Chapter 5 Consumer rights Who is a consumer? ‘A consumer is a person who buys goods and services to satisfy his wants, ‘What is consumer exploitation? ‘When a consumer is cheated in any way, either by the shop keeper or the producer, by giving him poor quality or adultered goods or by charging more price for the commodity or service, it is called consumer exploitation ‘Which are the different ways by which consumers are exploited? “The different ways by which consumers are exploited are as follows a) Adulteration: Adulteration means mixing or substituting undesirable materials in food. As a result, consumers suffer from monetary loss as well as spoil their health, b) False claim; Sellers make false claim about the durability and quality of their product through advertisements. ©) Under measurement: Sellers generally under weigh goods and charge for the actual quantity 4d) Hoarding and black marketing: traders generally hold the stock of essential commodities and create artificial scarcity in the market so that they can sell their commodities at a higher price ) Substandard goods: Sellers may sell inferior goods to make profit 1) High price: sellers who sell necessities charge high prices 2) Duplicate articles; In the name of genuine parts or goof, duplicate items are sold to the consumers goors h) Lack of safety devices: Electronic devices produced locally may lack the required inbuilt safeguards which causes harm to the consumers. ‘Examine the main factors responsible for consumer exploitation in India Factors which cause exploitation of consumers are a) Limited information: For making correct choice, consumers need full information about the price, quality, durability, composition etc of the produce. In the absence of such information, a consumer may get exploited b) Limited supplies: When there is scarcity of goods, the price may go up and may encourage hoarding. As a consequence, consumers mat get exploited ©) Limited competition: When the number of producers are limited, they can contro! and restrict the supply of the product and can lead to manipulation in price. 4) Low literacy: Iliteracy causes ignorance which leads to exploitation of consumers. The level of consumer awareness in India is generally low. Why are rales and regulations required in the market place? Rules and regulations are required in the market to protect the consumers from unfair trade practices. Whenever there is a complaint regarding a good or service, a consumer find himself helpless . This necessitates the protection of consumers in the market E.g. the shop keeper or the producer, exploits the consumer by giving him poor quality or adultered goods or by charges more price for the commodity or service Explain the importance of consumer awareness in protecting the interests of the consumers. a) In the absence of consumer aware ness, the consumers may be exploited by the producers who charge high prices for the product and use under weight and other unfair means. b). The need for consumer awareness was fel all the more when some traders began indulging in adulteration of edible oil, milk, butter, fake medicines ets which adversely affect the health of the nation, 1 of7. What is consumer movement? ae cameg movement is basically @ social force originated with the need for protecting and promoting, the interests of the consumers against unethical and unfair trade practices 8, What factors led tothe consumer movement in India? Trace its evolution 18) unfair trade practices adopted by the sellers ') lack of legal system to protect from competition & Fora long time, when a consumer was pot happy with a product, he generally avoided buying the product or stop purchasing the product from that shop 4) Tras presumed that it was the responsibility ofthe consumers to be careful while purchasing the product. In Ladia, hoarding, black-marketing adulteration of food and edible ol, food shortages cic Bave birth to consumer movements in an organizes form in the 1960s. Till the 1970's consume srganizations were largely engaged in writing articles and holding exhibitions They formed cramer groups to look into the malpractices in ation shops and overcrowding jo the toad passenger transport, More recently India witnessed an upsurge in the number of consumer groups. 9, Describe any four steps taken to promote consumer movement in India ‘Various steps have been taken to promote consumer movement in India. a) Enforcement of Consumer Protection Act 1986( COPRA) by Spread of awareness through audio visual channels about the rights of the consunare ©} Amendment of various legislation such as prevention of Food Adulteration ‘Act 1954 4) Annual celebrations of Consumers Day 10, What is consumer International? seiges United Nations adopted the UN guidelines for Consumer protection. This was a 1001 For nations to adopt measures to protect consumers and for consumer advocacy groups 10 press their governments to do so. At the intemational level, this has become the foundation for ae eeer movement. Today, Consumer International has become an umbrella body of 240 “organizations from over 100 countries, 11, Describe any six rights of consumers ‘The following rights of the consumers are provided by Taw. 2) The right of safety: Electrical goods and pressure cookers can cause serious iniury, if there is any manufacturing