Social Studies

(Economics)
Chapter 5: Consumer Rights
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Consumer Rights
Consumer in the Marketplace
In the market, producers involved in production and consumers buy goods and services for
their daily requirements. Some traders indulge in unfair trade practices such as sale of
defective/adulterated goods; shopkeepers sell goods which weigh lesser than the actual
weight or sell goods with additional charges. Therefore, rules and regulations are required
to protect consumers in the market.
People participate in the market both as producers and consumers. As a producer they sell
their goods and provide services to the needy people. Producers provide service in the
sector like, agriculture sector or primary sector, secondary sector or manufacturing sector
and service sector or tertiary sector.
As a consumer, a person purchase goods and services that he/she need. Consumers
exploited in the marketplace by the producers in various ways. In informal sector,
borrowers are exploited by the moneylenders. People borrow money from moneylenders
at high rate of interest and also forced by the moneylenders to pay the loan timely.
Consumer Movement
The consumer movement in India as a social force originated to promote and protect the
interest of consumers against unethical and unfair trade practices. The consumer was
responsible for making a thoughtful purchase, and they avoided buying from sellers/goods
with whom they had a terrible experience. Consumer movements started because of
widespread dissatisfaction with such practises. In 1985, the United Nations guideline for
consumer protection became the foundation for the consumer movement. There were 220
member organisations from over 115 countries at the international level. With all these
efforts of the consumer movement, India has enacted the Consumer Protection Act 1986,
also known as COPRA, to protect consumers’ rights.
Consumer Rights
Producers are required to follow the rules and regulations with
special attention to the production of goods and services.
Consumers have the right to be protected against marketed and
delivered goods and services which are dangerous to life.
• Right to Information: Consumers have the right to be informed
about the particulars of goods and services which they consume
in the market. Information such as the ingredients, price, date
of manufacture and address of manufacturer is given on the
packaging. If the commodity proves to be defective before the
expiry period, consumers can complain and request for

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replacement or compensation. However, the manufacturer will neither replace nor

compensate for the defective product if the expiry date is not printed on the pack of a
commodity. When the trader sells a commodity at a price higher than the Maximum
Retail Price (MRP), the consumer can complain against the trader. Further, the Right to
Information Act was enacted by the Government of India in October 2005 to ensure
citizens with all information about the functions of government departments.
• Right to Choice: Consumers have the right to choose the good or service irrespective of
the nature of product or service available to them. If the right to choice is denied,
consumers can lodge a complaint against the trader.
• Right to Safety: This is the first and the most important of the Consumer Rights. They
should be protected against the product that hampers their safety. The protection must
be against any product which could be hazardous to their health – Mental, Physical or
many of the other factors.
• Right to Heard: If a consumer is dissatisfied with the product purchased then they have
all the right to file a complaint against it. And the said complaint cannot go unheard, it
must be addressed in an appropriate time frame.
• Right to Seek Redressal: In case a product is unable to satisfy the consumer then they
have the right to get the product replaced, compensate, return the amount invested in
the product. We have a three-tier system of redressal according to the Consumer
Protection Act 1986.
• Right to Consumer Education: Consumer has the right to know all the information and
should be made well aware of the rights and responsibilities of the government. Lack of
Consumer awareness is the most important problem our government must solve.
Consumer Forum
• The consumer forum or consumer protection councils are formed locally in India
to guide consumers on how to lodge a complaint in the consumer court.
• Three-tier quasi judicial machinery at the district, state and national levels was
set up under COPRA for the redressal of consumer disputes.
➢ The District Forum is a district-level court that hears matters involving claims
of up to Rs. 20 lakh.
➢ The State Commission is a state-level court that hears disputes involving
claims of between Rs. 20 lakh and Rs. 1 crore.
➢ The National Commission is a national level court that hears cases involving
claims above Rs. 1 crore.
Responsibilities of a Consumer
The consumer has a certain responsibility to carry as an aware consumer can bring changes

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in the society and would help other consumers to fight the unfair practice or be aware of it.
• They should be aware of their rights under the Consumer Protection Act and should
practice the same in case of need.
• They should be well aware of the product they are buying. Should act as a cautious
consumer while purchasing the product.
• If in case a product is found of anything false or not satisfactory a complaint should be
filed.
• The consumer should ask for a Cash Memo while making a purchase.
• A customer should check for the standard marks that have been introduced for the
authenticity of the quality of the product like ISI or Hallmark etc.
ISI and Agmark
These organisations monitor the production process of a particular product based on
certain quality standards. Then the certificate is issued to the producers to use their logos.
The quality standards are not mandatory for all products, but some products need to have
ISI and Agmark which concern the health and safety of consumers such as LPG cylinders,
cement and drinking water.

