GURUKUL THE SCHOOL

ECONOMICS- CONSUMER RIGHTS

Consumer—When we pay a price for a commodity or service & use it, we become consumer.
We participate in the market both as producer and consumers.

Q. Why do we need rules and regulations in the market?

--Rules and regulations are required in the market for protecting the environment .
--As in the informal sector moneylenders use various technique to bind the borrower, similarly many
people who work in the unorganized sector have to work at low wages and have to accept
conditions which are not good for their health. To prevent such exploitation we need rules &
regulations.
--These are required for the protection of the consumers in the market place.
--Markets do not work in a fair manner when producers are few and powerful where as consumers
purchase in small amounts and are scattered.
--Companies with huge wealth , power and reach can manipulate the markets in various ways—as
false information through catchy advertisements, discounts, gift offers.
The above said conditions require rules and regulations.

EXPLOITATION IN THE MARKET PLACE/COMMON FORMS OF CONSUMER EXPLOITATION:

Exploitation in the market happens in various ways, as
--Underweight& under measurement: The goods sold in the market are sometimes not measured or
weighted correctly.
--Sub Standard Quality: Selling defective home appliance and expired medicines are its examples.
--High Prices: sometimes seller charge higher than the MRP.
--Duplicity: Fake and duplicate items are sold in the name of genuine goods.
--Adulteration& Impurities: Adulteration is done in the costly items as in oil, ghee, milk, spices etc.
to earn higher profits. This effects consumers health and their money goes waste.
--Lack of safety devices: Electronic goods produced locally lack the required inbuilt safeguards,
which may cause accidents.
--Artificial scarcity or shortages: To earn more profits business creates artificial scarcity by hoarding
and sells the same at higher price.
--False or incomplete information: sellers mislead people by giving wrong information about the
products, price, quality, safety, expiry date, maintenance costs etc.
--Unsatisfactory after sales service; many suppliers do not provide satisfactory after sales service in
case of expensive electronic equipments, home appliances and cars etc.
--Rough behavior & undue conditions: consumers are often harassed in matters like LPG
&telephone connections and in getting licensed items.

Consumers get exploited or factors causing exploitation of consumers:

1.limited information.
2.limited supply.
3.limited competition.
4.low literacy or awareness.

CONSUMER MOVEMENT —Factors &Evolution

1. Consumer movement in India arose out of dissatisfaction of the consumers as the sellers were
indulging in many unfair practices.
2. There was no legal system available to consumers to protect them from exploitation in market

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place.

CONSUMER MOVEMENT IN INDIA

 As a social force it 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 edible oil gave birth to
the consumer movement in an organized form in 1960’s.
 Till 1970’sconsumer organizations were largely engaged in writing articles and holding
exhibitions.
 These organizations formed consumer groups to look into the mal practices in the Ration
shops and overcrowding in the Road Passenger Transport.
 More recently India has witnessed an upsurge in the number of organized consumer groups.
There are today more than 700 consumer groups in the country of which only about 20-25
are well organized & recognized for their work.
 India has been observing 24 December as National Consumer’s Day as it was on this day that
the Indian parliament enacted COPRA in 1986.
 India is one country that has exclusive courts for consumer redressal.
CONSUMERS INTERNATIONAL
In 1985 UN adopted the UN guidelines for consumer protection.
This was a tool for nations to adopt measures to protect consumers and for consumer advocacy
groups to press their governments to do so.
At the international level it has become the foundation for consumer movement.
Today Consumer International has 240 organizations from over 100 countries.
COPRA—CONSUMER PROTECTION ACT
1. This act was passed in 1986, on 24th December, and since then this day is celebrated as
Consumers Day in India.
2. This act was passed to bring pressure on business firms as well as government to correct business
conduct, which may be unfair and against the interest of the consumers at large.
3. Under COPRA, a Three –Tier Quasi-Judicial machinery at District, State and National levels have
been setup for redressal of consumer disputes.
--District level court deals with the cases involving claims uptoRs 20 lakhs, the State level courts take
cases between 20 lakhs to 1 crore& the National level deals with the cases involving claims exceeding
1 crore.
If the case is dismissed at Distric level court, the consumer can also appeal in state and than in
National level courts.
4. The enactment of COPRA has led to the setting up of separate departments of Consumer Affairs in
central & the state govts. Through them the govt. spread information about the legal process which
consumer can use. They work through media.
CONSUMER RIGHTS…….
1.Safety is everyone’s right:
While using many goods& services, we as consumers, have a right to be protected
against the marketing of goods and delivery of services that are hazardous to life and property.
--Producers need to strictly follow the required rules and regulations.
--There are many goods and services that we purchase require special attention to safety. For
example.. Pressure cookers have a safety valve which if defective can cause accident, LPG gas
cylinder should be sealed and leak proof.
2.Right to be Informed:
--When we buy a commodity, we find details given on the packing, These details are about
ingredients used, price, batch no., date of manufacture, expiry date & address of the manufacturer.
We have right to be informed about the above mentioned informations, so that consumers can
complain and ask for composation or replacement in case product proves to be defective

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----These days this right has been expanded to cover various services provided by the govt. In
October 2005, the govt of India enacted RTI-right to information act, which insures its citizens all the
information about the functions of govt. department
3.Right to Choose:
Any consumer who receives a service in whatever capacity, regardless of age, gender and nature of
service, has a right to choose whether to continue to receive service.
4. Right to Seek Redressal:
Consumers have this right against unfair trade practices and exploitation. .If damage is done to the
consumer, he/she has the right to get compensation depending on the degree of damage.
5. Right to represent:
--COPRA has enabled us to have the right to represent in the consumer courts.
--There is a three-tier quasi-judicial machinery at district, state and national levels.--There are various
organisations locally known as Consumer Forums or Consumer Protection Council, they guide
consumers on how to file cases in the consumer courts: they also receive financial support from the
govt. to create awareness..
WELL INFORMED CONSUMERS….
When we as consumers become conscious of our rights, while purchasing goods& services, we will be
able to discriminate and make informed choices.
If customers want their rights they should also observe duties also.
Some duties which as a consumer we should observe.

 After a purchase we must insist on cash memo.

 While purchasing goods we must be careful about the quality of goods as well the
guarantee of products and services.
 We should buy certified goods—ISI, AGMARK etc.
 Consumers should form Consumer Awareness Organisations in their localities to help
& aware others.
 Consumers must know their rights & must exercise them too.

 ISI AND AGMARK

These are logos and certifications which help consumers get assured of quality while
purchasing goods & services.
--The organizations that monitor and issue these certificates allow producers to use
their logos provided they follow certain quality standards.
--It is not compulsory for all producers to follow standards. However the products
that affect health and safety of consumers or the products of mass consumption, it is
mandatory on the part of producers to get certified by these organizations.
(LPG Cylinders, food colours and additives, cement, packaged drinking water etc.)
After 20 years of the enactment of COPRA, consumer awareness in India is spreading
but slowly.
The consumer redressal process is becoming cumbersome, expensive and time
consuming because
1.Many a times consumers are required to engage lawyers.
2.These cases require time for filing and attending the court proceedings etc.
3.In most purchases cash memos are not issued hence evidence is not easy to
gather.& most purchases in the market are small retail sales.
4. The existing laws are also not very clear on the issue of compensation to
consumers injured by defective products.

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