Class 10 Social Science Notes Chapter 5 (Consumer rights) – Understanding Econimic Development Book

Detailed Notes with MCQs of Chapter 5, 'Consumer Rights', from your Economics textbook. This chapter is crucial not just for understanding our economic environment but also frequently features in various government examinations. Pay close attention as we break down the key concepts.

Chapter 5: Consumer Rights - Detailed Notes for Government Exam Preparation

1. Introduction: The Consumer in the Marketplace

• We participate in the market both as producers (of goods and services) and consumers.
• As consumers, we purchase goods and services that we need.
• However, consumers can be vulnerable to exploitation in the marketplace.

2. Consumer Exploitation: Forms and Examples

Consumers face exploitation through various unfair practices:

• Unfair Trade Practices: Traders indulging in malpractices like:
  • Underweight/Under-measurement: Selling goods that weigh or measure less than indicated.
  • Adulteration: Adding unwanted or inferior substances to food items or other products (e.g., adding stones to pulses, water to milk).
  • Substandard Quality: Selling goods that do not meet the prescribed quality standards.
• Charging Higher Prices: Selling goods above the Maximum Retail Price (MRP).
• False or Incomplete Information: Misleading consumers through advertisements or packaging about quality, safety, expiry date, ingredients, etc.
• Duplicate Articles: Selling fake or counterfeit products under popular brand names.
• Lack of Safety Devices: Selling defective or unsafe goods (e.g., pressure cookers with faulty safety valves, medicines past their expiry date).
• Poor After-Sales Service: Failure to provide promised services or honour warranties.
• Artificial Scarcity (Hoarding & Black Marketing): Creating a false shortage to increase prices.

3. The Consumer Movement

• Origins: Exploitation in the marketplace led to the rise of the 'consumer movement'. It originated out of the dissatisfaction of consumers.
• Need: Lack of legal systems to protect consumers, rampant food shortages, hoarding, black marketing, adulteration in the 1960s fueled the movement.
• Nature: Initially, it was largely about writing articles and holding exhibitions. It gradually formed consumer groups to exert pressure on businesses and government.
• Goal: To protect and promote the interests of consumers against unethical and unfair trade practices.
• Major Step in India: The enactment of the Consumer Protection Act, 1986 (COPRA).

4. Consumer Protection Act, 1986 (COPRA)

• Landmark Legislation: A significant step taken by the Indian government to empower consumers.
• Objective: To provide protection to consumers against defective goods, deficient services, and unfair trade practices.
• Key Feature: Established a three-tier quasi-judicial machinery for redressal of consumer grievances.
• Rights: COPRA enshrined specific rights for consumers.

5. Key Consumer Rights (Under COPRA)

• Right to Safety:
  • Meaning: Protection against goods and services hazardous to life and property.
  • Example: Ensuring electrical appliances are safe, medicines are not expired, pressure cookers have safety valves.
  • Producers' Role: Need to follow safety rules and regulations.
• Right to be Informed:
  • Meaning: Consumers have the right to be informed about the particulars of goods and services (ingredients, price, batch number, date of manufacture, expiry date, address of manufacturer, directions for use, etc.).
  • Importance: Enables consumers to make informed choices and protects against unfair practices.
  • Tool: Information displayed on packaging and labels. MRP (Maximum Retail Price) is crucial – sellers cannot charge more than the MRP.
  • RTI Act (2005): Although separate from COPRA, the Right to Information Act empowers citizens to access information about government functions, further aiding consumer awareness.
• Right to Choose:
  • Meaning: Assurance of access to a variety of goods and services at competitive prices. In case of monopolies, it means right to be assured of satisfactory quality and service at a fair price.
  • Example: A seller cannot force you to buy a specific brand or product if alternatives are available or if you don't want to buy it.
• Right to Seek Redressal:
  • Meaning: The right to get relief (compensation, replacement, repair) in case of exploitation or unfair trade practices.
  • Mechanism: Provided through the consumer courts/forums established under COPRA.
• Right to Represent (or Right to be Heard):
  • Meaning: Consumers' interests will receive due consideration at appropriate forums. Consumers have the right to form consumer groups/organizations.
  • Importance: Ensures consumer voices are heard in policy-making and grievance redressal.
• Right to Consumer Education:
  • Meaning: The right to acquire the knowledge and skills to be an informed consumer throughout life.
  • Importance: Creates awareness about rights and responsibilities, enabling consumers to protect themselves.

6. Consumer Responsibilities/Duties

While consumers have rights, they also have responsibilities:

• Be aware of rights.
• Be critical and ask questions.
• Check for standardisation marks like ISI, Agmark, Hallmark.
• Insist on a cash memo/bill for purchases.
• File complaints for genuine grievances.
• Do not be carried away by misleading advertisements.
• Be aware of quality and safety aspects.

