Acknowledgement
I would like to express my sincere gratitude to
[Link] Priya for their invaluable guidance
and support throughout this project. Their
encouragement, expertise was instrumental in its
success. I would also like to thank my classmates
for their cooperation, enthusiasm in making this
project a reality. Finally, I am grateful to my
parents for their support and help which made
me to present this project.
Headings
• Introduction
• Consumer rights
• Responsibilities of Consumers
• Consumer problems
• Consumer Exploitation
• Consumer Protection Laws
• Consumer Awareness Initiatives
• Conclusion
• Bibliography
• Viva Questions
Introduction
Consumer awareness involves understanding rights and
responsibilities in the marketplace, empowering individuals to make
informed decisions and demand fair treatment.
The need for consumer awareness includes protection from
exploitation, informed decision-making, market accountability,
healthy competition, and the reduction of fraud.
Consumer awareness is important for empowerment, quality
assurance, market efficiency, economic growth, and promoting
ethical consumption.
In India, consumer awareness is supported by a robust legal
framework, government initiatives, digital platforms, and consumer
advocacy groups.
Consumer awareness aims to save consumers from exploitation,
make them aware of consumer rights, and avoid malpractices.
Consumers' consciousness towards their rights and the social and
legal obligations of businesses and the government towards them
has generally been termed "consumer awareness. Consumers
generally participate in market activities by purchasing a final
product or service as per their requirements. However, they are
exploited in the marketplace because they do not insist on their
consumer rights. As a consumer, we expect a certain value for our
money, and it is our right to avail ourselves of the right quantity, right
quality, information about the product, right prices, etc. However,
they are frequently duped and harassed by sellers and
manufacturers. They should also know about their consumer rights,
which will help them be responsible citizens.
What is Consumer Awareness?
Consumer awareness is a cornerstone of modern commerce,
signifying the level of understanding and knowledge that individuals
have about their role as buyers in the marketplace. It goes beyond
the simple act of purchasing, emphasizing the importance of
informed decision-making. Informed consumers are equipped to
navigate through a plethora of products and services, considering
various factors such as quality, safety, and pricing. This knowledge
empowers them to demand fair treatment and value for their money,
acting as safeguard against exploitative practices
Consumer Rights
Every country provides a set of consumer rights to
ensure maximum protection for its citizens. Consumer
rights allow customers to have the required information
about goods and services while purchasing them.
Eventhough manufacturers, traders, sellers and
businessmen know their responsibilities towards
society, they could exploit the consumers through
fraud, unfair trade practices
The Rights are:
1. Right to Safety: This is the first and the most important of the
Consumer Rights. They should be protected against the product that
hampers their safety. The protection must be against any product
which could be hazardous to their health – Mental, Physical or many of
the other factors.
2. Right to Information: They should be informed about the product.
The product packaging should list the details which should be informed
to the consumer and they should not hide the same or provide false
information.
3. Right to Choose: They should not be forced to select the product. A
consumer should be convinced of the product he is about to choose
and should make a decision by himself. This also means consumer
should have a variety of articles to choose from. Monopolistic practices
are not legal.
4. Right to Heard: If a consumer is dissatisfied with the product purchased
then they have all the right to file a complaint against it. And the said
complaint cannot go unheard, it must be addressed in an appropriate
time frame.
5. Right to Seek Redressal: In case a product is unable to satisfy the
consumer then they have the right to get the product replaced,
compensate, return the amount invested in the product. We have a
three-tier system of redressal according to the Consumer Protection
Act 1986.
6. Right to Consumer Education: Consumer has the right to know all the
information and should be made well aware of the rights and
responsibilities of the government. Lack of Consumer awareness is the
most important problem our government must solve.
Responsibilities of Consumers
The consumer has a certain responsibility to carry as an aware
consumer can bring changes in the society and would help other
consumers to fight the unfair practice or be aware of it.
1. They should be aware of their rights under the Consumer Protection Act
and should practice the same in case of need.
2. They should be well aware of the product they are buying. Should act
as a cautious consumer while purchasing the product.
3. If in case a product is found of anything false or not satisfactory a
complaint should be filed.
