Economics Ch. 5: Consumer Rights

EXERCISE

1. Why are the rules and regulations required in the marketplace? Illustrate with an example.

Answer: To protect the consumer from unfair trade practices, rules and regulations are required. Example: A shopkeeper weighs less than the actual quantity or sells adulterated or defective goods. There should be some check on such activities.

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

Answer: The consumer movement arose out of dissatisfaction of the consumer as many unfair practices were being indulged in by the sellers. There was no legal system available to consumers to protect them from exploitation in the marketplace. Rampant food storage, hoarding, black marketing, adulteration of food and edible oil gave birth to the consumer movement in an organised form in the 1960s.

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

Answer: (i) It is common to see consumers bargaining with sellers for additional discounts below the MRP. (ii) Because of conscious consumers, most of the sweet shops do not include the weight of the container when they weigh sweets.

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

Answer: Factors which cause exploitation of consumers are:
(i) Lack of awareness of consumer rights among buyers.
(ii) Improper and inadequate monitoring of rules and regulations.
(ii) Individual purchase quantity is quite small.
(iv) Consumers are scattered.

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

Answer: The rationale behind the enactment of COPRA 1986 was to set up a separate department of consumer affairs in Central and State governments and it has enabled us as consumers to have the right to represent in a consumer court.

6. Describe  some of your duties as consumers when you buy any commodity from a shopping mall in your locality.

Answer:(i) To check the MRP of the product.
(ii) To check date of expiry of the product.
(iii) To check the Instructions for use.
(iv) Address of the manufacturer.

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

Answer We should look for Agmark symbol before buying the food items because this mark is certified by the government and assures the quality of the product.

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

Answer: Consumers have the right to seek redressal against unfair trade practices and exploitation. If any damage is done to a consumer, he has the right to get compensation depending upon the degree of damage. This is covered under COPRA. The government has also introduced RTI - Right to Information Act to empower the consumer.

9. Mention some of the rights of consumers and write a few sentences on each
.
Answer: Some of the rights of consumers are as follows :
(i) Right to choice - 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 that service.
(ii) Right to seek redressal  - Consumers have the right to seek redressal against unfair trade practices and exploitation.
(iii) Right to represent - The act has enabled us as consumers to have the right to represent in the consumer courts.

10. By what means can the consumers express their solidarity?

Answer: By way of Consumer Forums or Consumer Protection Councils, consumers can express their solidarity.

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

Answer: Earlier there was no legal system available to consumers to protect them from exploitation in the marketplace. It was presumed that it was the responsibility of consumers to be careful while buying a commodity or service. It took many years for organisations in India and around the world to create awareness among people. In India, the consumer movement as a “social force” originated due to the necessity of protecting and promoting the interest of consumers against unethical and unfair trade practices. Hoarding, black marketing etc. gave birth  to consumer movement in an organised form in the 1960s. As a result of which, the government passed the Consumer Protection Act in 1986.

12. Match the following :

Answer:
Availing details of ingredients of a product
Right to information
Agmark
Certification of edible oil and cereals
Accident due to faulty engine in a scooter
Right to safety
District consumer court
Dealing with consumer cases
Consumers International
Global level institution of consumer welfare organisations
Consumers International
Agency that develops standards for goods and services

13. Say True or False.

(i) COPRA applies only to goods. False
(ii) India is one of the many countries in the world which have exclusive courts for consumer redressal. True
(iii) When a consumer feels that he has been exploited, he must file a case in the District Consumer Court. True
(iv) It is worthwhile to move to consumer courts 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. True
(vii)A consumer has the right to get compensation depending on the degree of the damage. True

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