Consumer Awareness

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CONSUMER AWARENESS

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● Content/Index

~Who is a Consumer?
A consumer is defined as a person who purchases goods or services
for personal needs. Anyone who buys any product or service in the
market is said to be a consumer. In recent times, the term consumer
has been widely used in economics and marketing concepts.
Consumers play a vital role in the economy as they are responsible for
driving the demand for goods and services. They are the backbone of
any economy and hence, it is essential to understand who a consumer
is and their various characteristics. Consumers hold the power to
control the market. They decide what goods and services they want to
buy, how much they want to spend, and from whom they want to
purchase. Due to this, producers and suppliers are continually adapting
their products and services to make them more consumer-friendly.

~Consumer Exploitation
Consumer exploitation refers to the practice of taking advantage of
consumers for financial gain through manipulative or deceitful
practices. Some examples of consumer exploitation include:
● Misrepresenting the quality or characteristics of a product or
service
● Charging excessive prices for goods or services
● Using high-pressure sales tactics to convince consumers to
make a purchase
● Concealing important information from consumers, such as
hidden fees or fine print
● Preying on vulnerable populations, such as the elderly or
low-income individuals, through scams or predatory lending
practices
It's important to be aware of these practices and to do research
before making a purchase in order to protect yourself from
consumer exploitation.

~Introduction- Consumer Awareness


Consumer awareness refers to the knowledge and understanding of the
rights and privileges that consumers have while purchasing products
or services from sellers. It is an essential element of maintaining a
healthy and fair marketplace. It is the ability of consumers to identify,
evaluate and seek information about the products and services they
are purchasing. It involves the knowledge of a consumer about the
products or services, their costs, quality, and safety, and the ability
to exercise their rights if they face any problems. With consumer
awareness, people can recognize and report any faulty products or
services that may have an impact on their life.
Educational programs and campaigns can provide consumers with
the necessary information and skills to make informed decisions while
purchasing a product or service. The spread of internet technology has
made it easier for consumers to access information on products,
pricing, and quality, thus making 9decisions.
In conclusion, consumer awareness is paramount to maintaining a safe
and fair marketplace. Consumers should educate themselves on their
rights and privileges as consumers. Through proper knowledge and
understanding of the products and services, their costs, quality, and
safety, they can make better-informed decisions while shopping. In
effect, we all benefit because businesses, that attempt deceptive
practices, will ultimately fall out of favor. Therefore, it is critical for
consumers to be aware of and exercise the rights provided to them.

~Why is consumer awareness important?


Consumer awareness is an essential aspect of the modern-day market
economy. It refers to the knowledge and information that a consumer
has about the quality, safety, price, and availability of goods and services
in the market. It is the responsibility of the consumers to be aware of
their rights and make informed decisions while purchasing any product.
Moreover, consumer awareness is essential for creating a competitive
market, ensuring fair trade practices, and improving the overall quality
of products and services. Therefore, the need for consumer awareness
cannot be stressed enough.

Firstly, consumer awareness is crucial for protecting consumers from


fraudulent, misleading, and deceptive practices. In today's market,
companies often resort to false advertising techniques, hiding the
complete information about the product, and misleading the consumer
to increase their sales. However, with the help of consumer awareness,
consumers can avail themselves of their rights and make informed
choices. By understanding their rights and gaining knowledge about the
product, consumers can take appropriate legal action against companies
that engage in deceptive practices. Thus, consumer awareness can
ensure fair trade practices in the market.

Secondly, consumer awareness can contribute to better quality products


and services. A company that makes products or services of poor quality
cannot survive in the market. With the help of consumer awareness,
consumers can choose products based on quality, thus creating a
demand for high-quality products. The competition between the
manufacturers striving to provide a better-quality product will increase,
ultimately leading to better-quality products and services that meet
consumers' expectations. Additionally, companies that maintain good
quality products and services will enjoy excellent reputation, and
goodwill and thus enhance their market position.

Lastly, consumer awareness helps in improving the overall health and


safety of the consumers. The knowledge gained through consumer
awareness can help consumers avoid products that may pose a health
risk or cause injury. For example, if a consumer is aware of the negative
effects of certain products, they may avoid it entirely, thus ensuring their
physical and mental well-being. Moreover, consumer awareness can
increase awareness about environmental hazards and protect individuals
from products that may harm the environment.
To conclude, consumer awareness is critical to safeguard consumers'
rights and to create a fair and competitive market environment. By
promoting consumer awareness, individuals can make informed choices,
protect themselves from fraud, and contribute to better-quality products
and services. Educating consumers on their rights, maintaining
high-quality products, and preventing deceptive marketing practices are
essential steps in promoting consumer awareness. Additionally, it is the
responsibility of the government and non-governmental organizations to
promote consumer awareness by conducting awareness programs,
regulating deceptive practices, and ensuring that consumers are
protected. Therefore, it is imperative to spread awareness and encourage
individuals to be more proactive in gaining knowledge and
understanding their consumer rights.

