Consumer Awareness, Consumer Rights

and Responsibilities
Consumer Awareness is an act of making sure the buyer or
consumer is aware of the information about products, goods,
services, and consumers rights. Consumer awareness is
important so that buyer can take the right decision and make the
right choice. Consumers have the right to information, right to
choose, right to safety. Let us learn more about Consumer
rights, responsibilities and consumer awareness in detail.

Consumer Rights and Responsibilities

Consumer Rights is an insight into what rights consumer holds
when it comes to seller which provide the goods. What if the
goods provided to the consumer by thebusiness is not up to the
standard? Then in that case – what should a consumer do? To
be precise, what rights consumer have is in the court of law to
fight against the malpractices of the business firms or seller.

Consumer Rights
 Right to Safety: This is the first and the most important of the
Consumer Rights. They should be protected against the
product that hampers their safety. The protection must be
against any product which could be hazardous to their health
– Mental, Physical or many of the other factors.
 Right to Information: They should be informed about the
product. Theproduct packaging should list the details which
should be informed to the consumer and they should not hide
the same or provide false information.
 Right to Choose: They should not be forced to select the
product. A consumer should be convinced of the product he is
about to choose and should make a decision by himself. This
also means consumer should have a variety of articles to
choose from. Monopolistic practices are not legal.
 Right to Heard: If a consumer is dissatisfied with the product
purchased then they have all the right to file a complaint
against it. And the said complaint cannot go unheard, it must
be addressed in an appropriate time frame.
 Right to Seek Redressal: In case a product is unable to satisfy
the consumer then they have the right to get the product
replaced, compensate, return the amount invested in the
product. We have a three-tier system of redressal according to
the Consumer Protection Act 1986.
 Right to Consumer Education: Consumer has the right to
know all the information and should be made well aware of
the rights and responsibilities of the government. Lack of
Consumer awareness is the most important problem our
government must solve.
Learn more about Intro and Importance of Consumer
Protection here in detail.
Responsibilities of a Consumer
The consumer has a certain responsibility to carry as an aware
consumer can bring changes in the society and would help other
consumers to fight the unfair practice or be aware of it.

 They should be aware of their rights under the Consumer

Protection Act and should practice the same in case of need.
 They should be well aware of the product they are buying.
Should act as a cautious consumer while purchasing the
product.
 If in case a product is found of anything false or not
satisfactory a complaint should be filed.
 The consumer should ask for a Cash Memo while making a
purchase.
 A customer should check for the standard marks that have
been introduced for the authenticity of the quality of the
product like ISI or Hallmark etc.

What Is the Meaning of Consumer

Awareness?
Consumer Awareness is the process of making the consumer of
goods and services aware of his rights. It involves educating a
consumer about safety, information and the redressal options
available to him.
As previously discussed consumer awareness is one of the most
persistent problems the government faces when it comes to
consumer protection. To resolve this problem the government
has come up with various methods over the years. In fact, it is
the main aim of the Department of Consumer Affairs.

Consumer Awareness in India

One of the most important and successful Consumer Awareness
campaign in recent times has been the “Jago Grahak Jago”
campaign. You must have certainly come across it. It is a great
example of successful consumer awareness.

Learn more about Consumer Protection Act, 1986 (COPRA)

here.

Solved Question for You

Question: Explain the following rights: (a) The right to safety
(b)The right to consumer education.

Ans: Let us take a look at the two rights:

 The right to safety: It refers to the right to be protected

against products, production processes and services that
endanger the physical health or well being of the consumer.
 The right to consumer education: It refers to a right that
protects the consumer from various large companies of the
products and services they sell. It is basically about informing
 people and giving them the required knowledge for living in a
consumer society. These rights and exercises must be
followed by every consumer.
 ****************
 What are the 7 consumer rights?
 the right to safety; the right to be informed; the right to choose; and the
right to be heard. The International Organisation of Consumer
Unions has since added four more rights: the right to redress; the right
to satisfaction of basic needs; the right toconsumer education; and the
right to a healthy environment.
 What are the right and duties of consumer?
 Right to be informed. Means right to be informed about the quality,
quantity, potency, purity, standard and price of goods so as to protect
the consumer against unfair trade practices. Consumer should insist
on getting all the information about the product or service before making
a choice or a decision.

