Economics G.D Goenka Public School, Sec 22, Rohini

Class X

Consumer Rights

Who is a consumer?

A person who consumes, utilizes the goods and services is the consumer

How a consumer may be exploited in a market place?

A consumer may be exploited in the following ways:

  1. Underweight and under measurement: the goods being sold may sometimes be not measured correctly
  2. Duplicate articles: in the name of genuine parts, sometimes fake goods may be sold.
  3. Adulteration: sellers might adulterate edible items like ghee, oil, rice, pulses etc to make profit.
  4. Unsatisfactory after-sale service: sellers may not provide the consumer with satisfactory after sale service once the good is sold and the payments are made.
  5. Sub standard quality: goods of sub standard quality may be sold. Example: medicines may be sold beyond the expiry date, defective home alliances may be sold etc.
  6. High prices: sometimes seller might charge a price higher than the maximum retail price mentioned on the article.
  7. False information: sellers might cheat the consumers by giving them wrong information on the quality, durability etc of a good.

Under what circumstances is consumer exploited the most?

Or

Mention a few factors which cause exploitation of consumers

A consumer is exploited the most under following situations:

  1. Producersare few and buyers are many: few producers may manipulate the market and charge high price. They may also control the supple of goods in the market
  2. Limited and false information: consumers may make wrong choice and loose their money if given limited or wrong information about the price, quality, composition of product etc.
  3. Limited supplies: a consumer is exploited when there is limited supply of a good in the market. This leads to hoarding and black marketing i.e selling good at a much higher price.
  4. Low literacy: this is also one of the factors which cause exploitation of consumers. They are unable to have a complete knowledge of a product and may be cheated

Why is there a need for consumer protection?

Or

Why are rules and regulations needed in a market place?

Rules and regulations are needed for the following reasons:

  1. To ensure that the producers and sellers do not follow unfair trade practices such as over pricing, selling duplicate goods etc
  2. To ensure that companies with huge wealth and power may not control the price and quantity in the market and exploit consumers
  3. To ensure that false information is not provided to mislead the consumers through media.
  4. To ensure that consumers are given safety against any hazardous good.

Explain the need for consumer consciousness.

  1. Due to globalization a variety of good are available in the market. Producers try to influence the buyers through advertisements which make it difficult for consumers to choose. Thus there is a need for consumer awareness.
  2. At times, greedy sellers might adulterate the edible products to make profits. Thus consumers must be more conscious about the health aspects and what they are buying.
  3. Consumer awareness is needed so that they know whom to go to if they are denied of their rights and feel cheated.
  4. Consumer consciousness is needed to ensure that consumers are not cheated and trapped by the sellers through attractive offers like discounts, buy back guarantee etc. they must take the decisions rationally

What factors gave birth to the consumer movement in India?

  1. Consumers were exploited by the unethical and unfair trade practices of producers and sellers.
  2. No legal system to protect the consumers from exploitation in the market place
  3. Artificial scarcity created by the producers, hoarding, black marketing, adulteration of food articles etc gave birth to consumer movement in India.
  4. Consumer movement originated as a social force to protect and promote the interest of the consumers against unfair trade practices.

What is the aim of Consumer Protection Act, 1986 (COPRA)?

  1. The consumer protection act 1986 is a step by the govt of India in order to protect the consumers against unfair trade practices and exploitation.
  2. It is an Act to provide for better protection of the interests of consumers
  3. It aims at establishment of consumer councils and other authorities for the settlement of consumers' disputes.

What legal measures were taken by the government under the Consumer Protection Act (COPRA)?

  1. The Government of India enacted the COPRA in 1986
  2. This act provides for protection of consumers interest and attend to their complaints in a speedy manner.
  3. Under COPRA, a three tier judicial system is given
  • District level court: deals with cases involving claims upto 20 lakh rupees
  • State level court: deals with cases involving claims between 20 lakh to 1 crore
  • National level court: deals with cases involving claims exceeding Rs 1 crore.
  1. In October 2005, Right to information was enacted. It enables citizens to get information on the working of various government departments

Explain the rights given to the consumers under COPRA.

1. Right to Safety: The consumer has the right to be protected against goods which are hazardous to life and property. Ex- gas cylinders, pressure cookers need safety measures

2. Right to Information: the consumer has the right to be informed about various details of goods like the quality, quantity, purity, price, expiry date etc

3. Right to Choose: the consumer has the right to have an access to a variety of products at competitive prices, without any pressure by the seller to buy one product i.e., freedom of choice should be given

4. Right to be Heard and right to represent: under COPRA, three tier judicial machinery has been set up at the district, state and national level for settling consumer disputes. Consumers has a right to be heard in these courts and right to represent in these courts

5. Right to Seek Redressal: consumer has the right to get relief against unfair trade practice or exploitation. It can file a case against the seller or producer and receive fair compensation.

