National Consumer Day 2021: History Significance Objective Theme

On this day in the year 1986, the President had approved the Consumer Protection Act, 1986. The primary objective of the Consumer Protection Act is to protect consumers against various forms of exploitation such as defective goods, unsatisfactory services and unfair trade practices.

Theme of National Consumer Day

The theme of this day for the year 2020 is ‘Sustainable Consumer’. The theme underscores the need for urgent action to tackle the global health crisis, climate change and loss of biodiversity.

World Consumer Rights Day

World Consumer Rights Day is celebrated every year on 15 March to show solidarity for the protection of the rights of consumers all over the world. Its purpose is also to raise voice for the rights of consumers. In the era of globalization and economic liberalization, the issue of consumer protection has become even more important in the midst of changing business practices. Consumer is the real deciding factor for all economic activities.

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What is the meaning of consumer

According to sub-section of section 2 of the Consumer Protection Act, 1986, a consumer is a consumer of goods, articles or services and who pays or promises to pay the price thereof. A consumer is one who buys goods and services for consumption. A hirer or user of the services also falls under the category of consumer, provided they are not used for commercial purposes.

If a retailer buys goods from a wholesaler, he is not a consumer because he buys the goods to sell. A person, who chooses goods and services, spends money to get them and uses them for fulfilling his needs, is called consumer.

The honesty of the seller is the most important thing in this transaction, because on this the trust of the consumer rests. But sometimes the seller does such a thing that the trust of the consumer is broken; And this also applies to e-consumers doing online marketing.

National Consumer Day: Central Consumer Protection Authority (CCPA)

CCPA will be set up to promote, protect and enforce the rights of consumers. The CCPA will regulate matters relating to unfair trade practices, deceptive advertising and violation of consumer rights. For this, this bill empowers the CCPA adequately, any appeal against the order of the CCPA headed by the Chief Commissioner can be made only before the National Consumer Disputes Redressal Commission.

Penalty for misleading advertisements: The CCPA can impose a fine of up to Rs 10 lakh on a manufacturer or celebrity endorsing a product for false and misleading advertisements, and up to Rs 50 lakh in the event of a repeat offence.

The manufacturer shall be punished with imprisonment of either description for a term which may extend to two years, and for a repeat offence, with imprisonment of either description for a term which may extend to five years.

The Bill puts the onus of verifying the claims made by a product or service before advertising it on the celebrity who is endorsing it. If an advertisement is found to be deceptive, the CCPA may ban the endorser of that particular product or service for up to one year. The period of restriction may be extended up to three years for committing the offense more than once.

What is the Consumer Forum?

Consumer Disputes Redressal Commissions (CDRC): From needles to airplanes, hotels to hospitals, false advertisements or advertisements misleading the public, electronics equipment and insurance sectors, all sectors come under the purview of the consumer forum. Huh. Any person with whom a wrong has happened can complain in the consumer forum. In this new bill, CDRCs will be set up at the district, state and national level for redressal of consumer complaints.

Any consumer may make a complaint herein against unfair and restrictive trade practices, defective goods or services, over or unfairly charged prices and goods or services dangerous to life or safety. A hearing can be held against the order of the District CDRC before the State CDRC and against the order of the State CDRC before the National CDRC. The final appeal can be made only before the Supreme Court.

Jurisdiction of CDRC

Where to complain depends on the cost of goods, services or compensation sought. District CDRC will hear cases up to Rs 1 crore, State CDRC will hear cases above Rs 1 crore but less than Rs 10 crore and National CDRC will hear cases above Rs 10 crore. At present, if the amount is less than Rs 20 lakh, then there is a provision to file a complaint in the district forum, if the amount is more than 20 lakh but less than one crore, then before the state commission and if it is more than one crore rupees then before the national commission.

Complaints against unfair contracts can be made only to the national and state CDRCs. An unfair contract may include demanding more deposits from the consumer, unilaterally terminating a contract, etc.

Institutional arrangement: If the District, State and National Commission feels that a matter can be resolved through mediation, then they can set up an arbitration cell and entrust the matter to it.

Apart from this, arrangement for product liability was made. That is, the responsibility of the manufacturer of the product or the provider of the service. They have to compensate the consumer for any damage or injury caused by a defective product or defective service.