Consumer Awareness

By Ritesh Singh, New Law College, Pune

Editor’s Note: Consumer is the person who hires or avails of any services for
a consideration which has been paid or promised or partly paid and partly
promised or under any system of deferred payment. But Consumer
exploitation is very rampant these days. Consumers get exploited in many
ways through the more dominating and knowledgeable sources.
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. Besides this, they should be aware of their rights and duties being as
rational human beings viz., price and quality of products used by them, about
Fair Price Shops, standardization of products, about Consumer Forums etc.
Therefore, Consumer exploitation should be bought down with proper
awareness to the consumers on their rights and how they could go about with
things, if they feel they have been cheated.

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 Though the government has withdrawn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 through Public 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
the Bureau 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
14000 etc.
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.

5.3. Statistical Tools Used

For analysis of data simple percentage method and arithmetic average is
used.

Percentage:
Gt-Gt-1
Percentage increase/decrease= _________ X 100
Gt-1

Gt= Value of the Variable in time period t

Gt-1= Value of the Variable in time period t-1
Arithmetic Average (Mean):
Sum of all the values of different items in the
series
Arithmetic Mean= ____________________________________________
Total number of items

X1+ X2+………………………+Xn
= _____________________________

N = å Xi i = 1, 2, 3………….n

i=1

Besides mean and percentage, different types of diagrams like bar diagram,
pie-diagram etc. has been used to represent data in a simple and systematic
manner.
Pie Diagram:
Pie diagram is a circle divided into various segments showing the values of a
series.
The degree measure of an item= % value of an item X 3.60
5. 4
Limitations Of The Study
The study is based on primary data, collected by the Students 11th
Commerce, K.V.No.2, CRPF, Campus, BBSR. Each Student of the Class
interviewed two consumers, one representing his/her father/mother and the
other representing his neighbor. The study area of the project is limited to
Bhubaneswar city only. The sample size of the project is 80 only. So, the
sample of the project is very small.

Since the study is limited to Bhubaneswar city only, all the respondents are of
urban background.

Analysis and Interpretation Of

Data
Socio-Economic Conditions Of The Households
a) Tabular presentation of Data
The total number of households surveyed for the purpose is 80. Each student
of 11th Commerce conducted survey work. Each student interviewed the head
of the family relating to different aspects of consumer awareness mentioned in
the questionnaire.

Table No. 1 represents the total family members of the surveyed households.
Table No.2 represents the occupational status of the head of the household.
Table No.3 represents the educational qualifications of the head of the
household. Table No.4 represents the educational status of total households
surveyed. Table No.5 represents the income level of surveyed households.

Total family members of the surveyed households are 420, out of which 220
are female and 200 are male. The average family size of the household
5.35. The total number of persons interviewed is 80, out of which 68 belong
to the service class. Out of these 68 families, 3 female members are
interviewed for the purpose as male members are staying outside the station.
Two families are from big business class whereas 10 are from small business
family out of 12 business family interviewed.
Out of total 80 of the families interviewed 55 are highly qualified. They are
Graduate, Post Graduate, and even some posses Professional and Technical
qualifications. Out of the total, 23 are at Primary and Secondary level,
whereas 2 are illiterate. Out total family members 190 are Graduate, Post
Graduate, and Professionally and Technically qualified. Again, 170 members
are at Primary and Secondary or Higher Secondary level, whereas 10 are
illiterates. Rest 20 belong to below 5 years and hence are not mentioned in
the educational status. Table No. 5 represents the distribution of income
levels of surveyed households. Out of a total 80 families 10, 60, 10 belong to
low income, medium income, and high-income group respectively.

Table No. 1
Sex-wise Family Members of the Households
Sex(M/F) Family Members Average family Size

Male 200 2.5

Female 220 2.75

Total 420 5.25

Table No.2
Occupational Status of the Head of Households
Occupation No. of Households Percentage (%)

Services 68 85

Big Business 02 2.5

Small Business 10 12.5

Total 80 100

Table No. 3
Educational Level of Head of families
Qualification No. of Households Percentage (%)

Illiterate 02 2.5

Primary 13 16.25

Secondary 10 12.5

Tertiary 55 68.75

Total 80 100

Table No.4
Educational Status of Family Members

Qualifications No. of Persons Percentage (%)

Illiterate 10 2.5

Primary 30 7.5

Secondary 170 42.5

Tertiary 190 47.5

Total 400 100

Table No.5
Income Level of the Households
Income level No. of Households Percentage(%)

Below 5000(Low) 10 12.5

5000-20000(Medium) 60 75

20000-and above(High) 10 12.5

Total 80 100

b) Diagrammatic Presentation of Data

Different types of diagrams are used to represent the data. Diagram No. 1, a
Bar Diagram represents sex-wise family members of the households. Diagram
No.2, a Pie Chart represents the occupational structure of the head of the
households. Diagram No.3 and 4 are the Pie Charts represents the income
level of head of households and educational status of head of households
respectively. Diagram No.5 and 6 are the Bar diagrams represents the
educational status of the whole family and income level of head of
households.

Diagram
No.1 Diagram
No.2
Sex-wise Family
Members Occupation Structure
Diagram No.3 Diagram No.
4
Income Level of Head of Households Educational Status of Head
of Households

Table
No.5 Table No.6
Educational status whole family Income of
head of Households
6.2. Consumer Awareness Of The Households
1. Tabular Presentation of Data
Table No. 6 represents the preferred use of toothpaste, Table No. 7
represents the influence of different agencies on families while purchasing a
different brand of toothpastes used by the surveyed households and Table
No.8 represents different aspects of consumer awareness in day to day life of
the surveyed households.

