Understanding Economic Development Chapter 5 Consumer Rights

The Consumers Movement in India:

(i)The consumer movement as a ‘social force’ originated with the necessity of protecting and promoting the interests of consumers against unethical and unfair trade practices.

(ii)Rampant food shortages, hoarding, black marketing, adulteration of food and edible oil gave birth to the consumer movement in an organised form in the 1960s.

(iii)Till the 1970s, consumer organisations were largely engaged in writing articles and holding exhibitions. They formed consumer groups to look into the malpractices in ration shops and overcrowding in the road passenger transport. More recently, India witnessed an upsurge in the number of consumer groups. 

(iv)Because of all these efforts, the movement succeeded in bringing pressure on business firms as well as government to correct business conduct which may be unfair and against the interests of consumers at large.

(v)A major step taken in 1986 by the Indian government was the enactment of the Consumer Protection Act 1986, popularly known as COPRA.

The need for consumer awareness was felt because out of their selfishness both the manufacturers and traders go to any extent. They can hold essential goods to create artificial demand.

(i)For example, a company for years sold powder milk for babies all over the world as the most scientific product claiming this to be better than mother’s milk. It took years of struggle before the company was forced to accept that it had been making false claims.

(ii)Similarly, a long battle had to be fought with court cases to make cigarette manufacturing companies accept that their product could cause cancer.

Factors which causes exploitation of consumers are mentioned below:

(i)Dishonesty and Malpractices: Over charges, hoarding, adulteration, black marketing, tampering weight and measures etc.

(ii)Negligence and false information: Negligence of doctors/surgeons and other staff members in the hospitals, negligence of principal/teachers in the school and negligence of government official in all public dealing offices cause exploitation of consumers.

(iii)Limited and false information about the goods or products is given to the consumers. As a result, consumers make a wrong choice and suffer loses.

(iv) Low literacy leads to consumer exploitation as they do not have complete knowledge about the products.

(v) If there is one or a few producers of a product, there is a possibility of manipulation in prices and supply. 

The following are the rationale behind the enactment of Consumer Protection Act, 1986:

(i)There was no legal system available to consumers to protect them from exploitation in the marketplace. For a long time, when a consumer was not happy with a particular brand product or shop, he or she generally avoided buying that brand product, or would stop purchasing from that shop.

(ii)It was presumed that it was the responsibility of consumers to be careful while buying a commodity or service. In India, the consumer movement as a ‘social force’ originated with the necessity of protecting and promoting the interests of consumers against unethical and unfair trade practices.

(iii)Rampant food shortages, hoarding, black marketing, adulteration of food and edible oil gave birth to the consumer movement in an organised form in the 1960s.

(iv)Till the 1970s, consumer organisations were largely engaged in writing articles and holding exhibitions. They formed consumer groups to look into the malpractices in ration shops and overcrowding in the road passenger transport. More recently, India witnessed an upsurge in the number of consumer groups.

(v)Because of all these efforts, the movement succeeded in bringing pressure on business firms as well as government to correct business conduct which may be unfair and against the interests of consumers at large. A major step taken in 1986 by the Indian government was the enactment of the Consumer Protection Act 1986, popularly known as COPRA.

The duties as consumer if we visit a shopping complex in your locality are described below:

(i)We have to look for the quality and guarantee of the product or service which we want to buy or receive.

(ii)We have to ask for cash-memo against the items we would purchase.

(iii)We have to be very careful about the measurement of the goods and we should purchase only things marked by ISI, AGMARK etc.

For honey, we have to look for AGMARK logo  while for biscuit packet we would look for ISI mark. 

Because these logos and certification help consumers to get assured of quality while purchasing the goods and services. The organisations that monitor and issue these certifications allow producers to use their logos provided they follow certain quality standards.

The consumers express their solidarity:

(i) By forming consumer forums.

(ii)Through consumer movements.

(iii)  By forming consumer protection councils.

C.

24th December

C.

In 1986   

B.

October, 2005

A.

700   

C.