Consumer Movement
The Indian Parliament enacted the Consumer’s Protection Act on 24 th December 1986. It is
celebrated as National Consumers’ Day. It has only 20–25 well-organised and recognised
consumer groups out of 700 groups in the country. The consumer redressal forum involves
a cumbersome and expensive process to file a case against a defective product. Consumer
awareness is gradually spreading among the people.

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Important Questions
Multiple Choice questions-
Question 1. Which one of the following days is being observed as ‘National Consumers
Day’ in India?
(a) 24 December
(b) 25 December
(c) 10 December
(d) 31 december
Question 2. ISI mark can be seen on which of the following items?
(a) Jewellery
(b) Edible oil
(c) Electrical appliances
(d) Cereals
Question 3. ‘Hallmark’ is used as a logo for which one of the following?
(a) Agricultural products
(b) Jewellery
(c) Electrical goods
(d) Electronic goods
Question 4. The Consumer Protection Act or COPRA was enacted in the year
(a) 1985
(b) 1986
(c) 1987
(d) 1988
Question 5. When was the ‘Right to Information’ Act passed?
(a) In January 2002
(b) In March 2004
(c) In October 2005
(d) In July 2007
Question 6. Which of the following is not a right of consumers?
(a) Right to safety
(b) Right to be informed
(c) Right to choose

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(d) Right to constitutional remedies

Question 7. When did United Nations adopt the UN Guidelines for Consumer
Protection?
(a) 1985
(b) 1990
(c) 1995
(d) 1999
Question 8. Which of the following is not a function of Consumer Protection Councils?
(a) To create awareness of consumer rights among consumers.
(b) To guide consumers on how to file cases in consumer courts.
(c) To provide compensation to consumers when they are cheated by shopkeepers.
(d) To represent consumers in Consumer Courts at times.
Question 9. What was the name given to the agency at the global level for the
protection of consumer rights?
(a) Consumer Court of Justice
(b) International Consumer Forum
(c) Consumers Commission
(d) Consumers International
Question 10. Which one of the following does not provide certificate of
standardization in India?
(a) ISI
(b) Agmark
(c) Hallmark
(d) COPRA
Question 11. Suppose you want to buy toothpaste and the shop owner says that
he/she can sell the toothpaste only if you buy a toothbrush, which of your right is
being violated by the shopkeeper?
(a) Right to safety
(b) Right to be informed
(c) Right to choose
(d) Right to represent
Question 12. Which of the following is not a right of consumers?
(a) Right to safety
(b) Right to be informed

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(c) Right to choose

(d) Right to constitutional remedies
Question 13. In October 2005, the Government of India enacted a law known as:
(a) Right to Choose Act
(b) Right to Information Act
(c) Women Reservation Act
(d) Anti-corruption Act
Question 14. Which one of the following is not true regarding the Right to Safety?
(a) Right to be protected against unsafe appliances.
(b) Right to protected against unsafe working conditions.
(c) Right to seek information about functioning of government departments.
(d) Right to be protected against services which are hazardous to life.
Question 15. Which of the following laws was enacted by the Government of India in
the year 2005?
(a) The Right to Information Act
(b) The Consumer Protection Act
(c) The Right to Education Act
(d) The Right to Property Act
Very Short Questions-
Question 1. Which cases does the district level court deal with? (2011 D)
Question 2. A shopkeeper insists that you buy a guide with your NCERT Textbook.
Which right of the consumer is being violated here? (2011 OD)
Question 3. In which court a consumer should file a case if he/she is exploited in the
market? (2012 D)
Question 4. What was the main cause of the rise of the consumer movement? (2012
OD)
Question 5. Mention two ways in which consumer ignorance can cause their
exploitation?
Question 6. Hallmark is the certification maintained for standardization of which type
of products? (2013 OD)
Question 7. When is ‘National Consumers Day’ celebrated in India? (2014 OD)
Question 8. Which certification is maintained for standardization of electrical goods?
(2014 OD, 2015 D)
Question 9. Which one of the following is the certification maintained for