7. Redressal Mechanism: The Three-Tier System under COPRA

COPRA established a three-tier quasi-judicial system for consumer dispute redressal:

• District Consumer Disputes Redressal Forum (District Forum):
  • Location: At the district level.
  • Jurisdiction: Deals with cases where the value of goods/services and compensation claimed is up to ₹1 crore (Note: These limits were revised by the Consumer Protection Act, 2019, which replaced COPRA 1986. While NCERT mentions older limits, exams might ask for updated ones. The 2019 Act limits for District are up to ₹1 Crore).
• State Consumer Disputes Redressal Commission (State Commission):
  • Location: At the state level.
  • Jurisdiction: Deals with cases where the claim exceeds ₹1 crore but is less than ₹10 crores. Also hears appeals against the orders of the District Forum. (Limit under 2019 Act).
• National Consumer Disputes Redressal Commission (National Commission):
  • Location: At the national level (New Delhi).
  • Jurisdiction: Deals with cases where the claim exceeds ₹10 crores. Also hears appeals against the orders of the State Commission. (Limit under 2019 Act).

8. Standardization Marks

• These logos help consumers ascertain the quality of goods.
• ISI Mark: For industrial products (electrical appliances, cement, LPG cylinders, etc.). Issued by the Bureau of Indian Standards (BIS).
• Agmark: For agricultural and food products (grains, spices, edible oils, honey, etc.). Issued by the Directorate of Marketing and Inspection of the Government of India.
• Hallmark: For precious metals like gold and silver jewellery. Assures purity. Issued by the Bureau of Indian Standards (BIS).

9. Taking the Consumer Movement Forward

• Challenges: Consumer awareness is still low, especially in rural areas. The redressal process can be cumbersome and time-consuming. Enforcement of laws protecting consumers can be weak.
• Need: Strengthening consumer organizations, simplifying redressal procedures, increasing awareness campaigns, and strict enforcement are necessary. The Consumer Protection Act, 2019 aims to address some of these issues with provisions like e-filing of complaints, mediation, and product liability.

Multiple Choice Questions (MCQs) for Practice:

1. The Consumer Protection Act (COPRA) was enacted by the Indian Parliament in which year?
   a) 1984
   b) 1986
   c) 1991
   d) 2005

2. Which mark should you look for while buying edible oil or spices to ensure quality?
   a) ISI Mark
   b) Hallmark
   c) Agmark
   d) ISO Mark

3. Selling a product above the price printed on the package falls under which type of consumer exploitation?
   a) Adulteration
   b) Charging Higher Prices
   c) False Information
   d) Underweight selling

4. Which consumer right ensures protection against goods and services hazardous to life and property?
   a) Right to Choose
   b) Right to be Informed
   c) Right to Safety
   d) Right to Seek Redressal

5. Under COPRA, the three-tier quasi-judicial machinery was set up for:
   a) Setting product standards
   b) Consumer awareness campaigns
   c) Redressal of consumer grievances
   d) Controlling market prices

6. A consumer feels cheated as the pressure cooker purchased bursts while using, causing injury. Which consumer right is primarily violated here?
   a) Right to Information
   b) Right to Choose
   c) Right to Safety
   d) Right to Consumer Education

7. What does MRP printed on a product package stand for?
   a) Minimum Retail Price
   b) Maximum Retail Price
   c) Manufacturer's Retail Price
   d) Market Rate Price

8. If a consumer's claim for compensation is valued at ₹70 lakhs, where should they file the case according to the Consumer Protection Act, 2019 limits?
   a) National Commission
   b) State Commission
   c) District Forum
   d) Supreme Court

9. Which of the following is NOT considered a primary responsibility of a consumer?
   a) Insisting on a cash memo
   b) Checking for standardization marks
   c) Setting the Maximum Retail Price (MRP)
   d) Filing a complaint for genuine grievances

10. The Right to Information (RTI) Act, enacted in 2005, primarily empowers citizens to:
    a) File consumer complaints online
    b) Access information from government departments
    c) Get immediate refunds for faulty products
    d) Form consumer protection groups easily

Answer Key:

1. b) 1986
2. c) Agmark
3. b) Charging Higher Prices
4. c) Right to Safety
5. c) Redressal of consumer grievances
6. c) Right to Safety
7. b) Maximum Retail Price
8. c) District Forum (As per 2019 Act, District Forum handles cases up to ₹1 Crore. Note: The NCERT book might have older limits, but exams often use current ones. 70 Lakhs = 0.7 Crore)
9. c) Setting the Maximum Retail Price (MRP)
10. b) Access information from government departments

Study these notes thoroughly. Understanding consumer rights and the mechanisms for their protection is vital for responsible citizenship and for tackling questions in your exams. Let me know if any part needs further clarification.