Consumer Rights

 

5: Consumer Rights

CHAPTER AT A GLANCE

Consumers often face exploitation in the marketplace due to unfair trade practices, defective goods, misleading advertisements, lack of information, and poor services. To protect consumers, laws, consumer organisations, and Consumer Disputes Redressal Commissions have been established.

 

1. THE CONSUMER IN THE MARKETPLACE

Who is a Consumer?

A consumer is a person who purchases goods and services for personal use.

Examples:

• Buying food items
• Using transport services
• Purchasing clothes, books, medicines, etc.

Consumers use final goods and services produced in the economy.

 

Why are Rules and Regulations Needed?

Just as workers and farmers need protection from exploitation, consumers also need protection in the marketplace.

Without rules:

• Sellers may cheat buyers.
• Consumers may receive defective goods.
• Consumers may be overcharged.
• Consumers may not get proper services.

Therefore, government rules and regulations are necessary.

 👉 Click Here to see More Related Questions to this Chapter.

2. EXPLOITATION OF CONSUMERS

Consumers are often in a weak position because sellers are usually more powerful and informed.

Common Forms of Consumer Exploitation

1. Underweight Goods

Shopkeepers may:

• Use faulty weighing machines.
• Give less quantity than paid for.

Example:
Paying for 1 kg sugar but receiving only 900 grams.

 

2. Adulteration

Mixing inferior or harmful substances with products.

Examples:

• Water mixed in milk
• Stones mixed in grains
• Artificial colours in food

 

3. Defective Goods

Products may:

• Stop working quickly
• Be unsafe
• Have manufacturing defects

Example:
A pressure cooker with a defective safety valve.

 

4. Overcharging

Charging more than the printed Maximum Retail Price (MRP).

 

5. Misleading Advertisements

Companies may make false claims to attract customers.

Examples:

• Powder milk claimed better than mother's milk.
• Tobacco companies hiding harmful effects.

 

6. Denial of Choice

Consumers are forced to buy unwanted products.

Example:

• Gas dealer forcing customer to buy a stove.
• Toothpaste sold only with a toothbrush.

 

3. WHY DO MARKETS SOMETIMES FAIL?

Markets become unfair when:

• Producers are few and powerful.
• Consumers are scattered.
• Large companies dominate the market.
• Consumers lack information.

Big companies can:

• Influence prices.
• Spread false information.
• Manipulate consumer choices.

 

4. CONSUMER MOVEMENT

Meaning

The Consumer Movement is a social movement that protects consumers from exploitation and promotes consumer rights.

 

Why Did It Start?

The movement arose because consumers were dissatisfied with:

• Food shortages
• Black marketing
• Hoarding
• Adulteration
• Unfair trade practices

 

Development of Consumer Movement in India

1960s

Consumer movement started in an organised form.

1970s

Consumer groups:

• Published articles
• Conducted exhibitions
• Investigated ration shop malpractices

Later Years

Large growth in consumer organisations and awareness campaigns.

 

International Development

United Nations Guidelines (1985)

The United Nations adopted guidelines for consumer protection.

Purpose:

• Protect consumers globally.
• Encourage governments to enact consumer-friendly laws.

 

Consumers International

An international organisation of consumer groups.

Features:

• More than 200 member organisations.
• Present in over 100 countries.
• Supports consumer rights worldwide.

 

5. CONSUMER PROTECTION ACT (COPRA)

COPRA

Full Form:
Consumer Protection Act

Enacted:
1986

Amended:
2019

 

Importance of COPRA

COPRA:

• Protects consumer interests.
• Provides legal rights.
• Establishes consumer courts.
• Offers compensation for losses.

 

6. CONSUMER RIGHTS

The Consumer Protection Act guarantees six major rights.

 

Right to Safety

Consumers have the right to protection from hazardous goods and services.

Examples:

• LPG cylinders
• Medicines
• Electrical appliances
• Pressure cookers

Manufacturers must follow safety standards.

 

Reji Mathew Case

• Underwent tonsil operation.
• Improper anaesthesia caused permanent disability.
• National Consumer Commission found hospital guilty.
• Compensation awarded.

Importance:
Shows the Right to Safety.

 

Right to Information

Consumers have the right to know complete information about products and services.

 

Information Found on Packages

Consumers should check:

• Ingredients
• Price
• Batch number
• Manufacturing date
• Expiry date
• Manufacturer's address
• Directions for use

 

Importance

Helps consumers:

• Make informed decisions.
• Demand replacement.
• Claim compensation.

 

MRP (Maximum Retail Price)

A seller cannot charge above MRP.

Consumers may even bargain for a lower price.

 

Right to Information Act (RTI), 2005

Provides citizens information regarding government departments.

 

Amritha Case

• Applied for a government job.
• Result was delayed.
• Used RTI Act.
• Received information and appointment letter.

Importance:
Demonstrates Right to Information.

 

Right to Choose

Consumers have the freedom to select products and services.

No seller can force consumers to buy unwanted products.