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standardization of edible goods? (2014 OD)

Question 10. Which logo would you like to see for purchasing electrical goods? (2015
D)
Short Questions-
Question 1. What is standardization of products? Mention any two organizations
responsible for the standardization of products in India. (2011 D)
Question 2. Why are rules and regulations required for the protection of consumers in
the marketplace? Justify the statement with arguments. (2016 OD, 2013 D, 2011 OD)
Question 3. ‘Governments initiate schemes and programmes to alleviate the suffering
of the poor and meet their basic needs.’ (2012 OD)
1. Identify the fundamental right which is related to the Statement.
2. But poverty remains in the country. What could be the reason for such a
situation?
Question 4. Explain the ‘Right to seek redressal’ with an example. (2013 OD)
Or
Explain with an example how you can use the right to seek redressal. (2015 OD)
Question 5. How do ‘Consumer Protection Councils’ help consumers? Explain three
ways. (2012 OD)
Question 6. How have markets been transformed in recent years? Explain with
examples. (2014 OD)
Question 7. Describe the conditions in which markets do not work in a fair manner.
(2015 D)
Question 8. How did consumer movement originate as a ‘social force’ in India? (2014
OD)
Or
“The consumer movement arose out of dissatisfaction of the consumers”. Justify the
statement with arguments. (2016 OD)
Question 9. Explain with suitable examples meaning of ‘Right to Information’ as
provided under the Consumer Protection Act. CBSE Sample Question Paper (2009)
Question 10. Analyse with a suitable example the meaning of right to choose provided
under the Consumer Protection Act. CBSE Sample Question Paper (2009)
Long Questions-
Question 1. Consumers have the right to be informed about goods and services they
purchase. Explain its three advantages. (2011 D)
Question 2. How do the large companies often manipulate the markets? Explain with
an example. (2011 D)

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Question 3. Explain why a consumer should learn to be well informed. (2011 OD)
Question 4. “There is a great need for acquiring the knowledge and skill to become a
well informed consumer.” Support this statement. (2012 OD)
Question 5. What is ‘Consumer Protection Act’? Explain any three reasons responsible
of enacting ‘Consumer Protection Act, 1986′ by the Government of India. (2011 D)
Question 6. How is the consumer redressal process becoming cumbersome, expensive
and time-consuming? Explain. (2014 OD, 2012 OD)
Question 7. “Consumer awareness is essential to avoid exploitation in the market
place.” Support the statement. (2016 D)
Question 8. How does exploitation of consumers take place in the market? Explain
with any five facts. (2014 D)
Or
How are consumers exploited in the market place? Explain. (2016 OD, 2012 D)
MCQ Answers-
1. Answer: (a) 24 December
2. Answer: (c) Electrical appliances
3. Answer: (b) Jewellery
4. Answer: (b) 1986
5. Answer: (c) In October 2005
6. Answer: (d) Right to constitutional remedies
7. Answer: (a) 1985
8. Answer: (c) To provide compensation to consumers when they are cheated by
shopkeepers.
9. Answer: (d) Consumers International
10. Answer: (d) COPRA
11. Answer: (c) Right to choose
12. Answer: (d) Right to constitutional remedies
13. Answer: (b) Right to Information Act
14. Answer: (c) Right to seek information about functioning of government
departments.
15. Answer: (a) The Right to Information Act
Very Short Answers-
1. Answer: The district level court deals with cases involving claims upto ₹ 20 lakhs.
2. Answer: Right to choose.

