Page 130 - Understanding Economics for Class 10

5 Consumer Rights

Goyal Brothers Prakashan

IntroductIon
People go to the organisations like Consumer Disputes Redressal Commission to seek justice.
 These individuals persevered and fought for justice, encountering various forms of injustice
along the way. The key question is how consumers can exercise their rights to secure
equitable treatment from sellers when they feel their rights have been violated.

tHE conSuMEr In tHE MArKEtPLAcE
 Both as producers and consumers, we all participate in the market. As producers, we can
be working in any of the three sectors of the economy- Primary, Secondary or Tertiary.
 As consumers, people enter in the market by buying goods and services. These are the
final goods and services.
 Rules and regulations are required to prevent people from exploitation and to promote
development like:
 For the protection of workers in the unorganised sector.
 To protect people from high interest rates charged by moneylenders in the informal
sector.
 Similarly, for protecting the environment rules and regulations are also required.
 Likewise, rules and regulations are required for the protection of the consumers in the
marketplace.
 If there is any complaint regarding a good or service that had been bought, the seller tries
to escape by shifting all the responsibility on to the buyer. Buyer often finds himself in
a weak position.
 Seller’s position usually is – “If you didn’t like what you bought, please go elsewhere”.
As if the seller has no responsibility once a sale is completed!
 Consumer Movement is an effort to encounter these unfair situations faced by Consumers
in the market.
 In the marketplace, exploitation happens in many ways:
 Traders indulge in unfair trade practices like Consumers get cheated when shopkeepers
use incorrect weights and measures, put extra charges in the bill, adulterate the foodstuff
that they intend to sell, sell defective goods, or sell goods that have expired.
 When producers are few and powerful and, consumers purchase in small amounts
and are scattered then also the functioning of markets becomes inherently unfair.
 Since big companies have huge wealth, power and reach, they can manipulate the
market by passing false information of their product through media (advertising).
 Example:
(i) A company selling baby powder milk for years worldwide, claimed that their milk
powder is better than mother’s milk. Company was forced to accept that it had been
making false claims after years of struggle.

Economics Class X E-113