| Non-Rationalised Economics NCERT Notes, Solutions and Extra Q & A (Class 9th to 12th) | |||||||||||||||||||
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| 9th | 10th | 11th | 12th | ||||||||||||||||
| Class 10th Chapters | ||
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| 1. Development | 2. Sectors Of The Indian Economy | 3. Money And Credit |
| 4. Globalisation And The Indian Economy | 5. Consumer Right | |
Chapter 5 Consumer Rights
The Consumer in the Marketplace
Introduction
We participate in the market both as producers and consumers. As consumers, we purchase the final goods and services that we need. In the marketplace, consumers often find themselves in a weak position and can be exploited in various ways. This necessitates rules and regulations for the protection of consumers.
Exploitation in the Marketplace
Exploitation of consumers in the marketplace happens in various ways:
- Unfair Trade Practices: Traders may indulge in practices such as weighing less than they should, adding charges that were not mentioned before, or selling adulterated or defective goods.
- Power Imbalance: Markets do not work in a fair manner when producers are few and powerful, while consumers purchase in small amounts and are scattered. Large companies with huge wealth and power can manipulate the market.
- False Information: At times, false information is passed on through media and advertisements to attract consumers. For example, a company might make false claims about its baby milk powder being better than mother's milk, or a cigarette company might hide the fact that its product causes cancer.
Whenever a consumer has a complaint, the seller often tries to shift all responsibility onto the buyer with a "take it or leave it" attitude. To change this situation and ensure protection for consumers, rules and regulations are essential.
The Consumer Movement
Origins and Growth
The consumer movement arose out of the dissatisfaction of consumers with the many unfair practices being indulged in by sellers. Initially, there was no legal system available to protect consumers from exploitation.
- The movement began as a 'social force' in India in the 1960s, originating from the necessity to protect and promote consumer interests against unethical trade practices like rampant food shortages, hoarding, black marketing, and adulteration of food and edible oil.
- Until the 1970s, consumer organizations were largely engaged in writing articles and holding exhibitions. They formed consumer groups to look into malpractices in ration shops and overcrowding in public transport.
- Over many years, organizations in India and around the world worked to create awareness, which eventually shifted the responsibility of ensuring the quality of goods and services onto the sellers.
The Consumer Protection Act, 1986 (COPRA)
Because of the efforts of the consumer movement, there was pressure on business firms and the government to correct unfair business conduct. A major step was taken in 1986 by the Indian government with the enactment of the Consumer Protection Act 1986, popularly known as COPRA.
At the international level, the United Nations adopted the UN Guidelines for Consumer Protection in 1985. This provided a tool for nations to adopt measures to protect consumers and became a foundation for the global consumer movement.
Consumer Rights
COPRA has enshrined several rights for consumers to protect them from exploitation.
1. Right to Safety
As consumers, we have the right to be protected against the marketing of goods and the delivery of services that are hazardous to life and property. Producers must strictly follow the required safety rules and regulations.
Example 1: Reji's Suffering. A healthy boy, Reji Mathew, was admitted to a private clinic for the removal of tonsils. Due to improper anaesthesia, he suffered brain abnormalities and was crippled for life. His father filed a complaint, and after a long legal battle, the National Consumer Disputes Redressal Commission held the hospital responsible for medical negligence and directed it to pay compensation.
Many goods, like pressure cookers with defective safety valves or substandard LPG cylinders, can cause serious accidents if they do not adhere to safety standards.
2. Right to be Informed
Consumers have the right to be informed about the particulars of the goods and services they purchase. Rules have been made so that manufacturers display this information on the packaging. This includes:
- Ingredients used
- Price (Maximum Retail Price or MRP)
- Batch number
- Date of manufacture and expiry date
- Address of the manufacturer
This information allows consumers to complain and ask for compensation or replacement if a product is defective. Consumers can even bargain with the seller to sell at a price less than the MRP.
In October 2005, the Government of India enacted the Right to Information (RTI) Act, which ensures that citizens can get information about the functions of government departments.
3. 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 whether to continue to receive that service. A seller cannot force you to buy a product or service that you do not wish to.
Example 2: A Refund. A student, Abirami, joined a two-year coaching course but decided to opt out after one year because the teaching quality was poor. The institute refused to refund the fee for the second year. She filed a case in the District Consumer Court, which directed the institute to refund the fee. The court upheld her right to choose.