defect in them. There is also a risk of fife, Consumers have the right to be protected against such danger. by Right to choose: The manufacturers should not use aggressive selling techniques to sell 4 particular product with out giving the consumer a chance to choose from alternative products available For eg if we want to buy toothpaste and the shop KeePe! si¥5 that he rip cell toothpaste only if we bay toothbrush, then our right to choose is denied. ‘innlarly, sometimes gas supply dealers insist that you have to buy stove to get as new connection, then you are forces to buy the stove which you did not want «) Right tobe informed: all information regarding the produet its ingredients, date of aan fastare, precaution of use, etc should be writen either on the package Or separately on a piece of paper. 4) Right to seek redressal: When consumers are cheated or exploited, they have & right to get claims settled against manofacturers...A number of consumer courts ‘and agencies have been set up specifically for this purpose.«) Right to be heard: The consumer should be assured that complaints regarding, a product ar gervice will be heard. News papers and consumer associations encourage dissatisfied consumers to write about products. §), Right to consumer education: A consumer can be protected against exploitation only aia fe ows that there is law dealing with such malpractices. He should be aware of the rights and the remedies available. 12. Why is it that rules have been made so that the manufacturer displays information about the product? rromvumers have the right to be informed about the particulars of goods and services that they purchase. Consumers can then complain and ask for compensation replacement if the product proves to be defective . For e.g if we buy a product and fit is defective well with in the expiry period, we can ask for a replacement. Ifthe expity period is not printed, the manufacturer could Prxtne the shopkeeper and will not accept the responsibility. Similarly, one Sa complain if the product is sold ata price higher than the meximam retall price printed on the packet 13, What is the role of Right to Information Act in India? Tn October 2005, The Government of India enacted a law, popularly known & Right to J ormation Act which ensures it citizens all the information about he functions of government departments, RTT has been expanded to cover various services provided by the government 14, What are the main duties of a consumer? ‘The main duties of a consumer are given below a) itis the responsibility of a consumes to be careful about the price and quality of the goods and services that he buys 'b) to assert and act to ensure that he gets a fair deal ©) To organize together as consumers to develop thestrengih and influence to promote and protect their interests 4) ‘To purchase quality marked products such as ISI, AGMARK ete @) To make complaints for genuine grievances 4) To ask for cash memo for the items purchases ) To be aware oftheir rights and to take action when tis denied 15. Describe the salient features of consumer protection act of 1986( COPRA). How did it enbance the powers of the redressal machinery of India Thposreumer protection act 1986 was passed by the parliament in 1986 for the protection of the consumers from unscrupulous producers and dishonest traders. The salient features of COPRA are a) Ttapplies to all goods and services »b) It covers all sectors, public, private and cooperative ¢) tgives various rights to the consumers relating to safety, information choice, representation | redressal and consumer education. Provisions of the act are ‘compulsory in nature 4) also established consumer protection councils at the Central and State levels to promote and protect the rights of the consumers ¢) Itprovides three tier quasi-judicial machinery at the national, state and district levels Tike act provides forthe establishment of Consumer Disputes Redressal AgenciSs of Distet, State. and National levels forthe protection and promotion of consumer nieres oot redress their grievances in a speedy, simple and inexpensive manner. The agencies are required to dispose off each complaint within three months. Atthe national level, itis 2Scalled the National Consumer Commission which isthe apex court under the act and it functions in Delhi irre state level its called the State Consumer Commission ‘At the District level it is called District Forum Het courts look in to grievances and complaints OF the consumers against the traders and rnufactorers and provide the necessary relief and compensation. The district level court Treats with cases involving claims up to Rs 20 lakhs “the state level courts between Rs 20 fakhs and Re 1 crore and the national level deals “with cases exceeding Rs | crore. If the case je dismissed in the district level court, the consumer ean appeal in state and then in the national level courts Te Act has enabled the consumers to have the Tht Yo represent in the consumer courts 16, What are the main seasons for the rise in price 19 ‘India? Why should we regulate price? 