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NIOS Class 12 Business Studies Chapter 17 Consumer Protection
Also, you can read the NIOS book online in these sections Solutions by Expert Teachers as per National Institute of Open Schooling (NIOS) Book guidelines. These solutions are part of NIOS All Subject Solutions. Here we have given NIOS Class 12 Business Studies Chapter 17 Consumer Protection, NIOS Senior Secondary Course Business Studies for All Chapter, You can practice these here.
Consumer Protection
Chapter: 17
Module – 4 Marketing
INTEXT QUESTIONS 17.1
(1) Give five instances of your daily life in which you see yourself as a consumer.
(2) Put the (X /✔ ) mark in the box provided to identify consumer exploitation.
(a) Turmeric powder sold with a mixture of yellow colour.
Ans: ✔.
(b) Purchased a table fan with a two years warranty.
Ans: X.
(c) Packet of noodles, marked on the label as 100 gms, but actually it weighs 80 gms.
Ans: ✔.
(d) A passenger travelled in a deluxe bus but the seat was very uncomfortable.
Ans: ✔.
INTEXT QUESTIONS 17.2
(1) List the various rights that you have as a consumer.
Ans: (a) Right to safety.
(b) Right to be informed.
(c) Right to choose.
(d) Right to consumer education.
(2) Identify the relevant rights of a consumer being violated in the following instances.
(a) A bottle of acid was sold but the cap was not properly sealed.
Ans: The relevant laws which are aimed at preventing unfair trade practices.
(b) Medicine sold without date of manufacturing and date of expiry printed on its packet.
Ans: The ways and means which dishonest traders and producers may adopt to deceive the consumers.
(c) The seller compels the consumer to purchase the available product.
Ans: The procedure to be followed by consumers while making complaints.
(d) The common consumers are not aware of their rights, right path and procedure for filing the complaints.
Ans: The right to choice allows consumers to freely choose from a range of products and services at competitive prices.
(3) Match the following Marks indicating the quality with the corresponding products:
Ans: (I) (c) is the mark of Bureau of Indian Standards (BIS) used for marking the purity of jewellery.
(II) (d) is the mark of ISI used for marking the quality of industrial products.
(III) (b) is the Agmark used for marking the purity of agricultural products.
(IV) (a) is the mark of Fruit Products.
INTEXT QUESTIONS 17.3
(1) Fill in the blanks:
(a) World Consumer Right Day is observed on……………………….
Ans: World Consumer Right Day: 15th March.
(b) National Consumer Day is observed on…………………………….
Ans: National Consumer Day: 24th December.
(2) State the various ways and means of consumer protection.
Ans: Following are some ways and means of consumer protection followed in India:
(i) Self-Regulation by Business: Large business houses have realised that they can prosper and grow for a long period of time only by giving due importance to consumers.
(ii) Business Associations: Various business associations such as Federation of Indian Chamber of Commerce and Industry (FICCI) and Confederation of Indian Industry (CII) have framed codes of conduct which lay down guidelines for dealing with customers.
(iii) Awareness Programme: To increase the level of awareness among the consumers the Government of India has initiated various publicity measures. It regularly brings out journals, brochures, booklets and various posters.
(iv) Consumer Organisations: Consumer organisations play an important role in educating consumers regarding their rights and duties. These organisations also help consumers to get relief in case of exploitation by the seller.
(v) Government: The Government of India has framed a set of laws and legislations to protect the interests of consumers and the most important act framed by the government is Consumer Protection Act 2019. This Act has provided three tier redressal agencies, i. e., District Forum, National Commission and State Commission.
(vi) Lok Adalat: Lok Adalats are the effective and economical system for quick redressal of the public grievances. The aggrieved party can directly approach the adalats with his grievance, and his issues are discussed on the spot and decisions are taken immediately.
(vii) Public Interest Litigation: Public Interest Litigation (PIL) is a scheme under which any person can move to the court of law in the interest of the society. It involves efforts to provide legal remedy to un-represented groups and interests. Such groups may consist of consumers, minorities, poor persons, environmentalists and others. Any person or organisation, though not a party to the grievances, can approach the court for remedial action in case of any social atrocities.