Introduction
1.1 Rise Of Consumer Awareness

In the globalization, liberalization and privatization era, most of the economic

decisions are taken by the market. Though the government has withdrawn itself from
many economic activities, it interferes very often when the market mechanism fails
due to structural rigidities in the economy and other factors, to provide goods and
services to the people.

Consumption is one of the important economic activities, which requires regular

government intervention, as the market is unable to promote security and welfare
aspects of the consumers. On the other hand, consumers have to be aware not only of
the commercial aspects of sale and purchase of goods but also of the health and
security aspect also. Besides this, they should be aware of their rights and duties being
as rational human beings.
Though the first consumer movement began in England after the Second World War,
a modern declaration about the consumer’s rights was first made in the USA in the
year 1962, where four basic consumer rights i.e. Choice, information, safety and right
to be heard were recognized.

Ralph Nadar, a consumer activist is considered as the father of

“Consumer Movement”. 15th March is now celebrated as the World Consumer
Rights Day. The U.N.O. Also adopted in the year 1985, certain guidelines to achieve
the objectives of maintaining protection for consumers and to establish a high-level of
ethical conduct for those engaged in the production and distribution of goods and
services. In India, 24th December is celebrated as “Consumer’s Day” every year.

1.2. Objectives of the Study

The Study based on the following objectives:

1. To study the level of consumer awareness of the consumers in the study area
2. To make the students habituated about the survey work.
3. To make the students acquainted how different statistical tools can be applied
in different socio-economic problems.

1.3 Meaning of Consumer Awareness

Consumer awareness means awareness of consumers in different aspects of

consumption activities. Consumer awareness is a broader and wider concept. It covers
the followings:

a) Consumer awareness about Maximum Retail Price (MRP).

b) Consumer awareness about Fair Price Shop.

c) Consumer awareness about price, quality and expiry date of the product.
d) Consumer awareness about their rights and duties.

e) Consumer awareness about certified products like ISI, Agmark, ISO-2000

1.4. Forms of Consumer Exploitation

Consumer exploitation is a type of exploitation in which the consumers are exploited

or cheated by the business community in terms of poor quality of product,
underweight, under-measurement, duplicate articles etc

Some of the common ways by which the consumers are exploited by the business
community are as follows:

1. Underweight and under-measurement

2. Sub-standard quality
3. High prices
4. Duplicate articles
5. Adulteration and impurity
6. Lack of safety devices
7. Artificial scarcity
8. False and incomplete information
9. Unsatisfactory after sale services
10. Rough behavior

1.5. Factors causing exploitation of the Consumers

The following are the factors that cause the exploitation of consumers:

1. Limited information
2. Limited supply
3. Limited competition
4. Low literacy
Rights and Duties of The Consumers
2.1 Rights of the Consumers

The following are the rights of the consumers as coded in the Indian laws, which the
business community has to keep in mind:

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

2.2 Duties of the Consumers

In order to secure rights, consumers have to fulfill the following duties:

1. While purchasing goods, consumers should look at the quality of the products
as well as on the warranty of the product.
2. They should ask for Cash Memo for the item purchased.
3. They should form consumer awareness organizations.
4. They must complain for their genuine grievances.
5. The must know their rights and duties.

Consumer Protection Measures

3.1. Introduction

In order to protect the interest of the consumers, the government has adopted three
strategies:

1. Administrative measures
 1. Technical measures

1. Legislative measures

3.2. Administrative Measures

Administrative measures of the government include the distribution of essential

commodities throughPublic Distribution System (PDS). PDS is a system through
which the government distributes some essential commodities at a reasonable price
through the Fair Price Shop. In a free market economy, the price of a commodity is
determined in the market through the free play of demand and supply.Equilibrium
price is that price at which demand and supply of the commodity are equal to each
other i.e. there are zero excess demand and excess supply. But sometimes government
interferes in the market systems by fixing the price lower than the equilibrium price,
to protect the interest of the consumers belonging to the lower strata of the society.
This price is known as Control Price. When the government fixes price lower than
the equilibrium price, demand exceeds supply, which leads to black-marketing and
hoarding. To check these government sales different commodities at different FPS at
control price.

