Consumerism

consumer protection act

1. Consumerism Presented By Sowndarya shree A.s

2. Meaning Consumerism  is the idea that increasing consumption of goods and services purchased in the market is always a desirable goal and that a person's wellbeing and happiness depends fundamentally on obtaining consumer goods and material possessions.

3. Consumer A consumer is one who consumes goods manufactured and sold by others or created (air, water, natural resources) by nature and sold by others.

4. Consumer Exploitation Selling at higher prices Adulteration Duplicate goods Artificial scarcity Product Risk Sub- Standard Warranty and service Unsuitability of products False Advertisement

5. 1. Selling at higher prices: The price charged by the seller for a product service may not be commensurate with the quality but at times it is more than the fair price. Even though sellers have surplus or adequate goods they create artificial scarcity in the market with an intent to push up the prices . As a result, consumers are forced to buy the short supply of goods at higher prices in the black market.

6. 2. Adulteration Adulteration refers to mixing or substituting undesirable material in food . C auses heavy loss to the consumers. L ead to monitory loss and spoil the health. Adulteration is quite common in food articles.

7. 3. Duplicate goods Duplicate products of popular products are illegally produced and sold. Examples: Genuine parts or components like automobile spare parts, blades, pens, watches, radios, medicines, jewellery, clothes and even for currency notes , medicines are sold. A consumer is not in a position to distinguish duplicate from the original .

8. 4. Artificial scarcity consumers who are desperate to buy such goods have to pay hefty price to buy those goods and thus earning more profit. Examples: shop-keepers put up the board “No Stock” in front of their shops, even though there is plenty of stock in the store.

9. 5. Product Risk T he usage of goods is likely to cause danger or hurts to customers, manufactures have to forewarn the consumers of various sources of dangers involved in the products and the precautionary measures to be taken by the consumers.

10. 6. Warranty and service: consumer durable goods like televisions, washing machines, refrigerators, cars, two wheelers and air conditioners etc. free service is guaranteed only for few years called warranty period . Customer care service is likely to be rendered the shorter warranty period only for select few items which the manufacturers know pretty well that they do not get damaged during such period .

11. 7. False Advertisement: The main purpose of advertisement is to educate the consuming public and customers of various aspects of the products/service. In reality, advertisements convey very little information about the product . Many times it makes false representation about the quality, price, grade, composition, utility guaranteed, performance etc. Consumers who buy the products on the faith of claims made in advertisements are cheated.

12. Consumerism MEANING: Consumerism is the society’s attempt to bring back the balance in the exchange between the buyers and sellers as the strength of power is normally in favour of sellers rather than buyers. (OR) consumerism refers to protest against business injustices and to efforts at correcting these injustices. Consumerism as a protest against unfair business practices and injustices, aims at removing or uprooting them or reducing them if not eliminating them totally.

13. Definition : “Consumerisms not limited to organized efforts only but, is a social movement seeking to augment the rights and powers of buyers in relation to sellers”. Philip Kotler

14. Importance of consumerism 1.Awakening and uniting consumers. 2.Discouraging unfair trade practices. 3.Protecting against exploitation. 4.Awakening the government. 5. Effective implementation of consumer protection laws. 6.Providing complete and latest information. 7.Discouraging anti-social activities

15. Consumer protection Consumer protection is a form of social action which is designed to attain the well-being of the society namely consumers. A consumer is said to be a king in a free market economy. The earlier approach of caveat emptor , which means “Let the buyer beware,’’ has now been changed to caveat venditor (“Let the seller beware”).

16. Need for consumer protection Though consumer is the king of entire business sphere, his interests are virtually neglected. Shortage of goods makes the consumers to be content with whatever is offered for sale. Quality is sacrificed: warranty of performance has no meaning; health hazard is never considered; profit maximization turns out to be sole consideration of business enterprises .

17. Role of business in consumer protection: Avoidance of price hike Avoidance of hoarding Guarantees of good quality Product information Truth in advertising Protection from the hazard Money refund guarantee Consumer grievances

18. Role of government in consumer protection : C onsumers including academically educated are illiterate about their rights. Government should assure an active role in safeguarding the consumers . Government (central & state) have brought out a number of legislations to protect the interest of consumers across the country. Existence of legal system to protect the consumers, consumers in India are still illiterate and passive.

19. Copra (Act 1986) Central Government enacted a comprehensive law called the Consumer Protection Act in 1986. This Act came into force with effect from 15.04.1987 . It protect and promote the interests of consumers. The act provides safeguards to consumers against defective goods, deficient services, unfair trade practices , and other forms of their exploitation. The Act provides for the setting up of a three tier-machinery, consisting of District Forums, State Commissions, and the National Commission.

20. Features of copra Protecting consumers against products and services which are harmful to the health of consumers. Protecting consumers from the breach of contract by sellers manufacturers . Ensuring consumers with supply of good and fair quality. Safeguarding consumers against misleading and untrue messages communicated through advertisement. Ensuring that consumers are charged fair price . Ensuring uninterrupted supply of goods. Ensuring the availability of goods incorrect quantity and right size. Protecting the consumers against unfair trade practices of unscrupulous trader Protecting the consumers against pollution of various kinds Protecting consumers against the evil effect of competition.

21. Caveat emptor Let the buyer be aware . The principle of caveat emptor serves as a warning to the buyers that they have no recourse with the seller if the product does not meet their expectations . Does not give sellers the green light to actively engage in fraudulent transactions .

22. Caveat emptor in practice Example : A consumer purchases a coffee mug and later discovers that it has a leak he has no choice other than to keep it with him. As per the principle, the buyer should have been cautious and should have thoroughly examined the product to check the defect if any.

23. Caveat venditor Let the “Seller be aware”. B y which goods are covered by an implied warranty of merchantability.