From business point of view, consumer protection is important because of the following reasons:
(a) Long-term interest of business. Without getting goods of the right quality, quantity and price, how can a customer be satisfied. And without satisfying customers, no business can survive for long. The customer is the foundation of any business and keeps it in existence.
(b) Business uses society's resources. Business organisations use the resources which belong to the society, thus, they have a responsibility to provide such goods and services which are in public interest. Businessman are merely trustees of resources. They must use these resources for the sake of consumers.
(c) Social responsibilities. A business organisation has many social responsibilities towards various interest groups and customer is one of the important group. So, it is the prime responsibility of a business to provide goods and services at a fair and reasonable price along with good quality. The interest of customers should be well taken care of by the business as it does with, shareholders or shakeholder.
(d) Moral justification. It is the moral duty of any business to take care of consumer's interest. It should avoid all forms of exploitation of consumers like defective and unsafe products, adulteration, false and misleading information, black marketing etc.
(e) Government intervention. Business organisations should not involved in any unfair trade practices and interests of consumers should be taken care of, then there is no need of intervention by the government because Government intervention spoils the image of the business organisation.

Redressal Agencies
For the redressal of consumer grievances, the Consumer Protection Act,1986 provides for setting up of a three-tier machinery at the district, state and the national levels.These agencies are:
1.District Forum or District Consumer Dispute Redressal Forum
(i) The state Governments are required to establish District Forums in each district.
(ii ) Each District Forum consists of a chairman and two members appointed by the State Government, one of whom should be a woman
(iii) A District Forum can receive consumer complaints,where the value of goods or services and the compensation claimed is not more than Rs 20 lakh.
(iv) The complaint can be filed by a consumer to whom goods are sold or services rendered or any recognised consumer association.
(v) On receiving the complaint, the District Forum shall refer the complaint to the opposite party concerned and send the sample of goods for testing in a  laboratory.The opposite party is the seller,manufacture or any organisation aginst whom the complaint has been filed.
(vi) The District Forum, after being satisfied that the goods are defective or there is some unfair trade practice, replace can issue an order to the opposite party directing him to either resolve the ireplace the goods, or return the price paid, or pay compensation to the consumer for loss or injury,etc.
2.State Commission or state  Consumers Disputes Redressal Commission.
(i) State Commission is set-up by the Stae Government and its jurisdiction is restricted to the boundaries of the state concerned.
(ii) The state Commission shall consist of a President, who is or has been a judge of a High Court and two other members, one of whom is a woman.All the three shall be appointed by the State Government.
(iii) Only those complaints can be filed, where the value of goods or services and compensation claimed is more than rs 20 lakh but or more than rs 100 lakh.The appeals against the orders of any District Forum can also be filed before the state commission, days  of days of passing of the order.
(iv) The State Commission, after being satisfied that the goods were defective,can issue an order directing the opposite party to either remove the defect or replace the goods or return the price paid or pay compensation to the consumer for loss or injury, etc.
3. National Commission or National Consumer Disputes Redressal Commission
(i) The national Commission is set-up by the Central Government.
(ii) It shall consist of a President, who is or has been a judge of the Supreme Court and four other members appointed by the Central Government, one of whom shall be a woman.
(iii) All complaints pertaining to those goods or services and compensation whose value is more than rs 100 lakh can be filed.Appeals against the order of any State Commission can also be filed before the National Commission, within 30 days of passing of the order.
(v) The National Commission has the power to issue orders for recall of defective or unsafe products for replacement or removal of deficiency in service, It can make the manufacture comply with safety provision and pay compensation for loss or injury caused.
(v) An order passed by the National Commission is appealable before the Supreme Court.