3.3. Technical Measures

Technical measures consist of Standardization of the product. One of the important

measures taken by the government to protect the consumers is the creation of
institutions for setting up the standards for making and producing various products
and enforcing them. In India, this has been achieved through theBureau of Indian
Standards (BIS), and Agmark. While BIS caters to the industrial and consumer
goods while Agmark is meant for the agricultural products.

The Bureau of Indian Standards, earlier known as the Indian Standards Institution
(ISI), whose headquarter is located at Delhi, has the responsibility of lying down the
standards for industrial and consumer goods on a scientific basis and certifying the
goods that meet the standards and the prescribed quality.

The Agmark is implemented under the Agricultural Produce (Grading and

Marketing) Act of 1937, as amended in 1986. This scheme is run by
the Directorate of Marketing and Intelligence (DMI) in the Ministry of Agriculture,
Government of India. Products such as honey, masala etc, carry such marks.

At the international level, an institution called International Organization for

Standardization (ISI),established in 1947 located at Geneva, serves to provide such a
common reference standard. All the international Companies, goods produced by
them, and institutions are certified as ISO 6000, ISO 14000etc.

For setting international food standards, there is a similar body called Codex
Alimentaries Commission (CAC). This was formed in 1963 by the Food and
Agricultural Organization (FAO) and the World Health
Organization(WHO), located at Rome, Italy. It develops food standards, guidelines
and codes for production and international trade in food products like milk, fish etc.

3.4. Legislative Measures

Legislative measures include enactment of Consumer Protection Act, 1986. The

Government enacted a specific law called the Consumer Protection Act, 1986. The
Act provides for the establishment of consumer disputes redressal agencies at District,
State and National level for the protection of consumer interests and to redress their
grievances in a speedy, simple and inexpensive manner. The Act has led to the setting
up separate Department of Consumer Affairs in Central and State Government,
which focus exclusively on the rights of the consumers, as enshrined in the Act.
 CONSUMER COURTS

NATIONAL CONSUMER COMMISSION (National Level)

STATE CONSUMER COMMISSION (State Level)

DISTRIST CONSUMER FORUM (District Level)

Consumer Protection Act of 1986 And

Case Studies
4.1. Consumer Protection Act of 1986

The industrial revolution and the development in the international trade and
commerce has led to the vast expansion of business and trade, as a result of which
variety of consumer goods have appeared in the market to cater the needs of the
consumers and a host of services have been made available to the consumers like
insurance, transport etc. The advertisement of goods and services in T.V and other
media influence the demand of same by the consumers, though there may be
manufacturing defects or shortcomings in quality and purity of products or deficiency
in services rendered. In spite of various provisions made providing protection to the
consumers against adulterated and sub-standard articles in different enactments
like Code of Civil Procedure, 1908, MRTP ACT, 1969, IPC, 1960 etc., very little
could be achieved in the field of consumer protection.

In order to provide for the better protection of the interest of the consumers,
Consumer Protection Bill 1986 was introduced in Lok Sabha on 5th December 1986.
The Bill was passed by both Houses of Parliament and got the assent of the President
on 24 December 1986, popularly known as the Consumer Protection Act of 1986.

The Act of 1986, seeks to provide better protection to the interests of the consumers
and for the purpose that there is Consumer Councils and other authorities for the
settlement of consumer disputes and for matter connected therewith. To provide quick
redressal of consumer disputes, a quasi-judicial institution is set up at all the three
levels. These bodies have been empowered to give relief of a specific nature and to
award, wherever appropriate, compensation to the consumers. Penalties of non-
compliance of the orders given by the quasi-judicial bodies have also been provided.

