Consumer rights

1. Why are rules and regulations needed in the market? Explain with examples. [CBSE
Delhi 2017]
Answer: Need for rules and regulations:
(i) 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.
(ii) Sometimes traders indulge in unfair trade practices, such as when shopkeepers weigh less
than what they should.
(iii) Markets do not work in a fair manner when producers are few and powerful. A long
battle had to be fought with court cases to make cigarette manufacturing companies accept
that their product could cause cancer.
(iv) Large companies with huge wealth, power and reach can manipulate the market in
various ways. At times false information is passed on through the media and other sources to
attract consumers.
(v) Consumer is also exploited when buyers purchase in small amount and are scattered. For
example, a company for years sold powder milk for babies all over the world as the most
scientific product claiming this 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.
2. How does a consumer exercise his right to be informed?
Answer: (i) Manufacturers display the required information on the goods or medicines we
purchase, because consumers have the right to be informed.
(ii) Consumers can then complain and ask for compensation or replacement, if the product
proves to be defective in any manner.
(iii) For example, if we buy a product and find it defective well within the expiry period, we
can ask for a replacement. If the expiry period is not printed, the manufacturer would blame
the shopkeeper and will not accept the responsibility.
(iv) One can protest and complain if someone sells a goods at more than the printed price on
the packet. This is indicated by the Maximum Retail Price (MRP). In fact, customers can
bargain with the seller to sell at less than the MRP.
(v) In October 2005, the government of India enacted a law known as RTI or the Right to
Information Act, which ensures its citizens all the information about the functions of
government departments.
3. What problems do we face in taking the consumer movement forward?
Answer: The consumer redressal process is becoming cumbersome, expensive and time
consuming. Many times, consumers are required to engage a lawyer. These cases require time
for filing and attending the court proceedings, etc. In most purchases, cash memos are not
issued, hence, evidence is not easy to gather.
Moreover, most purchases in the market are small retail sales. The existing laws also are not
very clear on the issue of compensation to consumers injured by defective products.
After 32 years of the enactment of COPRA, consumer awareness in India is spreading but
slowly. Besides this, the enforcement of laws that protects workers, especially in the
unorganised sector is weak. Rules and regulations for the functioning of markets are often not
followed.
4. Trace the evolution of the consumer movement in India.
Answer: (i) In India, the consumer movement as a ‘social force’ began with the necessity of
protecting and promoting the interests of consumers against unfair trade practices.
(ii) Rampant food shortages, hoarding, black marketing, adulteration of food and edible oil
gave birth to the consumer movement in an organised form in the 1960s.
(iii) Till the 1970s, consumer organisations were largely engaged in writing articles and
holding exhibitions.
(iv) They formed consumer groups to look into the malpractices in ration shops and
overcrowding in the road passenger transport.
(v) Because of these efforts, the movement succeeded in bringing pressure on business firms,
as well as the government to correct business conduct.
(vi) A major step taken in 1986 by the Indian government, was the enactment of the
Consumer Protection Act, 1986, popularly known as COPRA.
(vii) More recently, India witnessed an upsurge in the number of consumer groups.
5. Write a note on Consumers International.
Answer: (i) In 1985, United Nations adopted the guidelines for consumer protection.
(ii) This was a tool for nations to adopt measures to protect consumers and for consumer
advocacy groups to press their governments to do so.
(iii) At the international level, this has become foundation for consumer movement.
(iv) Today, Consumers International has become an umbrella body of over 250 member
organisations in 120 countries, in which India is one of them.
6. How can ‘Right to Safety’ be practised?
Answer: (i) While using many goods and services, we as consumers, have the right to be
protected against the marketing of goods and delivery of services that are hazardous to life
and property.
(ii) Producers need to strictly follow the required safety rules and regulations.
(iii) There are many goods and services that we purchase that require special attention to
safety.
(iv) For example, pressure cookers have a safety valve which, defective, can cause a serious
accident. The manufacturers of the safety valve have to ensure high quality. We also need
public or government action to see that this quality is maintained.
7. Why are quality measurements used?
Answer: The quality measurements are used to satisfy a consumer.
(i) While buying many commodities, there is a logo with letters like ISI, AGMARK or
Hallmark.
(ii) These logos and codification help consumers get assured of quality while purchasing the
goods and services.
(iii) The organisations that monitor and issue these certificates allow producers to use their
logos provided they follow certain quality standards.
(iv) Though these organisations develop quality standards for many products, it is not
compulsory for all the producers to follow standards.
(v) However, for some products that affect the health and safety of consumers or of products
of mass consumption like LPG cylinders, food colours, additives, cement, packaged drinking
water, it is mandatory on the part of the producers to get their products certified by these
organisations.
8. COPRA has enabled the consumers to have the right to represent in the consumer
courts. Explain how it benefits the consumers. [CBSE Sample Paper 2016]
Answer: Under COPRA, a three-tier quasi-judicial machinery at the district, state and
national levels was set up for redressal of consumer disputes.
The district level court deals with the cases involving claims upto ₹20 lakhs, the state level
courts between ₹20 lakhs and ₹1 crore and the national level court deals with cases involving
claims exceeding ₹1 crore.
