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Monday, 19 December 2011

ECONOMICS -CONSUMER RIGHTS - I

Q1. Why are rules and regulations required in the marketplace? Illustrate with a few examples.
l      Individual consumers often find themselves in a weak position.
l       Whenever there is a complaint regarding a good or service that had been bought, the seller tries to shift all the responsibility on to the buyer.
l      Their position usually is – “If you didn’t like what you bought, please go elsewhere”.
l      Markets do not work in a fair manner when producers are few and powerful whereas consumers purchase in small amounts and are scattered
Q2. Enlist  various ways by which consumers  get  exploited in the market.
l      Sometimes traders indulge in unfair trade practices such as when shopkeepers weigh / measure less than what they should.
l      When traders add charges that were not mentioned before.
l      When adulterated/defective goods are sold.
l      When giving sub standard quality.
l      When the shopkeeper behave roughly.
l      When there is lack of safety devices in electrical goods.
l      When false information is passed on through the media, and other sources to attract consumers.
l      For example, a company for years sold powder milk for babies all over the world as making false claims this to be better than mother’s milk.
l      Many times producers are not ready to write warning on their products e.g. cigarette companies.
Q3. Mention  three factors which gave birth to consumer movement in India
l      The consumer movement arose out of dissatisfaction of the consumers, as many unfair practices were being indulged in by the sellers.
l      There was no legal system available to consumers to protect them from exploitation in the marketplace.
l      It was presumed that it was the responsibility of consumers to be careful while buying a commodity or service.
l      There was no awareness amongst people regarding their duties and rights.
l      It was presumed that  the sellers has the responsibility of ensuring quality of goods and services
Q4. Trace the evolution of consumer movement in India. /Critically examine the progress of consumer movement in India.
Ants:
l      In India, the consumer movement as a ‘social force’ originated with the necessity of protecting and promoting the interests of consumers against unethical and unfair trade practices.
l      Rampant food shortages, hoarding, black marketing, adulteration of food and edible oil gave birth to the consumer movement in an organised form in the 1960s.
l       Till the 1970s, consumer organisations were largely engaged in writing articles and holding exhibitions. They formed consumer groups to look into the malpractices in ration shops and overcrowding in the road passenger transport.
l      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 interests of consumers at large.
Q5. What should be the role of the government to protect consumers? Explain .
Ans:
l      The government should make rules and regulations.
l      The government should get these rules enforced strictly.
l      Defaulters should punished severely
l      Government should educate people about their rights and duties as consumers.

Q6. Name three measures adopted by the government to protect consumers
Ans:
l      Legislative measures- A major step taken in 1986 by the Indian government was the enactment of the Consumer Protection Act 1986, popularly known as COPRA.
l      Administrative measures- PDS or Fair Price shops
l      Technical measures- ISI, AGMARK, BIS, HALLMARK
Q7. Mention your  responsibilities as a  consumer
Ans:
l      Look at the quality of the product         
l      Ask for guarantee card
l      Ask for cash memo
l      Check  the quantity of the product
l      To check the date of manufacturing      
l      To check the date of expiry
l      Check the MRP                                              
l      To check the seal of ISI, BIS , Agmark