~Consumer Rights
Consumer rights refer to the various rights that consumers are entitled
to as they engage in business activities. These rights cover various
aspects, ranging from fair pricing and product safety to truthful
advertising and protection from fraud. While the concept of consumer
rights may seem like an obvious and fundamental aspect of any
marketplace, it is not always the case. Consumers in some regions of the
world often face shady practices that infringe on their rights, which often
leads to significant harm.
The major consumer rights are:-
● Right to safety:- As consumers, we have the right to expect that
the products we purchase do not pose any health or safety risks to
us or our families. This right means that businesses and
manufacturers have the obligation to ensure that their products
pass the necessary safety tests and conform to applicable safety
regulations. Moreover, businesses that are found to have
endangered their consumers by producing unsafe products should
face criminal, civil, and administrative penalties.
● Right to be informed:- Businesses should provide accurate and
complete information about their products, including details about
product ingredients, functions, health effects, and risks. Informed
consumers are in a better position to make rational decisions that
meet their needs and budgets.
● Right to be heard:- Businesses should have complaint
mechanisms in place and should be willing to resolve any issues
promptly. Additionally, consumers should leave feedback on
products and services to help inform other consumers and allow
service providers to make improvements.
● Right to choose:- The right to choose gives consumers the right to
access various products, goods, or services at competitive prices. A
competitive price means a fair price. The sellers, retailers, or traders
cannot force consumers to purchase the goods of a specific brand.
The consumers can choose the brand they find suitable from their
point of view. The right to choose assures that good quality and
services are given to consumers at reasonable prices in case of a
monopoly. It also includes the right to basic services and goods.
● Right to Consumer Education:- The right to consumer
education means consumers should be aware of their rights to
avoid exploitation. Under this right, the consumer has the right to
acquire the required skills and knowledge to be an informed
consumer. When consumers know their rights, existing acts, and
agencies set up for their protection; they can take action. The
government has also introduced consumer education to the school
curriculum and university courses.
● Right to seek compensation:- This defines that the consumer
has the right to seek redress against unfair and cruel practices or
exploitation of the consumer.

~Consumer Responsibilities
Consumer responsibility refers to the role a consumer plays in the way
that goods or services are provided and made available to the public.
Therefore it is the duty of the consumer to be aware of any changes that
may have been made and which may affect the performance of the
product and so on. Some of the major consumer responsibilities are as
followed:-
1. Responsibility to speak up:- Buyers should not be afraid to air
their problems and tell sellers exactly what they want. When you
believe a corporation, organization, or seller has harmed you, one
of your fundamental legal rights is to speak up and defend yourself.
This is ethical decision-making with the aim of protecting other
customers from the same company’s wrongdoing. Most businesses
offer a complaint department that you can contact if you believe
you have been wronged.
2. Responsibility to be aware:- Consumers have a responsibility
to be aware of the safety and quality of products and services
before acquiring them. The prime responsibility of every customer
is to obtain and retain the proof of purchase and other documents
related to the purchase of durable goods.
3. Responsibility to think independently:- Consumers should
be concerned about what they want and need and should be able to
make independent decisions as a result. It is usually preferable for
a consumer to rely as little as possible on the seller for information
and decision.
4. Responsibility to be an ethical consumer:- Consumers
should be honest and not engage in any misleading practices. Some
customers, particularly during the warranty time, abuse the device
in the mistaken belief that it will be replaced during the warranty
term. This is not a fair situation for them to be in. They should
always make correct use of the merchandise.

~Consumer Rights Day


Consumer Rights Day is a globally recognized event that is celebrated
annually on March 15th. It is a day that is dedicated to promoting
awareness and protecting the rights of consumers across the world. The
day serves as a platform for organizations and individuals to advocate for
the basic rights of consumers, such as the right to safety, the right to
choose, the right to representation, and the right to redress. It also
provides an opportunity for governments and businesses to reflect on
their policies and practices that impact consumers.