Table No.6
Preferred use of Toothpaste
Brand No. of Households Percentage(%)

Close-up 30 37.5

Colgate 22 27.5

Pepsodent 12 15

Anchor 06 7.5

Others 08 10

Total 80 100
Table No.7
Source of influence on the Purchase of different Brand of Toothpaste
Sources No. of Households Percentage(%)

TV 56 70

Newspaper 06 7.5

Magazine 10 12.5

Others 08 10

Total 80 100

Table No. 8
Different aspects of Consumer Awareness
Consumer Awareness Yes No

Knowledge about Certified

65(81.25%) 15
Products

Check MRP, Expiry and

68(85%) 08
Manufacturing date

Knowledge about Fair Price

60(75%) 20
Shop

Check ingredients used 35(43.75%) 45

Knowledge about Consumer 77(96.25%) 03

Courts

Ever gone to Consumer Court 10(12.5%) 70

Insist cash Memo for

57(71.25%) 23
Consumable goods purchased

From table No.6, it is evident that highest percentage of families i.e.

37.5% prefer Close-up followed by Colgate with 27.5%. Income and
occupation factor did not influence the purchase or consumption of toothpaste
of Close-up or Colgate. However, in case of lower income group, out of 10, 6
families use either Anchor or Promise and they prefer to it as it cost less than
other brand of toothpastes.

On the other hand, quality of product is important for high and medium income
group, using Close-up and Colgate. Besides, quality of product and price,
choice of children also taken into account while using the Colgate or Close-up
for about 20% of the households. Majority people come to know about the
product through advertisement on TV, followed by magazine, newspaper and
other agencies as evident from Table No.7.

Table No.8 depicts different aspects of consumer awareness i.e. about

standardization, MRP, date of manufacturing and expiry, knowledge about
Consumer Courts, rights and duties of the consumers etc. Out of total
families, 81.25% of families check MRP, date of manufacturing and expiry.
However, 56.25% of people interviewed, check the ingredients used in the
product.

As far as Consumer Court is concerned, a majority of them (96.25%) have

knowledge about it but only 10 out of total respondents have gone to the
Consumer Court to redress their problems on different occasions.. Lastly, it is
clear from Table No. 8 that majority of households(71.25%) surveyed, insist
for Cash Memo at the time of purchase. However, it is limited to non-
consumable durable items and some consumable items when large quantity is
purchased.

2. Diagrammatic Presentation Of Data

Use of different brand of toothpaste used by the surveyed
households depicted in Diagram No.7 and source of influence on the
purchase of different brand of toothpaste is depicted in Diagram No.8. in the
form of a Pie-Chart.

Diagram No. 7 Diagram

No.8
Use of different Brand of toothpaste Source of
influence on different brand of Toothpaste

7. Summary and Conclusion

The objective of this project is to assess the people of different class in the
society about different aspects of consumer awareness viz., price and quality
of products used by them, about Fair Price Shop, standardization of
products, about Consumer Forum, about their Rights and Duties etc.
Consumers will lead a happy, healthy and prosper life if they fully aware about
the above mentioned aspects.
For the project report, total number head of households interviewed is 80
and all belong to urban area. Out of total head of family interviewed, 78 are
literate whereas only 2 are illiterate. All belong to different income group
i.e. high, medium and low income group. However, majority of them belong to
medium income group(75%). Again, on the basis of occupation, 85% of
respondents are government servants whereas other are businessmen.

Close-
up is the most preferred brand(37.5%) of toothpaste followed by Colgat
e(27.5%) among the surveyed households. Households from medium and
high income group prefer respective brand of toothpaste taking into account
the quality of the product and wishes of their children also. On the other
hand, for the low income group, the most important factor that determines the
use of toothpaste is the price of the product. Again, majority of
respondent(70%) are influenced by the advertisement about the product and
the important media is Television.
As far as consumer awareness is concerned,
majority of respondents have knowledge about certified products,
check MRP, date of manufacturing and expiry at the time of purchase.
However majority of them do not check about the ingredients used in the
product. On the other hand, majority of them have the knowledge
of Consumer Courts, but out of total respondents only 10 have ever
gone to the Consumer Courts for complaining about different commodities
they purchased and consumed. Lastly, it is evident
from the study that, majority of them insist for Cash Memo at the time of
purchase, but, it is limited to consumer durable goods and for
consumer non-durable goods when large quantities of goods is purchased.
To conclude, people are concerned about different aspects of
consumer awareness i.e. their rights and duties, certified products, MRP,
date of manufacturing and expiry of the products they used, Consumer
Courts etc as far as urban area is concerned.
Educational implications of the study is that every students as well as parents
should be aware about different aspects of different commodities they
consume in day-to-day life. They should
have knowledge about certified products, Check MRP, date of
manufacturing, and expiry at the time of purchase of a commodity. They must
have awareness about their rights and duties. This project report will give a
preliminary idea about survey work to the students. Lastly, students will
get an idea about how statistical techniques can be used in different socio-
economic problems.
ation is very rampant these days. Consumers get exploited in many ways
through the more dominating and knowledgeable sources.
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. Besides this, they should be aware of their rights and duties being as
rational human beings viz., price and quality of products used by them, about
Fair Price Shops, standardization of products, about Consumer Forums etc.
Therefore, Consumer exploitation should be bought down with proper
awareness to the consumers on their rights and how they could go about with
things, if they feel they have been cheated.

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.