CONSUMER AWARENESS

1. CONSUMER AWARENESS

2. HISTORYOF CONSMER MOVEMENT • The first consumermovement began in England after the Second World War. A modern declaration about the consumers rights was first made in the United States of America in 1962, where four basic consumer rights were adopted.

3. IMPORTANCE OF LESSON • This lesson helps us to save ourselves from being cheated with poor quality goods and to know the factors causing exploitation of consumers. And also creates awareness among the consumers.

4. INTRODUCTION • Everybody is a consumer. When we pay a price for a commodity or service and use it , we become consumers. Sometimes the shopkeeper cheats us by selling poor quality goods, or charges more for a commodity or service. In this chapter, we Study about how consumers are exploited, and what the Government is doing to protect the consumers.

5. MAIN OBJECTIVES • Forms of consumer Exploitation; • Factors causing Exploitation of consumers; • Rise of consumer Awareness; • Rights and Duties of consumers; & • Consumer Protection Measures.

6. QUESTI0N & ANSWERS • What is consumer Exploitation? • Underweight and under-measurements: The goods being sold in the market are sometimes not measured or weighed correctly. • High Prices: Very often the traders charge a price higher than the prescribed retail price. • Adulteration and Impurity: In costly edible items such as oil ,ghee and spices, adulteration in order to earn higher profits. These are some common ways by which consumers are exploited. Contd…

7. Q) Mention the factors which cause exploitation of consumers? • A) The factors which cause exploitation are: • Limited information • Limited supplies • Limited competition • Low literacy • Q) What is the need for consumer awareness? • A) The consumer awareness is need of the hour, as often the consumers are likely to be cheated with poor quality goods and services. • Q) When is the world consumers rights day celebrated? • A) On 15th March the world consumers rights day is celebrated. Contd….

8. Q) What is adulteration? • A) In the costly edible items such as oil, ghee and spices sub-standard or cheap items is mixed to earn higher profits. This is termed as adulteration. This causes monitory loss as well as health problems to the customers. • Q) Mention a few organisations which provide certification of standardisation in India? • A) In India, Bureau of Indian Standards (formerly known as Indian Standards Institution) and Agmark are providing certification of standardisation. Contd…

9. Q) Why was Consumer Protection Act, 1986 enacted? • A) The Government enacted a specific law called the Consumer Protection Act in 1986 to protect and promote interests of consumers and redress their grievances in a speedy, simple and inexpensive manner. • Q) Name the Consumer Courts at the district, State and National levels? • A) The following are the Consumer Courts at the district, state and national levels: • The District Forum • The State Consumer Commission • The National Consumer Commission. Contd….

10. Q) What are the various ways in which a consumer is exploited? • A) Some common ways by which consumers are exploited are: • Under weight and under measurements: The goods sold in the market are some times not measured or weighed correctly. • Sub standard quality: The goods sold are some time of sub-standard quality. Selling of medicines beyond their expiry dates and supply of deficient or defective home appliances are generally the regular grievances of consumers. • High prices: Very often the traders charge a price higher than the price prescribed on the commodity. Contd….

11. Artificial scarcity: In order to amass illegitimate profit, businessmen create scarcity by hoarding. They sell it at later stages at higher prices. • Lack of safety devices: Electronic goods, Electrical devices or other appliances produced locally lack the required inbuilt safeguards. This causes accidents to the consumers. Q) Explain the rights of a consumer enshrined in the Consumer Protection Act, 1986? A) Under the Consumer Protection Act, 1986, the following rights are enshrining the consumer: • the consumer is protected from deficiency in services and defective goods; Contd….

12. The consumer can seek redressal from unfair trade practices from the appropriate forums; • Consumer’s interests are considered at the appropriate forums; Standardisation of products by the certificating agencies like Bureau of Indian Standards, Agmark etc. • Public Distribution System for ensuring food security to the poor and to prevent black-marketeering and over-charging by thetraders.

13. Very short answer questions( 2 marks) Q) List some factors which influence the demand for goods and services and also sometimes mislead the consumers? A) Factors influencing the Demand Demand of consumer for goods and services is influenced by advertisements in television, news papers & magazines and display by companies and firms. These methods of promoting the sales can sometimes be misleading. Q) What are the role consumer courts? A) Role of courts: Consumer courts look into the complaints and grievances of consumers against the manufacturers and traders. Contd….

14. Q) why do consumers get exploited when information about the product is limited? A) Traders sometimes provide limited information about the different aspects of the product . The consumers get exploited by making a wrong choice and thus lose money. Q) Name the two standards followed for industrial and agricultural goods in India? A) The two standards are: ISI and Agmark. Q) Why was Consumer Protection Act, 1986 enacted? A) This act was enacted for the protection and promotion of consumer rights and to redress their grievances in simple, speedy and inexpensive manner.