6. Right to consumer Education: consumer has the right to be educated about rights of a consumer. Government and other organisations should make an attempt to do so

Describe the various duties of consumers?

  1. Consumers must ask for a bill for products purchased
  2. They must check the various details mentioned on the packaging like manufacturing date, expiry date, MRP etc
  3. Consumers must check for standardization marks of ISI on electrical appliances, AGMARK on edible products and must preferable purchase standardized products only
  4. Consumer must exercise its right to choose a product and not be carried away with what sellers say
  5. While purchasing the product, consumer should look at the quality of the product and its guarantee
  6. Wherever possible, one must ask for a warranty card
  7. Consumer must form organizations and complain against serious grievances and not stay quiet.

What is RTI Act? How has it empowered the people?

  1. Right to Information Act, October 2005, gives freedom to the citizens to get information about the working of the government departments.
  2. Citizens can ask for a photocopy of any document and examine government’s functioning.
  3. However the matters of country’s security cannot be asked for.
  4. RTI has made the government more accountable and its working more transparent.
  5. It has helped reduce corruption and get quick justice

What can a consumer do if he/she is denied of the consumer rights?

  1. If a consumer is denied of any rights of is exploited then he/she can approach consumer forums and file a case in the consumer court and receive adequate compensation.
  2. A three tier judicial machinery is given under COPRA. Which is,
  • District level court: deals with cases involving claims upto 20 lakh rupees
  • State level court: deals with cases involving claims between 20 lakh to 1 crore
  • National level court: deals with cases involving claims exceeding Rs 1 crore.

Discuss the role played by the consumer forums to protect the consumers.

Consumer forums or consumer protection councils are voluntary organisations formed under consumer movements. Its role is -

  1. It Guides consumers on how to file cases in consumer courts.
  2. They also represent individual consumers in consumer court, if needed.
  3. They create awareness and consciousness among consumers about their right and also receive financial support from the government.

What is the function of a consumer court?

  1. A consumer court looks into the grievances or complaints made by the consumers against the traders or manufacturers.
  2. It provides necessary relief and compensation to the consumers.

What do you mean by standardization of products?

Why is standardization of products important?

  1. It is important that while purchasing a product a consumer must be assured of the quality of the product
  2. There are organizations that monitor the quality of the products and lays down the standards for them. It certifies the good if it meets the required specifications.
  3. The standardized marks are ISI (standardization mark on electrical appliances), Agmark (standardization mark on agro based products), Hallmark (standardization mark on jewellery)
  4. The producers can use their logos if their product follows certain quality standards as specified by these organisations.
  5. It is compulsory for the producers of the products that affect the health and safety of consumers or are of mass consumption like LPG cylinders, food items, electrical appliances etc to get certificates from these organizations.

On which goods are ISI, AGMARK and HALLMARK used?

ISI- Electrical appliances

AGMARK- agro based products

HALLMARK- jewellery

Explain the three- tier quasi judicial machinary given under COPRA.

Three tier judicial machinery given under COPRA is

  1. District level court: deals with cases involving claims upto 20 lakh rupees
  2. State level court: deals with cases involving claims between 20 lakh to 1 crore
  3. National level court: deals with cases involving claims exceeding Rs 1 crore.

If the case is dismissed in district level court, the consumers can also appeal in state and then in national level cou

What are the various challenges/limitations in consumer redressal process?

  1. The consumer redressal process is cumbersome, expensive and time consuming.
  2. Many a times consumers may need to engage a lawyer and engage in court proceedings
  3. In most cases, bills of cash memo are not taken and hence evidence is difficult to find
  4. Laws for compensating the consumers for an injury by a defective product are not very clear
  5. Laws that protect the workers in the unorganized sector are not enforced properly
  6. Rules and regulations for working of a market are not followed

When is national consumer day celebrated?

It is celebrated on 24th of December as it was on 24th December 1986 that the Indian parliament enacted the Consumer Protection Act.

Critically examine the progress of consumer movement in India.

Progress:

  1. Organised and systematic consumer movement started in 1960’s and government passed the consumer protection act in 1986.
  2. The organised consumer groups have increased in number.
  3. Exclusive courts for attending to consumer complaints have been made.
  4. Separate departments of consumer affairs have been set up.

However the progress of the consumer movement has been slow. There are various challenges faced like:

  1. The consumer redressal process is cumbersome, expensive and time consuming.
  2. Many a times consumers may need to engage a lawyer and engage in court proceedings
  3. In most cases, bills of cash memo are not taken and hence evidence is difficult to find
  4. Laws for compensating the consumers for an injury by a defective product are not very clear
  5. Laws that protect the workers in the unorganized sector are not enforced properly
  6. Rules and regulations for working of a market are not followed

What is consumer international?

Refer page 78 of NCERT.