Q.What are various ways in which the objective of consumer protection can be achieved?
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Start your 14-day free trial to unlock the full solution →The objective of consumer protection is achieved through several complementary means — self-regulation by business, the codes of business associations, consumer awareness, consumer organisations, and the government's legal framework — each reinforcing the others to create a fair marketplace.
Consumer protection does not rest on any single pillar. In a market economy the consumer is often the weaker party — lacking complete information, bargaining power, or the resources to challenge unfair practices. The objective of protecting consumers must therefore be pursued through several means that work together. The chapter sets out five main ways in which this objective can be achieved.
Self-regulation by business. Socially responsible firms follow ethical standards and fair practices in dealing with their customers, because they realise that serving customers well is in their own long-term interest. Many firms set up their own customer service and grievance cells to redress the problems and complaints of their consumers.
Business associations. Associations of trade, commerce and industry — such as the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Confederation of Indian Industry (CII) — lay down codes of conduct that guide their members in their dealings with customers.
Consumer awareness. A consumer who is well-informed about their rights and the reliefs available to them can raise their voice against unfair trade practices or exploitation, and an understanding of their responsibilities helps them safeguard their own interests. To build this awareness, the Department of Consumer Affairs runs the "Jago Grahak Jago" campaign.
Consumer organisations. Consumer organisations play an important role in educating consumers about their rights and in protecting them. They can press business firms to avoid malpractices and the exploitation of consumers, and can take up complaints on behalf of consumers who might otherwise find the legal process intimidating. The Consumer Unity and Trust Society (CUTS), Jaipur is one such organisation. …
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