Hello everyone, in the previous topic we were talking about FERA and FEMA. Today we are going to talk about The Companies Act and The Consumer Protection Act.

The Companies Act and The Consumer Protection Act

The Companies Act

The Companies Act 1956 was an act of the Parliament of India which was enacted in 1956. Companies Act, 1956 was the most voluminous law of India having 658 sections and 15 schedules. It was the most important corporate law that defines and guides the correct functioning of every corporate entity in India. Since its commencement, it was amended many times, in which amendments of 1988, 1990, 1996, 2000, 2011 & 2013 are notable.

According to The Companies Act, 2013, every Company incorporated under the Act has to maintain Statutory Registers (the Registers) and Records. The Registers need to be maintained and updated eventually and should be kept at the Registered Office of the Company. Some of the Registers are required to be kept open for inspection by Directors, Members, Creditors, and by other persons. A Company is required to provide the extracts from the Registers if demanded by Directors, Members, and Creditors and by other persons on payment of specified fees.

The Act is administered by the Government of India through the Ministry of Corporate Affairs and the Offices of Registrar of Companies, Official Liquidators, Public Trustee, Company Law Board, Director of Inspection, etc. The Registrar of Companies (ROC) handles the incorporation of new companies and the administration of running companies.

The Consumer Protection Act , 2019.

This act was enacted by Parliament in the Seventieth Year of the Republic of India. Consumer Protection Act is the act that provides protection- to the interests of consumers and their purpose, to establish authorities for timely and effective administration and settlement of consumers’ disputes and for matters connected therewith or incidental thereto.

About this act-

1. This Act may be called the Consumer Protection Act, 2019.
2. It extends to the whole of India except the State of Jammu and Kashmir.
3. It shall come into force on such date as the Central Government may, by notification, appoints different dates for different States and for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.
4. It is provided by the Central Government, so this Act shall apply to all goods and services.

According to The Companies Act, 2013, every Company incorporated under the Act has to maintain Statutory Registers (the Registers) and Records. The Registers need to be maintained and updated eventually and should be kept at the Registered Office of the Company. Some of the Registers are required to be kept open for inspection by Directors, Members, Creditors, and by other persons. A Company is required to provide the extracts from the Registers if demanded by Directors, Members, and Creditors and by other persons on payment of specified fees.

The Act is administered by the Government of India through the Ministry of Corporate Affairs and the Offices of Registrar of Companies, Official Liquidators, Public Trustee, Company Law Board, Director of Inspection, etc. The Registrar of Companies (ROC) handles the incorporation of new companies and the administration of running companies.

Importance of Consumer Protection

The concept of consumer protection is to safeguard the interests of the consumers. It adopts measures to protect consumers from unethical malpractices by businesses and provide a swift redressed of their grievances with regard to –

• Sale of adulterated goods such as adding inferior substances to the product being sold.
• Sale of counterfeit goods such as selling a product of lesser value than the real product.
• Sale of sub-standard goods such as the sale of products that do not meet the prescribed quality standards.
• Sale of duplicate goods.
• Use of malfunctioning weights and measures that lead to underweight of products.
• Black marketing and hoarding eventually leads to scarcity of the product and well as a rise in the price of the same.
• Overcharging a product which means charging a product above its Maximum Retail Price.
• Supplying defective goods.
• Advertisements that are misleading, for example, those advertisements that falsely claim a product or a service to be shown as superior quality, grade, or standard when in reality it is not.
• Supply of inferior services.

Need of Consumer Protection Act

The need for consumer protection arises from the need to protect consumers from the loss or injury or other prevailing malpractices and to ensure-

1. Physical safety of a consumer.
2. Access to information.
3. Corporate Social Responsibility to provide quality and quantity of goods at fair prices.
4. Consumer satisfaction.
5. Social justice and Trusteeship.
6. Survival and the Growth of businesses.

Consumer Rights

The Consumer Protection Act 2019 provides six rights to consumers.

These rights include-

1. Right to Safety

The consumer has a right to be protected against goods and services which are hazardous to life, health, and property.

2. Right to be informed

The consumer has a right to have complete information about the product they intend to buy including its ingredients, date of manufacture, price, quantity, directions for use, etc.

3. Right to be assured

The consumer has the freedom to access a variety of products at competitive prices. This implies that the marketers should offer a wide variety of products in terms of quality, brand, prices, size, etc., and allow the consumer to make a choice from amongst these.

4. Right to be heard

The consumer has a right to file a complaint and to be heard in case of dissatisfaction with a good or service. . Many consumer organizations are also working towards this direction and helping consumers in the redressal of their grievances.

5. Right to seek redressal

The consumer has a right to get relief against unfair trade practices or restrictive trade practices or unscrupulous exploitation in case the product or service falls short of their expectations.

The Consumer Protection Act 2019 provides for redressal to the consumers including replacement of the product, removal of the defect in the product, compensation paid for any loss or injury suffered by the consumer, etc.

6. Right to Consumer Education

The consumer has a right to acquire knowledge and to be a well-informed consumer throughout life. They should be aware of their rights and the reliefs available to them in case of a product or service falling short of their expectations.

So, that is all for today guys see you in our next blog. If you like our article please doesn’t forget to share with others & follow our Instagram page for your daily dose of Motivation.

Thank You,

Regards

Grooming Urban

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