Back to: MBOSE Social Science Class 10

Why are rules and regulations required in marketplace? Illustrate with a few example

• To check adulteration :- Consumer awareness is also must because at times, greedy traders begin to play with the health of the people by indulging in adulteration of edible oils, milk, butter, ghee, etc.
• Privatisation: – After 1991, the Government of India has withdrawn itself from most of the productivities, and allowed the private sector to take over. So it was felt that there is a greater need to enforce discipline and regulations in the market, and to make the consumers aware not only of the commercial aspects of sale and purchase of goods, but also the health and security aspects.
• To check powerful producers: – Market does not work in a fair manner when producers are few and powerful whereas consumers purchase in small amounts and are scattered. So rules are required to check these powerful producers.
• False Information: – Most of the time false information is passed to the consumers through media and other sources to attract the consumers.
• To provide compensation: – Rules and regulations are required to provide compensation to the exploited consumer. In India Consumer Courts have been established to provide justice to the consumers.

What factors gave birth to the consumer movement in India. Trace its evolution.

• The consumer movement arose out of dissatisfaction of the consumers as many unfair practices were being indulged in by the seller.
• In India, the consumers movement as a sector originated with the necessity of protecting and promoting the interest of consumers against unethical and unfair trade practices.
• Rampant food shortages, hoarding, black marketing, adulteration of food and edible oil gave birth to consumer movement on an organized manner in 1960’s.
• Till the 1970’s consumer organisations were largely engaged writing articles and holding exhibition.  They formed consumer groups to look into the malpractices in ration shops and overcrowding in road passengers transport.
• Because of all these efforts, the movement succeeded in bringing pressure on business firms as well as government to correct business, conduct which may be unfair and against the interest of consumers at large.

Consumer consciousness is being aware of your right as a consumer while buying any goods or services. Consumers have the right to be protected against the marketing of goods and delivery of services that are hazardous to life and property.

• The ISI and Agmark logos are quality certification on certain classes of products. Consumer must look for such certifications while purchasing items requiring these marks.
• Because of conscious consumers, most of the sweet shops do not include the weight of the container when they weigh sweets.

The factors which cause exploitation of consumers are:

• Lack of awareness among consumers.
• Limited competition, leading to consumer being forced to buy a certain product.
• Some consumers are illiterate.
• Limited supply of goods, products or services, leading to shortages and black marketing.
• Misleading advertising in the media.

The rationale behind the enactment of the Consumer Protection Act 1986 was to set up a separate department of consumer affairs in central and state governments and it has been enacted to safeguard them against the exploitation. This led to the formation of consumer courts at district and state levels.

Some of my duties as consumers if I, visit a shopping complex would include.

• Checking expiry dates of the product before purchasing.
• Paying no more than the maximum retail price (MRP) printed on the goods.
• Asking for bill/printed receipt for the goods being purchased.
• Preventing shopkeepers from dumping me with defective products, and registering a complaint with a consumer forum or court in case a seller refuses to take responsibility for an adulterated flawed product.
• To check if the product is of standard quality and has necessary certifications.
• To be updated with all the information and facts about a product or service and keep in mind the safety as well.

Suppose you buy a bottle of honey and a biscuit packet, we should look for Agmark symbol before buying the food items because this mark is certified by the government and assures the quality of the product.

Legal measures were taken by the government to empower the consumers in India: Consumers have the right to seek redressal against unfair trade practices and exploitation. If any damage is done to the consumer, he has the right to get compensation depending upon the degree of damages. This is covered under COPRA.  The government has also introduced RTI (Right to information Act) to empower the consumer.

Mention some of the rights of the consumers and write a few sentences on each.

• Right to Safety: – Hazardous goods and services
• Right to be informed: About the quality, quantity, potency, purity, standard and price of goods.
• Right to Choose: Access to variety of goods and services at competitive price.
• Right to be heard: due consideration at appropriate forums.
• Right to seek redressal: Right to seek redressal against unfair trade practices or unscrupulous exploitation of consumers.
• Right to Consumer Education: Right to acquire the knowledge and skill to be an informed consumer throughout life.