4. The consumer should ask for a Cash Memo while making a
purchase.
5. A customer should check for the standard marks that have been
introduced for the authenticity of the quality of the product like ISI or
Hallmark etc.
Consumer problems
In modern times, a lot of efforts have made to protect the
interest of consumer by government and non-government
[Link] spite of this, the exploitation of consumers has not
come to an end, and they are being be fooled by business interests
at all [Link] must be remembered that their exploitation will not
come to an end unless they themselves come forward to protect
and promote their own interest.
The various problems faced by the consumers in the Market are
as follows:
Consumer Exploitation
What does consumer exploitation mean?
Consumer exploitation is a situation in which a consumer is cheated
or given false information by the producer.
Large companies with huge wealth, power and reach can
manipulate the market in various ways.
At times they pass on false information through the media,and other
sources to attract consumers.
Factors causes consumer exploitation
1. Lack of awareness of consumer rights among buyers.
2. Improper and inadequate monitoring of rules and regulations.
3. Individual purchase quantity is quite small.
4. Consumers are scattered over large areas.
5. Lack of awareness among consumers.
6. Greed of businessperson.
7. Lax enforcement of rules.
8. Slow and time taking process of consumer grievance redressal.
A Case Study: Consumer Exploitation by Businesses
Understanding the Problem
While it's important to be aware of all kinds of exploitation, let's focus on how
businesses might take advantage of consumers. This is a common issue that
affects people of all ages.
Case Study: The Case of the Sneaky Smartphone
Imagine you're saving up for a new smartphone. You've done your research
and found a model you like. You go to a store to buy it.
The Bait and Switch: The salesperson might try to convince you to buy a more
expensive model, claiming it's much better. This is called "bait and switch."
Hidden Fees: You might agree to a phone contract without realizing there are
extra charges for things like data overage or early termination.
Misleading Advertisements: The phone might look amazing in the ad, but
when you get it home, it's not as good as promised. This is misleading
advertising.
How Consumers Are Harmed?
In this case, consumers can lose money, be unhappy with their purchase, and
feel tricked. It can also damage trust between consumers and businesses.
What Can Be Done?
•Research: Learn about products before buying.
• Read Contracts: Understand what you're agreeing to.
• Ask Questions: Don't be afraid to ask salespeople for clarification.
• Report Issues: If you feel cheated, report it to consumer protection
agencies.
Consumer Protection Laws
Consumer protection laws are made to protect
consumers from fraudulent business practices, defective
products, and dangerous goods and services. They play an
important role in a reliable market economy, helping to keep
sellers honest, with no threat of unpleasant surprises.
Consumer Protection Law In India
The Consumer Protection Act, implemented in 1986, gives easy
and fast compensation to consumer grievances. It safeguards and
encourages consumers to speak against insufficiency and flaws in
goods and services. If traders and manufacturers practice any
illegal trade, this act protects their rights as a consumer. The
primary motivation of this forum is to bestow aid to both the parties
and eliminate lengthy lawsuits.
This Protection Act covers all goods and services of all public,
private, or cooperative sectors, except those exempted by the
central government. The act provides a platform for a consumer
where they can file their complaint, and the forum takes action
against the concerned supplier and compensation is granted to the
consumer for the hassle he/she has encountered.
Consumer Protection Mechanism
•Establishment of Consumer Forums: The Act provides for the
establishment of consumer forums at the district, state, and
national levels to resolve consumer disputes quickly and efficiently.
• Redressal of Grievances: Consumers can file complaints against
sellers or service providers for unfair trade practices, defective
goods, or deficient services.
• Penalties for Violations: The Act imposes penalties on
businesses that engage in unfair trade practices or violate consumer
rights.
Other Important Provisions
• Product Liability: The Act covers product liability, holding
manufacturers and sellers responsible for defective products that
cause harm.
• Unfair Trade Practices: The Act prohibits unfair trade practices,
such as false or misleading advertisements, and provides remedies
for affected consumers.
• Consumer Education: The Act emphasizes the importance of
consumer education and awareness to empower consumers.
