Consumer Rights & Consumerism

CONSUMER RIGHTS & CONSUMERISM
.
Learning objectives
Define consumerism
Understand need and objectives of consumerism
Understand consumer rights available to us
Understand consumer responsibilities
Consumerism
1. Social movement seeking to augment the rights and
power of buyers in relation to sellers………….Philip Kotler
2. Dedication of those activities of both public and pvt org
which are designed to protect individuals from practices
that impinge upon their rights as consumers……Harper
W. Boyd
3. It is a social force within the environment designed to
aid and protect the consumers by exerting legal, moral
and economic pressure on business…..Cravers & Hills
4. An organized effort of consumers seeking redress,
restitution and remedy for dissatisfaction they have
accumulated in the acquisition of their standard of
living …………………..Richard H.Buskirk & James Buskirk
Main features of Consumerism
 Is stimulated by dissatisfied and aggrieved consumers
 Social movement of consumers
 Involves collaborative effort of organised consumers
 Ensures consumer welfare and interest of society
 Explains rights and responsibilities of the consumer in
relation to buyer
 Involves wide range of activities – spreading consumer
education directed towards protection against unfair trade
practices
 Govt, community, NGO’s, consumer courts all strive for the
protection of consumers against exploitation by sellers.
History of Consumerism
 15th March – solemnised as World Consumer Rights Day
 In 1962 on this historic day that is 15th March, US president J.F. Kennedy
moved in the US congress for the approval of consumer bills of rights.
 During his speech, he delivered the special message to the congress of US
for protecting the consumer interest.
 In the words of JFK – “Consumerism by definition includes us all. They
are largest economic group in the economy, affecting and affected by
almost every public and pvt. economic decision. Two thirds of all
spending in the economy is by consumers. But they are the only IPT
group in the economy who are not effectively organised, whose views are
not often heard. If a consumer is offered inferior products, if prices are
exorbitant, if drugs are unsafe or worthless, if the consumer is unable to
choose on an informed basis, then his dollar is wasted, his health and
safety may be threatened, and national interest suffers”.
 In his speech on 15th March 1962, JFK declared 4 basic consumer rights –
the right to safety, the right to be informed, the right to choose, the right
to be heard.
Contd……
 9th April 1985 – another historic day when general assembly
of the United Nations adopted a set of guidelines for
consumer protection
Objectives of UN guidelines for consumer protection:
 Assist countries in achieving & maintaining adequate
protection
 Encourage high levels of ethical conduct for firms
 Assist countries in curbing abusive business practices
which adversely affect consumers
 Facilitate development of independent consumer groups
 To promote international co-operation in the field of
consumer protection
 To encourage development of market conditions which
provide consumers with greater choice at lower prices
 To promote sustainable consumption
The need of consumerism
 Consumer’s designation as King of market has become a false
notion especially in developing countries like India
 India being a vast country and greater proportion of Indian
consumers are illiterate and ignorant about their rights
 Great diversity in terms of culture, religion, education,
language etc. due to which consumers are not unified
 On the other hand sellers and traders are well organised and
connected encouraging them to indulge in unscrupulous trade
activities.
 Most Indian products are poor quality due to lack of proper
verification by govt agencies/corruption etc.
 Increasing supply of duplicate products – consumers unable to
distinguish
 Consumers misled by deceptive advertisements
 Legal process in India is time consuming/trouble some
Numerous Legal Acts passed by Indian Govt. to satisfy consumers’ needs
1. Drugs & cosmetic Act, 1940

2. Prevention of Food & Adulteration Act, 1954
3. Essential commodities supply Act, 1955
4. Standard of weights and measures Act, 1976
5. Consumers Protection Act, 1986 [COPRA]
But still, many consumers are faced with problems
related to quality, deceptive ad etc basically due to
lack of strict implementation of laws/copra etc.
There is a dire need to emphasise on protection of
consumer rights in India by govt in the interest of
both the business houses and consumers.
Objectives of consumerism
Gandhiji had rightly said-
"The customer is the most important visitor on our premises. He is not
dependent on us. We are dependent on him. He is not an
interruption on our work. He is the purpose of it. He is not an
outsider on our business. He is part of it. We are not doing him a
favour by serving him. He is doing us a favour by giving us an
opportunity to do so.“
Keeping this in mind, the main objectives are :
 Create awareness among masses regarding basic C/rights & enforcement
 Educate consumers about responsibilities and redressal machineries
 To prevent unfair trade practices
 Ensure strict implementation of various laws framed
 Ensure healthy competitions among producers
 Build trust and confidence among foreign players
 Prevent business houses from engaging in fraudulent practices and earning
profit from unethical trade practices
Consumer Rights and COPRA, 1986
 COPRA, 1986 was enacted on 24th Dec’ 1986
 Celebrated as National Consumer Rights Day in India
 Copra, 1986 came into existence based on UN guidelines
with objective to provide better protection of consumers’
interest etc.
COPRA, 1986 defines consumer right as “the right to have

