Consumer

A consumer is a person or a group who intends to order, or uses purchased goods, products, or
services primarily for personal, social, family, household and similar needs, who is not directly related
to entrepreneurial or business activities. The term most commonly refers to a person who purchases
goods and services for personal use.

Consumers participate in the market when they purchase goods and services that they need/ these
are the final goods that people as consumers use.

In an economy, a consumer buys goods or services primarily for consumption and not for resale or
for commercial purposes. Consumers pay some amount of money for goods or services. then
consume (use up). As such, consumers play a vital role in the economic system of a capitalist system
and form a fundamental part of any economy.

Without consumer demand, producers would lack one of the key motivations to produce: to sell to
consumers. The consumer also forms one end of the chain of distribution.

Under the Consumer Protection Act 1986, the word Consumer has been defined separately for the
purpose of goods and services.

a) For the purpose of goods, a consumer means

i) One who buys any goods for consideration; and
ii) Any user of such goods other than the person who actually buys it, provided such
use is made with the approval of the buyer.

(The expression ‘consumer’ does not include a person who obtains such goods for resale or
for any commercial purpose)

b) For the purpose of services, a consumer means

i) One who hires any service or services for consideration; and
ii) Any beneficiary of such services provided the service is availed with the approval of
such person.

Being a consumer is not easy. There are many malpractices done by producers, big corporates,
moneylenders, etc.

Many people who work in the unorganised sector have work at a low wage and accept conditions
that are not fair and are also often harmful to their health. To prevent such exploitation, we have
talked of rules and regulations for their protection. There are organisations that have struggled for
long to ensure that these rules are followed.

Therefore, rules and regulations are required for the protection of the consumers in the marketplace.
Individual consumers often find themselves in a weak position.
‘Whenever there is a complaint regarding a good or service that had been bought, the seller tries to
shift all the responsibility on to the buyer. Their 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!

Exploitation in the marketplace happens in various ways, for example, sometimes traders indulge in
unfair trade practices such as when shopkeepers weigh less than what whey should or when traders
add charges that were not mentioned before, or when adulterated/defective goods are sold.

Markets do not work in a fair manner when producers are few and powerful whereas consumers
purchase in small amounts and are

scattered. This happens especially when large companies are producing these goods. These
companies with huge wealth, power and reach can manipulate the market in various ways.

Consumer Protection

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 speedy redressal of their grievances.
The most common business malpractices leading to consumer exploitation are -
(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

Need for Consumer Protection

The necessity of adopting measures to protect the interest of consumers arises mainly due to the
helpless position of the consumers. There is no denying fact that the consumers have the basic right
to be protected from the loss or injury caused on account of defective goods and deficiency of
services. But they hardly use their rights due to lack of awareness, ignorance or lethargic attitude.
However, in view of the prevailing malpractices and their vulnerability there to, it is necessary to
provide them physical safety, protection of economic interests, access to information, satisfactory
product standard, and statutory measures for redressal of their grievances. The other main
arguments in favour of consumer protection are as follows:
(a) Social Responsibility
The business must be guided by certain social and ethical norms. It is the moral
responsibility of the business to serve the interest of consumers. Keeping in line with
this principle, it is the duty of producers and traders to provide right quality and
quantity of goods at fair prices to the consumers.

(b) Increasing Awareness

The consumers are becoming more mature and conscious of their rights against the
malpractices by the business. There are many consumer organisations and associations
who are making efforts to build consumer awareness, taking up their cases at various
levels and helping them to enforce their rights.

(c) Consumer Satisfaction

Father of the Nation Mahatma Gandhi had once given a call to manufactures and
traders to “treat your consumers as god”. Consumers’ satisfaction is the key to
success of business. Hence, the businessmen should take every step to serve the
interests of consumers by providing them quality goods and services at reasonable
price.

(d) Principle of Social Justice

Exploitation of consumers is against the directive principles of state policy as laid
down in the Constitution of India. Keeping in line with this principle, it is expected
from the manufacturers, traders and service providers to refrain from malpractices
and take care of consumers’ interest.

