Page 347 - DMGT408DMGT203_Marketing Management

Marketing Management/Essentials of Marketing

Notes traders. In the past, producers and marketers showed no concern for consumers, deceiving them
by supplying unsafe or even fake products. Consumer Protection Act in India provides for:
1. Right to Protection of Health and Safety

2. Right to be Informed
3. Right to Be Heard
4. Right to Improve the Quality of Life (Ecological concern)

Consumer Protection Act, 1986

A consumer is defined in this Act as anyone buying a product for personal consumption, and
also in case the buyer is different but permits the use of the product or service by someone else.
If anyone buys a product or service for resale purpose, then she/he is not a consumer. The
objectives of the Act include: (1) Promoting and protecting consumer, consumer movements,
and their organisations, (2) Facilitating consumer education, and providing protection against
commercial malpractice, particularly that of traders, (3) The Act is to provide speedy and
inexpensive redressal of consumer grievance and award compensation, wherever necessary.

Consumer Forums

The Act provides for establishing Consumer Protection Councils by the Central and State
Governments. Dispute settlement takes place at three levels: District Forum, State Commission,
and Consumer Dispute Redressal Commission (National level, established by the Central
Government). Consumer Forums are required to mention reasons for their conclusions to avoid
any arbitrariness and help higher Forum to examine the correctness of the given reasons.

In case the consumer complaint is found to be correct, then the opposition party can be issued an
order to remove the defect, or replace the defective product with a new one. The commission can
order to withdraw an unsafe product and provide suitable compensation to the aggrieved party.
The National Commission has the powers, over all the State Commissions, to periodically
check the institution, disposal, the quantum of pending cases, and issue instructions regarding
(1) adoption of uniform procedure in the hearing of cases, (2) copies of documents produced by
opposing parties, (3) quick grant of copies of documents, and (4) generally monitoring the
functioning of State Commissions and District Forums.

Competition Policy

A proposal to repeal the Monopolies and Restrictive Trade Practices Act, and winding up of
MRTP Commission has been submitted to Government of India, along with a proposal to
establish a new Competition Commission of India (CCI). The Competition Law should cover
all consumers who buy products or services, irrespective of the purpose for which the purchase
is made. The Competition Commission will receive all the complaints against the infringement
of Competition Law from individuals, businesses, entities, and Central or State Governments.

Corporate Responsibility Issues

Some of the more relevant corporate social responsibility issues in India concern anti-pollution
measures, adopting villages to achieve progress and development, starting and funding family
planning programmes, making efforts to provide clean drinking water facilities in backward
areas, providing vocational training to unemployed educated persons, providing educational
healthcare sports facilities, and conducting tournaments to promote sports talent. The most
important priority areas are population control, education, rural development, and poverty
elimination.

340 LOVELY PROFESSIONAL UNIVERSITY