Consumer Protection

Unit XII. Covers Importance of consumer protection; Consumer Protection Act, 2019; Consumer rights and responsibilities; Redressal; Consumer awareness and organisations.

Business Studies25 questions5 topics

About this unit

Consumer protection means safeguarding consumers from unfair trade practices and providing them with ways to get their complaints redressed. This unit covers the importance of consumer protection for both consumers and businesses, the main provisions of the Consumer Protection Act, 2019, consumers' rights and responsibilities, the three-tier redressal machinery, the remedies available, and the role of consumer organisations and NGOs.

Key ideas

  • Consumers need protection because of ignorance, lack of organisation and widespread exploitation.
  • Business also benefits from consumer protection in the long run.
  • The Consumer Protection Act, 2019 replaced the Act of 1986 and set up the Central Consumer Protection Authority.
  • Redressal machinery has three tiers: District Commission, State Commission and National Commission.
  • Consumers have rights such as safety, information, choice, being heard, redressal and consumer education.
  • Consumer organisations educate consumers and help them file complaints.

How to prepare

  • Learn the rights and responsibilities of consumers with examples.
  • Memorise the three tiers of redressal, the order of appeals and the main remedies.
  • Check the current pecuniary limits of each commission in an updated source, as these can be revised by rules.

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