Question 22 of 29intermediate💡 UnderstandShort Answer3 marks

What is the rationale behind the enactment of Consumer Protection Act 1986?

Correct Answer

The Consumer Protection Act 1986 was enacted to address the widespread dissatisfaction of consumers due to many unfair practices being indulged in by sellers. There was no legal system available to consumers to protect them from exploitation in the marketplace.

The consumer movement arose from the necessity of protecting and promoting the interests of consumers against unethical and unfair trade practices. Issues like rampant food shortages, hoarding, black marketing, and adulteration of food and edible oil necessitated legal protection.

Earlier, it was presumed that it was the responsibility of consumers to be careful while buying. The enactment shifted the responsibility of ensuring quality of goods and services on the sellers and provided a mechanism to correct business conduct against consumer interests.

Exercise: EXERCISES | Q: 5 | (Page 14)
For More Understanding

Explanation

The rationale behind COPRA 1986 can be directly derived from the context which explains the origins of the consumer movement in India. The key reasons include: (1) absence of legal system for consumer protection, (2) prevalence of unfair trade practices, (3) exploitation in marketplace, (4) issues like hoarding, black marketing and adulteration, and (5) need to shift responsibility of quality from consumers to sellers. The answer integrates all these points from the textbook context.

Solution Steps

  1. Step 1: Identify the problems faced by consumers - unfair practices, exploitation, no legal system

  2. Step 2: Identify the specific issues that gave birth to the movement - hoarding, black marketing, adulteration

  3. Step 3: Explain the shift in responsibility from consumer to seller for ensuring quality

  4. Step 4: Conclude with the purpose of protecting consumer interests against unethical practices

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