Economics

Chapter– 5 Consumer Rights

Right of consumers:

1. Right to safety
2. Right to be informed
3. Right to choose
4. Right to be heard
5. Right to seek redressal
6. Right to consumer education

Q. 1. Explain any two ways in which the consumers are exploited.

Ans. Adulteration: Adulteration means mixing or substituting undesirable materials in food. This causes heavy loss to the customers. False claims: Sellers make false claim about the durability and quality of their products through advertisements. Under measurement: Sellers generally give under measured goods and charge for the actual quantity.

Q. 2. What is consumer exploitation?

Ans.When a consumer is cheated in any way, either by the shopkeeper or the producer, by giving him poor quality or adulterated goods or by charging more prices for a commodity or a service, it is called consumer exploitation.

Q. 3.Why was ‘Consumer Protection Act 1986’ enacted?

Ans.Consumers Protection Act 1986 was passed for the protection of the consumers from unscrupulous (doing wrong) producers and dishonest traders.

Q. 4. What is Consumers Protection Council (CPC)? And what is its function?

Ans.Consumers Protection Council (CPC) Ahmedabad is a consumer organization which is working for the protection of consumer’s rights. Functions of CPC are:

1. Writing articles and holding exhibitions to impart knowledge about consumer rights and consumer problems.
2. Forming consumer groups to look into the malpractices in ration shops and overcrowding in the road passenger transport.
3. Providing legal assistance to consumers by way of providing aid legal advice, etc in seeking legal remedy.

Q. 5 Explain any four steps taken by the government to control price rise.

Ans.

1. Public Distribution System: Government in India, under its public distribution system ensures the availability of essential commodities such as wheat, rice, etc to the consumers at reasonable prices through a network of fair price shops. At present, there are about 4.61 lakh of fair price shop in the country.
2. Administrative Price Mechanism: Administrative prices are those prices of goods and services, which are controlled by the government. Government of India has imposed price controls on a number of commodities. (Steel, automobiles). Producers of these commodities cannot charge price higher than the maximum prices fixed by the government.
3. Monetary Policy/Measures: it is the policy of the Central Bank (RBI) to control money supply and credit in economy. This results in people’s tendency to consume less, which in turn reduces the demand for goods and thereby lower the prices.
4. Fiscal Policy/Measures: it is the expenditure and revenue policy of the government to accomplish the desired goals. The intention of the government here is to reduce the money supply, which is kept in the hands of the people.

Q. 6. What are the salient features of Consumers Protection Act, 1986?

Ans.

1. It applies to all goods and services.
2. It covers all the sectors whether private, public or cooperative.
3. It gives various rights to the consumers.
4. It also established consumer protection councils at the central and state levels to promote and protect the rights of the consumers.
5. It provides separate three-tier judicial machinery at the national, state and district levels.