4.2 Case Studies

1. S.L.Pati VS. Postmaster, Aligarh, Orissa(1993)

Money order not delivered in time to the concerned person is a case f deficiency in
service of worst category. If this would be the normal act of the Post Office and the
office, which belong to the Union Government, no one would have faith in services
rendered by them. As a result, an amount of Rs250/- plus the money order amount of
Rs.1000/- along with interest @ 18% was the compensation awarded to the deprived
person.

2. K.C. Panda VS SDO, Telecom Department, Berhampur, Orissa(1994)

The telephone line was disconnected even if the bill was paid. Proceeding before
District Forum, Telecom Department made an apology for the mistake occurred
inadvertently. But, in spite of apology, an amount of Rs. 2000/- was the compensation
awarded to the person concerned by the Telecom Department.

Data Base and Methodology

5.1 Collection of Data

The project report is based on primary data collected by the students of Class 11th
Commerce, KV No. 2, CRPF, BBSR. Data collected by the investigator for his own
purpose, for the first time, from beginning to end is called primary data. According
to Wessel, “Data originally collected for the purpose of the investigator are known as
primary data”. When data collected by the others are used by others for their use or
investigation then it is known as secondary data.

5.2 Sampling Technique Used

The total number of households selected for the project is 80. These household has
been selected by the sampling method. There are two statistical inquiry methods:

1. Census Method
2. Sampling Method

Census method is that method in which data are collected covering every item of the
universe or population relating to the problem under investigation. The sampling
method is that method in which data are collected about samples or a group of items
taken from the population. There are different types of sampling techniques such as
random sampling, quota sampling, stratified sampling, deliberate sampling etc. But
for the project concerned deliberate sampling method is used. This is also called
judgment sampling. According to this method, for selecting a sample no specific
procedure is used, rather the investigator, according to his own desire selects those
households which represent the universe fully.
CONSUMER RIGHTS IN INDIA
The definition of Consumer right is ‘the right to have information
about the quality, potency, quantity, purity, price and standard of
goods or services’, as it may be the case, but the consumer is to
be protected against any unfair practices of trade. It is very
essential for the consumers to know these rights.
However there are strong and clear laws in India to defend
consumer rights, the actual plight of consumers of India can be
declared as completely dismal. Out of the various laws that have
been enforced to protect the consumer rights in India, the most
important is the Consumer Protection Act, 1986. According to this
law, everybody, includin g individuals, a firm, a Hindu undivided
family and a company, have the right to exercise their consumer
rights for the purchase of goods and services made by them. It is
significant that, as consumer, one knows the basic rights as well
as about the courts and procedures that follow with the
infringement of one’s rights.
In general, the consumer rights in India are listed below:
 T he ri gh t t o be p rot ec te d fro m all k in d o f h az ar do u s go od s a nd
s erv ic e s
 T he ri gh t t o be full y i n fo r med a bo ut th e per for ma nc e a nd q u ali t y o f
all g oo d s an d ser vi ce s
 T he ri gh t t o fre e ch oi ce o f g oo d s an d serv ic e s
 T he ri gh t t o be h e a rd i n al l de ci sio n - mak in g p ro ce sse s re l at ed t o
co n su mer i nt ere st s
 T he ri gh t t o se ek re dre ssal , wh en e ver c on su me r r ig ht s h av e be en
in fri ng e d
 T he ri gh t t o co mp le te c on su mer ed u ca t ion
The Consumer Protection Act, 1986 and several other laws like
the Weights, Standards & Measures Act can be formulated to
make sure that there is fair competition in the market and free
flow of correct information from goods and serv ices providers to
the ones who consume them. In fact, the degree of consumer
protection in any country is regarded as the right indicator of the
progress of the country.There is high level of phistication gained
by the goods and services providers in their marketing and selling
practices and different types of promotional tasks viz. advertising
resulted in an increasing requirement for more consumer areness
and protection. The government of India has realized the
condition of Indian consumers therefore the Ministry of Consumer
Affairs, Food and Public Distribution has incorporated the
Department of Consumer Affairs as the nodal organization to
protect the consumer rights, redress the consumer grievances and
promote the standards governing goods and services provided in
India. If there is infringement of rights of consumer then a
complaint can be made under the following circumstances and
reported to the close by designated
consumer court:
 T he g oo d s or serv ic e s pur ch a sed b y a p er so n or ag re ed t o be
pur ch a sed b y a per son h a s on e or mor e de fe ct s or d e fi ci en ci e s i n a n y
re sp e ct
 A t ra de r o r a serv ic e pro vi der r e sor t t o un fa ir or r e str ic ti v e pra ct ic e s
o f t ra de
 A t ra de r o r a serv ic e pro vi der i f c h arg e s a pri ce mor e t h a n t he p ri ce
di sp la ye d on t he g o od s or th e pri c e t h a t w a s a gre e d up on be tw ee n
th e p ar ti e s or t h e p ric e th at w a s stip ul at ed u nd er a n y l aw th at e xi st
 Go od s or ser vi c e s t ha t b rin g a h az ar d t o t he sa fe t y or li fe o f a per s on
o ffer e d for sal e, u n kn ow in gl y or k no w ing l y, th at c au se in jur y t o
he al th , sa fe t y or li f e.