(e) Principle of Trusteeship

According to Gandhian philosophy, manufactures and producers are not the real
owners of the business. Resources are supplied by the society. They are merely the
trustees of the resources and, therefore, they should use such resources effectively
for the benefit of the society, which includes the consumers.
(f) Survival and Growth of Business
The business has to serve consumer interests for their own survival and growth. On
account of globalisation and increased competition, any business organisation which
indulges in malpractices or fails to provide improved services to their ultimate consumer
shall find it difficult to continue. Hence, they must in their own long run interest, become
consumer oriented.

Consumer Rights
Consumers have the right to seek redressal against restrictive trade practices, unfair trade practices
or unscrupulous exploitation of consumers.
Following are Consumer Rights as framed by the Department of Consumer Affairs, Government of
India –

Right to Safety
Means right to be protected against the marketing of goods and services, which are hazardous to life
and property. The purchased goods and services availed of should not only meet their immediate
needs, but also fulfil long term interests. Before purchasing, consumers should insist on the quality of
the products as well as on the guarantee of the products and services. They should preferably
purchase quality marked products such as ISI, AGMARK, etc

Right to be Informed
Means right to be informed about the quality, quantity, potency, purity, standard and price of goods
so as to protect the consumer against unfair trade practices. Consumer should insist on getting all
the information about the product or service before making a choice or a decision. This will enable
him to act wisely and responsibly and also enable him to desist from falling prey to high pressure
selling techniques.

Right to Choose
Means right to be assured, wherever possible of access to variety of goods and services at
competitive price. In case of monopolies, it means right to be assured of satisfactory quality and
service at a fair price. It also includes right to basic goods and services. This is because unrestricted
right of the minority to choose can mean a denial for the majority of its fair share. This right can be
better exercised in a competitive market where a variety of goods are available at competitive prices

Right to be Heard
Means that consumer's interests will receive due consideration at appropriate commissions. It also
includes right to be represented in various commissions formed to consider the consumer's welfare.
The Consumers should form non-political and non-commercial consumer organizations which can be
given representation in various committees formed by the Government and other bodies in matters
relating to consumers

Right to Seek Redressal

Means right to seek redressal against unfair trade practices or unscrupulous exploitation of
consumers. It also includes right to fair settlement of the genuine grievances of the consumer.
Consumers must make complaint for their genuine grievances. Many times, their complaint may be
of small value but its impact on the society as a whole may be very large. They can also take the help
of consumer organisations in seeking redressal of their grievances.

Right to Consumer Education

Means the right to acquire the knowledge and skill to be an informed consumer throughout life.
Ignorance of consumers, particularly of rural consumers, is mainly responsible for their exploitation.
They should know their rights and must exercise them. Only then real consumer protection can be
achieved with success.

Consumer Court

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.
Consumer courts provide security to all the consumer rights mentioned above.
Types of Consumer Courts:
I. National Consumer Disputes Redressal Commission (NCDRC)]: A court that operates
nationally and deals with cases where claimed compensation exceeds Ten crores (₹100
million). The National Commission is the apex body of Consumer Courts; it is also the highest
appellate court in the hierarchy. The NCDRC is the highest judiciary of the consumer court,
the consumer Supreme Court of India.
II. State Consumer Disputes Redressal Commission (SCDRC): A court that works at the state
level in cases where compensation claimed is between one crore (₹10 million) and Ten
crores. The State Commission has appellate jurisdiction over the District Forum.
III. District Consumer Disputes Redressal Forum (DCDRF): A court that works at the district level
in cases where the claimed compensation is below one crore.

Conclusion
When we as consumers become conscious of out rights while purchasing various goods and services,
we will be able to discriminate and make informed choices. This calls for acquiring the knowledge
and skill to become a well-informed consumer.
IV. Bibliography

 Wikipedia.org
 Nios.ac.in
 Confonet.nic.in