Consumer Education and Protection Chapter Notes | Home Management for SSS 2 PDF Download

Introduction

• All individuals are natural consumers as they purchase goods and services to meet needs and desires.
• Consumers often face issues such as poor quality goods, inadequate services, or misleading advertisements despite paying for products or services.
• These experiences can lead to feelings of frustration and being cheated, prompting questions about actions taken, such as contacting the manufacturer or service provider.
• Consumer education, as introduced in Class XI under family finance management, emphasizes efficient and alert consumer behavior to maximize satisfaction from spending.

Significance of Consumer Education and Protection

• The market has seen a steady increase in the variety of products available in both urban and rural areas.
• Manufacturers are responsible for delivering high-quality products, and consumers have the right to seek redressal if issues arise.
• With growing consumer numbers and consumption, manufacturers recognize the importance of consumer satisfaction for their reputation and profits.
• India’s economic transformation from an underdeveloped to a developing economy is driven by industrialization and globalization, improving living standards and buying power.
• Globalization has created a 'global village,' exposing consumers to global market challenges and necessitating a global outlook.
• Consumers must be proactive, informed, and alert to ensure their welfare within the economic system and its interrelationships with businesses and government.
• The influx of foreign companies has introduced a variety of products, offering more choices but also complicating decision-making due to new technologies and features.
• Consumers face challenges like malpractices, exploitation by unscrupulous sellers, and misleading advertisements, underscoring the need for consumer education and protection.

Basic Concepts

• A consumer is defined as the final buyer of goods and services for personal or family use, satisfying needs and wants, ranging from natural to market products.
• Consumers are central to the socio-economic system, with increased purchasing power driving demand for products that offer comfort, satisfaction, and prestige.
• Higher consumer spending boosts market activity, contributing to economic growth and development.
  Consumer Product: Refers to any article produced or distributed for personal, family, institutional, or business use, such as in homes, schools, hospitals, or offices.
  Consumer Behaviour: The process through which buyers make purchasing decisions, influenced by various factors.
  Consumer Forum: A platform or organization where consumers discuss products and services, their advantages, and disadvantages, often acting as advocacy groups to protect consumer interests.
  Consumer Footfalls: 
  • The number of customers visiting a store or mall, with higher consumption leading to increased footfalls, reflecting economic activity.
  • Consumers expect quality, fair pricing, accurate information, and reliable services when purchasing goods or services.

Consumer Problems

• Substandard/Poor Quality Goods: Products from multinational corporations, local manufacturers, or imports may vary in material and quality, making it hard for consumers to identify substandard items due to ignorance about quality standards.
• Adulteration: Intentional or unintentional addition or removal of substances that alter a product’s composition, nature, or quality, posing health and safety risks and exploiting consumers.
• High Prices: Consumers expect fair pricing, but prices are influenced by government policies, availability, quality, distribution methods, promotion costs, and consumer convenience desires. Some suppliers overcharge uninformed consumers, and prices may not always reflect quality.
• Lack of Consumer Information: Many consumers are unaware of their rights, responsibilities, and legislative protections, limiting their ability to make informed decisions.

Inadequate or Erroneous Information by Manufacturer:

• Product labels are often inaccurate, deceptive, or use complex terminology, lacking essential information.
• Advertisements fail to provide comprehensive details about product qualities, uses, care, maintenance, or after-sales service.
• There is a lack of buying guides for consumer durables and nondurables to aid decision-making.
• Attractive packaging encourages impulsive purchases, sometimes using oversized containers or excessive layers, misleading consumers about quantity or novelty.

Incorrect Weights and Measures: Consumers may receive less quantity than paid for due to altered scales, incorrect usage, or deceptive measures without valid verification stamps.
Spurious/Duplicate/Imitation Products: Substandard duplicates of well-known brands with similar packaging or names confuse and cheat consumers, often being unsafe or of poor quality.
Sales Promotion Schemes: Companies use exchange offers, bonuses, or lucky draws to attract consumers, but these schemes may be deceptive, leading to uninformed purchases.
Problems with Services: Consumers face issues with public utilities (e.g., water, electricity), banks, insurance, and financial institutions, including poor after-sales service and unfulfilled promises in sales contracts.

Eco-friendly Production and Green Consumption

• Sustainability focuses on production and consumption systems that minimize environmental impact.
• Green marketing offers products that align with nature, producing less waste, using fewer raw materials, and conserving resources.
• Consumer education and protection empower consumers to combat deceptive marketing and market challenges, enhancing awareness of rights, responsibilities, and legislative protections.

Consumer Protection Act

• The Consumer Protection Act (CPA) 1986 established six consumer rights: safety, information, choice, being heard, redressal, and education.
• The CPA aims to protect consumers from fraudulent trade practices, offering simple, speedy, and inexpensive redressal for grievances.
• It allows consumers to complain to authorities and seek compensation for losses or injuries due to manufacturer negligence, applying to all goods and services unless exempted by the central government.
• The CPA has strengthened the consumer movement, making it powerful, broad-based, effective, and people-oriented.
• The CPA 2019 replaced the 1986 Act, introducing a central regulator, stricter penalties for misleading advertisements, and guidelines for e-commerce and electronic service providers.

