An Overview of Consumer Protection Video Lecture - Business Studies (BST)

consumer protection and overview we are
aware that manufacturers and service
providers offer products and services to
fulfill needs and wants of consumers on
the one hand and to increase their level
of profit sales and market share on the
other however in an attempt to increase
their sales and market share these
producers may be tempted to engage in
unfair trade practices like defective
and unsafe products adulteration false
and misleading advertising black
marketing just to name a few
hence there is a need to provide
adequate protection to consumers again
such practices of the sellers according
to the Cambridge Advanced Learning
Dictionary consumer protection is the
protection of buyers of goods and
services against low-quality
or dangerous products and advertisements
that deceive people consumer protection
includes educating consumers about their
rights and responsibilities and helping
them to seek redress of their grievances
importance of consumer protection from
consumers point of view the importance
of consumer protection from the
consumers point of view can be
understood from the following points one
consumer ignorance majority of the
consumers are ignorant about the rights
and reliefs available to them
hence it becomes necessary to educate
them about the same to achieve consumer
awareness to unorganized consumers
consumers need to get together and form
themselves into powerful consumer
organizations to protect and promote
their own interests
three widespread exploitation of
consumers consumer protection plays a
vital role as consumers might be
exploited by unscrupulous exploitative
and unfair trade practices like
defective and unsafe products
adulteration false and misleading
advertising hoarding black marketing etc
importance of consumer protection from
the point of view of business it is also
important for business units to protect
consumers and adequately satisfying them
due to the following reasons one
long-term interest of business business
firms should aim at long term profit
maximization through customer
satisfaction customer satisfaction not
only lead to repeat sales but also
increase the customer base of business
to business uses society's resources
business organizations use resources
which belong to the society hence it is
a responsibility of business firms to
offer those products and services that
are in public interest three social
responsibilities business organizations
make money by selling goods and
providing services to consumers
hence consumers form an important group
of stakeholders and business
organizations should take care of the
group for moral justification it is the
moral duty of any business organization
to take care of consumers interest and
avoid any form of their exploitation
five government intervention a business
firm should take care of consumers needs
and interests as its involvement in any
form of exploitative trade practices
would invite government intervention or
action such government intervention may
damage the image and position of the
company in the society
ways and means of consumer protection
there are various ways of protecting the
interests of consumers one
self-regulation by business the business
organization themselves can promote
consumer protection by regulating their
own behavior and actions socially
responsible firms follow ethical
standards and practices
in dealing with their customers firms
establish customer service and grievance
sales to redress the problems and
grievances of their consumers to
business associations the associations
of trade commerce and business like
Federation of Indian Chambers of
Commerce of India or fi CCI and
Confederation of Indian Industries or
CII can check unfair trade practices
used by some business organizations
through their code of conduct three
consumer awareness in order to protect
his interests a consumer should know the
rights and the reliefs available to him
for consumer organizations consumer
organizations awaken consumers by
educating them about their rights these
organizations provide protection to
consumers by taking organized action and
forcing business firms to adopt fair
trade practices
five government the government can
protect consumers interests through
legislative executive and judicial
actions the executive should strictly
enforce the laws passed by the
government government of India
encompasses several legislations to
protect the interests and rights of
consumers redressal agencies under the
consumer protection act in order to
resolve consumer disputes the Consumer
Protection Act 1986 provides for the
establishment of a three-tier
enforcement machinery at the national
state and district levels these are the
national consumer disputes redressal
Commission national Commission the state
consumer disputes redressal Commission
state Commission the district consumer
disputes redressal forum district forum
respectively in a nutshell consumer
protection refers to activities of
government business and independent
organizations designed to protect
consumers from unfair trade practices
like defective and unsafe products
adulteration false and misleading
advertising black marketing just to name
a few the Indian legal framework
consists of a number of regulations
which provide protection to consumers
the various ways in which the objective
of consumer protection can be achieved
are one self-regulation by
business-to-business associations
three consumer awareness for consumer
organizations five government the
Consumer Protection Act 1986 mandates
establishment of quasi judicial bodies
in each district and state and at the
national level to provide inexpensive
and speedy redressal of consumer
disputes these are known as the district
forums the state consumer disputes
redressal commissions and the national
consumer disputes redressal commission
respectively