Class 10 Economics Chapter 5- Consumer Rights Notes

 

Class 10 Economics

Chapter 5- Consumer Rights

Notes

 

Discover the intricacies of consumer rights amidst market complexities, from regulatory safeguards to the evolving consumer movement, highlighting challenges, responsibilities, and the pivotal role of the Consumer Protection Act and National Consumers' Day.

 

A. The Consumer in the Marketplace:

1. Regulatory Safeguards:
• Regulations are essential to safeguard consumer interests within the marketplace, preventing instances of exploitation.
2. Market Exploitation:
• Instances of exploitation are common within markets, particularly when a few powerful producers dominate while consumers have limited purchasing power and are dispersed.
3. Influence of Large Companies:
• Large corporations with substantial wealth and market reach often manipulate markets through misinformation spread via media and other channels, affecting consumer decision-making.

B. Consumer Movement:

1. Origin of Consumer Movement:
• In India, the consumer movement emerged as a social force in response to the need for protecting consumers against unfair trade practices, especially during the rampant food shortages and adulteration prevalent in the 1960s.
2. Evolution of Consumer Groups:
• Initially focused on writing articles and organizing exhibitions, consumer organizations later expanded their scope to address malpractices in ration shops and public transportation overcrowding.
3. Growing Awareness:
• Recent years have witnessed a surge in the number of consumer groups in India, reflecting increased awareness and activism regarding consumer rights.

C. Rights of Consumers:

1. Legal Entitlements:
• Consumers are entitled to certain rights enshrined in law, including the right to safety, information, choice, redressal, and representation in consumer courts.
2. Importance of Consumer Courts:
• Consumer forums and protection councils play a crucial role in guiding consumers on filing complaints and representing their interests in consumer courts, supported by government funding for awareness campaigns.

D. Factors Contributing to Consumer Exploitation:

1. Limited Information:
• Consumer exploitation often occurs due to inadequate information available to consumers regarding product quality, prices, and alternatives.
2. Supply Constraints:
• Limited supplies of goods and services can lead to monopolistic practices, exacerbating consumer exploitation.
3. Market Dynamics:
• Lack of competition in certain markets, coupled with low literacy rates among consumers, contributes to their vulnerability to exploitation.

E. Consumer Responsibilities:

1. Quality Assurance:
• Consumers are encouraged to purchase products with quality certifications such as ISI and AGMARK, ensuring adherence to safety and quality standards.
2. Document Verification:
• Requesting cash memos for purchases and lodging genuine grievances are responsibilities consumers must fulfill to safeguard their rights.

F. Challenges in Consumer Redressal:

• Consumer redressal processes are often complex, expensive, and time-consuming, requiring legal assistance and extensive court proceedings.
1. Legal Complexity:
2. Lack of Documentation:
3. Weak Enforcement:
• Absence of cash memos and evidence in small retail transactions poses challenges in proving consumer grievances.
• Inadequate enforcement of laws, especially in unorganized sectors, undermines consumer protection efforts, allowing malpractices to persist.

G. Consumer Protection Act - 1986 (COPRA):

1. Legislative Framework:
• The Consumer Protection Act of 1986 aims to safeguard and promote consumer interests, establishing a three-tier quasi-judicial mechanism for resolving consumer disputes.
2. Judicial Hierarchy:
• Consumer disputes are adjudicated at district, state, and national levels based on the claim amount, providing consumers with avenues for redressal and representation in consumer courts.

H. National Consumers' Day:

1. Observance Significance:
• India commemorates December 24 as National Consumers' Day, marking the enactment of the Consumer Protection Act in 1986 and recognizing the importance of consumer rights.
2. Role of Consumer Groups:
• Over 700 consumer groups operate in India, albeit only a few are widely recognized, highlighting the ongoing efforts towards consumer advocacy and protection.