Sometimes, sellers use tactics to deny this right, such as insisting that you buy a stove when taking a new gas connection, or that you must buy a toothbrush with your toothpaste.
4. Right to Seek Redressal
Consumers have the right to seek redressal against unfair trade practices and exploitation. If any damage is done to a consumer, they have the right to get compensation depending on the degree of damage.
The Consumer Court System
Under COPRA, a three-tier quasi-judicial machinery was set up for the redressal of consumer disputes:
- District Forum (District-level court): Deals with cases involving claims up to ₹20 lakh.
- State Commission (State-level court): Deals with cases involving claims between ₹20 lakh and ₹1 crore.
- National Commission (National-level court): Deals with cases involving claims exceeding ₹1 crore.
If a case is dismissed at a lower level, a consumer has the right to appeal to the next higher-level court. This Act has enabled consumers to have the right to represent in the consumer courts.
5. Right to Consumer Education
When consumers become conscious of their rights, they can make informed choices and protect themselves from exploitation. The government and consumer organizations undertake various efforts to spread awareness. For instance, the government uses posters and media advertisements to inform people about their rights and the legal processes available to them. This helps in "learning to become well-informed consumers".
Becoming a Well-Informed Consumer and Taking the Movement Forward
Quality Certification Marks
To help consumers get assured of quality while purchasing goods and services, several logos and certifications are used.
- ISI Mark: Used for industrial products.
- Agmark: Used for agricultural products.
- Hallmark: Used for jewellery.
Organizations that monitor and issue these certificates allow producers to use their logos, provided they follow certain quality standards. While it is not compulsory for all producers to follow these standards, it is mandatory for products that affect the health and safety of consumers, such as LPG cylinders, food colours, cement, and packaged drinking water.
Taking the Consumer Movement Forward
India observes 24th December as National Consumers' Day, as it was on this day in 1986 that the Consumer Protection Act was enacted. While the consumer movement in India has made some progress, with over 700 consumer groups in the country, the consumer redressal process still faces challenges.
Challenges and Weaknesses
- Cumbersome Process: The redressal process is often cumbersome, expensive, and time-consuming. Consumers may need to engage lawyers.
- Lack of Evidence: In most retail purchases, cash memos are not issued, making it difficult to gather evidence.
- Slow Progress: After more than 30 years since the enactment of COPRA, consumer awareness in India is still spreading slowly.
- Weak Enforcement: The enforcement of laws that protect workers (especially in the unorganized sector) and regulate markets is often weak.
Nevertheless, there is scope for consumers to realize their role and importance. Consumer movements can only be effective with the active involvement and voluntary effort of all consumers.
NCERT Questions Solution
Intext Questions (Pages No. 77)
Question 1. What are the various ways by which people may be exploited in the market?
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Question 2. Think of one example from your experience where you thought that there was some ‘cheating’ in the market. Discuss in the classroom.
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Question 3. What do you think should be the role of government to protect consumers?
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Intext Questions (Pages No. 78)
Question 1. What could have been the steps taken by consumer groups?
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Question 2. There may be rules and regulations but they are often not followed. Why? Discuss.
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Intext Questions (Pages No. 79)
Question 1. For the following (you can add to the list) products/services discuss what safety rules should be observed by the producer?
(a) LPG cylinder
(b) cinema theatre
(c) circus
(d) medicines
(e) edible oil
(f) marriage pandal
(g) a high-rise building.
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Question 2. Find out any case of accident or negligence from people around you, where you think that the responsibility lay with the producer. Discuss.
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Intext Questions (Pages No. 81)
Question 1. When we buy commodities we find that the price charged is sometimes higher or lower than the Maximum Retail Price printed on the pack. Discuss the possible reasons. Should consumer groups do something about this?
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Question 2. Pick up a few packaged goods that you want to buy and examine the information given. In what ways are they useful? Is there some information that you think should be given on those packaged goods but is not? Discuss.
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Question 3. People make complaints about the lack of civic amenities such as bad roads or poor water and health facilities but no one listens. Now the RTI Act gives you the power to question. Do you agree? Discuss.
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Intext Questions (Pages No. 82)
Question 1. The following are some of the catchy advertisements of products that we purchase from the market. Which of the following offers would really benefit consumers? Discuss.
