CBSE Class 10 Social Science Consumer Rights Notes Set 03

These CBSE Class 10 Economics notes for Chapter 5 Consumer Rights cover how consumers are exploited in the market, the factors behind this exploitation, the history of the consumer movement in India, the Consumer Protection Act (COPRA) and the six consumer rights, the three-tier consumer court system, product standardisation marks, and a consumer's own duties, with a glossary at the end.

How Consumers Are Exploited in the Market

High prices: traders sometimes charge more than the current market price, taking advantage of customers' ignorance or urgent need.
Inferior quality goods: some traders sell substandard or duplicate goods.
Under-measurement and underweight: some traders deliberately shortchange customers on weight or measure.
Improper or false information: companies spend heavily on advertising to attract customers, often emphasising what they want buyers to know rather than giving complete, relevant product information.
Poor after-sale service: many items need proper after-sale service, which most traders fail to provide.
Adulterated and impure products: items like oil, ghee and spices are sometimes adulterated to boost profits.
Lack of safety devices: some manufacturers produce low-quality goods while ignoring standard safety regulations.
Bad behaviour and undue conditions: consumers are sometimes harassed, or burdened with unreasonable conditions, to meet their needs.
Hoarding and black marketing: sellers sometimes create artificial scarcity to raise profits.
False claims: sellers sometimes make false claims, especially through marketing, about a product's durability or quality.

Primary Factors Behind Consumer Exploitation

Incomplete and misleading information: consumers can be exploited when they lack complete, accurate information.
Limited information: without clear information on price, quality, composition and conditions of use, consumers are more likely to make poor decisions and lose money.
Limited competition: underdeveloped industries with weak competition can leave room for exploitation.
Consumer illiteracy and ignorance: high illiteracy rates, common in developing and underdeveloped countries, make consumers easier to deceive.
Supply shortages: underdeveloped industry can create shortages, enabling hoarding and price rises.

Why Rules and Regulations Are Needed

Traders often fail to give consumers enough information, and sometimes harass them; producers spend heavily to influence buyers, making it harder for consumers to decide wisely, which is why consumer awareness matters. Awareness is essential because dishonest dealers may adulterate food oils, milk, butter and other goods, harming health. Since most goods and services come from the private sector, whose primary motive is profit, laws and regulations are needed to protect consumers.

Consumer Movements

The consumer movement began as a response to unfair trade practices by traders. Before 1980, there was no legal system to protect consumers from exploitation by sellers. The movement emerged in India as a "social force" to safeguard and promote consumer interests against unfair trade. It took shape in the 1960s, driven by food shortages, hoarding and black marketing at high prices; India has since seen a growing number of consumer groups, partly reflecting a rise in cases of consumer exploitation by the private sector. The activity of these groups eventually forced the government to pass legislation, leading to the Consumer Protection Act, 1986 (COPRA).

Key features of COPRA: it applies to all goods and services, and covers all sectors — public, private and cooperative alike. COPRA was amended in 2019 to further strengthen consumer protection in India.

The Rights of Consumers

Right to Safety: protection from the marketing of goods and services that are dangerous to life and property.
Right to be Informed: the right to know a product's quality, quantity, price, and manufacture/expiry dates, so that consumers can approach the courts if cheated.
Right to Choose: the right to choose from a variety of goods and services at a reasonable price, so that no producer can force a consumer to buy a particular brand.
Right to be Heard: the assurance that a consumer's interests will be given due consideration at the appropriate forums.
Right to Seek Redressal: the right to seek redress against unfair trade practices or exploitation, including compensation proportionate to the harm suffered.
Consumer Courts: the provision of a three-tier court system (popularly called consumer courts) is one of the Consumer Protection Act's most important features.

The "Jago Grahak Jago" ("Wake up, consumer, wake up") campaign is a well-known government-run television and newspaper campaign promoting consumer awareness.

Levels of Consumer Courts

District level: the District Consumer Disputes Redressal Commission handles claims up to Rs 1 crore.
State level: the State Consumer Disputes Redressal Commission handles claims between Rs 1 crore and Rs 10 crore.
National level: the National Consumer Disputes Redressal Commission handles claims above Rs 10 crore.

Consumer courts address grievances and complaints against traders and manufacturers, providing relief and compensation; they are required to dispose of complaints within three months, and help reduce the burden on the regular court system.

Standardisation

The government has set up several institutions to maintain minimum quality standards, protecting consumers from poor or inconsistent quality.

Bureau of Indian Standards (BIS): sets scientific standards for industrial and consumer goods, and certifies that goods meet them.
Agmark: a certification mark for agricultural produce, confirming conformity to a grade standard notified by the Directorate of Marketing & Inspection (DMI), Ministry of Agriculture — used for products such as honey, masala and spices.

Surprise inspections and sample testing help ensure ongoing compliance with standards and regular monitoring of licence holders; a consumer dissatisfied with a certified product's quality may file a complaint at the nearest Bureau of Indian Standards office.

Duties of a Consumer

(1) Carefully check a product's quality, marked price, and guarantee/warranty details before purchase.
(2) Purchase standardised items carrying marks such as ISI or Agmark.
(3) Ask for a cash memo and warranty card whenever buying goods or services.
(4) Be aware of one's rights and responsibilities as a consumer.
(5) Form, or join, consumer awareness organisations, which can gain representation on government committees.
(6) Know how to proceed if deceived or cheated.

National Consumers' Day is observed on 24 December every year in India, marking the date the Indian Parliament enacted the Consumer Protection Act in 1986.

Glossary

Consumer: the final user of a purchased product or service.
Consumer Exploitation: occurs when a consumer is deceived in any way.
Consumer Awareness: a consumer's awareness of their rights, and knowledge of the legal and social obligations businesses and government owe to consumers.
Consumer Courts: courts established at various levels under the Consumer Protection Act, 1986, to protect and promote consumer interests.
Consumer Protection Act, 1986: the most important Act protecting consumer rights in India.
Agmark: a mark certifying the quality of agricultural and livestock products.
ISI: a standards-compliance mark for industrial products in India, used mainly on consumer durables and electronic items.
BIS Mark (Hallmark): a mark certifying the purity of gold and silver jewellery sold in India.
FPO: a certification mark for the processed food industry, ensuring hygiene and sanitation.
Eco Mark: a certification mark issued by the BIS for ecologically safe products that meet relevant standards.
Standardisation: the process of setting standards for the quality of goods and services.
Adulteration: the addition or removal of any substance to or from food in a way that affects its natural composition or quality.