What legal measures were taken by the government to empower the consumers in India?

• The MRTP (Monopolies and Restrictive Trade Practices Act) was enacted in 1984 to check unfair trade practices by manufactures and service providers.
• The COPRA (Consumer Protection Act) implemented in 1986 to protect consumers from exploitation in the market.
• Also, under COPRA, a consumer can appeal in state and national courts, even if his case has been dismissed at the district level. Thus, consumers even have the right to represent themselves in consumer courts now if they are, treated unfairly in the market place.
• In October 2005, RTI (Right To Information) act was passed, ensuring citizens all information about the functioning of government departments.

Consumer can express their solidarity by forming consumer groups that write articles or hold exhibitions against traders’ exploitation. These groups guide individuals on how to approach a consumer court and they even help consumers to fight cases against them. Such groups, in return, receive financial aid from the government

Consumer movement in the present form came in 60’s in India with the basic objectives.

• To provide opportunity to the consumers to buy intelligently.
• Protection against fraud, misrepresentation, unsanitary & unjust product.
• Participation of consumer representations in management of aspect affecting consumers.
• Promoting consumer interest.

In India basis reasons for Consumer Movement have been:

• Shortage of consumer products; inflation of early 1970’s
• Adulteration and the Black market.
• Lack of product choices due to lack of development in technology.
• Thrust of consumer movement in India has been on availability, purity and prices.

The factors which stimulated the consumer movement in recent years are:

Increasing consumer awareness

• Declining quality of goods and services
• Increasing consumer expectations because of consumer education.
• Influence of the pioneers and leaders of the consumer movement.
• Organized effort through consumer societies.

Important Consumer Organization

• Passengers and Traffic Relief Association (PATRA)
• Women Graduate Union (WGU)
• Triplicane Urban Cooperative Store
• Indian Association of Consumers (IAC)
• Consumer Guidance Society of India (CCIGS)
• Karnataka Consumer Services Society (KCSS)
• Visaka Consumer Council (VCC)

Achievements of the Consumer Movement

• Development taking place in the field of consumer education.
• LIC has set up claims review committees at the Zonal & Central levels.
• Consumer protection is being incorporated in the courses at different levels in school and colleges.
• The Government of India has set up a separate Directorate called Directorate of Public Grievances at Sardar Patel Bhavan, Sansad Marg, New Delhi

Challenges ahead/ task for the Futures

• Making the Consumer Protection Act effective is the first challenges facing the consumer movement in India.
• Consumer movement needs to be extremely alert regarding hazardous products entering the country in the wake of liberalization.
• There are now about 1000 organizations of consumers in existence, but all the cities and towns have not been covered.
• Lastly, the concern of consumer movement should also be to discourage racism, communalism. Violence & conspicuous consumption.

Critically examine the progress of consumer movement in India.

• Earlier there was no legal system available to consumers to protect them from exploitation in the marketplace. It was presumed that it was the responsibility of consumers to be careful while buying commodity or service.
• It took many years for organizations in India and around the world to create awareness among people. In India, the consumer movement as a “Social Force” originated due to the necessity of protecting and promoting the interest of consumers against unethical and unfair trade practices. Hoarding, black marketing etc, gave birth to consumer movement in an organized from in the 1960s. As a result of which, the government passed the Consumer Protection Act in 1086.
• Example- Any businessman restoring to unfair means shall be taken to task by the different courts set up a the district, state and national levels. As a result, the consumers could be compensated for the loss they incurred by buying defective goods or getting poor services.

Match the following

Availing details of ingredients of a product	Right to Information
Agmark	Certification of edible oil and cereals
Accident due to faulty engine in a scooter	Right to Safety
District Consumer Court	Dealing with Consumer cases
Consumers International	Global level institution of consumer welfare
Bureau of Indian Standards	Agency that develop standards’ for goods and services.