 

Examples

Wrong Practices:

• Gas connection only if stove is purchased.
• Toothpaste only with toothbrush.

Such practices violate the Right to Choose.

 

Abirami Case

• Paid fees for a two-year course.
• Left after one year due to poor quality teaching.
• Institute refused refund.
• Consumer Commission ordered refund and compensation.

Importance:
Shows Right to Choose.

 

Right to Seek Redressal

Consumers can seek compensation against unfair trade practices and exploitation.

If harmed, consumers can:

• File complaints.
• Demand compensation.
• Obtain replacement or refund.

 

Right to Representation

Consumers have the right to be represented in Consumer Disputes Redressal Commissions.

Consumers may:

• Appear themselves.
• Hire lawyers.
• Get support from consumer organisations.

 

Right to Consumer Education

Consumers have the right to acquire knowledge and skills needed for informed purchasing.

Consumer awareness helps:

• Avoid exploitation.
• Understand legal rights.
• Make wise decisions.

 

7. CONSUMER DISPUTES REDRESSAL COMMISSIONS

These are special consumer courts established under COPRA.

 

Three-Tier System

1. District Consumer Disputes Redressal Commission

Deals with claims:
Up to ₹1 crore

 

2. State Consumer Disputes Redressal Commission

Deals with claims:
₹1 crore to ₹10 crore

Also hears appeals from District Commission.

 

3. National Consumer Disputes Redressal Commission

Deals with claims:
Above ₹10 crore

Also hears appeals from State Commission.

 

How to File a Consumer Complaint?

1. Buy a product/service.
2. Face a problem.
3. Contact seller.
4. Collect documents:
• Bill
• Warranty
• Proof
5. File complaint.
6. Commission hears both sides.
7. Decision is given.
8. Compensation/refund/replacement ordered if justified.

 

8. CONSUMER ORGANISATIONS

Consumer organisations:

• Create awareness.
• Guide consumers.
• Help in filing complaints.
• Represent consumers.

They often receive government support.

Examples:

• Consumer Forums
• Consumer Protection Councils
• Residents Welfare Associations

 

9. QUALITY STANDARD MARKS

These marks assure quality and safety.

 

ISI Mark

Issued by:
Bureau of Indian Standards (BIS)

Used for:

• Electrical goods
• Industrial products
• Consumer goods

 

Agmark

Certifies:

• Agricultural products
• Edible oils
• Cereals

 

Hallmark

Certifies:

• Gold jewellery quality

 

F+ Mark

Quality certification for certain processed food products.

 

Products Requiring Mandatory Certification

Examples:

• LPG cylinders
• Packaged drinking water
• Cement
• Food additives
• Food colours

 

10. NATIONAL CONSUMERS' DAY

Date:
24 December

Reason:
Consumer Protection Act was enacted on this day in 1986.

 

11. TAKING THE CONSUMER MOVEMENT FORWARD

Achievements

✔ Consumer awareness increased.

✔ Consumer organisations expanded.

✔ Consumer courts established.

✔ Legal rights recognised.

✔ Online purchases covered under COPRA 2019.

✔ Mediation introduced.

 

Limitations

✖ Cases take time.

✖ Legal procedures are expensive.

✖ Bills are often not provided.

✖ Awareness is still low.

✖ Rules are not always enforced properly.

 

COPRA 2019 – NEW FEATURES

• Covers online shopping.
• Holds manufacturers responsible.
• Penalises service providers.
• Encourages mediation.
• Strengthens consumer protection.

 

IMPORTANT CASE STUDIES

Reji Mathew Case

Topic: Right to Safety

Hospital negligence caused permanent disability.
Compensation awarded.

 

Amritha Case

Topic: Right to Information

Used RTI to obtain government recruitment information.

 

Abirami Case

Topic: Right to Choose

Received refund and compensation from coaching institute.

 

Prakash Case

Topic: Right to Seek Redressal

Filed complaint against postal department for delayed money order.

 

IMPORTANT DEFINITIONS

Consumer

A person who purchases goods and services for personal use.

Consumer Movement

A movement aimed at protecting consumers from exploitation.

COPRA

Consumer Protection Act enacted in 1986 and amended in 2019.

Consumer Awareness

Knowledge about consumer rights and responsibilities.

MRP

Maximum Retail Price printed on a product.

RTI

Right to Information Act, 2005.

Redressal

Obtaining relief or compensation for a grievance.

 

CHAPTER SUMMARY

Consumer Rights is a chapter about protecting consumers from exploitation in the marketplace. Due to unfair trade practices, consumers often suffer losses. The Consumer Movement, Consumer Protection Act (1986), Consumer Commissions, RTI Act, and quality certification marks like ISI, Agmark, and Hallmark help consumers safeguard their interests. Consumer awareness and active participation are essential for making markets fair and effective.

 

 

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Exercise

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1. Why are rules and regulations required in the marketplace? Illustrate with a few examples.

Rules and regulations are required to protect consumers from exploitation and unfair trade practices. Consumers are often in a weaker position compared to producers and sellers.

