Consumer Rights

v Consumer Exploitation

Ø In capitalist society consumer in king however companies poorly treat them.

Reasons

       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

    V.            Duplicacy

  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 15^th 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

Rights

        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.

Duties

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 .

Note

       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.

  III.            HALLMARK

Ø BSI Issue Hallmarking of Gold

  IV.            WOOLMARK

Ø Specifies pure new wool