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Solutions for Economics, Class 10, CBSE
Rules and regulations are required for the protection of the consumers in the marketplace. They prevent unfair practices like deceptive advertising, price gouging, and false claims. Regulations set quality benchmarks, ensuring that products meet certain standards. For example: Food Safety Regulations are meant to protect consumers from contaminated or misleading products, ensuring that the food they purchase is safe. Without such regulations, consumers might face health risks from unsafe food products or deceptive marketing practices.
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. 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. 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. A major step taken in 1986 by the Indian government was the enactment of the Consumer Protection Act 1986, popularly known as COPRA. Under COPRA, a three-tier quasi-judicial machinery at the district, state and national levels was set up for redressal of consumer disputes. The consumer movement in India has led to the formation of various organisations, locally known as consumer forums or consumer protection councils. They guide consumers on how to file cases in the Consumer Disputes Redressal Commissions.
Consumer consciousness refers to being aware of our rights and responsibilities as a consumer when purchasing goods or services. It involves making informed choices of goods and services. Following are two examples illustrating the need for consumer consciousness:
Factors which cause exploitation of consumers are:
The Consumer Protection Bill, 1986 seeks to provide for better protection of the interests of consumers and for the purpose, to make provision for the establishment of Consumer councils and other authorities for the settlement of consumer disputes. The rationale behind the enactment of the Consumer Protection Act, 1986:
As a consumer visiting a shopping complex in my locality, some important duties I will fulfill are:
For a biscuit packet I need to check for ISI and for a bottle of honey I need to check for Agmark.
Agmark is a certification mark employed on agricultural products in India, ensuring that they conform to specified standards of quality. Consumers rely on Agmark to ensure they are purchasing agricultural products that meet established quality benchmarks, such as purity, safety, and grade standards. The ISI mark certifies that a product conforms to the Indian Standards specified by the Bureau of Indian Standards (BIS). It assures consumers that the product has undergone rigorous testing and meets safety, quality, and reliability standards specified by BIS.
The enactment of the Consumer Protection Act 1986, popularly known as COPRA was the major legal step taken by the Government of India in 1986 to empower consumers in India. Under COPRA, a three-tier quasi-judicial machinery at the district, state and national levels was set up for redressal of consumer disputes. The Act has enabled us as consumers to have the right to represent in the Consumer Disputes Redressal Commissions. The COPRA was amended in the year 2019 to further strengthen consumers in India. Buying through internet is now included.
Consumers can express their solidarity and advocate for their rights through various means :
The consumer movement in India has made significant strides since its inception, but it also faces several challenges and limitations that affect its overall progress. There has been a notable increase in consumer awareness regarding their rights and responsibilities. Various consumer organizations, NGOs, and government initiatives have played a crucial role in educating consumers through workshops, campaigns, and awareness programs. The enactment of the Consumer Protection Act (1986) was a milestone in strengthening consumer rights in India. Despite the existence of laws and consumer protection mechanisms, implementation and enforcement faced significant challenges. Rural and economically vulnerable consumers often lack awareness of their rights and face challenges in accessing consumer courts. Issues such as unfair trade practices, adulteration, and deceptive advertising disproportionately affect these groups.
Match the following.
Column A | Column B |
---|---|
(i) Availing details of ingredients of a product | (a) Right to safety |
(ii) Agmark | (b) Dealing with consumer cases |
(iii) Accident due to faulty engine in a scooter | (c) Certification of edible oil and cereals |
(iv) District Consumer Commission | (d) Agency that develop standards for goods and services |
(v) Food fortification | (e) Right to information |
(vi) Consumers International | (f) Global level institution of consumer welfare organisations |
(vii) Bureau of Indian Standards | (g) Addition of key nutrients to staple foods |
Column A | Column B |
---|---|
(i) Availing details of ingredients of a product | (e) Right to information |
(ii) Agmark | (c) Certification of edible oil and cereals |
(iii) Accident due to faulty engine in a scooter | (a) Right to safety |
(iv) District Consumer Commission | (b) Dealing with consumer cases |
(v) Food fortification | (g) Addition of key nutrients to staple foods |
(vi) Consumers International | (f) Global level institution of consumer welfare organisations |
(vii) Bureau of Indian Standards | (d) Agency that develop standards for goods and services |
Say True or False.
(i) COPRA applies only to goods.
(ii) India is one of the many countries in the world which has exclusive authorities established for consumer disputes redressal.
(iii) When a consumer feels that he has been exploited, he must file a case in the District Consumer Commission.
(iv) It is worthwhile to move to consumer commissions only if the damages incurred are of high value.
(v) Hallmark is the certification maintained for standardisation of jewellery.
(vi) The consumer redressal process is very simple and quick.
