CBSE Class 10 Economics Consumer Rights Worksheet Set A

THE CONSUMER IN THE MARKETPLACE

 A ‘consumer’ is a person who uses or consumes goods or avails services. Under the Consumer Protection Act, a consumer is defined as:

(a) Any person who buys any goods for a consideration, which has been paid or promised, or partly paid and partly promised, or under any scheme of deferred payment. It includes any user of such goods, when such use is made with the approval of the buyer, but does not include a person who obtains goods for re-sale or any commercial purpose.
(b) Any person who hires or avails of any service, for a consideration which has been paid or promised, or partly paid and partly promised, or under any system of deferred payment. It includes any beneficiary of services when such services are availed of with the approval of the person concerned but does not include a person who avails of such services for any commercial purpose.

A consumer can be exploited in the marketplace on the following fronts:

• Is given incomplete or false information about a product or services
• Is given unfair terms and conditions and charged higher prices
• Is sold unsafe products
• Is sold adulterated product
• Is cheated on weights and measures
• Is exploited with artificial scarcity
• Is not given after sales services

In 1985 United Nations adopted the UN Guidelines for Consumer Protection. This was a tool for nations to adopt measures to protect consumers and for consumer advocacy groups to press their governments to do so. At the international level, this has become the foundation for consumer movement. Today, Consumers International has become an umbrella body of 240 organizations from over 100 countries.

Consumer Movement

• Consumers in India have suffered for a long time at the hands of unscrupulous traders, with food adulteration, black marketing, hoarding, under weighing, etc. Consumer movement began in India in the 1960s. After many years of organized struggle, the government was forced to take notice and finally the Consumer Protection Act (COPRA) was enacted in 1986.
• According to the Consumer protection Act 1986, the consumer has the following rights -

1. Right to Safety 2. Right to be Informed
3. Right to Choose 4. Right to be Heard
5. Right to seek Redressal
6. Right to Consumer Education:

The Consumer Protection Act by conferring these rights on the consumers, empowers them to fight against any unscrupulous, exploitative and unfair trade practices adopted by sellers.

Duties of Consumers

A consumer should keep in mind the following responsibilities while making a purchase :

(i) Consumer should make a wise choice by being aware of all the choices available in the market.
(ii) They should buy only standardized goods, having proper marks of quality such as ISI mark, FPO mark, Hallmark, etc.
(iii) Follow manufacturer’s instructions and use the products safely.
(iv) Read labels to know about prices, net weight, manufacturing and expiry dates, etc.
(v) Demand a fair deal as a right.
(vi) Make purchases only from proper outlets and discourage unscrupulous practices like blackmarketing, hoarding, etc.
(vii) Collect cash memo on purchase of goods or services to serve as a proof of the purchase made.
(viii) On finding deficiency in products and services a consumer should file a complaint in an appropriate consumer forum.
(ix) People should come together and form consumer societies for educating and safeguarding the interests of the consumers.
(x) A consumer must always respect the environment.

Three tier quasi-judicial Redressal machinery

District Forum	State commission	National commission
The District Forum consists of a President and two other members, one of whom should be a woman.	Each State Commission consists of a President and not less than two other members, one of whom should be a woman.	The National Commission consists of a President and at least four other members, one of whom should be a woman.
Members are appointed by the respective State Government	The members are appointed by the State Government concerned.	They are appointed by the Central Government.
A complaint can to be made to the appropriate District Forum when the value of the goods or services in question, along with the compensation claimed, does not exceed Rs 20 lakhs.	A complaint can to be made to the appropriate State Commission when the value of the goods or services in question, along with the compensation claimed, exceeds Rs 20 lakhs but does not exceed Rs 1 crore.	A complaint can to be made to the National Commission when the value of the goods or services in question, along with the compensation claimed, exceeds Rs 1 crore.
In case of dissatisfaction an appeal can be filed before the State Commission within 30 days.	In case of dissatisfaction an appeal can be filed before the National Commission within 30 days.	In case of dissatisfaction with the order of the national commission the matter can be taken to the Supreme court within 30 days.

 

Demerits of consumer redressal

• The process of redressal is cumbersome and time consuming
• Consumer has to attend court and may even engage a lawyer
• No case can be filed if evidence of purchase is lost
• Existence of a bad product itself does not help
• Some laws are not clear and do not support the consumers

National Consumers’ Day

• 24th December is celebrated as the National Consumers’ Day. It was on this day that the Indian Parliament enacted the Consumer Protection Act in 1986. India is one of the few countries that have exclusive courts for consumer redressal. The consumer movement in India has made significant progress in recent times. At present, there are more than 700 consumer groups. Out of them, about 20- 25 are well organized and are recognized for their work.
• The consumer redressal process is becoming cumbersome, expensive and time consuming. The lawyer’s charges in some cases work as deterrent. Sometimes, the long delay demotivates a person and he may even stop pursuing the case.

