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:
- Regulatory Safeguards:
- Regulations are essential to safeguard
consumer interests within the marketplace, preventing instances of
exploitation.
- 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.
- 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:
- 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.
- 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.
- 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:
- Legal Entitlements:
- Consumers are entitled to certain
rights enshrined in law, including the right to safety, information,
choice, redressal, and representation in consumer courts.
- 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:
- Limited Information:
- Consumer exploitation often occurs due
to inadequate information available to consumers regarding product
quality, prices, and alternatives.
- Supply Constraints:
- Limited supplies of goods and services
can lead to monopolistic practices, exacerbating consumer exploitation.
- Market Dynamics:
- Lack of competition in certain markets,
coupled with low literacy rates among consumers, contributes to their
vulnerability to exploitation.
E. Consumer
Responsibilities:
- Quality Assurance:
- Consumers are encouraged to purchase
products with quality certifications such as ISI and AGMARK, ensuring
adherence to safety and quality standards.
- 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.
- Legal Complexity:
- Lack of Documentation:
- 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):
- 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.
- 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:
- 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.
- 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.
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