Urbanites lack awareness about consumer rights: survey

About 70 per cent of the urban Indians are unaware about their
consumer rights even as the Government has launched its
biggest ‘Jago Grahak Jago’ campaign. Most of these
consumers are still ignorant, complacent and ill-informed
about their rights and existing laws, according to a survey.
A survey by Assocham said that the market for counterfeit
products is growing aided by web-shopping portals. Besides
promotion of products and services through misleading
advertisements in various media together with lack of
transparency, complex terms and conditions, non-disclosure of
hidden charges/fees, penalties and others are certain key
concerns of modern Indian consumers.
About 4,000 people with comprising an equal number of male
and female respondents at 15 centres were included in the
survey.
“India Inc. is taking significant steps in this direction as
companies today are serious about informing, educating and
communicating with their target consumers in a bid to enhance
their knowledge and awareness about products, services
offered by the company and also seeking consumers’
feedback, complaints and suggestions thereby nurturing a
positive culture of consumer consciousness and behaviour,”
said Mr D.S. Rawat, secretary general of Assocham while
releasing the chamber’s survey.
“Social media channels like Twitter, Facebook, YouTube,
blogs, newsfeeds and others are certain significant innovative
ways that companies in various domains are using to connect
with the consumers of all age group,” said Mr Rawat.
“However a simple, speedy and an inexpensive consumer
grievance redressal mechanism is imperative to further
promote awareness levels and the authorities must perk up the
system and procedure for filing complaints in consumer courts
and strengthen the reach of government-led awareness
campaigns across the country.”
Of the total, nearly 30 per cent of all the respondents admitted
they were aware of consumer rights and majority of these said
they pursued their rights as consumers only after they were
mistreated, duped or cheated.
Majority of total respondents said they are unfamiliar with any
rights and laws relating to consumers’ protection, though some
of them said they have heard about certain consumer rights
through awareness campaigns but have not found the need to
learn about it as they have not encountered any such problems
so far.
Consumer Rights Act 2015
The Consumer Rights Act 2015[1] is an Act of Parliament of the United Kingdom that
consolidates existing consumer protection lawlegislation and also gives consumers a
number of new rights and remedies. Provisions for secondary ticketing and lettings to force
on 27 May 2015[2] and provisions for alternative dispute resolution (ADR) came into force on
9 July 2015 as per the EU Directive on consumer ADR.[3] Most other provisions came into
force on 1 October 2015.[4]

The Act replaces the Sale of Goods Act, Unfair Terms in Consumer Contracts Regulations
1999 and the Supply of Goods and Services Act 1982,[5] making some changes to rights to
return faulty goods for refund, replacement or repair, and adding new rights on the purchase
of digital content. [6]

The Act is split into three parts:

 Part 1 concerns consumer contracts for goods, digital content and services.
 Part 2 concerns unfair terms.
 Part 3 concerns other miscellaneous provisions.