Redressal Agencies
For the redressal of consumer grievances, the Consumer Protection Act,1986 provides for setting up of a three-tier machinery at the district, state and the national levels.These agencies are:
1.District Forum or District Consumer Dispute Redressal Forum
(i) The state Governments are required to establish District Forums in each district.
(ii) Each District Forum consists of a chairman and two members appointed by the State Government, one of whom should be a woman
(iii) A District Forum can receive consumer complaints,where the value of goods or services and the compensation claimed is not more than Rs 20 lakh.
(iv) The complaint can be filed by a consumer to whom goods are sold or services rendered or any recognised consumer association.
(v) On receiving the complaint, the District Forum shall refer the complaint to the opposite party concerned and send the sample of goods for testing in a  laboratory.The opposite party is the seller,manufacture or any organisation aginst whom the complaint has been filed.
(vi) The District Forum, after being satisfied that the goods are defective or there is some unfair trade practice, replace can issue an order to the opposite party directing him to either resolve the ireplace the goods, or return the price paid, or pay compensation to the consumer for loss or injury,etc.
2.State Commission or state  Consumers Disputes Redressal Commission.
(i) State Commission is set-up by the Stae Government and its jurisdiction is restricted to the boundaries of the state concerned.
(ii) The state Commission shall consist of a President, who is or has been a judge of a High Court and two other members, one of whom is a woman.All the three shall be appointed by the State Government.
(iii) Only those complaints can be filed, where the value of goods or services and compensation claimed is more than rs 20 lakh but or more than rs 100 lakh.The appeals against the orders of any District Forum can also be filed before the state commission, days  of days of passing of the order.
(iv) The State Commission, after being satisfied that the goods were defective,can issue an order directing the opposite party to either remove the defect or replace the goods or return the price paid or pay compensation to the consumer for loss or injury, etc.
3. National Commission or National Consumer Disputes Redressal Commission
(i) The national Commission is set-up by the Central Government.
(ii) It shall consist of a President, who is or has been a judge of the Supreme Court and four other members appointed by the Central Government, one of whom shall be a woman.
(iii) All complaints pertaining to those goods or services and compensation whose value is more than rs 100 lakh can be filed.Appeals against the order of any State Commission can also be filed before the National Commission, within 30 days of passing of the order.
(v)The National Commission has the power to issue orders for recall of defective or unsafe products for replacement or removal of deficiency in service, It can make the manufacture comply with safety provision and pay compensation for loss or injury caused.
(v) An order passed by the National Commission is appealable before the Supreme Court.

Bharat Electricals cannot file a complaint as Bharat Electricals is not a consumer.They bought goods for commercial purpose and not for consumption.
Who is a Consumer?
Consumer means any of the following persons:
(i) A person, who buys any good or avails any service for a consideration which has been paid or promised, or partly paid and partly promised, or under any scheme of deferred payment.
(ii) The term includes any other user of such goods when such use is made with the approval of the buyer.The term' consumer',however, does not include a person, who obtains such goods for resale or for any commercial purpose.

Anita can file a complaint against the book seller in the District Forum.District Forums are set-up in each district by the concerned State Government.InDistrict Forum,those complaints can be filed in which the value of goods and services in question along with compensation claim does not exceed rs 20 lakh.
To define a consumer
Consumer means any of the following persons:
(i) A person, who buys any good or avails any service for a consideration which has been paid or promised, or partly paid and partly promised, or under any scheme of deferred payment.
(ii) The term includes any other user of such goods when such use is made with the approval of the buyer.The term 'consumer',however, does not include a person, who obtains such goods for resale or for any commercial purpose.

Consumer organisations NGOs are established or formed to protect and promote the consumer interest.They perform following functions:
Role of NGOs/Consumer organisations 
Consumer organisations and NGOs perform several functions for the protection and promotion of interest of consumers.These include:
(i) Creating awareness about consumer rights by organising training programmes, seminars and workshops.
(ii) Imparting knowledge about consumer problems,legal reporting and reliefs available by publishing periodicals and publications.
(iii) Carrying our comparative testing of consumer products in accredited laboratories and publishing the results for the general benefit.
(iv) Encourage consumers legal assistance by providing aid, advice, etc to seek legal remedy.
(vi) Filing complaints in appropriate courts on behalf of consumers.
(vii) Taking initiative for filing cases in the interest of general public.