Maximum Retail Price

A.

Consumer International

A.

Consumer Protection Councils

A.

 24 December

C.

1960s   

B.

Consumer Protection Act

A.

 Right to Information

A.

 Right to Choose

A.

Only (i), (ii) and (iii)

C.

1985  

C.

Right to Safety

A.

ISI mark

C.

  District level consumer courts

E.

 Rs. 20 lakhs and Rs. 1 crore

B.

National level

C.

 Authenticity of gold and diamond jewellery—ISI mark.

D.

All of these

A.

Consumer

B.

Consumers

D.

Shopkeepers

A.

Right to Equality

B.

Right to be Informed

A condition in which traders cheat the consumers by giving poor quality goods or charges more than usual price for a commodity or service.

Examples: By giving substandard quality, under-measurement, under-weight, duplicate, adultered or impure-goods. Charging more price. Faulty manufacture goods or medicines. Not issuing proper bill or receipt etc.

 Consumer protection councils:

(i)Consumer protection councils guide consumers on how to file cases in the consumer court.

(ii)On many occasions, they also represent individual consumers in the consumer courts.

(iii)They create awareness among the people.

The consumer movement in India has led to the formation of various organisations locally known as Consumer Forums or Consumer Protection Councils.

(i)They guide the consumers on how to file cases in the consumer courts.

(ii)On many occasions, they also represent individual consumers in the consumer courts.

(iii)These voluntary organisations also receive financial support from the government for creating awareness among the people.

Right to Safety:

(i)While using many goods and services, we as consumers, have the right to be protected against the marketing of goods and delivery of services that are hazardous to life and property.

(ii)Producers need to strictly follow the required safety rules and regulations.

(iii)There are many goods and services that we purchase that require special attention to safety.

(iv)For example, pressure cookers have a safety valve which, if it is defective, can cause a serious accident. The manufacturers of the safety valve have to ensure high quality. You also need public or government action to see that this quality is maintained.

(v)However, we do find bad quality products in the market because the supervision of these rules is weak and the consumer movement is also not strong enough.

(i) Right to Choose : Consumers have the right to assess the variety of goods and services at competitive price. In case of a single seller, the consumers have the right to be assured of satisfactory quality and services at a fair price.

(ii) Right to Redressal : This is the most important right. The consumer has the right to seek redressal against unfair trade practices and exploitation. If any damage has been done to the consumer, he/she has the right to get compensation depending upon the degree of damage.

The measures are:

(i)Writing articles on consumer’s rights and duties.

(ii)Holding exhibitions for consumer awareness.

(iii)To look into the malpractices in ration shops.

It was presumed that it was the responsibility of consumers to be careful while buying a commodity or service:

(i)It took many years for organisations in India, and around the world, to create awareness amongst people.

(ii)This has also shifted the responsibility of ensuring quality of goods and services on the sellers.

(iii)In India, the consumer movement as a ‘social force’ originated with the necessity of protecting and promoting the interests of consumers against unethical and unfair trade practices.

(iv)Rampant food shortages, hoarding, black marketing, adulteration of food and edible oil gave birth to the consumer movement in an organised form in the 1960s.

(v)Till the 1970s, consumer organisations were largely engaged in writing articles and holding exhibitions. They formed consumer groups to look into the malpractices in ration shops and overcrowding in the road passenger transport.

Rights of consumers under COPRA, 1986:

(i)Right to choice : The consumers have the right to buy those goods which they like to buy or continue or not continue those services which they receive.

(ii)Right to information : Under this right, the customers should be informed about the ingredients used, price, batch number, date of manufacture, expiry date and address of the manufactures.

(iii)Right to redressal: The consumer has the right to seek redressal against unfair practices. The consumer has a right to get relief in case the product or service falls short of his expectation. This provides a number of reliefs to the consumer including replacement of the product, removal of defect in the product, compensation paid for any loss or injury suffered by the consumer.

