities include:

• Creating policies for consumer protection
• Monitoring how consumer rights are implemented
• Conducting research on consumer issues
• Encouraging businesses to self-regulate

State Consumer Protection Councils (SCPC)

State Consumer Protection Council (SCPC)

• Constituted Under: Section 6
• Chairperson: Minister in charge of Consumer Affairs in the State
• Members: Official and non-official members, as prescribed by State Government

Objectives/Functions:

• Same as the Central Council but focuses on state-level issues.
• Makes recommendations to the State Government for protecting consumer rights in that state.

State Consumer Protection Councils function regionally, working to safeguard consumers within their states.

Composition:

Each SCPC is led by the State Minister for consumer affairs and includes:

• Members from the Legislative Assembly
• Consumer organization representatives
• Experts on consumer rights

Objectives:

SCPCs aim to:

• Improve local consumer protection mechanisms
• Foster positive interactions between consumers and businesses
• Address regional consumer concerns

Functions:

The SCPC’s key roles are:

• Implementing state-level consumer protection policies
• Raising awareness on consumer rights
• Conducting forums to hear consumer grievances

District Consumer Protection Councils (DCPC)

C. District Consumer Protection Council (DCPC)

• Constituted Under: Section 8
• Chairperson: District Collector
• Members: Representatives from local bodies, consumer organizations, and the public

Objectives/Functions:

• Spread awareness about consumer rights at the district level.
• Help implement consumer protection measures in the district.

District Consumer Protection Councils work at the community level, focusing on immediate consumer concerns.

Composition:

DCPCs include:

• District Collector as chairperson
• Local government representatives
• Members from community consumer organizations

Objectives:

DCPCs primarily work to:

• Educate communities about consumer rights
• Address local consumer grievances

Functions:

Key functions of the DCPC consist of:

• Organizing educational outreach programs
• Directly handling consumer complaints
• Reporting unresolved issues to higher councils

The Importance of Consumer Protection Councils

Consumer Protection Councils are crucial in bridging the gap between consumers and businesses. They promote accountability, ensuring businesses stick to fair practices. These councils help consumers feel valued and heard by addressing grievances effectively.

The existence of these councils signifies governmental recognition of the importance of consumer rights in maintaining a strong economy. By empowering consumers, these councils help eliminate unfair trading practices and encourage ethical business standards. For example, studies show that markets where consumer rights are respected lead to 15% growth in public trust towards businesses.

Challenges Faced by Consumer Protection Councils

Despite successes, these councils face challenges:

• Limited Awareness: A considerable number of consumers may be unaware of their rights and the existence of these councils, weakening their effectiveness. Reports indicate that only about 30% of consumers know their rights fully.
• Resource Constraints: Many councils operate on limited budgets, impacting their ability to conduct awareness campaigns.
• Jurisdictional Confusion: Consumers may struggle to identify the right council for their specific complaints, resulting in delays or unresolved issues.

Addressing these challenges requires collaboration among government bodies, consumer groups, and the community.

Summary Table:

Level	Council	Chairperson	Key Role
Central	Central Consumer Protection Council	Union Minister (Consumer Affairs)	National-level policy and awareness
State	State Consumer Protection Council	State Minister (Consumer Affairs)	State-level consumer protection and guidance
District	District Consumer Protection Council	District Collector	District-level consumer rights awareness

Final Thoughts

The concept of a consumer under the Consumer Protection Act emphasizes the significance of protecting rights. Consumer Protection Councils, functioning at various levels, play a vital role in ensuring these rights are upheld, educating consumers, and fostering fair competition.

As consumers become more informed and empowered, the focus on fair practices will continue to enhance. Therefore, it is essential for all parties to work together to create an environment where consumer rights are respected. This effort not only benefits consumers but also contributes to a marketplace characterized by trust, transparency, and ethical business conduct.

By understanding the roles and functions of Consumer Protection Councils, consumers can better navigate today’s complex market, promoting their rights and ensuring they are treated fairly with every purchase. Knowledge truly is power, and being aware of these protections can lead to a more positive consumer experience.