Free Business Studies - Class 12th (CBSE) - Revision Notes - N12 - Consumer Protection

We have heard slogans on the television, radio, and other mediums that "Jaago Grahak Jaago". This campaign by the Indian Government shows the importance of consumer protection in India.

Students who are studying in class 12th also have a Business Studies chapter on Consumer Protection.

So, time has come to read free revision notes for CBSE class 12th mainly focused on Chapter 12: Consumer Protection.

These exclusive revision notes are built by expert CBSE teachers to increase your knowledge level to score higher in your upcoming board exams.

Here are the quick details:

Subject: Business Studies
Class: 12th (CBSE)
Chapter Name: Consumer Protection

Revision Notes for CBSE Class 12th - Business Studies

Consumer Protection

Definition of Consumer (As Per Consumer Protection Act 2019)

A consumer is defined as a person who buys any goods or avail any services for a consideration, which has been paid or partly paid or partly promised or promised to pay, under any scheme of deferred payment.

It also includes the person, who is using the goods or beneficiary of service with the approval of the buyer. It applies to both offline and online transactions through electronic means or by teleshopping or direct selling or multilevel marketing.

Note: Any person who obtains good and avails services for resale or commercial purpose is not treated as consumer.

Importance of Consumer Protection

From Consumer Point of View

Consumer Ignorance

Consumer protection provides information to the ignorant customers regarding the rights and remedial available to them. It spreads awareness so that consumer can know about their rights and various redressal agencies.

Unorganized Consumer

In developing countries like India, consumers are not organized. Consumer protection provides power and rights to the organizations as these organizations can file case on behalf of customers.

Widespread Exploitation of Consumers

Although nowadays consumer is the king of the market, but even then there is a lot of exploitation of consumers. Consumer protection provides a safeguard to consumers from such exploitation.

From Businessmen's Point of View

Long-Term Interest of Business

In the race of competition, the businessmen can win and capture a big share in the market only when they are able to satisfy its customers by designing the products keeping in mind the requirements of customers. So, it is in the interest of the business itself to keep its customers satisfied.

Businessmen Uses Society's Resources

Businessmen earn profit by supplying goods and services to the members of society, so it must do something for society. Businessmen are merely trustees of resources; they must use these resources for the benefits of consumers.

Social Responsibilities

A businessman has social obligations towards various groups and customers. It is the responsibility of businessmen to provide quality goods at a reasonable price. Consumer protection guides businessmen to provide social responsibilities.

Moral Justification

In today's environment, business without ethical value is no more than a criminal activity and no civil society can tolerate and allow the existence of unethical business.

Government Intervention

If businessmen want to avoid intervention of government then they shouldn't involve in unfair trade practices. Businessmen should voluntarily involve in the activities which protect the interest of the consumer.

Consumer Rights

The six fundamental consumer rights are:

Right to Safety
Right to Information
Right to be Assured / Right to Choose
Right to be Heard or Right to Representation
Right to Seek Redressal
Right to Consumer Education

Following are the details:

Right to Safety

According to this right, the consumers have a right to be protected against the marketing of goods and services which are hazardous to life and property. This right to safety protects the consumer from sale of such hazardous goods or services. Thus, consumers are educated that they should use electrical appliances which are ISI marked as this would be an assurance of such products meeting quality specifications.

Right to Information

According to this right, the consumer has the right to get information about the quality, quantity, purity, standard and price of goods or services to protect himself against the unfair practices. The law in India also requires the manufacturers to provide such information on the package and label of the product.

Right to be Assured / Right to Choose

The right to choose means an assurance of availability, ability and access to a variety of products and services at fair price. The producer or supplier or retailer should not force the customer to buy a particular brand only. Consumer should be free to choose the most suitable product from his point of view.

Right to be Heard or Right to Representation

According to this right, the consumer has the right to represent himself or to be heard or the right to advocate his interest. In case a consumer has been exploited or has any complaint against the product or service, then he has the right to be heard and be assured that his/her interest would receive consideration. Under this right, the companies must have complaint cells to attend to the complaints of customers.

Right to Seek Redressal

According to this right, the consumer has a right to get compensation or seek redressal against unfair trade practices or any other exploitation. The right to redressal includes compensation in the form of money or replacement of goods on repair of defect in the goods as per the satisfaction of the consumer.

Right to Consumer Education

According to this right, it is the right of the consumer to acquire the knowledge and skills to be an informed consumer. This right assures that literate and illiterate both consumers can seek information about the rights and the reliefs available to him.

Consumer's Responsibilities

Be aware about various goods and services available in the market so that an intelligent and wise choice can be made.
Buy only standardised goods as they provide quality assurance. Thus, look for ISI mark on electrical goods, FPO mark on food products, Hallmark/BIS Mark on jewellery, WOOLMARK on 100% Pure Wool etc.
Learn about the risks associated with products and services, follow manufacturer’s instructions and use the products safely.
Read labels carefully to have information about prices, net weight, manufacturing and expiry dates, etc.
Assert yourself to ensure that you get a fair deal.
Be honest in your dealings. Choose only from legal goods and services and discourage unscrupulous practices like black-marketing, hoarding etc.
Ask for a cash memo/Invoice on purchase of goods or services. This would serve as a proof of the purchase made.
File a complaint in an appropriate consumer forum in case of a shortcoming in the quality of goods purchased or services availed. Do not fail to take an action even when the amount involved is small.
Form consumer societies which would play an active part in educating consumers and safeguarding their interests.
Respect the environment. Avoid waste, littering and contributing to pollution.

Who can File a Complaint?