- 15 gm more in every 500 gm pack.
- Subscribe for a newspaper with a gift at the end of a year.
- Scratch and win gifts worth Rs 10 lakhs.
- A milk chocolate inside a 500 gram glucose box.
- Win a gold coin inside a pack.
- Buy shoes worth Rs 2000 and get one pair of shoes worth Rs 500 free.
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Intext Questions (Pages No. 84)
Question 1. Arrange the following in the correct order.
(a) Arita files a case in the District Consumer Court.
(b) She engages a professional person.
(c) She realises that the dealer has given her defective material.
(d) She starts attending the court proceedings.
(e) She goes and complains to the dealer and the Branch office, to no effect.
(f) She is asked to produce the bill and warranty before the court.
(g) She purchases a wall clock from a retail outlet.
(h) Within a few months, the dealer was ordered by the court to replace her old wall clock with a brand new one at no extra cost.
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Intext Questions (Pages No. 86)
Question 1. Look at the posters and cartoons in this chapter. Think of any particular commodity and the aspects that need to be looked at as a consumer. Design a poster for this.
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Question 2. Find out the nearest consumer court for your area.
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Question 3. What is the difference between consumer protection council and consumer court?
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Question 4. The Consumer Protection Act 1986 ensures the following as rights which every consumer in India should possess
(i) Right to choice. (iv) Right to representation.
(ii) Right to information. (v) Right to safety.
(iii) Right to redressal. (vi) Right to consumer education.
Categorise the following cases under different heads and mark against each in brackets.
(a) Lata got an electric shock from a newly purchased iron. She complained to the shopkeeper immediately. ( )
(b) John is dissatisfied with the services provided by MTNL/BSNL/TATA INDICOM for the past few months. He files a case in the District Level Consumer Forum. ( )
(c) Your friend has been sold a medicine that has crossed the expiry date and you are advising her to lodge a complaint ( ).
(d) Iqbal makes it a point to scan through all the particulars given on the pack of any item that he buys. ( )
(e) You are not satisfied with the services of the cable operator catering to your locality but you are unable to switch over to anybody else. ( )
(f) You realise that you have received a defective camera from a dealer. You are complaining to the head office persistently ( ).
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Question 5. If the standardisation ensures the quality of a commodity, why are many goods available in the market without ISI or Agmark certification?
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Question 6. Find out the details of who provides Hallmark and ISO certification.
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Exercises
Question 1. Why are rules and regulations required in the marketplace? Illustrate with a few examples.
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Question 2. What factors gave birth to the consumer movement in India? Trace its evolution.
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Question 3. Explain the need for consumer consciousness by giving two examples.
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Question 4. Mention a few factors which cause exploitation of consumers.
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Question 5. What is the rationale behind the enactment of Consumer Protection Act 1986?
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Question 6. Describe some of your duties as consumers if you visit a shopping complex in your locality.
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Question 7. Suppose you buy a bottle of honey and a biscuit packet. Which logo or mark you will have to look for and why?
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Question 8. What legal measures were taken by the government to empower the consumers in India?
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Question 9. Mention some of the rights of consumers and write a few sentences on each.
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Question 10. By what means can the consumers express their solidarity?
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Question 11. Critically examine the progress of consumer movement in India.
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Question 12. Match the following.
| (i) Availing details of ingredients of a product | (a) Right to safety |
| (ii) Agmark | (b) Dealing with consumer cases |
| (iii) Accident due to faulty engine in a scooter | (c) Certification of edible oil and cereals |
| (iv) District Consumer Court | (d) Agency that develop standards for goods and services |
| (v) Consumers International | (e) Right to information |
| (vi) Bureau of Indian Standards | (f) Global level institution of consumer welfare organisations |
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Question 13. Say True or False.
(i) COPRA applies only to goods.
(ii) India is one of the many countries in the world which has exclusive courts for consumer redressal.
(iii) When a consumer feels that he has been exploited, he must file a case in the District Consumer Court.
(iv) It is worthwhile to move to consumer courts only if the damages incurred are of high value.
(v) Hallmark is the certification maintained for standardisation of jewellry.
(vi) The consumer redressal process is very simple and quick.
(vii) A consumer has the right to get compensation depending on the degree of the damage.
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