information about the quality, potency/strength, quantity,
purity, price and standard of goods or services; as it may be
the case”.
Consumer rights are framed by the Govt, consumer courts,
VO’s in order to safeguard the rights and interests of the
consumers
Rights promulgated under COPRA, 1986
1. Right to safety
2. Right to information
3. Right to choose
4. Right to be heard [consumer service cell]
5. Right to seek redressal
6. Right to consumer education
Right to seek redressal
Defined as the right to seek redressal against unfair
trade practices or restrictive trade practices or
unscrupulous exploitation of consumers.
The consumer has the right to file a claim to pay for
the loss he/she suffers on account of purchasing
goods and availing services.
Under section 9 of COPRA, 1986, there are 3 tier
judiciary to redress consumer grievances
established namely district forum, state
commission, National commission. Main
facilities are highlighted in the following slide.
Right to seek redressal
Facilities of 3-Tier judiciary
District forum State commission National Com
Level of operation District level State level National level
Set up 1/more in each dist 1 in each state Supreme body
Members 3[PO + lady] 3[PO + lady] 5[PO + lady]
Edn qualification Graduate [R/Univ] Graduate [R/Univ] Graduate [R/Univ]
Qlfn to be president Dist judge HC judge SC judge
Appointed by State govt State govt Central govt
Tenure[earlier one] 5 yrs or upto 65 5 yrs or upto 67 5 yrs or upto 70
Compensation amt Up to 20 Lakh Exceeds 20L-1cr More than 1 crore
Appeal by aggrieved Against the order of Against the order of Against the order of
person DF to SC within 30 SC to NC within 30 NC to Supreme
days from the date days from the date Court within 30
of order of order days from the date
of order
Right to consumer education
Refers to the right to get education with regards to the rights and
responsibilities by attending seminars, conferences, workshops to help them
have knowledge against any exploitation. Consumers must have an
awareness of the quality and safety of the goods and services. Active
involvement and more questioning on the product features help the
consumers to secure fair deal.
Jago Grahak Jago [wake up customer wake up] is a consumer awareness
programme from Ministry of Consumer Affairs, GoI, created to enhance
awareness among the people of India for their rights as consumers
Consumer responsibilities
Before exercising consumer rights, consumers are supposed to know their
responsibilities in the pre-purchase situation, while making purchase
decision and also in the post purchase situation.
1. Consumers must collect information about variety of G/S available in mkt.
2. Keep up to date himself with changes & innovation taking place in mkt.
3. Choose product only after considering needs/wants –avoid needless
consumption
4. Consumer has prime responsibility to file complain & inform producer &
govt about dissatisfaction with products and services
5. Consumer to behave in ethical ways and not indulge in unfair dealings
6. Consumer must be aware of his rights and make proper utilisation of
consumer rights.
7. Without possessing reasonable information, Purchase not to be made
based on seller’s words.
8. Give preference to quality products certified by ISI, Agmark etc.
9. All valid documents related to purchase like original bill, invoice, warranty
card etc should be procured from the seller at POS transaction.
………………..
End of PPT
&
Open for discussion

Consumer Rights & Consumerism

Uploaded by

Copyright:

Available Formats

Consumer Rights & Consumerism

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Consumer Rights & Consumerism

Uploaded by

Copyright:

Available Formats

CONSUMER RIGHTS & CONSUMERISM

1. Drugs & cosmetic Act, 1940

COPRA, 1986 defines consumer right as “the right to have

Level of operation District level State level National level

Set up 1/more in each dist 1 in each state Supreme body

Members 3[PO + lady] 3[PO + lady] 5[PO + lady]

Edn qualification Graduate [R/Univ] Graduate [R/Univ] Graduate [R/Univ]

Qlfn to be president Dist judge HC judge SC judge

Appointed by State govt State govt Central govt

Tenure[earlier one] 5 yrs or upto 65 5 yrs or upto 67 5 yrs or upto 70

Compensation amt Up to 20 Lakh Exceeds 20L-1cr More than 1 crore

You might also like