(iv)Right to safety : The consumer has a right to be protected against goods and services which are manufactured with substandard products or do not conform to the safety norms or might cause serious injury. Thus, consumers are educated that they should use electrical appliances which are ISI marked as this would be an assurance of such products meeting quality specifications.

(v)Right to consumer education : The consumer has a right to acquire knowledge and to be well-informed consumer throughout life. He should be aware of his right and the reliefs available to him in case of a product or service falling short of his expectations.

The methods employed were:

(i)Writing articles 

(ii)Holding exhibition 

(iii)Looking into mal-practices in ration shops and overcrowding in the road passenger transport.

Under Consumer Protection Act, 1986, any consumer who receives a service in whatever capacity, regardless of age, gender and nature of service, has the right to choose whether to continue to receive the service.

(i)Examples: Suppose you want to buy toothpaste, and the shop owner says that she can sell the toothpaste only if you buy a tooth brush. If you are not interested in buying the brush, your right to choice is denied.

(ii)Similarly, sometimes gas supply dealers insist that you have to buy the stove from them when you take a new connection. In this way many a times you are forced to buy things that you may not wish to and you are left with no choice.

(i)Ignorance of consumer 

(ii)Lack of consumer awareness

(iii)Careless behaviour of consumer

Rules and regulations are required for the protection of the consumers in the marketplace. Individual consumers often find themselves in a weak position. Whenever there is a complaint regarding a good or service that had been bought, the seller tries to shift all the responsibility on to the buyer.
Exploitation in the marketplace happens in various ways.

For example:

(i)Sometimes traders indulge in unfair trade practices such as when shopkeepers weigh less than what they should or when traders add charges that were not mentioned before, or when adulterated/defective goods are sold.

(ii)A company for years sold powder milk for babies all over the world as the most scientific product claiming this to be better than mother’s milk. It took years of struggle before the company was forced to accept that it had been making false claims.

The conditions are:

1. When producers are few and powerful

2. When consumers purchase in small quantities

3. When consumers are scattered

A major step was taken in 1986 by the Indian government was an enactment of the Consumer Protection Act 1986, popularly known as COPRA. Under COPRA, a three-tier quasi-judicial machinery at the district, state and national levels has been set up for redressal of consumer disputes. The district level court deals with the cases involving claims up to Rs 20 lakhs, the state level courts between Rs 20 lakhs and Rs 1 crore and the national level court deals with cases involving claims exceeding Rs 1crore.

The consumer movement in India has led to the formation of various organisations locally known as consumer forums or consumer protection councils. They guide consumers on how to file cases in the consumer court. On many occasions, they also represent individual consumers in the consumer courts. These voluntary organisations also receive financial support from the government for creating awareness among the people.

 Exploitation in the marketplace happens in various ways.

(i) Shopkeepers weigh less than what they should.

(ii) Traders add charges that were not mentioned.

(iii) When defective or adulterated goods are sold.

(iv) When false information is passed on through the media.

(v) Traders and producers hoard goods and create an artificial scarcity in the market to sell those hoarded goods at higher prices.

C.

Electrical appliances

The participations:

(i) We could be working in any of the sectors or services such as in agriculture or industry as producers of goods and services.

(ii) We participate in the market as consumers when we purchase goods and services that we need.

(iii) Both producers and consumers are mainstay of markets.

Rules and regulations were formulated out of dissatisfaction of the consumers as many unfair practices were being indulged in by the sellers. There was no legal system available to consumers to protect them from exploitation in the market place. For a long time, when a consumer was not happy with a particular brand product, he generally avoided buying that brand product, or would stop purchasing from that shop. It was presumed that it was the responsibility of consumers to be careful while buying a commodity or service.

It is required for promoting and protecting the interests of consumers against unethical and unfair trade practices such as rampant food shortages, hoarding, black marketing, adulteration of food and edible oil. It is required to look into the malpractices in ration shops and overcrowding in the road passenger transport.

C. Edible Oil

C. Agmark

D. Consumer court

Consumers are exploited in the market in the ways mentioned below:

(i) Shopkeepers weigh less than what they should.