If a case is dismissed in district level court, the consumer can also appeal in state and then in
National level courts. Thus, the Act has enabled us as consumers to have the right to
represent in the consumer courts.
It strengthened the Consumer Movement and provided the consumers with the right to seek
redressal against unfair trade practices and exploitation. If any damage is done to a consumer,
she has the right to get compensation depending on the degree of damage.
9. Examine any three conditions which should be taken care of by multinational
companies to set up their production units. [CBSE Delhi 2016]
Answer: (i) Close to the market.
(ii) Skilled and unskilled labour available at low cost.
(iii) Government policies.
HOTS Questions (Higher Order Thinking Skills)
1. Identify the factors which encourage the traders to adopt unfair practices. How is
consumer exploited?
Or
What are the forms of consumer exploitation?
Answer: When a consumer in the market place is forced to buy a product or sold for higher
price or not returned if defective or sold defective product, he is supposed to be exploited.
Consumer is exploited in the following ways:
(1) Deceptive Advertising: In some cases, the advertisers speak very highly of their product
by giving exaggerated statements. Taking these advertisements to be true, the consumer is
tempted to buy these goods. But on actual use, he finds that he has been deceived. For
example: An advertisement of washing powder claims that a spoon-full of powder can wash a
full bucket of clothes. On actual use, it was found that it could wash only one or two clothes;
this advertisement was held deceptive.
(2) Unreasonable Prices: Sometimes sellers charge a price higher than the maximum retail
price (MRP). Traders create artificial scarcity of essential goods by hoarding them. Later,
these goods are sold at higher prices, thus leading to consumer’s exploitation.
(3) Adulteration: Adulteration of goods are sometimes dangerous to life or hazardous to
health. For example, mixing animal fat with ghee.
(4) Poor Quality Products: There are a large number of deaths and injuries on account of
substandard and unsafe domestic products like pressure cookers, electrical gadgets, etc.
(5) Deceptive Packing: Sometimes manufacturers use almost similar brand name with minor
changes in the spelling of a reputed brand, but the appearance of the wrapper is kept almost
the same so as to give the impression that the product is of reputed brand.
(6) Under weighed Supplies: Some manufacturers sell certain products in packings where
actual quantity is less than the quantity written on these packages. For example, each LPG
cylinder must contain 14.2 kg of gas but sometimes under weighed cylinders are supplied to
the consumers.
(7) Deficiency in Service: Due to this, consumers suffer a lot. For example,
(i) Undue delay by the courier services.
(ii) Wrong billing by the electricity and telephone department.
(iii) Undue delay in settling insurance accident claims.
(8) Negligence in Service: In newspapers, some cases of negligence in service are reported.
For example,
(i) By an oversight, the wrong leg of a patient was amputated by a surgeon.
(ii) About 2 dozen persons were operated in a hospital and they lost their eye sight as a result
of infection that spread in the operation theatre.
2. “Consumer movement can be effective only with the consumer’s active involvement.”
Analyse the statement. [CBSE Delhi 2017]
 Answer: The consumer movement is generally a result of dissatisfaction of consumers over
unfair practices in a market place. It is true that consumer movement can be effective only
with the consumer active involvement. Consumers are the kings in the market place,
therefore they should exercise their consumer rights.
Whenever a consumer buys any product or services, must be careful before buying, so that he
may not be fooled by the producers and shopkeepers. Consumer should exercise his rights
and duties diligently. He should insist on buying a standardised product looking at his own
safety.
If consumer is conscious or aware, he should convey this message to others so that this
consumer movement may be made more effective. For example in the 1960, there were food
shortages and black marketing and adulteration of food. This resulted in strong consumer
movement.
3. How can a consumer exercise his right to choice?
Answer: 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 or not.
For example, suppose you want to buy a shampoo and the shop owner says that he can sell
the shampoo only if you buy a body wash. If you are not interested in buying the body wash
your right to choice is denied.
So many times you are forced to buy things that you may not wish to as you are left with no
choice. But every consumer in a capitalist company has the right to exercise his right to
choice.
4. How should consumer become a well-informed consumer?
Answer: (i) When we as consumers become conscious of our rights while purchasing various
goods and services, we will be able to discriminate and make informed choices.
(ii) This calls for acquiring the knowledge skill to become a well-informed consumer.
(iii) We should become conscious of our rights.
(iv) The enactment of COPRA has led to the setting up of separate departments of consumer
affairs in central and state government.
(v) There are posters in the cities or states, through which government spread information
about legal process which people can use.
5. Who is an ideal consumer?
Answer: An ideal consumer is the one who has the following qualities/attributes:
 Updates his knowledge of consumer’s rights and duties.
 Has an eco-friendly attitude.
 Prevents corruption rather than being a party to it.
 Buys only those goods and services which he needs, so that wasteful and demonstrative
consumption is avoided.
 Cares for health and hygiene in his selection and use of goods and services.
 Prefers to use such products which can be recycled and which are bio-degradable.
 Makes purchases only from authorized retailers/shopkeepers.
 Conscious of standardisation marks like ISO, ISI, AGMARK, Hallmark, etc.
 Procures and preserves cash memo and warranty card.