(viii) Consumer Welfare Fund: The government has created a consumer welfare fund for providing financial assistance to strengthen the voluntary consumer movement in the country, particularly in rural areas. This fund is mainly used for setting up facilities for training and research in consumer education, complaint handling, counselling and guidance mechanisms, product testing labs, and so on.
(ix) Legislative Measures: A number of laws have been enacted in India to safeguard the interest of consumers and protect them from unscrupulous and unethical practices of the businessmen.
(3) Give the full form of the following:
(a) VOICE.
Ans: VOICE (Voluntary Organisation in the Interest of Consumer Education).
(b) CGSI.
Ans: CGSI (Consumer Guidance Society of India).
INTEXT QUESTIONS 17.4
(1) Who files a complaint in case the consumer is a minor?
Ans: Where the consumer is a minor, the complaint can be filed by his parent or legal guardian.
(2) Define a complaint.
Ans: “Complaint” means any allegation in writing, made by a complainant for obtaining any relief provided by or under Act.
(3) What is the pecuniary jurisdiction of:
(a) District forum.
Ans: District Commission: upto 1 crore.
(b) National commission.
Ans: National Commission: Exceeds 10 crores.
(4) Name any 3 persons who can file a complaint.
Ans: The following persons can file a complaint under Consumer Protection Act 2019:
(a) one or more consumers.
(b) any recognised voluntary consumer association whether the consumer is a member of that association or not.
(c) the Central or any State Government.
(d) one or more consumers where there are numerous consumers having the same interest.
(e) legal heir or representative in case of death of a consumer and.
(f) where the consumer is a minor, the complaint can be filed by his parent or legal guardian.
| TERMINAL EXERCISE |
Very Short Answer Questions:
1. Give the meaning of a Consumer.
Ans: “A Consumer” means any person who- buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment, when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose.
2. What is meant by consumer protection?
Ans: Consumer protection means safeguarding the interest and rights of consumers. In other words, it refers to the measures adopted for the protection of consumers from unscrupulous and unethical malpractices by the business and to provide them with speedy redressal of their grievances.
3. What do you mean by consumer awareness?
Ans: Consumer Awareness is a demonstration of ensuring the purchaser or buyer knows about the data and information about items, products, administrations, and buyers’ privileges. To increase the level of awareness among the consumers the Government of India has initiated various publicity measures. It regularly brings out journals, brochures, booklets and various posters. It observes World Consumer Rights Day on 15 March and National Consumers Day on 24 December every year.
4. State any two examples of consumer exploitation.
Ans: Examples of Consumer Exploitation in India:
(i) Coca Cola was found guilty of supplying drinks unfit for human consumption,which was upheld by the State Consumer Commission and had to pay Rs. 1 lakh for damages to the consumer.
(ii) The after sales service provider of the television set charged Rs 500 as service charge though he repaired the set within the warranty period.
5. Mention any four standard quality certification marks.
Ans: Certification marks like ISI, Agmark, FPO, Woolmark, Eco mark, etc.
6. What kind of cases can be filed in a State Commission?
Ans: II State Commission: Complaints can be filed in State Commission where the value of claim is above Rs. 20 Lakhs upto Rs. one Crore. Appeals against the Orders of the District Forums can also be filed in the State Commission.
| Short Answer Questions |
1. Explain the composition and jurisdiction of the state commission.
Ans: State Commission This is established by the state governments in their respective states.
(a) Composition: Each State Commission shall consist of.
(i) A President. and
(ii) Not less than four or not more than such number of members as may be prescribed in consultation with the Central Government.
(b) Jurisdiction: A written complaint can be filed before the State Commission where the value of goods or services and the compensation claimed exceed Rs. One crore but does not exceed Rs.ten crores.
(c) Appeal: In case the aggrieved party is not satisfied with the order of the State Commission he can appeal to the National Commission within 30 days of passing of the order.
2. State the purpose of creating the Consumer Welfare Fund.
Ans: The government has created a consumer welfare fund for providing financial assistance to strengthen the voluntary consumer movement in the country, particularly in rural areas. This fund is mainly used for setting up facilities for training and research in consumer education, complaint handling, counselling and guidance mechanisms, product testing labs, and so on.
3. Who can file a complaint for redressal of grievances under the Consumer Protection Act 2019?
Ans: The following persons can file a complaint under Consumer Protection Act 2019:
(a) One or more consumers.