 

 

SUMMARY

How did consumer movement arise in India? We participate in the market both as producers & consumers. Exploitation in the market place happens in various ways; most often traders indulge in unfair trade practices. The salient features of COPRA (1986): It gives various rights to consumers, establi shes consumer protection councils at the central and state levels to promote and protect the rights of the consumers. It provides a separate three-tier quasi-judicial machinery at the national, state and district levels. Consumers rights are: 1. Right to be heard 2. Right to safety 3. Right to choose 4. Right to Seek Redressal 5. Right to be informed 6. Right to consumer education. What are the duties of consumers? Consumer forums or consumer protection councils are voluntary organizations. They help in creating awareness among people. They guide consumers on how to file cases in the consumer courts. Why is the consumer redressal process becoming cumbersome, expensive and time consuming In India?

Note: Answer the questions of 1, 5, 10 &14 in your class work book.

1 What are the different ways in which consumers are exploited?

OR

How the consumers are exploited in market place? Explain with three examples.

Exploitation in the market place happens in various ways; most often traders indulge in unfair trade practices some of them are as follows:

1. Underweight & Under Measurement: The goods being sold in the market are sometimes not measured or weighed properly.

2. Over Pricing: When traders add charges that were not mentioned before, it increases the prices.

3. Adulteration & Impurity: Traders mix other items in the food products such as spices, oils, ghee etc.

4. Defective Goods: Sometimes traders sell defective goods like machines & home appliances, which are made up of low quality material ignoring safety.

5. False Information: Sometimes the producers or the sellers mislead consumers by providing false information through media or other sources to attract consumers.

6. Eg. A Company producing powdered milk for babies which is popular worldwide, made false claims as ―Most scientific product greater than mothers‘ milk‖. Similarly cigarettemanufacturing companies did not accept the health hazards until a battle was fought in the court to make them accept the fact the product would cause cancer.

7. Other Unfair Trade Practices: Include hoarding & black marketing as well as unsatisfactory after sale services.

2. What is our role as producers & consumers in the market?

1. We participate in the market both as producers & consumers. As producers of goods & services we could be working in any of the various sectors such as agriculture, industry,
administrative services, defence etc.

2. As consumers we participate in the market when we purchase the goods & services we need.

3. Why are rules & regulations required in the market place?

1. Rules and regulations are required for protection of the consumer against unfair trade practices.

2. Sometimes the seller tries to shift all the responsibility to the buyer once the sale is completed, in this kind of a situation individual consumers often find themselves in a weak position. Hence rules and regulations are required to change the situation and protect the consumers from exploitation.

4 What were the conditions prevailing in India which gave birth to the consumer movement?

1. The consumer movement emerged out of dissatisfaction of the consumers regarding many unfair trade practices by the sellers.

2. There was no legal system available for the consumers to protect them from exploitation in the market place. It was presumed that it is the responsibility of a consumer to be careful while buying a commodity or a service.

3. There were rampant food shortages, hoarding, black-marketing & adulteration of food. Thus, the consumer movement in India originated as a social force with the necessity of
protecting and promoting the interest of consumers against unethical & unfair trade practices.

5. When did the consumer movement at the international level launch and what were its objectives?

1. In 1985, the United Nations adopted the ‗UN Guidelines for Consumer Protection‘. This became a tool for nations to adopt measures to protect consumers and for consumer advocacy groups to force their government to follow the UN guidelines.

2. Today consumer‘s international consists of 240 organizations spread over 100 countries

6 What is COPRA? When was it established?

1. In the year 1986 the government of India took a major step in the interest of consumers, which resulted in the enactment of consumer protection act popularly known as COPRA.

2. The enactment of COPRA has led to the setting up of separate departments of consumer affairs in central as well as state governments.

3. The COPRA also spells out the rights and duties of a consumer, as well as the rules and regulations, which a producer should follow.

7 What type of information should be given to the consumers about goods and services according to the act?

a) Ingredients used – Price - Batch number - Date of manufacture

b) Expiry date - Address of the manufacturer

c) Directions for use (In case of medicines) - Information relating to side effects

d) Risks associated with continuous usage Instructions for washing in case of garments. etc.

8 Discuss what safety rules should be observed by the producers?

1. Consumers have the right to be protected against the marketing of goods and delivery of services that are hazardous to life and property.

2. Producers need to strictly follow the required safety rules and regulations in case of products that require special attention to safety.

3. They have to inspect their goods for safety before selling them in the market use high quality material (Eg; manufacturers of safety valve of pressure cookers should check if it is ok, if it is defective it can be hazardous.)

9 Why do producers sell defective goods in the market?

1. There are certain goods, which require special attention to safety, which could be hazardous to life and property if defective. The action taken by the government as well as the public is not adequate.

2. The inspection and supervision of the safety rules is very weak hence the producers escape.

10 What are consumer forums? Explain their functions.

1. The consumer movement in India has led to the formation of various organizations locally known as consumer forums or consumer protection councils.

2. These are voluntary organizations, which receive financial support from the government for creating awareness among people. They guide consumers on how to file cases in the consumer courts.

