Chapter- 5 

1. Why are rules and regulations required in the marketplace? Illustrate with a few examples.


Rules and regulations are needed in the marketplace for the following reasons:

        1. Consumers are exploited by shopkeepers and traders in various ways such as underweight or measurement, overpriced, counterfeit and defective products.

        2. In making complaints about good or service, the shopkeeper or merchant tries to avoid any liability. The seller tries to shift all responsibility to the buyer as if the seller has no responsibility after the sale is completed.

        3. Sometimes producers are few and powerful while consumers buy in small quantities and are scattered. Large companies with large resources manage the market in different ways.

        4. Sometimes false information is provided through the media, and other sources to attract consumers. For example, one company for years sold powdered milk to children all over the world as the most scientific product claiming it is better than breast milk. It took years of struggle before the company was forced to admit that there were bees making false claims. Similarly a long battle was fought with the cigarette manufacturing companies to accept that their product could cause cancer.  Hence there is a need for rules and regulations to ensure protection for consumers.

2. What factors gave birth to the consumer movement in India? Trace its evolution.


The factors that gave birth to the consumer movement in India are many times old. This began as a "social force" with a need to protect and promote consumer interests against unfair and unethical trade practices. The consumer movement became an organized field in the 1960s due to food shortages, hoardings, black marketing and food adulteration. Until the 1970s, consumer organizations were mostly busy writing articles and holding exhibitions.

More recently, there has been an increase in the number of consumer groups expressing concern about misconduct in ration shops and excessive congestion in public transport vehicles. In 1986, the Government of India enacted the Consumer Protection Act, known as the COPRA. It is also called. This was an important step in the consumer movement in India.

3. Explain the need for consumer consciousness by giving two examples.


Two examples are Reji's suffering and Amrita's waiting. At a hospital called Reggie, doctors and staff neglected to administer anesthesia, leaving him crippled for life. In Amrita’s case, after an engineering graduate attended an interview for a job, there was no news of the results. In both cases, they were aware of their rights. Reggie's father filed a complaint with the State Consumer Disputes Resolution Commission demanding compensation? 5 lakh for medical neglect and lack of services.

The state commission dismissed his case but he appealed again to the National Consumer Disputes Settlement Commission in New Delhi. In its decision, the National Commission held the hospital liable for medical negligence and ordered it to pay damages. In the case of Amrita, she filed an application under the RTI Act to know the results. She soon got her call letter for an appointment. Therefore, consumer consciousness is needed to successfully protect their interests.

4. Mention a few factors which cause exploitation of consumers.


Consumer exploitation results from a variety of factors. Producers are always looking for easy ways to increase profits. Counterfeit or low-quality products have lower production costs, and if the consumer is ignorant or illiterate, he or she is easy to cheat. Also, shopkeepers remove their responsibility by claiming to blame the manufacturer. Consumers feel helpless in this situation. Often, when consumers are known not to check the retail price on the packing of a product, the seller adds an additional fee to it. In places where there is no awareness of consumer rights and COPRA, consumer exploitation is widespread.

5. What is the rationale behind the enactment of Consumer Protection Act 1986?


The rationale for enacting the Consumer Protection Act 1986 (COPRA) was to protect the interests of consumers as there is no legal formalities for filing complaints. A consumer does not need to hire a lawyer or professional for legal assistance. He can request the case himself in the Consumer Court. A person can file a complaint in the Consumer Court in a plain newspaper with supporting documents like guarantee or warranty card, cash memo etc.

6. Describe some of your duties as consumers if you visit a shopping complex in your locality.


If I go to a shopping complex some of my duties as a consumer include checking the expiry dates of the products I want to purchase, paying the highest retail price printed on the products, preventing shopkeepers from swindling me with defective products, and if a salesperson is a counterfeit or refuses to take responsibility for the defective product then register a complaint in a consumer forum or court.

7. Suppose you buy a bottle of honey and a biscuit packet. Which logo or mark you will have to look for and why?


When buying a bottle of honey or a packet of biscuits, you need to look for a logo or mark, ISI or Eggmark. These are the logos that certify the quality of the product in the market. Only producers who follow certain standards set by the organizations issuing these certificates are allowed to use these numbers. Therefore, if a honey bottle or a packet of biscuits has one of these logos, it means that the product is of good quality.

8. What legal measures were taken by the government to empower the consumers in India?


The following legal measures were taken by the government to strengthen the consumers in India :

C.O.P.R.A. The Consumer Protection Act, known as the Consumer Protection Act, was enacted in It was revised in 1991 and
In October 2005, the Right to Information Act was enacted. It enables citizens to get all the information about the working of government departments. Citizens have the right to know the details of the goods and services they purchase.

9. Mention some of the rights of consumers and write a few sentences on each.


Some of the rights of consumers include the right to be informed, the right to choose, the right to seek settlement and the right to representation in the Consumer Court. Under the RTI Act, 2005, consumers can now even get information about the workings of government departments. The right to choose allows a customer to choose whether he wants to continue or discontinue a service he has purchased. The right to seek settlement allows a consumer to complain about unfair trade practices and exploitation.

10. By what means can the consumers express their solidarity?


Consumers can express their solidarity by forming consumer awareness organizations which can get representation in various committees set up by the government. There should be active participation of consumers to protect the interests of all consumers.

11. Critically examine the progress of consumer movement in India.


It has developed significantly since the beginning of the consumer movement in India. There has been a significant change in consumer awareness in the country. 1986. C.O.P.R.A. Until its formulation, the consumer movement did not carry much strength, but since its inception, the movement has grown considerably stronger. Establishment of consumer courts and consumer groups is a progressive step. However, in contemporary India, the consumer settlement process is quite complex, expensive and time consuming. Running cases, attending court proceedings, hiring lawyers, and other processes make it difficult. In India, there are over 700 consumer groups, of which unfortunately, only 20-25 are well organized and functioning smoothly.

13. Say True or False.

(i) COPRA applies only to goods.

(ii) India is one of the many countries in the world which has exclusive

authorities established for consumer disputes redressal.

(iii) When a consumer feels that he has been exploited, he must file a case in

the District Consumer Commission.

(iv) It is worthwhile to move to consumer commissions only if the damages

incurred are of high value.

(v) Hallmark is the certification maintained for standardisation of jewellry.

(vi) The consumer redressal process is very simple and quick.

(vii) A consumer has the right to get compensation depending on the degree of

the damage


1. False
2. True
3. True
4. True
5. True
6. False
7. True

Question Type By- Mayur Rani Kashyap 

Post ID : DABP002465