Here you will find all the questions, solutions, answers, and notes of chapter 18: Consumer Awareness of Social Science for class 10 students studying under Nagaland Board of School Education (NBSE). However, the study materials should be used only for references and nothing more. The notes can be modified/changed according to needs.
Summary
The act of using up goods and services to satisfy wants is called ‘consumption.’ The one who consumes goods and services is called a consumer. If we look at the consumer in this way, then fundamentally all human beings are consumers.
In the modern philosophy of marketing, a consumer is supposed to be the king and business is expected to provide maximum possible satisfaction to consumers. But in reality, consumers are often exploited. In a country like India, there is a shortage of many products. A few firms enjoy monopoly powers in the marketplace. A large majority of consumers are ignorant and illiterate and do not know their rights. They are poor and there is a lack of unity among them. Due to all these reasons, consumers are often deprived of their rights. They are often exploited through misleading advertisements, poor quality goods, fractional weights and measures, overcharging etc. Thus, consumer awareness is very necessary to avoid exploitation.
Textual questions and answers
Multiple Choice Questions
1. The agencies which look into the complaints of the consumers are popularly called:
(a) consumer courts (b) consumer commissions (c) consumer forums (d) consumers cells
Answer: A. consumer courts
2. When was the Consumer Welfare Fund created in India?
(a) 1937 (b) 1955 (c) 1986 (d) 1992
Answer: D. 1992
3. World Consumer Rights Day is observed on:
(a) March 15 (b) April 15 (c) May 15 (d) June 15
Answer: A. March 15
4. In what ways has the rise of consumer awareness affected advertising and marketing?
(a) It has led to increased deceptive advertising practices (b) It has made advertising and marketing irrelevant (c) It has forced businesses to provide accurate information and avoid deceptive practices (d) It has resulted in businesses using only traditional advertising methods
Answer: C. It has forced businesses to provide accurate information and avoid deceptive practices
5. Read the following statements – Assertion (A) and Reason (R). Choose one of the correct alternatives given below.
Assertion (A): Standardisation saves the consumers from malpractices and ensures high quality of product.
Reason (R): Government has created Bureau of Indian Standards (BIS) & Agmark to check the same.
(a) Both the Assertion (A) and Reason (R) are true, and the Reason is a correct explanation of the Assertion.
(b) Both the Assertion and Reason are true, but the Reason is NOT a correct explanation of the Assertion.
(c) The Assertion is true, but the Reason is false.
(d) The Assertion is false, but the Reason is true
Answer: A. Both the Assertion (A) and Reason (R) are true, and the Reason is a correct explanation of the Assertion.
6. A consumer purchases a product that is not as described by the seller. Which consumer right is being violated?
(a) Right to be informed (b) Right to safety (c) Right to choose (d) Right to seek redressal
Answer: A. Right to be informed
Very Short Answer Questions
1. Who is a consumer?
Answer: The one who consumes goods and services is called a consumer.
2. What is meant by adulteration?
Answer: Mixing other matters of inferior or harmful quality with food or drink intended to be sold is called adulteration.
3. What is ‘Consumers International’?
Answer: “Consumers International” is an international body of consumer movement created under the banner of the United Nations.
Short Answer Questions
1. Name the three consumer protection measures.
Answer: In order to protect the interest of the consumers, the government undertakes the following three measures:
(i) Legislative measures
(ii) Administrative measures
(iii) Technical measures.
2. Give the classification of consumers on the basis of nature of consumption.
Answer: On the basis of nature of consumption, consumers may be classified as follows.
(i) Direct Consumers
(ii) Consumers by exchanging products
(iii) Modern Consumers
3. How ignorance of consumer results in consumer exploitation?
Answer: Consumers generally are ignorant about different aspects of the products namely price, quality, composition, conditions of use, terms of purchase etc. Hence, they are liable to make a wrong choice.
Long Answer Questions
1. What administrative measures are adopted by the Government for consumer protection?
Answer: Apart from ensuring food security to the poor, Public Distribution System (PDS) is also supposed to be strengthened by measures to prevent hoarding and black marketing. The need for PDS was felt to control the market forces of demand and supply. Under this system, the government procures foodgrains and other essential items at predetermined prices. The prices of agricultural commodities are determined by Agricultural Costs and Prices Commission. Then these stored items are distributed among the poor consumers at reasonable price. The PDS is maintained through the introduction of rationing system. There is, at present, a network of about 4.7 lakh fair price shops in our country.