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3. Answer: Consumer Court

4. Answer: The consumer movement grew out of consumers’ dissatisfaction due to
unfair trade practices of sellers.
5. Answer:
1. Consumers may not be careful in looking at the quality of the products or
guarantee of the products and services. They do not bother about the warranty
card.
2. They may not bother to buy quality marked products (such as ISI, Agmark).
3. They may not bother to take the cash memo without which they cannot make
complaints or get redressal.
6. Answer: Jewellery
7. Answer: National Consumers Day is celebrated every year on 24th December.
8. Answer: ISI
9. Answer: ISI
10. Answer: ISI
Short Answers-
Answer 1: Standardization of a product or service is done by government agencies to
ensure consistency in quality of products or services. It helps consumers get assured
of quality while purchasing the goods and services. The organizations that monitor
and issue these certificates allow producers to use their logos, i.e., ISI, Agmark or
Hallmark provided they follow certain quality standards.
The two organizations responsible for the standardization of products in India are:
1. Bureau of Indian Standards issues ISI for industrial products and Hallmark for
jewellery.
2. Ministry of Agriculture issues Agmark for food items.
Answer 2: Rules and regulations are required in the market place for the following
reasons:
1. 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 as if the seller has no responsibility
once a sale is completed.
2. To check exploitation in the market place that happens in various ways. For
example, 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 goods are sold.
3. Markets do not work in a fair manner when producers are few and powerful
whereas consumers purchase in small amounts and are scattered. Large

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companies sometimes manipulate the market in various ways.

For example, at times false information is passed on through media to attract
consumers.
4. False and incomplete information. Sellers easily mislead consumers by giving
wrong information about a product, its price, quality, reliability, lifecycle, expiry
date, durability, its effect on health, environment, safety and security,
maintenance cost involved and terms and conditions of purchase. Cosmetics,
drugs and electronic goods are common examples where consumers face such
problems. For example, At times false information is passed on through media
to attract consumers.
Hence there is a need for rules and regulations to ensure protection of the
consumers.
Answer 3:
1. Right to Equality
2. The situation of poverty remains unchanged despite government’s initiatives
because every citizen does not participate directly in competitive politics and
the problems and need of the public, especially the poor are not duly
represented. People may not have the desire, the need or the skill to take part
in direct political activity other than voting. Sometimes people act together
without forming any organization, which indirectly helps people to reach the
government to listen to their demand or point of view.
Answer 4:
Right to seek redressal:
1. The consumers can seek redressal against trade practices of exploitation and
have the right to fair settlement of the genuine grievances.
2. He has a right to get compensation from a manufacturer/trader if he is harmed.
The consumer can seek redressal through Consumer Courts functioning at
district, state and national levels.
Example: Mahesh sent a money order to his village for his mother’s medical
treatment. The money did not reach his mother at the time when she needed it
and reached months later. Mahesh, thus filed a case in the district level
consumer court to seek redressal.
Answer 5: The consumer movement led to the formation of various organizations
locally known as ‘Consumer forums’. These are voluntary organizations.
1. They guide consumers on how to file cases in the consumer courts.
2. They represent consumers in the consumer courts.
3. These voluntary organizations receive financial support from the government
for creating awareness among the consumers.

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Answer 6: The initial aspect of unequal situations in a market and poor enforcement
of rules and regulations have now seen a transformation in the market in recent
years.
1. The transformation of markets in recent years has come because of legal
institutions helping consumers in getting compensated and upholding their
rights as consumers.
2. The awareness of being a well-informed consumer which arose out of consumer
movement has also shifted the responsibility of ensuring quality of goods and
services on the sellers.
3. The producers in the market need to strictly follow the required safety rules and
regulations. The manufacturer in the market is now required to display
information about the ingredients used, price, batch number, date of
manufacture, expiry date and the address of the manufacturer.
For example, pressure cookers have safety valves and manufacturers have to ensure
its high quality. While buying medicines the ‘directions for use’ and information
relating to side effects and risk associated with its usage are to be mentioned on the
packets.
Answer 7: Markets do not work in fair manner when:
• producers are few and powerful;
• consumers are numerous and purchase in small amounts and are scattered;
• large companies producing these goods having huge wealth; power and reach
manipulate the market in various ways; and
• consumers are misinformed through the media and are unaware of their rights.
Answer 8: 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 of the producers and sellers.
1. Rampant food shortages, hoarding, black marketing and adulteration of food
and edible oil gave birth to the consumer movement in an organized form in
the 1960s.
2. In the early phase, consumer organizations were mainly engaged in writing
articles and holding exhibitions. They formed groups to look into malpractices
in ration shops and overcrowding in road passenger transport.
3. Because of all these efforts, the movement succeeded in putting pressure on
business firms and the government to change their unfair ways.
4. As a result of all this, a major step was taken by the Indian Government in
1986. It enacted the Consumer Protection Act, 1986, which popularly came to
be known as COPRA.
Answer 9: Consumers have the right to know what kind of goods they are buying in