15. * Short answer questions( 4 marks ) Q) Explain any two ways by which traders and manufacturers can exploit consumers? A) a) By sale of fake or duplicate articles in the name of genuine products. b) By sale of sub standard quality goods or defective items or sale beyond the expiry date. Q) Why does limited competition cause consumer awareness? A) a) When there exist a few producers or only one production and supply of the product is exclusively controlled by them. b) they are in a position to restrict availability of supplies and manipulate.

16. Q) Explain the role of codex Alimentarius commission? A) Role of the CAC. The role of CAC is a body created in 1963 by Food and Agriculture Organization for setting international goods standards .It develops good standards ,guidelines and codes of practices form production and international trade in food products such as milk and milk products etc. Q) Explain the administrative measures taken by the government to protect consumer interests? A) Measures undertaken by the government Government has strengthened public distribution system as part of its administrative measures to protect consumer interest

17. Q) What is the need for consumer awareness? A) Need for consumer awareness a) Need for consumer awareness was felt acutely in India after withdrawal of government from the market. b) Consumers were o be made aware of not only commercial but also health and safety aspects of goods purchased and of adulteration and contamination of food items. c) They were also to be made aware of possible malpractices by the traders and for this awareness about prices, quality of goods was required. d) Thus awareness movement started in India.

18. Q) Explain the legislative measures taken to protect the interests of consumers. A) The legislative measures are: a) Enactment of Consumer Protection Act, 1986. This act provides for setting up of consumer courts at national, state, and district levels. b) These courts are respectively known as National Consumer Commission, State Consumer Commission and District Forum. c) These are consumer redressal agencies for protection and promotion of consumer interests and speedy redressal of grievances.

19. Long answer questions(6 marks) Q) What are the various ways in which consumers are exploited? A) Following are the various in which consumers are exploited: a) Under weight and under measurements of goods. b) Sale of sub-standard quality goods and goods after expiry date e.g., sale of medicines and eatables. c) Charging higher than prescribed prices. d) Sale of products like consumer use articles. e) Sale of adulterated and impure goods. Contd…..

20. f) Lack of safety devices in electronic goods and electrical devices. g) Sale of products at higher prices by creating an artificial scarcity. h) Unsatisfactory after the sale service of high cost durables, electrical and electronic equipment, cars etc. Q) Explain the rights of a consumer enshrined in the Consumer Protection Act, 1986.? A) Following are the rights of a consumer enshrined in the Consumer Protection Act, 1986: a) Right to safety is the right to be protected against marketing of goods and services hazardous to life. Contd..

21. b) Right to be informed about quantity, purity, standard and price of goods; c) Right to choose from among a variety of goods available at competitive price; d) Right to be heard at appropriate Forums; e) Right to seek redressal against unfair Trade practices and right to fair settlements; f) Right to consumer education regarding issues relating to consumer welfare and knowledge about goods; Q) Describe the various duties of consumers? A) (a) Consumer should check on the quality of products, guarantee and warranty while purchasing the goods;

22. (b) Consumer should preferably ask for cash memo while purchasing the product; (c) Consumer awareness organisations should be formed by consumers. These organisations can be given representations in various committees; (d) Consumers must seek redressal of their grievances and make complaints for genuine reasons; (e) Consumers must exercise their rights; Q) Explain the measures to protect the rights of consumers? A) Government has adopted legislative, administrative and technical measures to protect the rights of consumers. Contd….

23. (a) Legislative measures include enactment of Consumer Protection Act in 1986 which provides for establishment of consumer disputes, redressal agencies at all levels and setting up of Consumer Courts at National, State and District levels; (b) Government has strengthened Public Distribution System and administrative measures to protect consumer interest. Government also, ensures full security to the poor and taken measures to prevent hoarding, black marketing and over charging by Traders; (c) Technical measures to protect consumer interest consist of standardisation of product. Agmark have created to lay down the standards for industrial consumer and agricultural products on a scientific basis and to certify that the goods meet the standards and prescribed quantity. Contd…..

24. Conformity to standards is ensured by regular surveillance and random testing of samples. (d) CAC is a body created in 1963 by Food and Agriculture Organisation for setting international goods standard. It develops goods standards, guidelines and codes of practices for production and international trade in food products such as milk and milk products, fish, meat etc. Q) Explain six ways in which consumers can be exploited? A) (a) Underweight and under measurement of goods which are sold. (b) Sale of sub-standard goods, eg., sale of medicines beyond their expiry date and supply of defective home appliances.

25. (c) Creation of artificial scarcity by indulging in hoarding and selling the commodity at a higher price; (d) adulteration and impurity; & (e) Lack of safety devices in electronic and electrical goods and appliances. ******