3. They represent consumers in the consumer courts. They work as residential welfare associations. In case of unfair trade practices to their members they take up the case on the behalf of their members

11 Briefly explain the three-tier quasi- judicial machinery system under the COPRA.

1. Under the COPRA, three- tier quasi- judicial machinery at the district, state and national levels was set up for redressal of consumer disputes.

2. The district level court deals with the cases involving claims unto Rs20 lakhs. The state level courts deals with cases between 20 lakhs and one crore. National level court deals with
cases involving claims exceeding one crore

3 If the case is dismissed in the district level court the consumer can appeal to the state and then the national level courts.

12 What are our duties as consumers?

1. We as consumers should become conscious of our rights.

2. While purchasing goods and services we should be able to discriminate and make informed choices.

3. We must acquire knowledge and skill to become a well-informed consumer.

13 What are the techniques used by copra to spread consumer awareness?

1. The enactment of copra has led to the setting up of separate departments of consumer affairs in central and state governments.

2. They use posters and advertisements through television channels.

Eg: JAGO GRAHAK JAGO

14 Explain the drawbacks of the consumer movement in India. OR

“Consumer movement in India is making very slow progress”. Explain.

1. The consumer redressal process is becoming cumbersome, expensive and time consuming.

2. Many a time consumers are required to engage lawyers; these cases require time for filling and attending the court proceedings.

3. In most purchases cash memos are not issued hence there is no evidence.

4. Most purchases in the market are small retail sales.

5. Existing laws regarding compensation in case of injury or defective products are not very clear.

6. Enforcement of laws to workers of unorganized sectors is very weak.

7. Rules and regulations for working markets are not followed.

8. Lack of voluntary effort and struggle in consumer participation

15 Name some of the logos, which you might have seen while buying certain commodities.

1. ISI—which stands for Indian Standards Institution (in case of electrical goods)

2. Agmark- (for food products)

3. Hallmark—(for gold)

4. ISO—(International Organization for Standardization)

16 What do these logos indicate? Is it compulsory for all the producers to have these logos?

1. The logos such as ISI, Hallmark, Ag- mark etc., give assurance to consumers of the quality and safety of the products they buy. No, it is not compulsory for all producers to have these logos.

2. It is mandatory only for certain producers who produce products which affect the health and safety of consumers such as- products of mass consumption.

3. Eg:- LPG, Food colours, additives, packaged drinking water, cement.

17 How do producers get their products certified with these logos?

1. There are certain organizations set up by the government, which permit the producers to use the logo on their products.

2. These organizations have developed quality standards and they look for these quality standards while certifying the products.

3. If satisfied with the product they certify the product, which is a legal permission to use these logos.

18 What is the significance of 24th December?

• India has been observing 24, December as the national consumer‘s day; it was on this day that the Indian parliament enacted the consumer protection act in 1986.

VERY SHORT ANSWER TYPE QUESTIONS 

Question. Name the quasi-judicial machinery, which is set up at the highest level for redressal of consumer disputes.
Answer : National Level Consumer Courts

Question. Which logo would you like to see for purchasing electrical goods?
Answer : ISI

Question. If any damage is done to a consumer by a trader, under which consumer right one can move to consumer court to get compensation.
Answer: Right to Seek Redressal

Question. What information one should check before buying packed medicines?
Answer : While buying medicines, one should check the information like directions for proper use, information related to its side effects, risks associated with its usage, manufacturing date and expiry date.

Question. Why was the Consumer Protection Act enacted by the Indian Parliament?
Answer : The Consumer Protection Act was enacted to protect the consumers from unscrupulous producers and dishonest traders.

Question. Suppose you have to buy a packed bottle for drinking water in your journey. Which logo would you like to see to be sure about its quality?
Answer : Agmark

Question. When do we celebrate National Consumer’s Day?
Answer : 24th December

Question. What is a market place?
Answer : A market place is an economic system through which different companies compete among one another, to sell their products.

Question. Which logo would you like to see on an electric heater to be sure of its quality?
Answer : ISI

Question. Who is a consumer?
Answer : A consumer is a person or group who pays to use the goods or services produced by a seller for satisfaction of his wants.

Question. Suppose your parents want to purchase gold jewellery along with you, then which logo will you look for on the jewellery?
Answer : Hallmark

Question. Who is a producer?
Answer : A producer is a person or group of persons who produce either goods or services or both by creating utility.

Question. Why did consumer movement arise in India?
Answer : Consumer movement arose out of dissatisfaction of the consumers as many unfair practices were being indulged in by the sellers.

Question. If you are not interested to buy a brush with tooth paste but shopkeeper denied to sell tooth paste only. In this case, which consumer right is being violated by the seller?
Answer : Right to Choose

Question. What information one should check before buying any packed food?
Answer : Before buying any packed food, one should check the information related to ingredients used, price, batch number, manufacturing date, expiry date and address of the manufacturer

Please click on below link to download CBSE Class 10 Economics Consumer Rights Worksheet Set A