ECONOMICS........CHAPTER 5 : CONSUMER RIGHTS

SUMMARY OF THE TOPICS  ON WHICH QUESTIONS AND ANSWERS ARE GIVEN: 


THE CONSUMER IN THE MARKETPLACE
CONSUMER MOVEMENT
CONSUMER RIGHTS
TAKING THE CONSUMER MOVEMENT FORWARD

  I. Answer the following questions : 

Q 1. Why are rules and regulations required in the market place? Illustrate with a few examples.

1. Rules and regulations are required for the protection of the consumers in the marketplace because:
2. 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.Individual consumers find themselves in a weak position.
3. Sometimes traders indulge in unfair trade practices such as weigh less,  add charges that were not mentioned before, or when adulterated/defective goods are sold.
4. At times false information is passed on through the media, and
   other sources to attract consumers by the large companies.

Examples: 
1.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. 
2. A long battle had to be fought with court cases to make cigarette manufacturing companies accept that their product could cause cancer.
Thus there is a need for rules and regulations to ensure protection for consumers.

Q2.What factors gave birth to the consumer movement in India? Trace its evolution.

1. The consumer movement arose out of dissatisfaction of the consumers as many unfair practices were being indulged in by the sellers.
2. In India the consumer movement originated with the necessity of protecting and promoting the interests of consumers against unethical and unfair trade practices.
3. Food shortages, hoarding,black marketing, adulteration of food and edible oil gave birth to the consumer movement in an organised form in the 1960s.

Q3. What was the major step taken by the government of India in 1986?

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

Q4. Describe the salient features of Consumer Protection Act of 1986. How did it enhance the powers of the redressal machinery in India?

1. The salient features of Consumer Protection Act of 1986 are:
2. It applies to all goods and services.
3. It covers all the sectors private, public or cooperative.
4. It gives various rights to the consumers.
5. Under COPRA, a three-tier quasi judicial machinery at the district,state and national levels was set up for redressal of consumer disputes.
6. The district level court deals with the cases involving claims upto Rs 20 lakhs.
7. The state level courts between Rs 20 lakhs and Rs 1 crore.
8. The national level court deals with cases involving claims exceeding Rs 1 crore. If a case is dismissed in district level court, the consumer can also appeal in state and then in National level courts.
   Thus the Act has enabled the consumers to have the right to represent in the consumer courts.
9. The enactment of COPRA has led to the setting up of separate
   departments of Consumer Affairs in central and state governments.

Q5. Mention a few factors which cause exploitation of consumers.

1. Following are the ways in which consumers are exploited:
2. Adulteration: It means that the undesirable materials are added to the food products that causes heavy loss to the consumer as they suffer  from monetary loss and as well as spoil their health.
3. False Claims: Many a times producers or sellers make false claims regarding the durability and quality of theie products through the advertisements.
4. Under measurement: Many sellers in the market weigh less and charge for the actual quantity.
5. Hoarding and Black marketing: Traders hold the stock of essential commodities and other goods to create artificial scarcity in the market so that they can sell their products at higher prices to earn huge profits.
6. Seller also sell substandard and,duplicate goods at higher prices also to earn huge profits. 

Q6.Describe six rights of consumers.

These are the rights of the consumers provided in India:
The Right of Safety: 

1. While using many goods and services consumers have the right to be protected against the marketing of goods and delivery of services that are hazardous to life and property.
2. Producers need to strictly follow the required safety rules and regulations. 
3. There are many goods and services that we purchase that require special attention to safety. 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.   It is the responsibility of the government to see that this quality is maintained.

Right to be Informed:

1. The details about ingredients used, price, batch number, date of manufacture, expiry date and the address of the manufacturer and when we buy medicines on the packets ‘directions for proper use’ and information relating to side effects and risks associated with usage of that medicine should be given.
2. It is because consumers have the right to be informed about the particulars of goods and services that they purchase.

Right to Choose: 

1. 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 and consumer should not be forced by the seller or the service provider.

The Right to Seek Redressal: 

1. Consumers have the right to seek redressal against unfair trade practices and exploitation.
2. If any damage is done to a consumer, she has the right to get compensation depending on the degree of damage.
3. A number of consumer courts and agencies have been set up for this purpose.

Right to Represent: 

1. Consumers to have the right to represent in the consumer courts.
2. The Consumer Protection Act of 1986 has enabled consumers to have the right to represent in the consumer courts at various levels under a three-tier quasijudicial system.

Right to Consumer Education: 

1. A consumer can be protected against the malpractices or frauds only when he is aware of the laws dealing with all these. 
2. Therefore the enactment of COPRA has led to the setting up of separate departments of Consumer Affairs in central and state governments through which government spread information about legal process which people can use.

Q7.How is the consumer redressal process becoming cumbersome? Give four reasons.

The consumer redressal process is becoming cumbersome,expensive and time consuming because: 

1. Many a time, consumers are required to engage lawyers. These cases require time for filing and attending the court proceedings etc. 
2. In most purchases cash memos are not issued hence evidence is not easy to gather.
3. Moreover most purchases in the market are small retail sales.
4. The existing laws also are not very clear on the issue of compensation to consumers injured by defective products.the enforcement of laws that protect workers, especially in the unorganised sectors is weak. 
5. Rules and regulations for working of markets are also not followed.

Q8. What is ISI and Agmark. For which products it is mandatory on the part of the producers to get certified by these organisations?

1. The letters ISI, Agmark or Hallmark are the logos and certification that help consumers get assured of quality while purchasing the  goods and services. 
2. The organisations that monitor and issue these certificates allow producers to use their logos provided they follow certain quality standards.
3. For the products that affect the health and safety of consumers or of products of mass consumption like LPG cylinders, food colours and additives, cement, packaged drinking water, it is mandatory on the part of the producers to get certified by these organisations.