Professional Documents
Culture Documents
1. Explain with examples how the Government of India protects the interests of the
consumers by standardization of products.
Standardization of products is an important measure taken by the government to
protect the consumers from lack of quality and varying standards of goods. For this
purpose following institutions have been created for setting up the standards for
[i] The Bureau of Indian Standards [BIS], whose headquarters is located in New Delhi,
has the responsibility of laying down the standards for industrial and consumer
goods on a scientific bases and certifying the goods that meet the standards and the
prescribed complain to the nearest regional office of the BIS.
[ii] Agmark is implemented under the Agricultural Produce [Grading and Marking]
Act, 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 and spices, carry such marks.
2. Explain various ways by which consumers are exploited by the producers or
wholesalers.
The main ways of exploitation of consumers are described below:
[i] Adulteration: Adulteration means mixing or substituting undesirable materials in
food. This causes heavy loss to the customers; they suffer from monetary loss as well
as spoil their health.
[ii] False Claim: Sellers make false claim about the durability and quality of their
products through advertisements.
[iii] Under measurement: Sellers generally give under measured goods and charge
for the actual quantity.
[iv] Hoarding and Black marketing: Trader generally holds the stock of essential
commodities to create artificial scarcity in the market so that they can sell their
commodities at higher price.
[v] Substandard goods: Sellers usually sell inferior quality goods in order to make
more profits.
[vi] High price: Sellers who are dealing in necessities generally charge arbitrary
prices.
[vii] Duplicate Articles: In the name of genuine parts of goods, duplicate items are
sold to the consumers.
[viii] Lack of safety devices: Electronic appliances produced locally lack the required
inbuilt safeguards which causes harm to the consumers.
3. Examine the main factors responsible for the exploitation of consumers in India.
Factors which cause exploitation of consumers are:
[i] Limited information: For a correct decision and choice about a products, a
consumer needs full information about the price, quality, durability, composition, etc
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of the product. In the absence of full and correct information, a consumer may get
exploited.
[ii] Limited supplies: When the supply of goods is less than their demand, the prices
may go high and may also encourage the tendency of hoarding. As a consequence,
consumers will get exploited.
[iii] Limited Competition: When there is limited competition with regard to
production, i.e., when producers are few and can control and restrict the supply of a
product, there is possibility of manipulation in prices.
[iv] Low literacy: Illiteracy causes ignorance which leads to exploitation of
consumers. The level of awareness in our country is generally low.
4. Explain three strategies adopted by the government to protect the interest of
consumers with reference to Consumer Protection Act of 1986.
[i] Legislative measure includes enactment of the Consumer Protection Act. The
government also amended certain provisions in other Acts. It had enacted specific
law called the Consumer Protection Act in 1986.
[ii] Administrative measure includes distributing essential commodities through
Public Distribution System [PDS]. PDS ensures availability of essential commodities
like wheat, rice, sugar, kerosene, etc. to the consumers through a network of outlets
or Fair Price Shops [FPS]. There is at present a network of 4.61 lakhs PDS outlets in
the country.
[iii] Technical measure consists of standardization of products. Standardization of
products refer to the process of setting certain standards for a product on the basis
of its desired qualities like utility, safety, durability, weight, colour, etc. in the
product. The products with ISI mark are very popular because they carry the
guarantee regarding the quality of the products. In India, Bureau of Indian Standards
[BIS] caters the industrial and consumer goods, while Agmark is meant for
agricultural products.
5. Who is a consumer? Explain five duties of consumers.
Any person who buys anything in the market and uses it is called a consumer.
Duties of consumers are:
[i] It is the responsibility of the consumer to be more alert and questioning about the
price and quality of goods and services that he/she uses.
[ii] To assert and act to ensure that he/she gets a fair deal.
[iii] To organize together as consumers to develop the strength and influence to
promote and protect their interests.
[iv] To purchase quality marked products such as ISI, AGMARK, etc.
[v] To ask for cash memo for the items purchased whenever possible
[vi] To make complaint for genius grievances
[vii] Consumers must know their rights and must exercise them.
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SELF ASSESSMENT
Who is a
What is the What are the
consumer? three-tier
six rights of
quasi
consumers?
judiciary
machinery?
Which day is
celebrated as
national
Consumer Day?
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