(b) Any recognised voluntary consumer association whether the consumer is a member of that association or not.
(c) The Central or any State Government.
(d) One or more consumers where there are numerous consumers having the same interest.
(e) Legal heir or representative in case of death of a consumer; and.
(f) Where the consumer is a minor, the complaint can be filed by his parent or legal guardian.
4. State any three responsibilities that a consumer should keep in mind while making a purchase.
Ans: Three responsibilities that a consumer should keep in mind while making a purchase are:
(i) Consumer must Exercise his Right: Under Consumer Protection Act, the consumer is granted various rights such as right to safety, right to choose etc. But these rights will be useful only when the consumer exercises these rights. The consumer must file a complaint,be aware of his rights and exercise them whenever required.
(ii) Cautious Consumer: The consumer should not believe the words of seller blindly. He must insist on getting full information about the goods or services.
(iii) Filing Complaints for the Redressal of Genuine Grievances: Most of the time consumer ignores the loss he suffers on purchase of defective good or service.The consumer must file a complaint even for a small loss. This awareness among consumers will make the sellers more conscious to supply quality product.
5. Explain ways and means of consumer protection in India.
Ans: Following are some ways and means of consumer protection followed in India:
(i) Self – Regulation by Business Large business houses have realised that they can prosper and grow for a long period of time only by giving due importance to consumers. Socially responsible firms follow quality standards and have started a customer grievance cell to attend the complaints of consumers.
(i) Business Associations Various business associations such as Federation of Indian Chamber of Commerce and Industry (FICCI) and Confederation of Indian Industry (CII) have framed codes of conduct which lay down guidelines for dealing with customers.
(iii) Awareness Programme To increase the level of awareness among the consumers the Government of India has initiated various publicity measures. It regularly brings out journals, brochures, booklets and various posters. It observes World Consumer Rights Day on 15 March and National Consumers Day on 24 December every year.
(iv) Consumer Organisations Consumer organisations play an important role in educating consumers regarding their rights and duties. These organisations also help consumers to get relief in case of exploitation by the seller. Examples of such organisations are:- CERC (Consumer Education and Research Centre), Ahmedabad; VOICE (Voluntary Organisation in the Interest of Consumer Education), New Delhi; CGSI (Consumer Guidance Society of India)
(v) Government The Government of India has framed a set of laws and legislations to protect the interests of consumers and the most important act framed by the government is Consumer Protection Act 2019. This Act has provided three tier redressal agencies, i. e., District Forum, National Commission and State Commission.
(vi) Lok Adalat Lok Adalats are the effective and economical system for quick redressal of the public grievances. The aggrieved party can directly approach the adalats with his grievance, and his issues are discussed on the spot and decisions are taken immediately.
| Long Answer Questions |
1. Explain the needs for consumer protection.
Ans: From the point of view of Business A business must also lay emphasis on protecting the consumers and adequately satisfying them.
This is important because of the following reasons:
(i) Long-term Interest of Business Enlightened businesses realise that it is in their long-term interest to satisfy their customers. Satisfied customers not only lead to repeat sales but also help to gain prospective customers.
(ii) Business uses Society’s Resources Business organisations use resources which belong to the society and thus, have a responsibility to supply such products and render such services which are in public interest.
(iii) Social Responsibility A business has social responsibility towards various interest groups. Business organisations make money by selling goods and providing services to consumers thus, their interest has to be well taken care of.
(iv) Moral Justification It is the moral duty of any business to take care of consumer’s interest and avoid any form of their exploitation.
(v) Government Intervention A business engaging in any form of exploitative trade practices would invite government intervention or action. This can impair and tarnish the image of the company.
2. Describe the right of a consumer as per CPA. Explain the role of consumer organisation for consumer protection.
Ans: The Consumer Protection Act was first passed in 1986 and it came into force from 1 July 1987. The new Consumer Protection Act 2019 received the assent of the President on the 9th August, 2019 and was enforced on 20th July, 2020.The basic aim of the Consumer Protection Act, 2019 is to save the rights of the consumers by establishing authorities for timely and effective administration and settlement of consumers’ disputes.
