v Consumer Exploitation
Ø In capitalist society consumer in king however companies poorly treat them.
I. When Goods & Services short in supply – prices go high i.e inflation.
II. Monopoly: manipulation in price by hoarding & black marketing
III. Low Literacy & ignorance : leads to exploitation
IV. Unorganized consumers widely dispersed & not united.
V. Misleading information through ads, false promises.
v Forms of Consumer Exploitation
I. Under weight
II. High Prices
III. Adulteration of Foods & Edible oils
IV. Sub-Standard Quality
VI. Lack of Safety Device
v Consumer Movements
ü Consumer Movement arose out of dissatisfaction of Consumer & many unfair practices indulged by sellers.
ü First Consumer Movement Started in England after First World war
ü Ralph Nadar, Consumer activist of USA is known as ‘Father of Consumer Movement’
ü Modern declaration about Consumer Rights declared in USA(1962) on 15 March
ü 15th March is Celebrated as ‘ World Consumer Rights Day’
Ø Four Basic Rights Declared
I. Right to Choice
II. Right to Information
III. Right to Safety
IV. Right to be Heard
ü In 1985 United Nations (UNO) adopted Guidelines for Protection of consumers.
v Consumer Movement in India.
ü 24 Dec. 1986, Indian Parliament enacted ‘ Consumer Protection Act(COPRA)
ü 24 Dec. is observed as “National Consumer‘s Right Day”.
v Rights & Duties of Consumer in India
i. Right to Safety :Protection from Goods & Services hazardous to life & property
ii. Right to be Informed: Includes Quality, Quantity , Purity , Price.
Ø 2005 New Act Passed “Right to Information Act(RTI).
iii. Right to Choose: Assurance of access to Variety of goods & services.
iv. Right to be Heard: Consumer grievances should be heard at appropriate forums.
v. Right to Seek redressal : i.e Settlement of genuine grievances.
vi. Right to Consumer Education : Includes Knowledge about goods & Services.
Ø Consumer Should
I. Look Quality
II. Guarantee & Warranty
III. Buy marked Products ISI , AGMARK
IV. Cash –Memo
V. Form consumer awareness organizations
VI. Must Make Complaints of genuine grievances
VII. Know their rights.
v Consumer Grievances Redressal agencies
Ø Under ‘Copra’ –Consumer dispute Redressal agencies set up.
(1) District Forum
Ø Established by state government
Ø Claim up to 20 lakhs
Ø Samples send to laboratory
Ø Appeal against the district forums within 30 days
Ø Members – Chairman +2 members
(2) State Commission
Ø Est. By state Government
Ø Consist – President (either judge or former judge of high Court ) + 2 members
Ø Claim above 20 lakh to 1 crore
Ø Appeal against order of state commission within 30 days to national commission
(3) National commission
Ø Ent. By Central Government
Ø Consist – President ( Judge of Supreme Court) + 2 members
Ø Claim – More Than 1 crore
Ø Any appeal against order of national commission within 20 days to supreme court .
I. AGMARK (Agriculture & Marketing Act)
Ø Govt. Give Grade
II. ISI (Indian Standard Institution)
Ø This Mark denote a standard of Quality laid down by bureau of Indian Standards after stringent Check.
Ø BSI Issue Hallmarking of Gold
Ø Specifies pure new wool