CLASS 10 CONSUMER RIGHTS (ECONOMICS-5)

CONSUMER RIGHTS

Consumer Rights: They are the rights that protect the interests of the buyers and consumers of a commodity.

We participate in the market as producers and consumers.

Producers: If we work in the sectors like agriculture, industry or services, we act as producers.

Consumers: We become consumers when we purchase goods and services that we need.

Necessity of Rules and Regulations

Ø  Moneylenders in the informal sector of loans adopt tricks to bind the borrower, and this exploitation can be prevented by implementation of rules and regulations.

Ø  In the unorganized sector, regulations are necessary to protect the workers, who are exploited through a various ways.

Ø  In the market, rules and regulations are required to protect consumers from exploitation of the consumers. Whenever there is a complaint regarding the product, the seller tries to shift responsibility to buyer.

Need for Consumer Rights

ü  They are essential for protecting individual consumers who are cheated by sellers by the sale of defective products.

ü  They are needed for safeguarding the consumers against the unfair trade practices adopted by sellers. Eg: Selling goods at a cost of higher than the maximum retail price (MRP), selling adulterated/defective goods etc.

ü  They are required for strengthening the consumers who are scattered as compared to the companies/sellers who are organized or powerful.

Exploitation in the Marketplace

v  Sometimes, shopkeepers weigh less than what they should.

v  Traders add charges that were not mentioned before.

v  Adulterated or defected goods are sold.

v  Companies with more wealth and power reach manipulate the market.

v  False information is passed on to the media and other sources to attract consumers.

v  Whenever a good or service is found defective, the seller tries to shift the responsibility to the buyer.

Consumer Movement

The consumer movement arose out of dissatisfaction of the consumers to the growing malpractices in the market.

There was no legal system to protect consumers in the marketplace, and it was presumed(to be true) that it was the responsibility of consumers to be careful while buying a commodity or service.

After many years, the organizations in India and around the world spread consumer awareness, and shifted the responsibility of ensuring quality of goods from the buyer to the seller.

Consumer movement in India

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

Factors leading to birth of consumer movement in India

·         Rampant food shortage

·         Hoarding of goods

·         Black marketing

·         Adulteration of food and edible oil,

Led to emergence of consumer movement in India in 1960s. Till the 1970s the consumer organizations engaged in spreading awareness:

Ø  By means of articles in newspaper

Ø  Holding exhibitions

Ø  Conducting market surveys

Ø  Advertisement in print and electronic media

Efforts taken for Consumer Protection:

Consumer International

v  In 1985, the United Nations adopted the UN guidelines for consumer protection.

v  This was a tool for nations to adopt measures to protect consumers and for consumer advocacy groups to press their governments to do so.

v  At the international level, the consumer International has become the foundation for consumer movement.

v  It is a coordinating body of about 240 consumer organizations from over 100 countries.

 Consumer Protection Act (COPRA)

Enacted in 1986 by the Government of India to protect the consumers at the marketplace and to promote the interests of consumers.

Due to all these efforts, the consumer movement succeeded in bringing pressure on business firms and government to correct business conduct which may be unfair against interests of consumers.

Established a system of three-tier consumer courts at the district, state and national levels for redressal of consumer disputes.

District level court: Also known as District Consumer Dispute Redressal Commission, this court deals with cases, including claims up to Rs. 20 lakhs.

State level court: Also known as State Consumer Dispute Redressal Commission, this court deals with cases involving claims between Rs.20 lakhs to Rs.1crore.

National level court: Also known as National Consumer Dispute Redressal Commission, this court deals with cases involving claims exceeding Rs.1crore.

If a case is dismissed in district level, the consumer can also appeal in state and then in national courts.

Rights of the Consumers

Under COPRA, the consumers are guaranteed certain rights as follows:

Right to Safety: While using 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.

Many goods and services need special attention to ensure safety. Eg: Pressure cooker, LPG cylinders.

Producers need to strictly follow the rules and regulations and should ensure good quality.

However, we find bad quality of goods in market because of supervision of rules is weak, the consumer movement is not strong enough etc.

Right to be informed: Consumers have the right to be informed about the particulars of goods and services that they purchases.

Every packaged commodity must indicate, manufacturing date, expiry date, batch number, address of the manufacturer, directions for proper use, ingredients etc.

Consumers can then complain and ask for compensation or replacement if the product proves to be defective.

Eg: If the product has expired, we can ask for a replacement. If people sell medicines that have expired, severe action can be taken against them. If a person sells a good more than the actual MRP, the consumers can protest or complain.

In October 2005, the Government of India enacted the Right to Information (RTI) Act which ensures its citizens all the information about the functions of government departments.

Right to Choose: Any consumer who receives a service in whatever capacity, regardless of age, gender and nature of service, has the right to choose whatever to continue to receive the service.

Eg: Gas dealers forced to buy stove whenever we get a new connection, retailers force us to buy toothbrush when we purchase a tooth paste.

Right to seek Redressal/Right to Represent: In some instances where consumers are denied their rights, they have the right to seek redressal against unfair trade practices and exploitation.

If any damage is done to the consumer by the product or service, he/she has the right to get compensation depending on the degree of damage.

Under COPRA, a judicial system for consumer redressal was set up and the act has enabled consumers to have the right to represent in the consumer courts. (District, State, National)

Consumer Forums

They are organizations also called consumer protection councils.

They guide consumers on how to file cases in the consumer court.

They represent individual consumers in the consumer courts for the redressal of consumers.

They also receive financial support from the government for creating consumer awareness among people.

Logos/Certifications for Products

Certain organizations that monitor and issue those certificates allow producers to use their logos provided they follow certain quality standards. They are standards provided by the Bureau of Indian Standards (BIS). These marks generate trust among the consumers regarding the good quality of a commodity. It is not mandatory for all products to get certification. However, for some products that affect the health and safety of consumers or of products of mass consumption like LPG cylinders, food colours, additive cement, drinking water, it is mandatory to get certification.

ISI Logo – Electrical and Electronic products (Indian Standard Institute)

Agmark -  Agricultural products

Hallmark – Gold

National consumer day – 24^th December

Problems of Consumer Redressal

ü  A lot of time is consumed in the formal legal process.

ü  The consumer courts function like normal courts having complicated legal procedures.

ü  Consumer redressal has become expensive as consumers have to hire lawyers for representing their cases.

ü  The lack of evidence against sellers owing to non-issue of cash memos is an impediment in speedy disposal of consumer cases.

ü  The existing laws are not clear on the issue of compensation.

ü  Lack of clear enforcement.

ü  Most purchases in the market are small retail sales.