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order to save themselves from exploitation at the hands of shopkeepers and

producers.
1. This includes quality, quantity, potency, purity, standard and price of goods
and date of expiry (in the case of drugs).
2. Detailed information about ingredients used, date of manufacture and the
address of the manufacturer should be available to consumers, particularly in
the case of drugs (regarding its use and side-effects, if any).
3. In the case of a garment, washing instructions should be available. Electrical
goods must have information regarding their use.
Without this information the consumers cannot complain and ask for compensation
or replacement if the bought product proves to be defective in any manner.
0In recent years, the right to information has been expanded to cover various services
provided by the government by The RTI (Right to Information) Act 2005. This Act
ensures citizens’ right to relevant information about the functioning of government
departments.
Answer 10: 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. The right to choose in the simplest sense is the consumer’s right:
1. To buy any brand of a good (soap, cooking oil etc.) and not be forced to buy
only what a monopolist produces.
2. The right to choose is even more extensive than this, even after the consumer
has bought a good and then finds out that it is not of the quality claimed for it,
he/she has the right to return the good and choose another brand.
3. In a modern economy the right to choose has been further extended into all
kinds of services including education. If your child is admitted to a school and
you find that the school is not giving your child the kind of education it had
promised, you should have the right to withdraw your child and seek
admission in another school without losing the money you had spent as
admission fee, annual fee etc. all over again.
Long Answers-
Answer 1: It is mandatory for the manufacturer to display certain details on the
packing because consumers have the right to be informed about the particulars of
goods and services they purchase. These details are about ingredients used, price,
quantity, quality, potency, batch number, date of manufacture, expiry date and the
address of the manufacturer.
The advantages of this rule are:
1. Consumers can use this information to complain and ask for compensation or
replacement if the product proves to be defective in any manner. For example,
if we buy a product and find it defective well within the expiry period, we can

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ask for a replacement. If the expiry period was not printed, the manufacturer
would blame the shopkeeper and will not accept the responsibility.
2. One can protest and complain if someone sells a good at more than the
printed price on the packet. This is indicated by ‘MRP’ — maximum retail
price. In fact if the MRP is missing from the packing, a consumer can bargain
with the seller to sell at less than the MRP.
3. In October 2005, the Government of India enacted a law known as RTI (Right
to Information) Act, which ensures its citizens all the information about the
functions of government departments. The RTI Act gives consumers the power
to Question the government about the functions and various services provided
by the government.
Answer 2: The big companies eliminate their competitors by lowering down the price
of products thereby establishing their monopolies in the market giving less choice to
people.
The large companies with huge wealth, power and reach often manipulate the market
in various ways. Some common ways by which consumers are exploited in the market
are :
1. Goods sold in the market are sometimes not measured or weighed correctly.
2. The goods sold are sometimes of sub-standard quality, For example, selling
medicines beyond their date of expiry.
3. In costly edible items such as oil, ghee etc. adulteration is common.
4. At times false information is passed on through the media and other sources
to attract consumers. For example, a company for years sold powder milk for
babies all over the world as the most scientific product claiming it 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.
5. Similarly, a long battle had to be fought with court cases to make cigarette
manufacturing companies accept that their product could cause cancer.
Answer 3: Consumers should learn to be well informed to avoid exploitation and
unfair trade practices that happen in the market place in various ways. For example,
sometimes shopkeepers weigh less than what they should or when traders add
charges that were not mentioned before or when adulterated and defective goods are
sold to ignorant consumers.
At times false information is passed on through the media to attract consumers.
Consumers have the right to be informed about the particulars of goods and services
that they purchase. Consumers can then complain and ask for compensation and
replacement if the product proves to be defective in any manner. One can also protest
and complain if someone sells a good at more than MRP or can bargain with the seller
to sell at less than the MRP.
When we as consumers become conscious of our rights, while purchasing various