~Consumer Protection Act


The Consumer Protection Act is a legal framework, published in 1989,
that protects the interests of consumers and ensures that they are not
exploited by businesses or service providers. The act provides a
mechanism for consumers to seek redress in case they are sold defective
goods or receive unsatisfactory services. The key provisions of this act
are:-
● Businesses must provide clear information about their goods and
services. This includes details about the product or service, pricing,
any additional charges, and the terms and conditions of the sale.
● It gives the consumers the right to return or exchange a product
that is faulty or not as described. This is an important protection
because it ensures that consumers don't end up with products that
are defective or not fit for purpose.
● Protects consumers from unfair contract terms. This means that
businesses cannot impose terms that are one-sided or unfair to
consumers.
● Seek compensation if they suffer losses as a result of a business's
unfair practices. This includes situations where a business
breaches consumer protection laws, such as by selling counterfeit
goods or engaging in deceptive marketing.

~Consumer courts
Consumer Court is a special purpose court in India. It primarily deals
with consumer-related disputes, conflicts, and grievances. The court
holds hearings to adjudicate these disputes.
When consumers file a case, the court primarily looks to see if they can
prove the exploitation through evidence such as bills or purchase
memos. In cases where no such evidence is presented, courts rarely rule
in favor of the plaintiff. The Court mostly decides its verdict based on the
violations of Consumer Rights(if any). The point of having a separate
forum for consumer disputes is to ensure that such disputes are speedily
resolved and make it less expensive.

~Jago grahak jago programme


Jago Grahak Jago(which means “Wake up consumers, know your
rights when purchasing a product, and check the authenticity.”)
is a consumer awareness campaign launched by the government of India
with the aim to educate and empower consumers on their rights and
responsibilities. The campaign was launched by the Ministry of
Consumer Affairs, Food, and Public Distribution in 2005 and has been
successful in creating awareness among consumers about their rights
and the steps they can take to protect themselves. The Jago Grahak Jago
has been successful in creating consumer awareness among rural and
urban populations. The campaign has penetrated all levels of society,
and consumers have become more aware of their rights. It has also
strengthened the consumers' position by encouraging them to demand
better services, product quality, and customer service. The main
provision of this campaign, which eventually the government achieved
was to extend consumer awareness about their various consumer rights,
such as-
- The right to safety
- The right to information
- The right to choose and the right to be heard.
- Redressal Rights
- Consumer Education may be a right.

~Steps taken by government


The government of India has provided various laws and legislations to
protect the interest of consumers and some of these regulations are:
1. The Consumer Protection Act 1986:
The enactment of the Consumer Protection Act 1986 was one of the most
important steps taken to protect the interest of consumers. The provision
of the act came into force on July 1, 1987. The main features of this Act
are:
(i) This act has provided various rights and responsibilities to
consumers.
(ii) It provides a safeguard to customers against defective goods,
deficient’s, services, unfair trade practices, and other forms of their
exploitation.
(iii)The act has provided three-tier redressal agencies where consumers
can file complaints.
These are the District Forum, State Commission, and National
Commission.
2. The Contract Act 1982:
This Act is formed to bind people on their promises made in a contract.
The Act also provides remedies available to parties in case of breach of
contract.
3. The Sale of Goods Act 1930:
This act provides safeguards and relief to customers in case goods are
not complying with the expressed conditions and warranty.
4. The Essential Commodities Act 1955:
This act is formed to control the production, supply, and distribution of
essential commodities. It checks inflation and ensures a smooth and
equal supply of these goods. It also checks black marketing and
hoarding.

5. The Prevention of Food Adulteration Act 1954:


This Act is formed to check the Adulteration of food articles and ensure
their purity so that the health of the general public can be maintained.
6. The Standard of Weights and Measures Act 1976:
This Act provides protection to consumers against malpractices of
underweight measures. The provision of this Act is applicable to those
goods which are sold or distributed by weight and measure.
7. The Trade Mark Act 1999:
This Act prevents the use of fraudulent marks on products. This act is
introduced in place of the Trade and Merchandise mark act of 1958.
8. The Competition Act 2002:
This Act is related to the Monopolies and restrictive trade practices Act
of 1969. This Act is formed to encourage healthy competition and protect
consumers from companies that hamper competition.

~National Consumer Helpline


The National Consumer Helpline (NCH) is a government initiative aimed
at providing consumers with a grievance redressal mechanism,
information dissemination, and awareness campaigns. It has been
instrumental in empowering consumers, improving the quality of goods
and services, and reducing unfair trade practices.

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