Consumer Rights

Every card in this deck

QWhy are rules and regulations needed to protect consumers in the marketplace?

AIndividual consumers are in a weak position: when they complain, sellers shift all responsibility onto the buyer. Where producers are few and powerful, as with large companies, and consumers buy in small amounts and are scattered, markets do not work fairly and companies can manipulate them.

QIn what ways are consumers exploited in the market?

AThrough unfair trade practices such as weighing less, adding charges not mentioned earlier, and selling adulterated or defective goods. Large companies also spread false information through the media, as with baby milk powder claimed to be better than mother's milk, or long denial that cigarettes cause cancer.

QWhat gave rise to the consumer movement in India, and how did it develop?

ADissatisfaction with unfair practices, with no legal protection for consumers. Rampant food shortages, hoarding, black marketing and adulteration of food and edible oil gave birth to an organised movement in the 1960s. Until the 1970s groups mainly wrote articles, held exhibitions and checked malpractice in ration shops and road transport.

QHow did the consumer movement change who is responsible for the quality of goods?

AEarlier, a dissatisfied consumer simply stopped buying that brand or from that shop, and it was assumed buyers must be careful. Years of awareness-building by organisations shifted the responsibility for ensuring the quality of goods and services onto sellers.

QConsumers International

AAn umbrella body of over 200 consumer organisations from over 100 countries. Its foundation is the UN Guidelines for Consumer Protection adopted in 1985, a tool for nations to protect consumers and for advocacy groups to press their governments.

QConsumer Protection Act (COPRA)

AA law enacted by the Indian government in 1986, popularly known as COPRA and amended in 2019, to correct unfair business conduct and protect consumers. It set up a three-tier redressal system and led to Departments of Consumer Affairs in central and state governments.

QWhat is the right to safety? Illustrate with Reji Mathew's case.

AConsumers have the right to be protected from goods and services that are hazardous to life and property, so producers must follow safety rules. Reji was crippled for life by improper anaesthesia; the National Commission held the hospital guilty of medical negligence and ordered compensation.

QWhat is the consumer's right to information, and why do rules require details on packaging?

AConsumers have the right to know the particulars of what they buy, such as ingredients, price, batch number, manufacturing and expiry dates, manufacturer's address, directions for use and side effects. This lets them complain and seek replacement or compensation for defects, and protest at charges above the MRP.

QMaximum Retail Price (MRP)

AThe highest price at which a packaged good may be sold, printed on the pack. Consumers can complain if charged more, and can bargain to buy at less than the MRP.

QRight to Information (RTI) Act, 2005

AA law that gives citizens the right to all information about the functions of government departments, extending the right to information to government services. Using it, Amritha learned why her job result was delayed and received her appointment letter.

QWhat is the consumer's right to choose? Give an example of it being denied.

AAny consumer receiving a service has the right to choose whether to keep receiving it, and should not be forced to buy things they do not want. It is denied when a shop will sell toothpaste only with a toothbrush, or a gas dealer insists you buy their stove with a new connection.

QWhat did the Consumer Commissions decide in Abirami's case against her coaching institute?

AAbirami left a two-year course after one year because of poor teaching and was refused a refund. The District Commission ordered a refund, saying she had the right to choose. The State Commission upheld it, fined the institute for a frivolous appeal, and barred institutions from charging the whole course fee in advance.

QWhat is the right to seek redressal?

AA consumer who has been exploited or faced an unfair trade practice can claim redress, and is entitled to compensation matching the damage suffered. The complaint can be filed in a consumer commission without a lawyer, alone or as a group (a class action suit), in person or online.

QConsumer forums / consumer protection councils

AVoluntary organisations formed through the consumer movement that guide consumers on filing cases in the Consumer Disputes Redressal Commissions and often represent them there. They receive government funding to create awareness.

QDescribe the three-tier system for redressal of consumer disputes under COPRA.

ADistrict Commissions handle claims up to Rs 1 crore, State Commissions claims between Rs 1 crore and Rs 10 crore, and the National Commission claims above Rs 10 crore. A consumer whose case is dismissed at district level can appeal to the state and then the national commission.

QWhat do logos such as ISI, Agmark and Hallmark tell consumers, and are they compulsory?

AThey assure consumers of quality, since certifying organisations allow producers to use them only if they meet set standards. Certification is voluntary for most products but mandatory for those affecting health and safety or mass consumption, such as LPG cylinders, food colours, cement and packaged drinking water.

QHow did the 2019 amendment strengthen COPRA?

AIt brought online purchases under the Act, made service providers and manufacturers liable to penalties or even imprisonment for deficient services or defective products, and encouraged settling disputes through a neutral mediator at all three tiers of the commissions.

QWhat are the weaknesses of the consumer movement and redressal process in India?

AOf over 2,000 consumer groups only about 50-60 are well organised. Redressal is becoming cumbersome, expensive and slow, often needing lawyers. Cash memos are rarely issued, so evidence is hard to gather, most purchases are small retail sales, awareness spreads slowly, and market rules are often not followed.