Organisation of Commerce and Management · Ch 7 — Consumer Protection
Ways and Means of Consumer Protection
Ways and Means of Consumer Protection
Consumer protection in practice is not delivered by any one actor alone — it rests on several complementary mechanisms working together.
1. Self-regulation by business. The first line of consumer protection is voluntary good conduct by business itself: honest advertising, fair pricing, genuine warranties and guarantees, responsive after-sales service, and an internal grievance-redressal cell. Businesses have a strong self-interest in this — a firm known for treating consumers fairly builds goodwill and repeat custom, and self-regulation is also the cheapest way to avoid the cost and reputational damage of a legal dispute.
2. Business and trade associations. Industry bodies frame codes of conduct for their own members, going beyond what the law strictly requires. A well-known example is the Advertising Standards Council of India (ASCI), a self-regulatory body of the advertising industry that examines complaints against misleading, offensive or unsafe advertisements and asks members to withdraw or modify them — often faster than a formal legal complaint would resolve the same issue.
3. Consumer organisations and NGOs. Voluntary consumer groups play a valuable protective role by running product-testing and comparison programmes, publishing consumer-awareness material, offering free or low-cost legal guidance to individual complainants, running helplines, and representing consumer interests before government and in public-interest litigation. Because a single consumer often lacks the resources to fight a large business alone, these organisations supply the collective weight an individual buyer cannot.
4. Government (legislative and administrative) measures. The government protects consumers in two ways: by enacting protective laws — the Consumer Protection Act, 2019 itself, along with related statutes such as the Bureau of Indian Standards Act, the Food Safety and Standards Act, and the Legal Metrology Act (which governs accurate weights and measures) — and by administrative action, such as running dedicated regulatory bodies, operating the National Consumer Helpline, and mounting public consumer-awareness campaigns (see the "Jago Grahak Jago" campaign, discussed later in this chapter). …
Voluntary good conduct by a business — honest advertising, fair pricing, genuine after-sales service and an internal grievance cell — undertaken in the firm's own interest to build goodwill and avoid disputes, …
A self-regulatory body of the advertising industry that examines complaints against misleading, unsafe or offensive advertisements and asks its member advertisers/agenci …