Class 10 Economics Chapter 5 Notes - Consumer Rights

Consumer rights are basic rules made to protect people when they buy things, ensuring they are treated fairly and businesses act honestly. These rights are meant to stop people from being taken advantage of or getting poor-quality products or services, giving them more power in their purchases. 

The Consumer in the Marketplace

• Market Participation: We engage in the market as both producers and consumers. Whether working in agriculture, industry, or services, our roles extend to creating goods and services as producers and acquiring them as consumers.
• Development and Regulation: In previous discussions, we emphasized the necessity for rules and regulations to promote development. These measures are crucial for protecting workers in the unorganized sector, preventing exploitation from moneylenders charging high interest rates in the informal sector, and safeguarding the environment.

• Exploitation in the Unorganized Sector: Moneylenders in the informal sector employ various tactics to exploit borrowers, compelling producers to sell their produce at low rates in return for timely loans. Small farmers, like Swapna, may be forced to sell their land to repay loans. Workers in the unorganized sector often endure low wages, unfair conditions, and adverse health impacts. To address such issues, rules and regulations have been discussed, with organizations striving to ensure their implementation.
• Consumer Protection in the Marketplace: Rules and regulations are equally essential for protecting consumers in the marketplace. Individual consumers often find themselves in vulnerable positions when lodging complaints about purchased goods or services. Sellers tend to shift responsibility onto buyers, suggesting they go elsewhere if dissatisfied. The consumer movement, discussed later, aims to rectify this situation and enhance consumer rights.

Consumer Movement

• In India, the consumer movement as a ‘social force’ originated with the necessity of protecting and promoting the interests of consumers against unethical and unfair trade practices.

• Rampant food shortages, hoarding, black marketing, adulteration of food and edible oil gave birth to the consumer movement in an organized form in the 1960s.

• Till the 1970s, consumer organisations were largely engaged in writing articles and holding exhibitions. They formed consumer groups to look into the malpractices in ration shops and overcrowding in the road passenger transport.

• More recently, India witnessed an upsurge in the number of consumer groups.

Exploitative Practices in the Marketplace: Exploitation in the marketplace manifests in various ways, such as unfair trade practices. Traders may engage in deceptive practices like underweighing, undisclosed charges, or selling adulterated/defective goods. 

Consumers Rights

Rights which are provided by law : –

1. Right to safety

• Consumers have the right to be protected against the marketing of goods and delivery of services that are hazardous to life and property.
• Producers need to strictly follow the required safety rules and regulations.
• There are many goods and services that we purchase that require special attention to safety.

2.Right to be informed

• Product packaging shows details like ingredients, price, batch number, manufacturing date, expiry date, and manufacturer’s address.
• Medicines include directions, side effects, and risks, while garments have washing instructions.
• These rules ensure consumers' right to be informed about the goods and services they buy.
• Consumers can complain or ask for replacement/compensation if a product is defective.
• Example: A defective product within the expiry date can be replaced, but without the expiry date, responsibility could be avoided.
• Selling expired medicines leads to severe actions.
• MRP (Maximum Retail Price) protects against overpricing, and consumers can negotiate to pay less.
• The Right to Information (RTI) Act, passed in 2005, ensures citizens can access information on government functions.

3. Right to choose

• All consumers have the right to choose whether to continue a service, regardless of age, gender, or type of service.
• Example: Gas supply dealers may insist you buy a stove with a new connection, forcing unwanted purchases.
• This limits consumer choice and leaves them with no option.

4. Right to seek redressal

• Consumers have the right to seek redressal for unfair trade practices and exploitation.
• They can claim compensation based on the extent of damage.
• An easy and effective public system is needed for this process.
• Consumers can file complaints in the consumer forum with or without a lawyer's help.

5. Right to represent in Consumer Disputes Redressal Commissions 

• The consumer movement in India has led to the creation of consumer forums and protection councils.
• These organizations guide consumers on filing cases with the Consumer Disputes Redressal Commissions and often represent them.
• They receive government financial support to raise awareness.
• Residents’ Welfare Associations in colonies also take up cases of unfair trade practices on behalf of their members.
• COPRA established a three-tier quasi-judicial systemfor consumer dispute redressal:
  1. District Commission: cases up to Rs 1 crore.
  2. State Commission: cases between Rs 1 crore and Rs 10 crore.
  3. National Commission: cases above Rs 10 crore.
• Consumers can appeal from the district to the state, and then to the national level if needed.
• This Act ensures the right to representation in consumer commissions.

Learning to become Well Informed Consumers

• If a case is dismissed in district level court, the consumer can also appeal in state and then in national level courts. Thus, the Act has enabled us as consumers to have the right to represent in the Consumer Disputes Redressal Commissions.

Taking the consumer movement forward

• National Consumers' Day is observed on 24 December, the day the Consumer Protection Act was enacted in 1986.
• India has a unique system for consumer redressal, with over 2000 consumer groups, though only 50-60 are well-recognized.

• The consumer redressal process can be cumbersome, expensive, and time-consuming, often requiring lawyers and proof of purchase (cash memos).
• The Consumer Protection Act (COPRA) was amended in 2019 to address online purchases and strengthen consumer rights, holding service providers accountable for defective products or services.
• Mediation is encouraged at all three levels of consumer commissions for dispute settlement.
• Despite over 30 years of COPRA, consumer awareness is growing slowly, and enforcement of laws, especially for workers in unorganized sectors, remains weak.
• Consumer movements require active involvement from consumers and a voluntary effort for effectiveness.