CONSUMER RIGHTS CH-5 ECONOMICS

CONSUMER RIGHTS
Consumer—When we pay a price for a commodity or service & use it ,we become consumer.
We participate in the market both as producer and consumers
Q. Why do we need rules and regulations in the market?
--Rules and regulations are required in the market for protecting the environment .
--As in the informal sector moneylenders use various technique to bind the borrower, similarly many people who work in the unorganized sector have to work at low wages and have to accept conditions which are not good for their health. To prevent such exploitation we need rules & regulations.
--These are required for the protection of the consumers in the market place.
--Markets do not work in a fair manner when producers are few and powerful where as consumers purchase in small amounts and are scattered.
--Companies with huge wealth , power and reach can manipulate the markets in various ways—as false information through catchy advertisements, discounts, gift offers.
The above said conditions require rules and regulations.
EXPLOITATION IN THE MARKET PLACE/COMMON FORMS OF CONSUMER EXPLOITATION:
Exploitation in the market happens in various ways, as
--Underweight& under measurement The goods sold in the market are sometimes not measured or weighted correctly.
--Sub Standard Quality: Selling defective home appliance and expired medicines are its examples.
--High Prices: some times seller charge higher than the MRP.
--Duplicity: Fake and duplicate items are sold in the name of genuine goods.
--Adulteration& Impurities: Adulteration is done in the costly items as in oil, ghee, milk, spices etc. to earn higher profits. This effects consumers health and their money goes waste.
--Lack of safety devices: Electronic goods produced locally lack the required inbuilt safeguards, which may cause accidents.
--Artificial scarcity or shortages: To earn more profits business create artificial scarcity by hoarding and sell the same at higher price.
--False or incomplete information: sellers mislead people by giving wrong information about the products, price, quality, safety, expiry date, maintenance costs etc.
--Unsatisfactory after sales service; many suppliers do not provide satisfactory after sales service in case of expensive electronic equipments, home appliances and cars etc.
--Rough behavior & undue conditions: consumers are often harassed in matters like LPG &telephone connections and in getting licensed items.
Q. Why do consumers get exploited or factors causing exploitation of consumers:
1.limited informatiom.
2.limited supply.
3.limited competition.
4.low literacy or awareness.

CONSUMER MOVEMENT —Factors &Evolution
1. Consumer movement in India arose out of dissatisfaction of the consumers as the sellers were indulging in many unfair practices.
2. There was no legal system available to consumers to protect them from exploitation in market place.
CONSUMER MOVEMENT IN INDIA.
1.As a social force it originated with the necessity of protecting and promoting the interests of consumers against unethical and unfair trade practices.
2.Rampant food shortages, hoarding, black marketing , adulteration of edible oil gave birth to the consumer movement in an organized form in 1960’s.
3.Till 1970’sconsumer organizations were largely engaged in writing articles and holding exhibitions.
4.These organizations formed consumer groups to look into the mal practices in the Ration shops and over crowding in the Road Passenger Transport.
5. More recently India has witnessed an upsurge in the number of organized consumer groups. There are today more than 700 consumer groups in the country of which only about 20-25 are well organized & recognized for their work.
6.India has been observing 24 December as National Consumers’s Day as it was on this day that the Indian parliament enacted COPRA in 1986.
6. India is one country that has exclusive courts for consumer redressal.

CONSUMERS INTERNATIONAL
In 1985 UN adopted the UN guidelines for consumer protection.
This was a tool for nations to adopt measures to protect consumers and for consumer advocacy groups to press their governments to do so.
At the international level it has become the foundation for consumer movement.
Today Consumer International has 240 organisations from over 100 countries.
COPRA—CONSUMER PROTECTION ACT
1. This act was passed in 1986, on 24th December, and since then this day is celebrated as Consumers Day in India.
2. This act was passed to bring pressure on business firms as well as government to correct business conduct , which may be unfair and against the interest of the consumers at large.
3. Under COPRA, a Three –Tier Quasi-Judicial machinery at District, State and National levels have been setup for redressal of consumer disputes.
--District level court deals with the cases involving claims upto Rs 20 lakhs, the State level courts take cases between 20 lakhs to 1 crore& the National leveldeals with the cases involving claims exceeding 1 crore.
If the case is dismissed at Distric level court, the consumer can also appeal in state and than in National level courts.
4. The enactment of COPRA has led to the setting up of separate departments of Consumer Affairs in central & the state govts. Through them the govt. spread information about the legal process which consumer can use. They work through media.
CONSUMER RIGHTS…….
1.Safety is everyone’s right:
While using many goods& services, we as consumers, have a 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 rules and regulations.
--There are many goods and services that we purchase require special attention to safety. For example..pressure cookers have a safety valve which if defective can cause accident, LPG gas cylinder should be sealed and leakproof.
2.Right to be Informed: --When we buy a commodity, we find details given on the packing, These details are about ingredients used, price,batch no., date of manufacture, expiry date & address of the manufacturer.
We have right to be informed about the above mentioned informations, so that consumers can complain and ask for composation or replacement in case product proves to be defective
----These days this right has been expanded to cover various services provided by the govt. In October 2005, the govt of India enacted RTI-right to information act, which insures its citizens all the information about the functions of govt. department
3.Right to Choose: Any consumer who receives a service in whatever capacity, regardless of age, gender and nature of service, has a right to choose whether to continue to receive service.
4. Right to Seek Redressal: Consumers have this right against unfair trade practices and exploitation. .If a damage is done to the consumer, she has the right to get compensation depending on the degree of damage.
5. Right to Represent:
--COPRA has enabled us to have the right to represent in the consumer courts.
--There is a three-tier quasi-judicial machinery at district, state and national levels.--There are various organisations locally known as Consumer Forums or Consumer Protection Council, they guide consumers on how to file cases in the consumer courts: they also they also receive financial support from the govt. to create awareness..