CONSUMER RIGHTS
IN THE MARKET
BY KASHVI
DEV 10E
ECONOMIC TIMES
"Stop! Read This Before
You Shop!
Right to Buy, Right to Fight: A Consumer’s Handbook
project done by-
Kashvi Dev
10E-9
CONSUMER RIGHTS
IN THE MARKET DEV 10E
BY KASHVI
WHO IS A CONSUMER? WHO IS A PRODUCER?
A consumer is an individual who A producer is an individual who
purchases goods and services for produces or sells goods and services
personal use and not for to generate income ie; who creates
manufacturing or resale ie; and supplies goods or services.
someone who buys for final Producers are important since all
consumption economic activities that aim
Customers are final users in the directly or indirectly to satisfy
sense that the product is usually not human wants or needs are linked to
production.
improved by or after the use
IMPORTANCE OF REGULATIONS
1. Protecting Workers 2. Preventing exploitation
Rules safe guard workers in Regulations prevent
unorganised sectors from low moneylenders from
wages and harmful exploiting borrowers with
conditions. unfair terms
3. Ensuring Fair Markets
Rules are crucial when
powerful companies
manipulate markets with
false information
CASE STUDY: VOLKSWAGEN
EMISSIONS SCANDAL
In 2015, Volkswagen was caught using software to
cheat emission tests in diesel cars.
Cars passed lab tests but emitted up to 40x more
harmful gases on real roads.
Over 11 million vehicles were affected worldwide,
including some in India.
REGULATORY ACTION:
The U.S. Environmental Protection Agency (EPA) fined
Volkswagen billions of dollars.
The company had to recall over 11 million cars globally.
Volkswagen’s CEO resigned, and the company’s
reputation suffered massive damage.
THE RISE OF THE CONSUMER
MOVEMENT Because of all these efforts, the
movement succeeded in bringing pressure
on business firms as well as government
Born from consumer dissatisfaction with unfair
to correct business conduct which may be
practices, the movement aimed to shift unfair and against the interests of
responsibility for quality onto sellers. consumers at large.
IN INDIA:
Began as a social force to protect consumer interests
in the 1960s to fight unfair trade practices like
hoarding, black marketing, and adulteration.
Early efforts focused on awareness through articles,
exhibitions, and small consumer groups.
Key concerns included ration shop malpractices and
overcrowded public transport.
COPRA & CONSUMERS
INTERNATIONAL
A major step taken in 1986 by the Indian government
was the enactment of the Consumer Protection Act
1986, popularly known as COPRA.
1985: United Nations adopts UN Guidelines for Consumer
Protection, which were 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, this has become the foundation
for the consumer movement.
Today, Consumers International has become an umbrella
body to over 200 member organisations from over 100
countries.
CONSUMER RIGHTS
6 Rights Under COPRA:
1. Right to 2. Right to 3. Right to
Safety Information Choice
6. Right to
4. Right to 5. Right to
Consumer
Representation Redressal Education
1. RIGHT TO SAFETY
The Right to Safety protects consumers REAL LIFE EXAMPLE: Johnson & Johnson
from goods and services that are Baby Powder Case (India, 2023)
dangerous to life, health, or property. It Maharashtra FDA found cancer-causing
ensures that: substances in their baby powder. J&J’s license
Products meet quality & safety was cancelled for endangering health.
standards. > Shows how harmful products can reach
Proper warnings, instructions, and labels markets if not properly regulated.
are provided.
Consumers are not exposed to harmful
substances, faulty designs, or unsafe
procedures.
The government regulates safety through
bodies like BIS AND FSSAI
2. RIGHT TO INFORMATION
Consumers have the right to correct, REAL LIFE EXAMPLE:
complete, and clear information about Maggi Noodles Ban (2015)
the products and services they buy. Nestlé was accused of not disclosing excess lead
Key Features: content and false labelling of "No added
MSG."
Includes info on price, weight,
> Violated the Right to Information. Maggi
ingredients, manufacturing/expiry dates, was banned for months across India.
usage instructions, side effects, etc.
Prevents cheating through false ads or
hidden charges.
Mandatory to disclose MRP, net
contents, and warnings.
3. RIGHT TO CHOICE
Consumers have the right to choose REAL LIFE EXAMPLE:
Cable TV Monopoly Case (2004)
whether to continue receiving a service and
Consumers in Mumbai were forced to buy
not be forced into unwanted purchases.
set-top boxes from a single provider with
No forced buying you can refuse a
high prices.
combo/offer.
> Supreme Court ruled this violated the
Ensures fair competition in the
Right to Choice.
market.
Applies to both public and private
sectors.
Choice ensures better quality, price,
and satisfaction. Monopolies or fake
offers take away this right.