English

In India Consumer Protection Act is Not Required. - Organisation of Commerce and Management

Advertisements
Advertisements

Question

In India Consumer Protection Act is not required.

Advertisements

Solution

This statement is false. This is because.

In India Consumer Protection Act is required for the following reasons.he following points emphasise the importance of consumer protection:

1.Seller dominant market : If the market is dominated by sellers then the consumer's choice as well as his welfare gets the last preference. All the transactions are finalised in favour of sellers, middlemen and manufacturers. e.g. if there is shortage of goods then the buyer will have to buy a product at the price quoted by the seller.
2. Ignorance of consumers : Ignorance of consumers about their rights, market conditions, price levels, product details, etc. result into consumer exploitation. Many times consumers do not even realise that they are being cheated. e.g. a shopkeeper may sell a product which is actually received by him as free sample, free gifts offered by company may not reach upto the consumer.
3. Tendency of the consumers: Majority of the consumers get attracted towards the products of cheap prices, discounts, various schemes, etc, This weakness of the consumers leads to their exploitation without their knowledge.
4. Unorganised Consumers : Consumers neither organized nor united. Compared to them the producers and sellers are in a superior position. An individual consumer cannot fight against powerful traders. Thus, it is easy to exploit unorganized and widely spread consumers.
5. Nature of Products : Modern products are the end results of complicated production processes. It is beyond the capacity of poor and illiterate consumers to judge the quality or safety aspects of a product. Moreover these consumers/customers cannot take legal help even though they realize that they are being cheated because they do not understand production process thoroughly.
6. Lack of information : Today's consumer lives in a complex world. Distance between producer and consumer is vast. It is impossible to establish direct contact between producer and consumer. After globalization and liberalization policy of the government, the market is full of domestic as well as imported products. But it is difficult for the consumer to get reliable information about the product before it is purchased. He relies on commercials of the product or on trial and error method. In both the cases chances of consumer exploitation are high.
7. Lack of participation of consumers : It is observed that certain decisions, which directly affect consumer's interest are taken without any consultation with consumers or their organizations. e.g. Charges of daily necessities such as public transport, cooking gas, telephone, electricity, etc. Only a strong consumer movement can pressurize various organizations to allow consumer participation in the decision making process.
8. Increase in consumption rate : Compared to earlier period, consumption rate is increased due to increase in population as well as tendency of the people to lead a comfortable life. It results into mass production, many varieties, increased prices, unfair trade practices, etc. Such a situation in the market confuses the consumers and they fall prey to exploitation.
9. To restrict unfair trade practices : When more and more consumers start taking support of Consumer Protection Act (1986) to resolve their grievances then it will automatically pressurise the manufacturers, middlemen and traders for not conducting the trade by unfair means.
shaalaa.com
  Is there an error in this question or solution?
2014-2015 (March)

APPEARS IN

RELATED QUESTIONS

Suman bought a box of cheese of a reputed brand from a local shopkeeper. On opening the box she found a piece of stone in the cheese. She reported the matter to the shopkeeper who forwarded her complaint to the concerned company. Within a week the representative of the company visited Suman's residence with an apology and as a replacement offered her a new cheese pack with four other varieties of cheese as compensation for the inconvenience to her.

State the consumer right which Suman exercised.


Manvendra always went to a specific shop to buy all consumable and nonconsumable goods. In this shop variety of products of different brands were displayed nicely and the sales person available also gave good sales presentation if required. But this shop was quite far off from his residence. His friend Annant always wondered why Manvendra wastes so much time in going to that shop where as there were many big brand shops situated near his residence having consumable and non-consumable goods. Annant asked Manvendra the reason of going to that particular shop. Manvendra told that he was exercising one of his ‘Rights’ which he could not exercise in near-by big brand shops.

State the consumer’s right which Manvendra had exercised.


Answer the following question:
Explain briefly any two points of importance of consumer protection from the point of view of the business.