Examples:

• Shopkeepers may use false weights and measures.
• Traders may sell adulterated goods.
• Sellers may charge more than the MRP.
• Companies may make misleading advertisements.

Therefore, government regulations ensure fairness and protect consumer interests.

 

2. What factors gave birth to the consumer movement in India? Trace its evolution.

Factors:

• Food shortages
• Hoarding
• Black marketing
• Adulteration of food and edible oils
• Unfair trade practices
• Lack of legal protection for consumers

Evolution:

• In the 1960s, the consumer movement started in an organised form.
• In the 1970s, consumer organisations conducted awareness campaigns and exhibitions.
• In 1986, the Consumer Protection Act (COPRA) was enacted.
• In 2019, COPRA was amended to strengthen consumer rights.
• Today, many consumer organisations work for consumer welfare.

 

3. Explain the need for consumer consciousness by giving two examples.

Consumer consciousness means awareness about consumer rights and responsibilities.

Example 1:

A consumer should check the expiry date before buying medicines.

Example 2:

A consumer should insist on a bill and check the MRP before making payment.

Thus, awareness helps consumers avoid exploitation.

 

4. Mention a few factors which cause exploitation of consumers.

1. Lack of consumer awareness.
2. Misleading advertisements.
3. Adulteration of products.
4. Sale of defective goods.
5. Overcharging beyond MRP.
6. Monopoly of producers.
7. Lack of proper information.

 

5. What is the rationale behind the enactment of Consumer Protection Act 1986?

The Consumer Protection Act 1986 was enacted to:

• Protect consumers from exploitation.
• Provide legal rights to consumers.
• Ensure compensation for losses.
• Establish Consumer Disputes Redressal Commissions.
• Promote consumer awareness.

 

6. Describe some of your duties as consumers if you visit a shopping complex in your locality.

A consumer should:

• Check quality and quantity.
• Read labels carefully.
• Look for ISI/Agmark/Hallmark marks.
• Check expiry date and MRP.
• Ask for a cash memo or bill.
• Report unfair trade practices.
• Use products according to instructions.

 

7. Suppose you buy a bottle of honey and a biscuit packet. Which logo or mark will you look for and why?

Honey:

Look for Agmark because it certifies agricultural products and ensures quality.

Biscuit Packet:

Look for ISI mark or FSSAI certification because it ensures quality and safety standards.

 

8. What legal measures were taken by the government to empower the consumers in India?

1. Consumer Protection Act (1986).
2. Amendment of COPRA in 2019.
3. Establishment of Consumer Commissions at District, State and National levels.
4. Right to Information Act (2005).
5. Formation of Consumer Affairs Departments.
6. Promotion of standardisation marks like ISI, Agmark and Hallmark.

 

9. Mention some of the rights of consumers and write a few sentences on each.

1. Right to Safety

Protection against hazardous goods and services.

2. Right to Information

Consumers have the right to know product details such as price, quality, ingredients and expiry date.

3. Right to Choose

Consumers can select products freely without pressure.

4. Right to Seek Redressal

Consumers can seek compensation against unfair practices.

5. Right to Representation

Consumers can represent themselves before consumer commissions.

6. Right to Consumer Education

Consumers have the right to gain knowledge about their rights and responsibilities.

 

10. By what means can consumers express their solidarity?

Consumers can express solidarity by:

• Joining consumer organisations.
• Participating in awareness campaigns.
• Filing complaints collectively.
• Supporting consumer movements.
• Spreading awareness among people.

 

11. Critically examine the progress of consumer movement in India.

Achievements:

• Consumer awareness has increased.
• Consumer courts have been established.
• Many consumer organisations are active.
• Consumers can seek compensation.

Limitations:

• Cases are time-consuming.
• Legal procedures are expensive.
• Many consumers are still unaware of their rights.
• Rules are not always properly enforced.

Thus, the movement has made progress but much more needs to be done.

 

12. Match the Following

Column A	Column B
(i) Availing details of ingredients of a product	(e) Right to Information
(ii) Agmark	(c) Certification of edible oil and cereals
(iii) Accident due to faulty engine in a scooter	(a) Right to Safety
(iv) District Consumer Commission	(b) Dealing with consumer cases
(v) Food fortification	(g) Addition of key nutrients to staple foods
(vi) Consumers International	(f) Global level institution of consumer welfare organisations
(vii) Bureau of Indian Standards	(d) Agency that develops standards for goods and services

 

13. State whether True or False

(i) COPRA applies only to goods.

❌ False

(ii) India is one of the many countries in the world which has exclusive authorities established for consumer disputes redressal.

✅ True

(iii) When a consumer feels that he has been exploited, he must file a case in the District Consumer Commission.

❌ False

(iv) It is worthwhile to move to consumer commissions only if the damages incurred are of high value.

❌ False

(v) Hallmark is the certification maintained for standardisation of jewellery.

✅ True

(vi) The consumer redressal process is very simple and quick.

❌ False

(vii) A consumer has the right to get compensation depending on the degree of the damage.

✅ True

 

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