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goods and services, we will be able to discriminate and make informed choices. This
calls for acquiring the knowledge and skill to become a well informed consumer.
Answer 4: There is a great need for acquiring the knowledge and skill to become a
well informed consumer because
1. We, as consumers participate in the market.
2. Consumer consciousness is very important for every buyer while purchasing
various goods and services.
3. We should know the rules and regulations protecting the consumers’ rights.
4. When we buy a commodity, we should know the details like the ingredients,
date of manufacturing, date of expiry, directions of usage and risk associated.
5. This enables consumers to make the right choice.
Answer 5: Consumer Protection Act. The COPRA was enacted to protect and promote
the interests of consumers against unethical and unfair trade practices.
The rationale behind COPRA (Consumer Protection Act) is to provide the consumers
the means to redressal at three levels of quasi-judicial courts—District Forum, State
Consumer Courts and National Commission.
This Act has enabled the consumers to have a right to represent themselves in the
consumer courts.
The ‘Consumer Protection Act, 1986’ was enacted:
• to protect consumers in the market place and promote the interests of
consumers against unethical and unfair trade practices like rampant food
shortages, hoarding, black marketing, over pricing, adulteration of food and
edible oil.
• to stop big companies from manipulating the market by giving false information
through media, thereby exploiting the consumers.
• to give rights to consumers to represent in the Consumer Court and seek
redressal against unfair trade practices and exploitation.
Answer 6: The consumer redressal process is becoming cumbersome, expensive and
time-consuming.
1. Many a time, consumers are required to hire lawyers. These cases require
time for filing and attending court proceedings.
2. In most purchases, cash memos are not issued, therefore it is difficult to
gather evidence in case a consumer is cheated.
3. The existing laws are also not very clear on the issue of compensation to
consumers injured by defective goods.
4. Enforcement of laws that protect workers in the unorganized sectors is weak.
5. Also, consumer awareness is spreading slowly. Rules and regulations of

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working markets are not followed.

Answer 7: Consumer awareness is essential to avoid exploitation in the market place.
Markets do not work in a fair manner. Exploitation happens in various ways.
Therefore, awareness is essential. Certain details are given on the packing of all
commodities. When we buy medicines, details are marked on the packets. Rules have
been made so that the manufacturer displays the information.
Consumers who are not aware may buy, For example,
1. Medicines that have not been properly inspected and certified by the
appropriate authority, or whose expiry date is already over.
2. They may buy electronic/electrical goods which may have defects or these
products may not adhere to safety norms. Consumers can complain and ask
for compensation or replacement of the product, if it proves to be defective in
any manner.
Answer 8: Some common ways by which consumers are exploited by manufacturers
and traders are given below:
1. Underweight and under-measurement. Goods sold in the market are
sometimes not measured or weighed correctly.
2. High prices. Very often the traders charge a price higher than the prescribed
retail price.
3. Sub-standard quality. The goods sold are sometimes of sub-standard quality,
e.g. selling medicines beyond their date of expiry, selling deficient or defective
home appliances.
4. Duplicate articles. In the name of genuine parts or goods, fake or duplicate
items are sold to the consumers.
5. Adulteration and impurity. In costly edible items like oil, ghee and spices,
adulteration is common in order to earn more profit. This causes heavy loss to
the consumers. They suffer from monetary loss as well as damage to their
health.
6. Lack of safety devices. Fake or inferior electronic goods, electrical devices or
other appliances, produced locally lack the required in-built safety measures.
This may cause accidents.
7. False and incomplete information. Sellers easily mislead consumers by giving
wrong information about a product, its price, quality, reliability, life-cycle,
expiry date, durability, its effect on health, environment, safety and security,
maintenance cost involved and terms and conditions of purchase. Cosmetics,
drugs and electronic goods are common examples where consumers face such
problems.

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