(ii) Traders add charges that were not mentioned.

(iii) When defective or adulterated goods are sold.

(iv) When false information is passed on through the media.

B. Upto Rs. 20 lakhs

The standardisation of products means protecting the consumers from sub-standard and varying standards of goods. It is not compulsory for all producers to follow these standards. However, products that affect the health and safety of consumers and products of mass consumption require standardisation.

Organisations responsible for the standardisation of products in India are-

(i) ISI

(ii) Agmark

The advantages:

(i) Consumers can complain and ask for compensation or replacement if the product proves to be defective in any manner.

(ii) Consumers can protest and complain If a product is being sold at more than the printed price on the packet.

(iii) Consumers can bargain with the seller to sell at less than the MRP.

Right to seek redressal is the consumer right.

Rules and regulations are required to safeguard the interest and rights of consumers in the market and to provide them speedy redressal of their grievances. For example, a person purchases a television set from a shop and it turns out to be defective. The consumer takes the television set to the shopkeeper for repair. The shopkeeper renders sales service by charging Rs 500 as a service charge while it has been repaired within the warranty period.

Thus, rules and regulations are required to protect consumers mainly because of their helpless position and unfair business practices.

Consumers are exploited in the following ways:

i. Sale of adulterated goods, i.e. addition of inferior substances to the product being sold. Costly goods such ghee, spices and oil are adulterated to earn higher profits. This causes monetary loss to consumers and spoils their health

ii. Sale of sub-standard goods, i.e. sale of goods which do not conform to the prescribed quality standards. Selling of medicines beyond their expiry dates and supply of
defective home appliances are the general grievances of consumers.

iii. Use of false weights and measures leading to losses. The goods sold in the market are sometimes not measured correctly.

In India, the consumer movement emerged because of social reasons.

Hallmark 

Right to seek redressal refers to the right to seek compensation due to damage caused by unfair trade practices and exploitation. If any damage is done to a consumer, he has the right to get compensation depending upon the degree of damage.The consumer movement in India has led to the formation of various organisations locally known as consumer forums or consumer protection councils.They guide consumers on how to file cases in the consumer court. On many occasions, they represent individual consumers in the consumer courts.

I would see the logo of AGMARK.

The precautions are:

(i) finding directions for proper use

(ii) information relating to side effects and

(iii) risks associated with usage of that medicine

C.

1985

Consumers have the right to seek redressal against unfair trade practices and exploitation. If any damage is done to a consumer, she has the right to get compensation depending on the degree of damage. There is need to provide an easy and effective public system by which this can be done. Under COPRA, a three-tier quasi-judicial machinery at the district, state and national levels was set up for redressal of consumer disputes.

Rules and regulations were formulated out of dissatification of the consumers as many unfair practices were being indulged in by the sellers. There was no legal system available to consumers to protect them from exploitation in the market place. For a long time, when a consumer was not happy with a particular brand product, he generally avoided buying that brand product, or would stop purchasing from that shop. It was presumed that it was the responsibility of consumers to be careful while buying a commodity or service.

It is required for promoting and protecting the interests of consumers against unethical and unfair trade practices such as rampant food shortages, hoarding, black marketing, adulteration of food and edible oil. It is required to look into the malpractices in ration shops and overcrowding in the road pasenger transport.

A.

24 December

B.

25 December

The three factors which gave birth to the “ Consumer Movement in India” are -

(i) The consumer movement arose out of dissatisfaction of the consumers as many unfair practices were being indulged in by the buyers.

(ii) There was no legal system available to consumers to protect them from exploitation in the marketplace. It was presumed that it was the responsibility of consumers to be careful while buying a commodity or services.

(iii) Rampant food shortages, unfair and unethical trade practices like hoarding and black marketing, adulteration of food and edible oil gave birth to Consumer Movement in India.

Rules and regulations were formulated out of dissatisfaction of the consumers as many unfair practices were being indulged in by the sellers. There was no legal system available to consumers to protect them from exploitation in the market place. For a long time, when a consumer was not happy with a particular brand product, he generally avoided buying that brand product, or would stop purchasing from that shop. It was presumed that it was the responsibility of consumers to be careful while buying a commodity or service.

