chapter
12
Consumer Protection
Banks Responsible for Failed
Transactions and No Cash in ATMs
In a landmark consumer forum judgement,
Learning Objectives now, if you do not get money from ATMs, it
would be considered as deficiency of services
After studying this chapter, on part of bank,.On May 4, 2017, a petition in
you should be able to: the Consumer Forum in Raipur was filed where
the complainant submitted photos and video
recording of three failed ATM transactions due
to non-availability of cash bank’s ATMs.
state the importance of con-
In front of the forum, the bank argued
sumer protection; that ATM runs with Internet connectivity, so
at the time when users use ATM, he/she is
not directly the bank client. Hence, if the said
briefly explain legal frame- money not withdrawn from the ATM, then it
work for consumer protec- cannot be termed as a deficiency in service.
tion in India; The forum rejected the bank’s logic
completely. The petitioner has presented
photo and video recording at the time of
withdrawal as evidence in front of forum.
describe consumer rights in
Forum acknowledged that the consumers at
India; various times go to ATM to withdrawn money
every time the message of ‘cash not available’
is the lack in service.
briefly describe the ways and The forum accepted the petition. After
means of consumer protec- hearing the arguments of both the parties, the
forum ordered that if the bank will not provide
tion; and ATM service to the customer, then it will be
considered a reduction in service Consumer
Forum imposed a fine of Rs. 2,500 on the bank
including Rs1,500 as compensation for mental
harassment and Rs1,000 for legal expenses
for non-availability of cash in its ATMs as
deficiency in bank services.
Source:http://dailypost.in/news/
consumer-forum-fines-sbi-ignoring-
customers/, 2017.
2021–22
Ch_12.indd 323 05-Jan-21 11:20:31 AM
, BUSINESS STUDIES
324
Introduction cheated and is exposed to many risks
and health problems.
Each one of us is a consumer in one
Can business afford to ignore the
way or another. It is important for us
to be an aware and informed consumer interests of consumers? The market
of goods and services available to us in forces have changed from a seller
the market.The above case is just one market i.e., the earlier approach of
of the examples of the many problems caveat emptor which means Let the
that consumers face in the purchase, buyer beware, to a consumer market
use and consumption of goods and i.e., caveat venditor which implies
services. But, very few consumers Let the seller beware. A consumer
are aware of their rights given to is said to be a KING in the free
them by the Consumer Protection market economy. Hence, consumer
Act 2019. The Consumer Protection protection has significance for both
Act 20192019 has replaced the Act consumers and business alike. Under
1986 and seeks to widen its scope in the Consumer Protection Act 2019, the
addressing consumer concerns. Government of India has conferred a
Have you ever thought what legal protection to safeguard interests
would be the plight of consumers if of a consumer.
adequate protection is not provided
to them? With growing competition Importance of Consumer Protection
and in an attempt to increase The concept of consumer protection
their sales and market share,
is to safeguard the interests of the
manufacturers, sellers and service-
consumers. It adopts measures to
providers may be tempted to engage
protect consumers from unethical
in unscrupulous, exploitative and
malpractices by businesses and
unfair trade practices like defective
and unsafe products, adulteration, provide a swift redressal of their
false and misleading advertising, grievances with regard to:
hoarding, black-marketing, etc. 1. Sale of adulterated goods such as
This means that a consumer might adding inferior substances to the
be exposed to risks due to unsafe product being sold.
products, might suffer from bad 2. Sale of counterfeit goods such as
health due to adulterated food selling a product of lesser value
products, might be cheated because than the real product.
of misleading advertisements or sale
of spurious products, might have 3. Sale of sub-standard goods such
to pay a higher price when sellers as the sale of products that do
engage in overpricing, hoarding or not meet the prescribed quality
black-marketing, etc. As a result, standards.
consumer becomes unsafe, feels 4. Sale of duplicate goods.
