CONSUMER BEHAVIOR & PUBLIC

POLICY
 For the purpose of "goods", a consumer means a person
belonging to the following categories:
-One who buys or agrees to buy any goods for a consideration which
has been paid or promised or partly paid.
-It includes any user of such goods other than the person who actually
buys goods.

For the purpose of "services", a consumer means a person

belonging to the following categories:
-One who hires or avails of any service for a consideration which has
been paid or partly paid.
-It includes any beneficiary of such service other than the one who
actually hires or avails of the service for consideration.
 WHAT IS CONSUMERISM

Consumerism refers to wide range of activities of

government , business and independent
organisations designed to protect rights of the
consumers. Consumerism is a process through which
the consumers seek redress(to set right) , restitution and
remedy for their dissatisfaction and frustration with the
help of their all organised or unorganised efforts and
activities.
“consumerism is not limited to organized effort only but , is a
social movement seeking to augment(increase) the rights and
powers of buyers in relation to seller”
Philip Kotler
How did consumerism originate?
In our India the existing markets of products run in shortage , adulteration &
black market prices. The profit making attitude of the business failed to
discharge social responsibilities of maintaining fair price, quality of goods &
providing services etc.
For example:-
1. tooth paste tube filled with air.
2. Adulteration in PURE GHEE etc.
To over come from that type of problem consumerism originate.
 OBJECTIVES OF CONSUMERISM

To educate the consumers about their rights.

To ensure fair trade practices and provide complete

information to the consumers.

To build the confidence of Multinational companies for

investing in developing countries.

To enforce the rights of people as consumers against

exploitation like poor quality, over charging etc.
 Importance of consumerism:-

1. Stop unfair trade practices

2. Provide complete & latest information
3. Implementation of consumer protection laws
4. Protect against exploitation
 PROBLEMS FACED BY CONSUMER:

-Some problems of consumers exploitation

Pricing.
Adulteration.
Duplication.
Artificial demand.
Ignore standard.
Advertising.
Product risk.
CONSUMER PLIGHT IN
INDIA
 PROBLEMS IN INDIAN MARKET

a) Low literacy levels and lack of awareness

b) Ignorance
c) Lack of education and information
d) Indian consumers get carried away by clever
advertising
e) Imbalance in demand and supply of commodities
leading to hoarding, black marketing.
 REMEDIES..

a) Business must ensure efficiency in production and

quality of output and must refrain from Unfair Trade
Practices
b) Government through legislations, statutory bodies etc
prevent exploitation of consumers.
c) Consumers should assert their rights and protect
themselves from business malpractices
CONSUMER PROTECTION
ACT,1986
This ACT is a milestone in the history of
socio-economic legislation in the country.
 OBJECTIVES

The main objective of the act is to provide for the

better protection of consumers.

The act is intended to provide simple, speedy and

inexpensive redressal to the consumers' grievances,
and relief of a specific nature and award of
compensation wherever appropriate to the consumer.
AS UNDER SECTION-6 OF CONSUMER PROTECTION ACT, CONSUMER HAS THE

FOLLOWING RIGHTS:

Right to safety.
Right to information.
Right to choose.
Right to be heard.
Right to redressed .
Right to consumer education.
 RIGHT TO SAFETY

Right to be protected against the marketing

of goods and services which are hazardous
to health, life and property of the consumer.
 RIGHT TO INFORMATION

right to be provided all those information on

the basis of which consumer decides to buy
goods or services about the quality, quantity,
potency, purity, standard and price of goods
or services so as to protect the consumer
against unfair trade
 RIGHT TO CHOOSE

Consumer has the full right to buy good or

services of his choice from among the different
goods or services available in the market.
 RIGHT TO BE HEARD

consumer has the right that his

complaint be heard. Under this right the
consumer can file complaint against all
those things which prejudicial to his
interest.
 RIGHT TO SEEK REDRESSAL

Right to seek redressal against unfair trade

practices unscrupulous exploitation of
consumers. This Act provides compensation to
consumer against unfair trade practice of the
seller.
 RIGHT TO CONSUMER EDUCATION

Consumer education refers to educate the consumer

constantly with regards to their rights. In other words,
consumers must be aware of the rights they enjoy
against the loss they suffer on account of goods and
services purchased by them.
 RELIEF AVAILABLE TO CONSUMERS

Depending on the facts and circumstances, the Redressal

Forums may give order for one or more of the following
relief :-

• Removal of defects from the goods

• Replacement of the goods
• Refund of the price paid
• Award of compensation for the loss or injury suffered
• Removal of defects or deficiencies in the services
• Discontinuance of unfair trade practices
• Withdrawal of the hazardous goods from being offered to
sale
 STRUCTURE

To provide simple, speedy and inexpensive redressal of consumergrievances, the

Act envisages a three- tier quasi-judicial machineryat the National, State and
District levels.

• National Consumer Disputes Redressal Commission - known as"National

Commission".

• Consumer Disputes Redressal Commissions-known as "StateCommission".

• Consumer Disputes Redressal Forums - known as "DistrictForum".

•District Forums have the Jurisdiction to entertain complaints: If the cost
of goods or services and compensation asked for is up to Rs.20 lacs.

•State Commission has the Jurisdiction to entertain complaints: It can hear

cases involving sum exceeds Rs.20 Lacs and up to Rs.1 Crore. The State
Commission also has the jurisdiction to entertain appeal againstthe orders of
any District Forum within the State.

•National Commission has jurisdiction to entertain complaints: It has a

Jurisdiction to hear complaints amounting more than Rs.1 Crore. The
National Commission besides entertaining the original complaints also has
jurisdiction to entertain appeals against the orders of any State Commission.
 PROCEDURE ON ADMISSION OF COMPLAINT

•On admission of a complaint, a copy of the complaint is to be referred to

the opposite party within 21 days, directing him to give his version of the case
within 30 days. This period may be extended by another 15 days.
 CONSUMER RESPONSIBILITIES

-Consumer Responsibilities means, that the consumer should keep a few

things in mind while purchasing or using any good or service. They are as
follows:

Consumer should exercise his right: Consumers have many rights with
regard to the goods and services. They must be aware of their rights while
buying.

Cautious consumer/ Do not buy blindly: The consumers should make full
use of their reason while buying things. They should not take the seller’s word
as final truth.

It is also the responsibility of the consumers only to buy goods with the ISI,
Agmark, Woolmark, FPO etc. printed on them.
Filing complaint for the Redressal of genuine grievances: It is the
responsibility of a consumer to approach the officer concerned there is some
complaint about the goods purchased.

Consumer must be quality conscious/Do not compromise on quality:

The consumers should never compromise on the quality of goods.
Therefore, they should not buy inferior stuff out of greed for less prices.

Advertisements often exaggerate/Beware of false advertisement: It is the

responsibility of the consumers to recognize the truth of advertisement.

Do not forget to get Receipt and Guarantee/warrantee card: One should

always get a receipt or bill for the things purchased. In case a
guarantee/warrantee card is also offered by seller, it should also be taken.
THANK YOU