2), When the cost of production increase duc to jncrease in the price of raw materials, the price increases. b) When people have more income in their hands, their demand for goods and services jncrease. If this increase is not met by increase in supply there will be increase in price ©) Hoarding by producers cteates artificial cucity of goods and lead to increase in price {Indirect tax imposed on goods and like excise duty, custom duty, sales tax also lead to increase in price ©) Increase in population created greater demand for goods and services which leads to increase in price "Need for regulating price Some traders whose aim isto maximize profit, raises the Pree of goods by illegal ways. If nereis no increase in wage for workers and ifthe goods happen to be essentials such as wheat, rice, milk et, this creates problem for the people 17. Explain any four steps taken by the Government control price rise ‘Public distribution system: Government of India under its public distribution system ensures the availability of essential goods such as wheat, Sue ‘edible oil to the consumers at are sonable prices through the net work of fair price shops 18 the country. There are about wee ah of fai price shops in the country, Subsidies are me, by the government 1) Administered price mechanism: Administra" ‘prices are those prices of goods and A airis which are controlled by the government . Governcht of India has imposed price Sonnotes on a number of commodities. E.g tec), ‘automobile etc. Producers of these goods cornt charge a price which is higher than the mazimom PPE fixed by the government, ¢) Monetary measures: It isthe policy ofthe Central bank to control the money supply and vyedit in the economy. Some measures are bank rate, OPS ‘market operation, cash reserve sao ete By increasing bank rate and cash reserve ratio. ‘and by the sale of government seouritics tothe public and commercial banks, the ‘purchasing power of the people is seduced leading to decrease in demand and decrease 1 PPS 4) Fiscal measures: It is the expenditure and revenes policy of the government. By increasing tax and decreasing government expenditure On scholarship, pension, public work programme etc the purchasing pow of the people is reduced leading to decrease 0 demand and price O uy ofS18 Explain the three strategies adopted by the government to protect the interests of consumers with reference to Consumer protection Act of 1986 2). Legislative measures: includes enactment of Consumer Protection Act. ‘The government also amended certain provisions in other acts. It has enacted a special law called Consumer protection Act 1986 1) Administrative measures: includes distribution of essential commodities through Public Distribution System. PDS ensures availability of essential commodities like wheat, rice, sugar, etc tot he consumers through a.net work of fair price shops. There s at present 4.61 labks of PDS outlets in the country ©) Technical measures: includes standardization of products, Standardization of products refer to the process of setting certain standards for a product on the basis of its desired qualities Tike uility, safety, durability weight, colour etc in the product. The product with the IST mask are very popular because they carry the guarantee regarding the quality of the products. In India, Bureau of Indian Standard caters to the industrial and consumer goods while AGMARK is meant for agricultural products, 19, What is meant by standardization of product? Standardization of products refer to the process of setting certain standards for a product on the basis ofits desired qualities like utility, safety, durability weight, colour etc in the product. For this purpose the following institutions were set up for setting up standards for making, and producing various products and enforcing them. 1) The Bureau of Indian standards whose head quarters is located in New Delhi has the responsibility of laying down the standards for industrial and consumer goods on a scientific basis and certifying the goods that meet the standards and prescribed quality. In case of any complaint, the consumer can go to the nearest regional office of the BIS. 2) AGMARK: is implemented under the agricultural produce grading and marketing Act 1937 ‘as amended in 1986, This scheme is run by the Directorate of Marketing and Intelligence( DMI) in the Ministry of agriculture, Government of India. Products such as honey, spic etc carry such marks. 20. Critically examine the progress of consumer movement in India 2) India bas been observing 24 December as the National Consumer Day. It was on this day that the Indian Parliament enacted Consumer protection Act in 1986. ) The consumer movement in India has made some progress in terms of the number of organized groups and their activities. ©) There are more than 700 consumer groups in the country of which only 20-25 are well organized and recognized for their work 4) However, the consumer redressal process is becoming expensive and time consuming, Many a time consumers are required to engage lawyers. ¢) In most purchases cash memos are not issued and hence evidence is not easy to gather. 1) The existing laws are not clear on the issue of compensation to consumers injured by defective products 8) Enforcement of laws that protect workers in the unorganized sector is weak. h) Rules and regulations for the working of markets are not usually followed. Consumer movement can be effective only with the consumers’ active involvement 1 requires 2 voluntary effort and struggle involving the participation of one and all