CBSE Class 10 Economics Chapter 5 Consumer Rights

Class Notes of Chapter 4: Consumer Rights

Class 10th Economics

Consumer Rights

Topics:

Important Notes
Important Questions

Important Notes

Rights of Consumers :

Rights which are provided by law -

Right to safety
Right to be informed - Right to choose
Right to be heard - Right to seek redressal
Right to consumer education.

Factors causing exploitation of Consumers :

Limited information
Limited supplies
Limited competition
Low literacy

Duties of Consumers :

To purchase quality marked products such as ISI, AGMARK etc.
To ask for a cash memo for the items purchased whenever possible.
To make a complaint about genuine grievances consumers must know their rights and must exercise them.

Demerits of Consumer Redressal Process :

The Consumer Redressal Process is becoming cumbersome expensive and time-consuming.
Many a time, consumers are required to engage lawyers. These cases require time for filling and attending the court proceedings etc.
In most purchases cash memos are not issued hence evidence is not easy together.
Most purchases in the market are small retail sales.
The enforcement of laws that protect workers, especially in the unorganized sectors is weak.
Rules and regulations for the working of markets are often not followed.

Consumer Protection Act - 1986 (COPRA)

To protect and promote the interest of consumers.
Under COPRA a three-tier quasi-judicial machinery at the district, state and national levels is set up for redressal of consumer disputes.
The district level court deals with the cases involving claims up to Rs. 20 lakhs; The
State level courts between Rs. 20 lakhs and Rs. 1 crore and the national level court deals with cases involving claims exceeding Rs. 1 crore.

Important Questions

Q. Who is a consumer?

A. According to the Consumer Protection Act, a consumer is:

One who buys goods or hires services.
Any use of such good or service with the approval of the buyer.
Anyone who bought the goods for earning a livelihood.

Q. Mention the factors which cause exploitation of consumer.

A. Factors causing exploitation of consumers are:

Limited information to the consumer about a product.
Limited supplies of goods to increase the price.
Limited competition and the possibility of manipulating prices.
Low literacy of consumers.

Q. What is the need for consumer awareness?

A. The need for consumer awareness is due to:

The selfishness of manufacturers and traders can go to any extent.
Some unscrupulous traders began to play with the health of the nation by indulging in adulteration of edible oils, milk, butter, ghee, spurious medicine, etc.

Q. What is adulteration?

A. When some foreign substance, injurious to health, is mixed with any good or natural product, is called adulteration. This is a crime against humanity.

Q. State the role of Public Distribution System.

A. PDS ensures the availability of essential commodities like wheat, rice, sugar, edible oils, and kerosene etc. The need for PDS was felt to check the force of supply and demand.PDS is also expected to strengthen measures to prevent hoarding, black marketing and overcharging by traders.

Q. State the various ways in which a consumer is exploited by manufacturer and traders. (5 Marks)

A. The main way of exploitation of consumers are -

Adulteration – Mixing or substituting undesirable materials in food causing heavy loss of money and spoilage of health.
False claim – Sellers make a false claim about the quality of the product through advertisement.
Under measurement – Sellers generally under-measure the goods and charge actual price.
Hoarding and black marketing – Essential commodities are hoarded by the traders to create an artificial crisis and sell them at the higher price.
Substandard goods – In order to make more profit, sellers usually sell the inferior quality of goods.
High Price – Traders dealing necessities generally charge arbitrary prices.
Duplicate Articles – In the name of genuine goods, duplicate items are sold.
Lack of safety devices – Locally produced electronic appliances lack the inbuilt safeguards due to which consumers are harmed.

Q. State and explain the various rights of consumers.

A. The right of consumers as provided by the Act -

The right of safety – Electrical goods and pressure cookers can cause serious injury due to manufacturing defects in them. There is also a risk to life. Thus consumers have the right to be protected against this type of danger.
The right to choose – Manufacturer use aggressive selling techniques to sell a particular product and do not give consumers a chance to choose from the alternative product available. Thus consumer should always be given chance to choose.
Right to be informed – All information about the product, its ingredients, date of manufacturing, the precaution of use etc. should be given to the consumers.
Right to seek redressal – When a consumer is cheated or exploited, they have a right to get their claims settled against
manufacturer.
Right to be heard – The consumers must be assured that the complaints or grievances regarding a product or service will be considered.
Right to consumer education – Consumers should be protected against frauds by educating them about the right and the remedies available.

Q. What are the duties that consumers must fulfill to secure the right?

A. Duties of consumers -

Consumers should be more alert and questioning about the price and quality of goods and services.

Consumers must be assured to get a fair deal.

To organize together as consumers to develop the strength and influence to promote and protect their interests.

To purchase ISI or AGMARK marked products.

To ask for the cash memo.

To complain about genuine grievances.

The consumer should know their right and must exercise them. available.

What is legislation concerning consumer rights?

The government has enacted the Consumer Protection Act 1986 to provide for the establishment of Consumer Disputes Redressal Agencies at District, State and National levels for the protection and promotion of consumer interests and to redress their grievances in a speedy, simple and inexpensive way. The agencies have to dispose of each and every complaint within three months. At the district level, it is called ‘District forum’. At the state level, it is called ‘State Forum’. At the national level, it is called ‘National Consumer Commission’, which is the apex court under the Act. It functions in Delhi. These courts look into grievances and complaints of the consumers against the traders and manufacturers and provide the necessary relief and compensation to the consumers.

Q. “The consumer movement arose out of dissatisfaction of the consumer.” Justify the statement with arguments.

A. The factors that gave birth to the Consumer Movement in India are:

There was dissatisfaction among the consumers regarding unfair trade practices is being indulged by the producers and sellers.

There was no legal system available for the protection of consumers from exploitation in the marketplace.

Rampart food shortages, hoarding, black-marketing and adulteration of food and edible oil posed a threat to the consumers.

The consumers were unaware of their rights. So, to educate and make them aware, consumer movement began.

Q. Explain with an example how you can use the right to seek redressal.

A. Consumers have the right to seek redressal against unfair practices and exploitation. If any damage is done to a consumer, he or she has the right to get a compensation, depending on the degree of damage. There is a need to provide an easy and effective public system by which this can be done.

Q. What precautions do you suggest for a consumer to take while purchasing medicines from the market?

A. The precautions should be kept in mind by a consumer while purchasing medicines from the market are:

He should check the expiry date of the medicines before purchasing them.
He should check the details given on the packets of the medicines such as directions for use, side effects, and risks.
He should always ask for cash memos or bills for medicines purchased as it is a proof of purchase.

Q. How has three-tier quasi-judicial machinery been set up for redressal of consumer disputes? Explain.

A.

A three-tier quasi-judicial machinery at the district, state and national level, was set up under COPRA, for redressal of consumer disputes in India.

At the district level, consumer courts deal with cases involving claims up to 20 lakhs.

At the state level, consumer courts deal with cases involving claims between 20 lakhs and ? 1 crore.

At the national level, consumer courts deal with cases involving claims exceeding 1 crore. If the case is dismissed at the district level, then the consumer can appeal at the state and then at the national level, if required.

Q. Explain any three factors which gave birth to the ‘Consumers movement’ in India.

A. The factors that gave birth to the Consumer Movement in India are -

There was dissatisfaction among the consumers regarding unfair trade practices being indulged by the producers and sellers.

There was no legal system available for the protection of consumers from exploitation in the marketplace.

Rampart food shortages, hoarding, black-marketing and adulteration of food and edible oil posed a threat to the consumers.

The consumers were unaware of their rights. So, to educate and make them aware, consumer movement began.