Social Holiday Homework – Consumer Rights

Meaning of Consumer:

A consumer is a person or a group who intends to order, orders, or uses purchased goods,
products, or services primarily for personal, social, family, household and similar needs, not
directly related to entrepreneurial or business activities. US President John F Kennedy said
that, “Consumers, by definition, include us all”.

Concept of Consumer Protection and Common Malpractices:

In today’s world, the protection of the consumer is considered to be of utmost importance.

All around the world, mechanisms have been pondered upon in order to uphold the
satisfaction of the consumer. But what is the concept of consumer and the essence of
consumer protection? Why does consumer protection have such a crucial role to play in
modern society?

Consumer protection means safeguarding the interest and rights of consumers. In other
words, it refers to the measures adopted for the protection of consumers from unscrupulous
and unethical malpractices by the business and to provide them speedy redressal of their
grievances. The Consumers need to be protected from malpractices Such as Adulteration,
Black Marketing etc.

Need for Consumer Protection:

The existing environment of business is chaotic, with the existence of cutthroat competition,
where each seller is trying his best to survive and thrive by dominating the market. In order
to maximise profits, sellers go to great extents, which can also end up being unethical and
subsequently harmful. Consumers are in dire need of protection for the following reasons:

1. Consumers are often uninformed. They lack the knowledge of their rights and duties.
They do not have effective means to differentiate between original and duplicate or
adulterated goods. Hence, these innocent consumers are oblivious since they are not
informed of the possible hazards that can arise.
 2. Consumers are often exploited by manufacturers, retailers and traders. Goods are
often duplicate, adulterated, spurious and defective. Defective goods have often been
provided to the consumer. Weights and measures used by retailers tend to be
manipulated. Also, traders may unnecessarily hike prices. Hoarding and black
marketing are rampant. Consumer Protection is hence needed to eliminate such
untoward practices that exploit the consumer.
3. Consumers are also not grouped together to serve a common goal. They are
unorganised and haphazardly placed with no association or party uniting them and
integrating their purpose. Without consumer protection, there will be no platform for
the consumers to voice their grievances and seek the path of justice through redressal.

Causes of Consumer Exploitation:

The causes of Consumer Exploitation are as follows:

1. Illiteracy and Ignorance: Consumers in India are mostly illiterate and ignorant. They do
not understand their rights. A system is required to protect them from unscrupulous
businessmen.
2. Unorganised Consumers: In India consumers are widely dispersed and are not
united. They are at the mercy of businessmen. On the other hand, producers and
traders are organized and powerful.
3. Spurious Goods: There is increasing supply of duplicate products. It is very difficult for
an ordinary consumer to distinguish between a genuine product and its imitation. It
is necessary to protect consumers from such exploitation by ensuring compliance with
prescribed norms of quality and safety.
4. Deceptive Advertising: Some businessmen give misleading information about quality,
safety and utility of products. Consumers are misled by false advertisement and do not
know the real quality of advertised goods. A mechanism is needed to prevent
misleading advertisements.
5. Malpractices of Businessmen: Fraudulent, unethical and monopolistic trade practices
on the part of businessmen lead to exploitation of consumers. Consumers often get
 defective, inferior and substandard goods and poor service. Certain measures are
required to protect the consumers against such malpractices.

Rights of Consumers:

The Indian Government guarantees the following rights to consumers:

1. Right to Safety: Means right to be protected against the marketing of goods and
services, which are hazardous to life and property. The purchased goods and services
availed of should not only meet their immediate needs, but also fulfil long term
interests.
2. Right to be Informed: Means right to be informed about the quality, quantity, potency,
purity, standard and price of goods so as to protect the consumer against unfair trade
practices.
3. Right to Choose: Means right to be assured, wherever possible of access to variety of
goods and services at competitive price. In case of monopolies, it means right to be
assured of satisfactory quality and service at a fair price. It also includes right to basic
goods and services.
4. Right to be Heard: Means that consumer's interests will receive due consideration at
appropriate forums. It also includes right to be represented in various forums formed
to consider the consumer's welfare.
5. Right to Seek redressal: Means right to seek redressal against unfair trade practices or
unscrupulous exploitation of consumers. It also includes right to fair settlement of the
genuine grievances of the consumer.
6. Right to Consumer Education: Means the right to acquire the knowledge and skill to be
an informed consumer throughout life. Ignorance of consumers, particularly of rural
consumers, is mainly responsible for their exploitation. They should know their rights
and must exercise them. Only then real consumer protection can be achieved with
success.

Responsibilities of Consumers:
 1. Be aware about various goods and services available in the market so that an
intelligent and wise choice can be made.
2. Learn about the risks associated with products and services, follow manufacturer’s
instructions and use the products safely.
3. Read labels carefully so as to have information about prices, net weight, manufacturing
and expiry dates, etc.
4. Assert yourself to ensure that you get a fair deal.
5. Be honest in your dealings. Choose only from legal source and discourage
unscrupulous practices like black-marketing, hoarding etc.
6. Ask for a cash memo on purchase of goods or services. This would serve as a proof of
the purchase made.
7. File a complaint in an appropriate consumer forum in case of a shortcoming in the
quality of goods purchased or services availed. Do not fail to take an action even when
the amount involved is small.
8. Respect the environment. Avoid waste, littering and contributing to pollution.

Ways and Means of Consumer Protection:

Ways and Means of Consumer Protection are as follows:

1. Self-Regulation by Business: Every firm insists to have a strong consumer base which
means that more and still more people should buy their products. This is possible only
when the consumers are fully satisfied with the products of the firm. Many firms have
set up their customer service and grievance cells to redress the problems and
grievances of their consumers.
2. Business Associations: Business associations prepare a code of conduct for
businessmen. It is laid down in the code of conduct as to how businessmen are
expected to behave with the consumers. For example, the Federation of Indian
Chambers of Commerce and Industries (FICCI) and the Confederation of Indian
Industries (CII) have proposed their code of conduct which governs the attitude of their
members towards consumers.
 3. Consumer Awareness: As an important means of consumer protection, consumer
should protect himself. He should be alert in the matter of his rights. Alert consumer
alone can demand his rights from the sellers. Thus, the consumer himself must know
his rights and raise voice against unfair practices of the sellers.
4. Consumer Organisations: Consumer organizations play an important role in educating
consumers about their rights and providing protection to them. These organizations
can force business firms to avoid malpractices and exploitation of consumers.
5. Government: Interests of the consumers are protected by the government by enacting
various legislations. Consumer Protection Act 1986 is an important legislation by the
government to provide protection to the affected consumer. This Act provides for a
three-tier machinery at the district, state and national levels for redressal of consumer
grievances.

COPRA (Consumer Protection Act, 1986):

Consumer Protection Act, 1986 was passed in year 1986 and was enforced from July 1st 1987
with the motive to protect the interest of consumers from being exploited by shopkeepers
or markets to maximize profits which ultimately harm the well-being of the consumer and
society. This Act teaches the consumers to make right choices by educating them about their
rights and responsibilities of being a consumer and make them aware that how to seek
redressal if they face any kind of exploitation.

The Consumer Protection Act, 1986:

1. Applies to all goods, services and unfair trade practices unless specifically exempted
by the Central Government.
2. Covers all sectors-private, public or co-operative.
3. Provides for establishment of consumer protection councils at the central, state and
district levels, i.e., three tier machinery system.