2021–22
Ch_12.indd 324 05-Jan-21 11:20:31 AM
, CONSUMER PROTECTION
325
5. Use of malfunctioning weights and from various types of exploitation and
measures that lead to underweight should complain about it. Consumer
of products. protection has a wide scope. It not only
6. Black marketing and hoarding that includes educating consumers about
eventually leads to scarcity of the their rights and responsibilities, but
product and well as a rise in the also helps in getting their grievances
price of the same. redressed. It not only requires a judicial
machinery for protecting the interests
7. Overcharging a product, i.e.,
charging a product above its of consumers but also requires the
Maximum Retail Price. consumers to be united and form
themselves into consumer associations
8. Supplying of defective goods. for protection and promotion of their
9. Advertisements that are interests.
misleading, i.e., advertisements
that falsely claim a product or a From Consumers’ point of view
service to be shown as superior The importance of consumer protection
quality, grade or standard when from the consumers’ point of view can
not in real. be understood from the following
10. Supply of inferior services, i.e., points:
quality of service lesser than the (i) Consumer Ignorance: In the
condition agreed. light of widespread ignorance
of consumers about their rights
Need for Consumer Protection and reliefs available to them, it
The need for consumer protection arises becomes necessary to educate
from the need to protect consumers from them about the same so as to
the loss or injury or other prevailing achieve consumer awareness.
malpractices and to ensure: (ii) U n o r g a n i s e d C o n s u m e r s :
1. Physical safety of a consumer. Consumers need to be organised
2. Access to information. in the form of consumer
organisations which would
3. Corporate Social Responsibility
to provide quality and quantity of take care of their interests.
goods at fair prices. Though, in India, we do have
4. Consumer satisfaction. consumer organisations which
are working in this direction,
5. Social justice and Trusteeship
adequate protection is required
6. Survival and the Growth of
to be given to consumers till
businesses.
these organisations become
powerful enough to protect
That is why we as an informed consumer and promote the interests of
have to wake up and save our self consumers.
2021–22
Ch_12.indd 325 05-Jan-21 11:20:31 AM
12
Consumer Protection
Banks Responsible for Failed
Transactions and No Cash in ATMs
In a landmark consumer forum judgement,
Learning Objectives now, if you do not get money from ATMs, it
would be considered as deficiency of services
After studying this chapter, on part of bank,.On May 4, 2017, a petition in
you should be able to: the Consumer Forum in Raipur was filed where
the complainant submitted photos and video
recording of three failed ATM transactions due
to non-availability of cash bank’s ATMs.
state the importance of con-
In front of the forum, the bank argued
sumer protection; that ATM runs with Internet connectivity, so
at the time when users use ATM, he/she is
not directly the bank client. Hence, if the said
briefly explain legal frame- money not withdrawn from the ATM, then it
work for consumer protec- cannot be termed as a deficiency in service.
tion in India; The forum rejected the bank’s logic
completely. The petitioner has presented
photo and video recording at the time of
withdrawal as evidence in front of forum.
describe consumer rights in
Forum acknowledged that the consumers at
India; various times go to ATM to withdrawn money
every time the message of ‘cash not available’
is the lack in service.
briefly describe the ways and The forum accepted the petition. After
means of consumer protec- hearing the arguments of both the parties, the
forum ordered that if the bank will not provide
tion; and ATM service to the customer, then it will be
considered a reduction in service Consumer
Forum imposed a fine of Rs. 2,500 on the bank
including Rs1,500 as compensation for mental
harassment and Rs1,000 for legal expenses
for non-availability of cash in its ATMs as
deficiency in bank services.
Source:http://dailypost.in/news/
consumer-forum-fines-sbi-ignoring-
customers/, 2017.
2021–22
Ch_12.indd 323 05-Jan-21 11:20:31 AM
, BUSINESS STUDIES
324
Introduction cheated and is exposed to many risks
and health problems.