(vii) A consumer has the right to get compensation depending on the degree of the damage.
(i) False
Reason — COPRA applies to goods as well as services.
(ii) True
Reason — Consumer Court is the special purpose court in India, that deals with cases regarding consumer disputes and grievances.
(iii) False Reason — He can file a case in the District Consumer Commission only if the involved claim is less than 1 crore. He can approach the state-level Consumer Disputes Redressal Commissions called State Commission if the claim is between Rs 1 crore and Rs 10 crore and the national-level commission — National Commission for claims exceeding Rs 10 crore. If a case is dismissed in district-level commission, a consumer can also appeal in the state and then in national-level commissions.
(iv) False
Reason — Consumer court can be approached for small value claims as well.
(v) True
Reason — Hallmark certification help consumers get assured of quality/purity while purchasing gold jewellery.
(vi) False
Reason — The consumer redressal process is becoming cumbersome, expensive and time consuming. Many a time, consumers are required to engage lawyers.
(vii) True
Reason — If any damage is done to a consumer, she has the right to get compensation depending on the degree of damage.
Exploitation in the marketplace happens in various ways:
One common form of cheating in the market is the adulteration of food products. This involves adding inferior or harmful substances to food items to increase quantity and reduce production costs. For instance, mixing water in milk, adding artificial colouring to spices, or using non-edible oils in place of pure ghee. This not only deceives consumers but also poses serious health risks.
Taking Adulteration in Milk as an example and discussing further:
Some of the common methods of adulteration in milk are:
Impact of Adulteration in Milk on consumers:
This example highlights how consumer trust can be breached through cheating in the market and impact their health and finances.
Governments can play a crucial role in safeguarding consumers from unfair practices by taking following steps:
Following are some steps consumer groups could take to address issues of cheating or unfair practices in the market:
Sometimes, regulations exist on paper but lack effective enforcement mechanisms. Some of the reasons why rules and regulations are often not followed can be:
(a) LPG cylinder — It should meet national and international standards for safety and durability. Regular inspections and testing of cylinders should be conducted to detect any defects or wear that could compromise safety. Proper training should be provided to personnel involved in handling, transporting, and filling LPG cylinders to ensure they follow safety protocols.
(b) Cinema theatre — Ensure compliance with building codes and fire safety regulations, including proper exits, emergency lighting, and fire extinguishing systems. There should be regular inspection and maintenance facilities.
(c) Circus — Ensure all circus equipment, such as tents, rigging, and props, meet safety standards and are inspected regularly. Provide secure seating arrangements and barriers to prevent audience members from entering restricted areas.
(d) Medicines — Properly label medicines with accurate information regarding dosage, usage instructions, expiry date and potential side effects. Ensure medicines meet regulatory standards for safety, efficacy, and quality.
(e) Edible oil — Adhere to national and international standards for edible oils, ensuring they are safe for consumption. Package oils in food-grade containers and ensure accurate labeling with information such as ingredients, nutritional content, and storage instructions.
(f) Marriage pandal — Ensure the pandal structure is stable and erected according to safety standards, considering factors such as wind load and occupancy. Implement fire safety measures, including proper exits, fire extinguishers, and emergency lighting.
(g) A high-rise building — Install fire suppression systems, smoke detectors, fire alarms, and emergency exits. Quality construction materials should be used. Building plan should be approved by concerned authorities.
There are incidents related to toy industries which show the negligence of producers. The toys are often made up of small parts which can break off and choke kids. Small parts or detachable components that can fit into a child’s mouth are a common choking risk. Poorly assembled toys may break easily, releasing small pieces that can be ingested. Toys with sharp edges, rough surfaces, or exposed metal parts can cause cuts or injuries. Manufacturers should ensure that toys are smooth and safe for handling. Also, the quality of material used for toys is often toxic. Some toys may contain harmful substances such as lead or other toxic chemicals. These can be ingested or absorbed through the skin, potentially causing long-term health issues. The producers of such toys can be held responsible for such incidents.
The discrepancies between the Maximum Retail Price (MRP) printed on the pack and the actual price charged can occur due to several reasons:
Consumer groups can educate consumers about their rights regarding MRP and ensure they are not overcharged unjustly. Consumer groups can advocate for strict enforcement of laws related to MRP. They can provide a platform for consumers to report cases of overcharging and assist in resolving such disputes.
Packaged goods typically provide various types of information on their packaging, which serves several useful purposes for consumers:
Information about health benefit and risks should be added. More detailed information on the health benefits (if any) or potential risks associated with long-term use of certain products could empower consumers to make more informed decisions about their health. Also, enhancing transparency in areas like environmental impact, ingredient origins, safety testing, and additional usage tips could further empower consumers to make informed choices that align with their values and preferences.
