The Consumer Protection Act, a major step taken by the Government of India in 1986 was duly enacted in response to the extreme dissatisfaction of the consumers because of the unethical and unfair trade practices adopted by the manufacturers, shopkeepers and large companies in the market. The main objective of this act is to provide the consumers – a three-tier quasi-judicial machinery at the district, state and the national levels for redressal of consumer disputes. The Act, thus, enabled the consumers to have the right to represent in the consumer courts. The Consumer Protection Act was adopted for the following reasons:
1. The market is an exploitative place for the consumer, the protection of the interests of the consumers against unethical and unfair practices, hoarding, black marketing and adulteration of food items etc. was the need of the hour.
2. Powerful companies with huge wealth, power and reach often manipulated the market for their own benefits. Also, at times, false information was circulated through media and other sources with the primary and only objective of attracting customers.
3. In a manipulative scenario, the need for legal action and rights for the representation of the consumers was felt to be necessary, in order to seek appropriate compensation in cases of losses to the consumer.
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