Key features of the Consumer Protection Act, 2019:
(a) Establishment of the Central Consumer Protection Authority (CCPA): The Act has the provision of the establishment of the CCPA which will protect, promote and enforce the rights of consumers. The CCPA will regulate cases related to unfair trade practices, misleading advertisements, and violation of consumer rights.
The CCPA will have the right to impose a penalty on the violators and passing orders to recall goods or withdraw services, discontinuation of the unfair trade practices and reimbursement of the price paid by the consumers. The Central Consumer Protection Authority will have an investigation wing to enquire and investigate such violations. The CCPA will be headed by the DirectorGeneral.
(b) Rights of consumers:
(i) To have information about the quantity, quality, purity, potency, price, and standard of goods or services.
(ii) To be protected from hazardous goods and services.
(iii) To be protected from unfair or restrictive trade practices. iv.
(iv) To have a variety of goods or services at competitive prices.
(c) Prohibition and Penalty for a Misleading Advertisement: The Central Consumer Protection Authority (CCPA) will have the power to impose a fine on the endorser or manufacturer of up to 2-year imprisonment for misleading or false advertisement.
The importance of consumer protection from the consumers’ point of view can be understood from the following points:
(i) Consumer Ignorance: In the light of widespread ignorance of consumers, it is necessary to educate consumers about the rights and reliefs available to them so as to prevent consumer exploitation.
(ii) Unorganised Consumers: Consumers need to be organised in the form of consumer organisations which would look after their interests. Though, in India, consumer organisations have been set up , adequate protection is required to be given to consumers till these organisations become powerful enough to protect and promote the interests of consumers.
(iii) Widespread Exploitation of Consumers: Consumers need protection against unscrupulous, exploitative and unfair trade practices like defective and unsafe products, adulteration, false and misleading advertising, hoarding, black-marketing etc.
3. Briefly explain the importance of consumer protection to customers.
Ans: The importance of consumer protection from the consumers’ point of view can be understood from the following points:
(i) Consumer Ignorance In the light of widespread ignorance of consumers, it is necessary to educate consumers about the rights and reliefs available to them so as to prevent consumer exploitation.
(ii) Unorganised Consumers Consumers need to be organised in the form of consumer organisations which would look after their interests. Though, in India, consumer organisations have been set up , adequate protection is required to be given to consumers till these organisations become powerful enough to protect and promote the interests of consumers.
(iii) Widespread Exploitation of Consumers Consumers need protection against unscrupulous, exploitative and unfair trade practices like defective and unsafe products, adulteration, false and misleading advertising, hoarding, black-marketing etc.
4. A shopkeeper sold you some spices claiming that it was pure. Later a laboratory test showed that these were adulterated. As a consumer what action would you like to take against this wrongful act of the shopkeeper?
Ans: Students, do yourself.
5. Explain the redressal mechanism available to consumers under the Consumer Protection Act 2019.
Ans: The Government of India has framed a set of laws and legislations to protect the interests of consumers and the most important act framed by the government is Consumer Protection Act 2019. This Act has provided three tier redressal agencies, i. e., District Forum, National Commission and State Commission. Consumer protection means safeguarding the interest and rights of consumers. In other words, it refers to the measures adopted for the protection of consumers from unscrupulous and unethical malpractices by the business and to provide them with speedy redressal of their grievances.
The most common business malpractices leading to consumer exploitation are given below:
(a) Sale of adulterated goods i.e., adding something inferior to the product being sold.
(b) Sale of spurious goods i.e., selling something of little value instead of the real product.
(c) Sale of sub-standard goods i.e., sale of goods which do not confirm to prescribed quality standards.
(d) Sale of duplicate goods.
(e) Use of false weights and measures leading to underweight.
(f) Hoarding and black-marketing leading to scarcity and rise in price.
(g) Charging more than the Maximum Retail Price (MRP) fixed for the product.
(h) Supply of defective goods.
(i) Misleading advertisements i.e., advertisements falsely claiming a product or service to be of superior quality, grade or standard.
(j) Supply of inferior services i.e., quality of service lower than the quality agreed upon.
(k) E-commerce will now be governed by all the laws that apply to direct selling. All the e-commerce platforms will have to disclose sellers’ details, such as their address, website, email, etc and other conditions related to refund, exchange, terms of contract and warranty on their website to increase transparency.