Consumer Rights

• Right to Safety: Protection against products, processes, or services hazardous to health or life.
• Right to be Informed: Access to accurate information about quality, quantity, potency, purity, standards, and prices to guard against unfair trade practices.
• Right to Choose: Access to a variety of products in terms of quality, quantity, price, size, and design at competitive prices, allowing choices based on needs.
• Right to be Heard: Assurance that consumer interests are considered in appropriate forums, with representation in bodies ensuring consumer welfare.
• Right to Seek Redressal: Right to address unfair trade practices or exploitation, including fair settlement and compensation for faulty goods or services.
• Right to Consumer Education: Access to knowledge and skills to make informed purchasing decisions and resolve issues independently

Standardisation Marks

• ISI Mark: Issued by the Bureau of Indian Standards (BIS) to manufacturers meeting relevant standards for products like food items, electrical goods, soaps, detergents, and paints, with some under mandatory certification.
• AGMARK: A government standard for agricultural products, ensuring reliability and quality.
• Fruit Product Order (FPO): Sets minimum standards for fruit and vegetable products, processing facilities, and limits on metallic contaminants and preservatives.
• Wool-mark: A quality mark by the International Wool Secretariat, ensuring pure wool in garments.
• Silk Mark: A quality assurance label guaranteeing 100% natural silk, also promoting pure silk generically.
• Hallmark: Certifies that precious metals (platinum, silver, gold) meet national/international standards of fineness/purity, tested at official assaying centers.
• Ecomark Scheme: BIS label for eco-friendly household products (e.g., soaps, detergents, paper, plastics), represented by an earthen pot, indicating biodegradability and recyclability.
• FSSAI: Established under the Food Safety and Standards Act 2006, it sets science-based standards for food articles, regulating their manufacture, storage, distribution, and sale for safe consumption.

Consumer Organisations

• Statutory and semi-government bodies like BIS and the Directorate of Marketing and Inspection (DMI), along with government Protection Councils at central and state levels, safeguard consumer interests.
• Non-governmental organizations (NGOs) and voluntary consumer organizations play a key role due to their impartial interests.
• They disseminate information through magazines, booklets, newsletters, buying guides, audiovisual materials, and research reports.
• Activities include comparative product testing, raising awareness about harmful products, product recalls, sharing legislative updates, offering legal advice, handling grievances, and acting as vigilance groups.
• They organize public meetings, maintain libraries and documentation centers, and contribute to consumer awareness, empowerment, and the consumer movement.
• Examples include VOICE (Delhi, publishes 'Consumer Voice'), CERC (Ahmedabad, publishes 'Insight'), Consumers Union (US, 'Consumer Reports'), Consumer Association (UK, 'Which'), and Australian Consumers Association ('Choice').

Consumer Responsibilities

• Regularly update knowledge of consumer protection laws and legislative provisions.
• Be honest in transactions and pay for all purchases.
• Conduct market surveys before purchasing to compare brands, features, and prices across shops and markets for informed choices.
• Exercise freedom to choose from available products based on needs and requirements.
• Read all information on labels or brochures during purchases.
• Purchase products with standardization marks to ensure quality.
• Retain receipts and relevant purchase documents as proof for potential complaints about defective or malfunctioning products.
• Understand terms, conditions, liabilities, and service charges for services like insurance, credit cards, or bank deposits, seeking clarification from representatives.
• Stay informed about national and international consumer organizations, their activities, and the benefits of membership.

Skills Required for Career in Consumer Studies Field

• Knowledge of consumer protection mechanisms, redressal agencies, quality standards, adulteration, and detection of adulterants.
• Understanding of consumer protection laws, rights, and responsibilities.
• Soft skills including effective communication, interpersonal skills, empathy, and being a good listener.
• Creativity in developing consumer awareness programs, advertisements, and talks.
• Writing skills for creating educational materials, reporting consumer product tests, and assisting the public.
• A willingness to help fellow consumers and the broader public.

Scope

• Government Organizations: Roles in decision-making, managerial, and technical positions at BIS, Directorate of Marketing and Inspection, or Ministry of Consumer Affairs.
• Voluntary Consumer Organizations: Engage in product testing, consumer awareness, education, empowerment, or magazine publication.
• Corporate Consumer Divisions: Handle consumer complaints, suggestions, customer relationship management, or maintain customer databases for personalized interactions.
• Market Research Organizations: Study consumer behavior, product reach, acceptance of new products, and gather feedback and suggestions.
• Start a Consumer Organization: Address consumer issues discussed in the chapter.
• National Consumer Helpline: Provide consumer counseling and assist with complaint redressal.
• Consulting for Consumer Clubs: Manage educative and outreach activities in schools and colleges, teach consumer studies, or offer freelance redressal guidance through consumer courts.
• Department of Audio-visual Publicity: Develop content for consumer awareness advertisements in print and electronic media.
• Consumer Testing Laboratories: Work as an analyst for comparative product evaluation.
• Consumer Activism: With legal training, plead cases in Consumer Protection Courts.
• Journalism: Write about consumer affairs for media outlets.
• Financial Management: With additional training, assist individuals in financial management, insurance, shares, or portfolio management.