It is required for promoting and protecting the interests of consumers against unethical and unfair trade practices such as rampant food shortages, hoarding, black marketing, adulteration of food and edible oil. It is required to look into the malpractices in ration shops and overcrowding in the road pasenger transport.

B.

Jewellery

The circumstances are:

(i) When producers are few and powerful.

(ii) When consumers purchase in small quantities.

(iii) When consumers are scattered.

There is a great need for acquiring the knowledge and skill to become a well informed consumer as-

(i) This enable them to discriminate and make informed choices.

(ii) This also make consumers to complain and ask for compensation or replacement if the product proves to be defective in any manner.

(iii) This also makes consumers to have the right to represent in the consumer courts.

An example of consumer's right to choose is - if a person purchases an electronic products, which turns out to be faulty, a person by producing a receipt can claim to replace or get a refund of it.

At world level the origin of consumer movement was in the form of consumer cooperatives. The first cooperative came in 1904 in Madras but there was not much development till 1962. The objectives of consumer movement were different in India from those of western countries. 
Objective of Indian consumer movement in 1970 were as follows : 

• Shortage of consumer products 
• Adulteration and black marketing 
• Range of product is less due to lack of technology advancement 
• Main focus was on availability, price and purity.

Eg. If I am using Airtel services but now I want to choose to switch to JIO, therefore I have to right to choose whichever service provider suits me the best. 

Under COPRA, the Indian govt.has set up comsumer courts for the protection of consumers against exploitation by unfair and unethical trade practises by sellers, producers and other service providers.

These courts have been set up at three levels,-Central, State and District Levels.

i)Central consumer courts address and settle claims of Rs. 1 Crore and above.

ii)National consumer courts address and settle claims of  20 lakh and 1 crore.

iii) District consumer court address and settle claims below 1 Crore.

If a person still has his/her issue not resolved , he/she can appeal to a higher level of court.

If any damage is done to a consumer by a trader, one can move to consumer court under the Consumer Protection Act, 1986.

In India, the consumer movement as a ‘social force’ originated with the necessity of protecting and promoting the interests of consumers against unethical and unfair trade practices.

• Rampant food shortages, hoarding, black marketing, adulteration of food and edible oil gave birth to the consumer movement in an organized form in the 1960s.
• Till the 1970s, consumer organisations were largely engaged in writing articles and holding exhibitions.
• Because of all these efforts, the movement succeeded in bringing pressure on business firms as well as government to correct business conduct which may be unfair and against the interests of consumers at large.
• Therefore in 1986 the Indian government enacted the Consumer Protection Act 1986.

Consumers are exploited in the market in various ways:- 

• Producers are always looking for easy ways to increase profits.
• Adulterated or low-quality goods have less production costs, and if the consumer is unaware or illiterate, it is easy to cheat him/her.
• Also, shopkeepers brush off their responsibility by claiming that the manufacturer is to blame. Consumers feel helpless in this situation.

The consumer movement actually arose out of dissatisfaction of the consumers:

• Many unfair practices were practised by the sellers.
• No legal system was available to the consumers to protect them from exploitation in the marketplace.
• Moreover, it was presumed that it was the responsibility of consumers to be careful while buying a commodity or service.
• A major step taken by the Indian government in this regard was the enactment of the Consumer Protection Act 1986, popularly known as COPRA.

(a) – Jewellery

Under the ‘Right to Seek Redressal’, consumers have the right to seek redressal against trade practices of exploitation and seek a fair settlement of the genuine grievances. They can seek redressal through consumer courts functioning at district, state and national levels and may get compensation from a manufacturer/trader if any harm is done.

Example: Suresh sent an urgent courier to his brother living in another city. However, the courier did not reach on time which resulted in some financial loss to both Suresh and his brother. Thus, Suresh filed a case against the courier company in the consumer court.