The Right to Information (RTI) Act indeed empowers citizens by granting them the right to seek information from public authorities. This tool can be particularly effective in addressing complaints and concerns regarding civic amenities such as bad roads, poor water facilities, and inadequate health services. The RTI Act ensures transparency in governance by allowing citizens to access information related to public services and projects. When citizens face issues like bad roads or inadequate health facilities, they can use RTI to obtain details about government budgets allocated for these services, timelines for projects, and actions taken by authorities to address these issues. RTI enables citizens to gather factual information and evidence to support their complaints and advocacy efforts. Therefore, RTI empowers individuals and communities by providing them with a formal mechanism to question authorities and hold them accountable. It shifts the power dynamic by ensuring that citizens have access to information that was previously inaccessible or hidden.
The following are some of the catchy advertisements of products that we purchase from the market. Which of the following offers would really benefit consumers? Discuss.
The offers that directly increase the quantity of the product purchased without increasing the price (such as getting more product for the same cost, or receiving an additional product for free) are typically the ones that benefit consumers the most. These offers provide immediate value and are straightforward in their benefit delivery. Offers based on chance (like scratch and win or winning a gold coin) can be exciting but don't guarantee benefit to all consumers. They rely on luck and may not provide tangible value to most participants.
Arrange the following in the correct order.
(a) Arita files a case in the District Consumer Disputes Redressal Commission.
(b) She engages a professional person.
(c) She realises that the dealer has given her defective material.
(d) She starts attending the commission proceedings.
(e) She goes and complains to the dealer and the Branch office, to no effect.
(f) She is asked to produce the bill and warranty before the commission.
(g) She purchases a wall clock from a retail outlet.
(h) Within a few months, the dealer was ordered by the commission to replace her old wall clock with a brand new one at no extra cost.
(g) She purchases a wall clock from a retail outlet.
(c) She realises that the dealer has given her defective material.
(e) She goes and complains to the dealer and the Branch office, to no effect.
(b) She engages a professional person.
(a) Arita files a case in the District Consumer Disputes Redressal Commission.
(f) She is asked to produce the bill and warranty before the commission.
(d) She starts attending the commission proceedings.
(h) Within a few months, the dealer was ordered by the commission to replace her old wall clock with a brand new one at no extra cost.
Consumer Protection Councils (CPC) | Consumer Disputes Redressal Commission (CDRC) |
---|---|
They primarily focus on consumer education, awareness, and advocacy. | They are quasi-judicial bodies established to resolve disputes between consumers and businesses. |
They aim to empower consumers by disseminating information about their rights, responsibilities, and available remedies. | They provide a forum for consumers to seek redressal when they face issues related to defective products, deficient services, unfair trade practices, or overcharging. |
These councils exist at both the central (national) and state levels. | They are at district, state and national level. |
The Consumer Protection Act 1986 ensures the following as rights which every consumer in India should possess
(i) Right to choice.
(ii) Right to information.
(iii) Right to redressal.
(iv) Right to representation.
(v) Right to safety.
(vi) Right to consumer education.
Categorise the following cases under different heads and mark against each in brackets.
(a) Lata got an electric shock from a newly purchased iron. She complained to the shopkeeper immediately. ( )
(b) John is dissatisfied with the services provided by MTNL/BSNL/TATA INDICOM for the past few months. He files a case in the District Level Consumer Commission. ()
(c) Your friend has been sold a medicine that has crossed the expiry date and you are advising her to lodge a complaint ( ).
(d) Iqbal makes it a point to scan through all the particulars given on the pack of any item that he buys. ( )
(e) You are not satisfied with the services of the cable operator catering to your locality but you are unable to switch over to anybody else. ( )
(f) You realise that you have received a defective camera from a dealer. You are complaining to the head office persistently ( ).
(a) Lata got an electric shock from a newly purchased iron. She complained to the shopkeeper immediately. (v) Right to safety
(b) John is dissatisfied with the services provided by MTNL/BSNL/TATA INDICOM for the past few months. He files a case in the District Level Consumer Commission. (iii) Right to redressal
(c) Your friend has been sold a medicine that has crossed the expiry date and you are advising her to lodge a complaint. (vi) Right to consumer education
(d) Iqbal makes it a point to scan through all the particulars given on the pack of any item that he buys. (ii) Right to information
(e) You are not satisfied with the services of the cable operator catering to your locality but you are unable to switch over to anybody else. (i) Right to choice
(f) You realise that you have received a defective camera from a dealer. You are complaining to the head office persistently. (iv) Right to representation
Many goods are available in the market without ISI or Agmark certification because it is not compulsory for all the producers to follow these standards.