Indian Youth Organisation (IYO) organised a visit of its members to an old age home to inculcate the habit of social work among them. The visit revealed that the living conditions of the inmates of the old age home were not hygienic. So, the IYO members decided to clean the premises. During their cleanliness drive, they realised that the old age home also required pest control. But some of the inmates of old age home were reluctant for it because they believed that the pest control may create health problems for them. IYO therefore decided to provide ethical, safe and odourless pest control. They showed to the inmates of old age home a pamphlet of the proposed pest control product which promised easy, inexpensive and long-lasting pest control. The inmates happily agreed and the pest
control was carried out. It worked for a fortnight but to their dismay, the effect started wearing off. IYO contacted the pest control company which kept on postponing their visit. After waiting for a month, IYO filed a case in the consumer court.

The consumer court was satisfied with the genuineness of the complaint and issued necessary directions to the pest control company

1) State any six directions that might have been issued by the court.

2) Also, identify any two values that are being communicated by IYO to the society.


On Sonika's birthday her mother gave her a pair of gold earrings. After one month Sonika observed that the ear-rings are losing their shine. She checked the mark on the earrings and found that it was not a proper Hallmark and her mother had been cheated by the shopkeeper. So, she finds a complaint in the district forum which rejected it. Not satisfied by the decision of district forum, she was very much disturbed and after two months decided to appeal further.

Can Sonika appeal against the decision of the district forum? Give reason in support of your answer.


Explain the concept of ‘consumer protection’ and any three points of its importance from the point of view of consumers.


Pankaj purchased a car from ‘Abhishek Motors’ for < 50 lakhs. The company offered many attractive gifts to Pankaj like — free insurance for first two years, free pick-up and drop facilities for free servicing up to 20,000 km, etc. But after a few days, Pankaj noticed that the pick-up of the car was not good and there were some problems with the engine. The company serviced the car free of cost but even then Pankaj was not satisfied with its performance. ‘Abhishek Motors’ is not giving him the due response. So he filed a complaint in the State Commission but was not satisfied with its decision also. He was very much disturbed and after two months decided to appeal against it. Can Pankaj appeal against the decision of the State Commission ? Give reason in support of your answer.


Under which consumer right does a business firm set up consumer grievance cell?


State with reasons whether the following statement is True or False.
The consumer protection act was passed in the interest of the sellers.


Answer the following question.
'VOICE' is an important consumer organization. It organized workshops in the months of December in Delhi/NCR for consumers. The theme was 'Organic Food – From Farm to Plate', to spread awareness on the importance of organic farming and to encourage consumers to switch from conventional food, that contains chemicals and pesticides to organic food. Expert speakers from farmers' community explained the harmful effects of usage of pesticides in farming and the importance of organic food.
People were informed that the organization regularly tests samples to detect adulteration like the presence of heavy metals or pesticides. The results of the tests are published in their monthly magazine 'Consumer Voice' to make people aware of the quality of different products. It also provides aid and legal advice to the consumers in seeking a remedy.
State the functions performed by the Consumer Voice for the protection and promotion of consumer interest by quoting lines from the above para.


Explain any four needs of consumer protection.


______ every year is declared as a Consumer Protection Day to educate the public about their rights and responsibilities.


State any four features of the Consumer Protection Act, 2019.


Briefly describe any two Consumer Aids.


Ms. Anamika visited a reputed dealer of electronic goods to buy a bluetooth headset. The salesman at the shop forced her to buy a particular brand of headset. Which consumer right of Anamika was violated?


______ is given to products that are biodegradable and have the capacity to be recycled.


Raman made a bank transaction to purchase a shirt, but immediate deduction was not made from his bank account. 

Which method of banking did Raman use?


What is the standardisation mark found on a packet of biscuit?


Ved and Ahmad made payments at an electronic store. While Ved paid the amount via cheque, Ahmad made his payment by using online banking. Whose payment was swift? Give a reason. 


Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×