Consumer organisations NGOs are established or formed to protect and promote the consumer interest.They perform following functions:
Role of NGOs/Consumer organisations 
Consumer organisations and NGOs perform several functions for the protection and promotion of interest of consumers.These include:
(i) Creating awareness about consumer rights by organising training programmes, seminars and workshops.
(ii) Imparting knowledge about consumer problems,legal reporting and reliefs available by publishing periodicals and publications.
(iii) Carrying our comparative testing of consumer products in accredited laboratories and publishing the results for the general benefit.
(iv) Encourage consumers legal assistance by providing aid, advice, etc to seek legal remedy.
(vi) Filing complaints in appropriate courts on behalf of consumers.
(vii) Taking initiative for filing cases in the interest of general public.

The need for Consumer Protection arises due to following reasons :-
A. From Consumer Point of view :
a. Consumer Ignorance : In India, incidence of poverty and level of illiteracy high. Therefore it become necessary to educate them about the pure and adulterer goods so as to achieve consumer awareness.
b. Unorganized Consumers : In India consumer have yet not organized themselves in the form of consumer organizations. Therefore, adequate protection is required to be given to consumers till these organizations become powerful enough.
c. Widespread Exploitation of Consumer : Consumers can be exploited by unfair trade practices like defective and unsafe products, false and misleading advertisements etc.
B. From Business Point of view
a. Long term interest of the business : Enlightened business man only realizes that it is in their long interest to satisfy customers because they can only lead to repeated sales.
b. Social Responsibility : A business has social responsibilities towards various interest groups including consumers. Thus, consumers like other stakeholders; their interest has to be well taken care of.
c. Moral Justification : It is the moral duty of any business to take care of consumer’s interests and avoid any form of their exploitation and unfair trade practices.
d. Government Interventions : A business engaging in any form of exploitative trade practices would invite government interventions or action. This would tarnish the image of the company.

The various responsibilities of a consumer are:
(a) Must exercise his/her rights. Consumers must be aware of their own rights with regard to the products or services they buy from the markets and should exercise them whenever required.
(b) Cautious consumer. The consumer must be cautious before purchasing, any good or service. He must insist on getting full information on the quality, quantity, utility, price, etc. of the good or service. This will ensure a better purchase.
(c) Filing complaints. Sometimes, consumers ignore the loss incurred believing that the loss is small but this attitude encourages corrupt business practices to continue. So, a consumer should file complaints for the redressal of genuine grievances.
(d) Quality conscious. A consumer must be quality conscious. He should look for quality certification marks like IS!, Agmark, FPO, Woolmark, etc. while making purchases.
(e) Insist on cash memo. A consumer must ask for cash memo from the shopkeeper because if there is any defect in the goods purchased and consumer has to make a complaint, the cash memo must be there as a proof of purchase. A seller is always bound to give a cash memo.
(f) Advertisements often exaggerate. Consumers should compare the uses of the product given in the advertisement copy and the actual product. Any discrepancy should be brought to the notice of the sponsor of the advertisement.
(g) Honest in dealings. A consumer must choose only legal goods and services to discourage unscrupulous practices like black marketing, hoarding etc.
(h) Use products as per manufacturer's instructions. Consumers should learn about the risks associated with products and services, so a consumer must follow manufacturer's instructions to use the products safely.

The Consumer Protection Act, 1986 provides for three tier machinery for the redressal of consumer grievances :
a. District forum : This is established by the state government in each district. It shall consists of a chairman and two members appointed by the state Government. Only those complaints can be filed in the District Forum where the value of goods or service and the compensation claimed is upto rupees twenty lakhs. An appeal against the order of the District forum can be filed with the State Commission within 30 days.
b. State Commission : This is established by the Government in the state. It shall consist of a President who either is or has been a Judge of a High Court and two other members. All the three shall be appointed by the State Government. Only those complaints can be filed in the state commission where the value of goods or services and the compensation claimed exceed 20 lakhs but does not exceed Rs. 1 Crore. An appeal against the order of the state commission can be filed before the National Commission within 30 days.
c. National Commission : This is established by the Central Govt. It shall consist of a President who is or has been a judge of the Supreme Court and four other members. All shall be appointed by the Central Govt. All the complaints where the value of goods or services and the compensation sought is more than rupees I crore can be filed with the National Commission. An appeal against the order the National Commission can be filed before the Supreme Court within 30 days.