03-12-2012, 04:45 PM
NEED FOR CONSUMER PROTECTION ACT IN AN ERA OF FREE COMPETITION WHERE “CONSUMER IS A KING”
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INTRODUCTION
The growing interdependence of the world economy and international level of business standards have made the markets more vulnerable to change and risks. This vulnerability and volatility has led to consumers’ need for protection of their interests against hazardous goods or malpractices by sellers.
This has led to consumer movements all over the world for safeguarding of their rights in general and spreading knowledge for the same. Consumers are considered to be king in a free market; the sellers are guided by the will of a consumer.
Consumers, particularly in India, are unorganized and relatively uniformed. On the other hand, the traders and businessmen are organized and well informed. Unscrupulous businessmen take this advantage and exploit the consumers in a variety of ways. Further, the market in India is generally a seller’s market. It is very easy to dupe the innocent consumers. Problems like illiteracy, ignorance, backwardness, poverty, etc. are existing and the businessmen are well organized, the exploitation continues unchecked.
The big multinationals will leave no stone unturned to gain the attraction of the consumer and will try to gain a respectable market share. However, some of the companies try to engage in unscrupulous, exploitative and unfair trade practices
like defective and unsafe products, adulteration, false and misleading advertising, hoarding, black-marketing etc. The earlier approach of Caveat emptor, which means “Let the buyer beware”, has now been changed to caveat venditor (“Let the seller beware”).
Objectives of the Act
The Consumer Protection Act 1986 has been enacted to provide for the establishment of consumer councils and the other authorities of consumer councils and other authorities for the settlement of consumers’ disputes and for matters connected therewith. In fact, the basic motive of enacting this important Act is to provide cheaper and speedy remedies to the consumers who are in disadvantageous position in comparison with the traders who are well organized and rule the market.
The biggest help in this direction has come from the government. The Central Government enacted a law in the 1986 for the protection of consumers known as ‘The consumer Protection Act 1986. The importance of the Consumer Protection Act 1986 lies in promoting welfare of the society in as much as it attempts to remove the helplessness of a consumer which he faces against powerful businessmen.
Genesis of Consumer Protection Laws
The need to ensure the basic rights to help, safety, etc, of consumers have long been recognized the world over and various general legislations were enacted in India and abroad in this direction. In India, the general laws under the law torts which ultimately aimed at protection of consumers interests are the Indian Contract Act,1872, The sale of goods act,1930, the dangerous drugs act,1930, the prevention of food adulteration act,1954, The essential commodities act,1955, The standards of weights and measures act,1976.
These legislations contain regulatory provisions and contravention of these provisions attracted civil liability. This means that an ordinary consumer had no other remedy but to initiate action by way of a civil suit which involved lengthy legal process proving to be too expensive and time consuming for lay customers. Though the MRTP commission proved to be far more accessible and less time consuming than the civil courts, its single central location at New Delhi did not make the redressal agency accessible to all consumers. Therefore, it became necessary to evolve laws directed at protecting the consumers and at the same time, providing for remedies which are simpler, more accessible, quicker and less expensive.