Any consumer.
Any voluntary consumer association, registered under any law.
The central Government or any state government.
One or more consumers, where there are numerous consumers having the same interest.
In case of the death of the consumer, his legal heir or legal representative.
In case of a consumer being minor, his parents or legal guardian.

Who are not Considered as a Consumer under Consumer Protection Act 2019?

The person who obtains goods for resale.
The person who uses the goods without the approval of the buyer.
The person who avails of the services without the approval of the hirer.
The person who obtains goods without any consideration (i.e., payment).
The person who hires or avails of any services without consideration.

Relied or Remedies/Solution Available to Consumers on Complaints Filed by Him

To remove the defects or deficiency in the service.
To replace the defective product with a new one free from any defect.
To refund the price paid for the product or the charges paid for the services.
To pay a reasonable amount of compensation for any loss or injury suffered by the consumer due to the negligence of the opposite party.
To pay extra compensation as a corrective measure for damage to the consumer due to the opposite party (It is called to pay punitive damages).
To discontinue unfair/restrictive trade practice and not to repeat it in the future.
No to offer hazardous goods for sale.
To withdraw hazardous goods from the market.
To cease manufacture of hazardous goods and to desist (abstain/cease/stop) from offering hazardous services.
Compensate for any loss or injury suffered by the consumer under product liability action and withdraw hazardous products from being offered for sale, etc.
Payment of adequate cost to the grieved party.
District Commission, State Commission, and National Commission have the power to declare a contract null and void, if it is unfair.
To cease and restrict from issuing any misleading advertisement.

Redressal Agencies and Their Jurisdiction

Every order of the District Commission, State Commission, or the National Commission is deemed final if no appeal for such order is made by any of the parties involved in the dispute.

Redressal Agencies under the Consumer Protection Act, 2019

District Forum (now District Commission)
State Commission
National Commission

District Forum (District Commission)

District Commission consists of a president and two other members.
The president can be a retired or working judge of the District Court. They are appointed by the state government.
The complaints for goods or services worth ₹ 1 crore or less can be filed in this agency.
District forum may give grieved parties five days for settlement.
The agency sends the goods for testing in a laboratory if required and gives decisions based on facts and laboratory report.
If the aggrieved party is not satisfied by the jurisdiction of the district commission, then they can file an appeal against the judgement in the State Commission within 45 days.

State Commission

It consists of a president and at least four other members.
The president must be a retired or working judge of the high court. They all are appointed by the state government.
The complaints for the goods worth more than ₹ 1 crore and less than ₹ 10 crore can be filed in State Commission.
On receiving a complaint, the State Commission contacts the party against whom the complaint is filed and sends the goods for testing in a laboratory if required.
In case the aggrieved party is not satisfied with the judgement, then they can file an appeal in the National Commission within 30 days.

National Commission

The National Commission consists of a president and four members, one of whom shall be a woman.
They are appointed by the Central Government.
The complaint can be filed in the National Commission if the value of goods exceeds ₹ 10 crore.
On receiving the complaint, the National Commission informs the party against whom the complaint is filed and sends the goods for testing if required and gives judgement.
If the aggrieved party is not satisfied with the judgement, then they can file a complaint in the Supreme Court within 30 days.

Role of Consumer Organizations and NGOs

Educating the public about consumer rights by organizing training programmes, seminars, and workshops.
Publishing periodicals and other publications to impart knowledge about consumer problems, reliefs available, and other matters of interest.
Carrying out comparative testing of consumer products in accredited laboratories to test relative qualities of competing brands and publishing the test results for the benefit of consumers.
Encouraging consumers to strongly protest and act against exploitative and unfair trade practices of sellers.
Providing legal assistance to consumers by way of providing aid, legal advice, etc., in seeking legal remedy.
Filing complaints in consumer courts on behalf of consumers.
Taking an initiative in filing cases in consumer courts in the interest of the public.
Helping government agencies to resolve cases of consumer exploitation and to carry on consumer awareness programs.
Motivating people to ask for quality marks such as ISI mark, AgMark, etc.

Consumer Protection Act, 2019

The new Consumer Protection Act was passed by Parliament in 2019. It came into force in July 2020 and replaced the Consumer Protection Act, 1986.

Need for the new act

The Digital Age has led to a new era of commerce. Digitisation has provided easy access, a large variety of choices, convenient payment mechanisms, improved services and shopping as per convenience. However, there are also associated challenges related to consumer protection.
To help address the new set of challenges faced by consumers in the digital age, the Indian Parliament passed the landmark Consumer Protection Bill, 2019 which aims to provide timely and effective administration and settlement of consumer disputes.

Central Consumer Protection Authority (CCPA)

The Act proposes the establishment of the Central Consumer Protection Authority (CCPA) as a regulatory authority.
The CCPA will protect, promote and enforce the rights of consumers and regulate cases related to unfair trade practices, misleading advertisements, and violation of consumer rights.
The CCPA will have the right to recall products, order reimbursement of the price of goods/services, cancel licenses, impose penalties and file suits.

E-Filing of Complaints

The new Act provides flexibility to the consumer to file complaints with the jurisdictional consumer forum located at the place of residence or work of the consumer. This is unlike the earlier condition where the consumer had to file a complaint at the place of purchase or where the seller has its registered office address.
The new Act also contains enabling provisions for consumers to file complaints electronically and for hearing and/or examining parties through videoconferencing.

The End

If you have understood the entire revision notes of Consumer Protection, click here to solve the test series of five question papers for it.

Business Profits Labs

Tuesday, November 18, 2025

CBSE Class 12th Business Studies Revision Notes - N12