Each one of us is a consumer in one
Can business afford to ignore the
way or another. It is important for us
to be an aware and informed consumer interests of consumers? The market
of goods and services available to us in forces have changed from a seller
the market.The above case is just one market i.e., the earlier approach of
of the examples of the many problems caveat emptor which means Let the
that consumers face in the purchase, buyer beware, to a consumer market
use and consumption of goods and i.e., caveat venditor which implies
services. But, very few consumers Let the seller beware. A consumer
are aware of their rights given to is said to be a KING in the free
them by the Consumer Protection market economy. Hence, consumer
Act 2019. The Consumer Protection protection has significance for both
Act 20192019 has replaced the Act consumers and business alike. Under
1986 and seeks to widen its scope in the Consumer Protection Act 2019, the
addressing consumer concerns. Government of India has conferred a
Have you ever thought what legal protection to safeguard interests
would be the plight of consumers if of a consumer.
adequate protection is not provided
to them? With growing competition Importance of Consumer Protection
and in an attempt to increase The concept of consumer protection
their sales and market share,
is to safeguard the interests of the
manufacturers, sellers and service-
consumers. It adopts measures to
providers may be tempted to engage
protect consumers from unethical
in unscrupulous, exploitative and
malpractices by businesses and
unfair trade practices like defective
and unsafe products, adulteration, provide a swift redressal of their
false and misleading advertising, grievances with regard to:
hoarding, black-marketing, etc. 1. Sale of adulterated goods such as
This means that a consumer might adding inferior substances to the
be exposed to risks due to unsafe product being sold.
products, might suffer from bad 2. Sale of counterfeit goods such as
health due to adulterated food selling a product of lesser value
products, might be cheated because than the real product.
of misleading advertisements or sale
of spurious products, might have 3. Sale of sub-standard goods such
to pay a higher price when sellers as the sale of products that do
engage in overpricing, hoarding or not meet the prescribed quality
black-marketing, etc. As a result, standards.
consumer becomes unsafe, feels 4. Sale of duplicate goods.
2021–22
Ch_12.indd 324 05-Jan-21 11:20:31 AM
, CONSUMER PROTECTION
325
5. Use of malfunctioning weights and from various types of exploitation and
measures that lead to underweight should complain about it. Consumer
of products. protection has a wide scope. It not only
6. Black marketing and hoarding that includes educating consumers about
eventually leads to scarcity of the their rights and responsibilities, but
product and well as a rise in the also helps in getting their grievances
price of the same. redressed. It not only requires a judicial
machinery for protecting the interests
7. Overcharging a product, i.e.,
charging a product above its of consumers but also requires the
Maximum Retail Price. consumers to be united and form
themselves into consumer associations
8. Supplying of defective goods. for protection and promotion of their
9. Advertisements that are interests.
misleading, i.e., advertisements
that falsely claim a product or a From Consumers’ point of view
service to be shown as superior The importance of consumer protection
quality, grade or standard when from the consumers’ point of view can
not in real. be understood from the following
10. Supply of inferior services, i.e., points:
quality of service lesser than the (i) Consumer Ignorance: In the
condition agreed. light of widespread ignorance
of consumers about their rights
Need for Consumer Protection and reliefs available to them, it
The need for consumer protection arises becomes necessary to educate
from the need to protect consumers from them about the same so as to
the loss or injury or other prevailing achieve consumer awareness.
malpractices and to ensure: (ii) U n o r g a n i s e d C o n s u m e r s :
1. Physical safety of a consumer. Consumers need to be organised
2. Access to information. in the form of consumer
organisations which would
3. Corporate Social Responsibility
to provide quality and quantity of take care of their interests.
goods at fair prices. Though, in India, we do have
4. Consumer satisfaction. consumer organisations which
are working in this direction,
5. Social justice and Trusteeship
adequate protection is required
6. Survival and the Growth of
to be given to consumers till
businesses.
these organisations become
powerful enough to protect
That is why we as an informed consumer and promote the interests of
have to wake up and save our self consumers.
2021–22
Ch_12.indd 325 05-Jan-21 11:20:31 AM