By understanding these key provisions, consumers can effectively
protect their rights and seek redress for any grievances
Consumer awareness Initiatives
In India, the government has taken many steps to protect the
consumers and in 2005, the Government of India started a national
campaign ‘Jago Grahak Jago’ ‘(Wake Up Consumer)’, to create
awareness among consumers. An enlightened consumer is an
empowered consumer.
Jago Grahak Jago – Facts
‘Jago Grahak Jago’ awareness programme was launched by the
Department of Food, Government of India.
The Government of India used various channels to create
awareness among consumers. The list of channels used by
Government to meet the objectives ‘Jago Grahak Jago’ awareness
programme are given below:
1. Media advertisements
2. Video campaigns
3. Printings
4. Posters
5. Audio campaigns
Role of consumer organization and NGOs
Consumer organisations and NGOs are established or formed to
protect and promote consumer interest. They perform the following
functions:
• Creating awareness about consumer rights by organising training
programmes, seminars, and workshops.
• Imparting knowledge about consumer problems, legal reporting,
and reliefs available by publishing periodicals and publications.
• Carrying out comparative testing of consumer products in
accredited laboratories and publishing the results for the general
benefit.
•Encourage consumers to take action against any unfair or
unscrupulous activity of the seller.
• Providing consumers with legal assistance by providing aid,
advice, etc to seek legal remedy.
•Filing complaints in appropriate courts on behalf of consumers.
• Taking initiative for filing cases in the interest of general public.
Media’s role in promoting consumer awareness
Media: Your Guide to Smart Shopping
Media, like TV, newspapers, and the internet, is like a superhero for
consumers. It helps protect us from bad products and unfair deals.
How does it do this?
•Spreading the News: Media tells us about new products, their
prices, and if they’re any good. This helps us make smart choices.
•Catching Bad Guys: If a company is selling something dangerous
or misleading, the media can uncover it. They’re like detectives who
catch bad guys!
•Teaching Us Our Rights: Media explains what we can do if a
product is broken or doesn't work as it should. We have rights as
consumers!
•Helping Us Save Money: Media often compares prices and finds
the best deals. This helps us save our money.
Not everything we see or hear is true. It’s important to think
carefully and look for information from different places.
By being aware and using media wisely, we can become smart
shoppers and protect ourselves from unfair practices.
The importance of consumer education
1. Helps to consume sensibly as per the wants.
2. Helps to acquire information regarding products and services
3. Enables the consumer to make the right choices.
4. Makes the consumer aware of his/her rights
5. Makes them capable of intervening in consumer disputes
Conclusion
Challenges in consumer awareness:
• Misleading Ads: Sometimes, ads make products look way cooler
or better than they really are. This can trick us into buying things we
don't need.
•Too Many Choices: There are so many products to choose from! It
can be hard to know which one is the best.
•Hidden Costs: Sometimes, the price of a product isn't the only
cost. There might be extra fees or things you need to buy to use the
product.
•Not Knowing Your Rights: Many people don't know what their
rights are as consumers. This can make it hard to stand up for
yourself if something goes wrong.
•Lack of Information: Sometimes, it's hard to find information
about a product or company. This can make it tough to make a good
decision.
It's important to be careful and do your research before you buy
something.
Recommendation for consumer awareness
To effectively improve consumer awareness, a multifaceted
approach is necessary. Key strategies include:
•Target Audience Identification: Precisely defining the
consumer segment is crucial. Tailoring marketing efforts to
resonate with specific demographics, interests, and needs is
essential for optimal impact.
•Brand Identity Development: Establishing a strong,
distinctive brand image is paramount. This involves creating
a memorable and recognizable brand that clearly
communicates the product or service's value proposition.
•Content Creation: Developing engaging and informative
content is vital. By providing valuable information,
businesses can educate and entertain their target audience,
fostering trust and loyalty.
Bibliography
Slide share
Investopedia
Lexology
Vakilsearch
Wikimedia
[Link]
[Link]
Viva Questions
1. Mention any three importance of consumer
education?
2. Write a short note on Jago Grahak Jago.
3. How does Consumer Protection Mechanism
works?
4. Name the Factors leading to Consumer
Exploitation?
5. What are the Consumer Rights? Briefly
explain.