2. Explain the duties of consumers while purchasing the goods.
Answer: In order to secure their rights, consumers have to fulfil the following duties:
- Consumers should look at the quality of the products as well as the guarantee of the goods and services. They should preferably purchase quality marked products such as ISI, Agmark or Hallmark.
- Consumers should insist for a cash memo for the items purchased, wherever possible.
- Consumers should form consumer organisations.
- Consumers must make complaint for their genuine grievances even if the value of product is small. They can also take the help of consumer organisations.
- Consumers must know about their rights properly and also must exercise them.
3. What are the various factors causing consumer exploitation?
Answer: The following are the major factors that cause exploitation of the consumers:
- Consumers generally are ignorant about different aspects of the products namely price, quality, composition, conditions of use, terms of purchase etc. Hence, they are liable to make a wrong choice.
- Consumers are exploited when goods and services are not available in the market in the required quantity or numbers. This gives rise to black marketing.
- Markets do not work in a fair manner when producers are few and powerful. In such cases, the sellers have an upper hand in fixing the price. In the production and sale of consumer durables like houses, medicines and drugs, automobiles etc. producers succeed in charging higher prices.
4. Explain the various rights of the consumers.
Answer: (i) Right to Safety: The consumers have the right to be protected against marketing of goods and services which are harmful to life and property. For example, pressure cookers have a safety valve which, if defective, can cause a serious accident.
(ii) Right to be Informed Consumers have the right to be informed about the particulars of goods and services that they purchase.
(iii) Right to Choose: Consumers have the right to choose a commodity or service at competitive price.
(iv) Right to be Heard: The consumers should be heard at appropriate forums regarding their complaints. They have the right to seek redressal against their exploitation.
(v) Right to Consumer Education: This includes knowledge/information about goods and issues relating to consumer welfare.
5. How does the Government protect the interests of the consumers?
Answer: In order to protect the interest of the consumers, the government undertakes the following three measures: (i) Legislative measures (ii) Administrative measures (iii) Technical measures.
(i) Legislative Measures: The government enacted a law called the Consumer Protection Act in 1986 (popularly known as COPRA). The Act provides for the establishment of Consumer Disputes Redressal Agencies at district, state and national levels. At the district level, it is called District Consumer Forum, at the state level, it is called State Consumer Commission, while at national level, National Consumer Commission. These courts are popularly known as Consumer Courts which look into the grievances and complaints of the consumers.
(ii) Administrative Measures (Public Distribution System): Apart from ensuring food security to the poor, Public Distribution System (PDS) is also supposed to be strengthened by measures to prevent hoarding and black marketing. The need for PDS was felt to control the market forces of demand and supply. Under this system, the government procures foodgrains and other essential items at predetermined prices. The prices of agricultural commodities are determined by Agricultural Costs and Prices Commission. Then these stored items are distributed among the poor consumers at reasonable price.
(iii) Technical Measures (Standardisation of Products): Another important measure undertaken by the government for consumer protection is the setting up of institutions for fixing up the standards for products. A product with ISI mark ensures the quality of the product. The logo ‘Agmark’ is meant for the agricultural products. This scheme is run by the Directorate of Marketing and Intelligence (DMI) in the Ministry of Agriculture, Government of India. Products like honey, masala and spices carry such marks.
6. How does exploitation of consumers take place in the market? Explain with the help of any five facts.
Answer: There are a variety of goods and services available in the market. These have so large a number of close substitutes which make it difficult for us to make a right choice. When we as consumers do not have sufficient information about the products, we normally get exploited and are sometimes even harassed by the business community. Exploitation takes various forms.
Some common forms of exploitation are given below:
- Underweighing and Under-Measurements: The goods being sold in the market are sometimes not measured or weighed correctly. Shopkeepers weigh or measure less than what they should.
- Sub-Standard Quality: The goods sold are sometimes of sub-standard quality. For example, selling of medicines beyond their expiry dates, supply of defective home appliances etc.
- High Prices: Traders charge high prices by adding charges that were not mentioned before.
- Duplicate Articles: It has also been found that traders, in the name of genuine parts or goods, sell duplicate items.
- Adulteration: Traders are found to be involved in adulteration. In order to earn higher profits, adulteration is made in costly items like edible oils, spices etc.
Extra/additional MCQs
1. When was the Consumer Protection Act passed by the Indian Parliament?
A. 1986 B. 1992 C. 1991 D. 1993
Answer: A. 1986
25. What is the minimum claim amount that a national-level consumer commission can deal with?
A. 50 lakhs B. 75 lakhs C. 1 crore D. 1.5 crore
Answer: C. 1 crore
Extra/additional questions and answers/solutions
1. What is the meaning of consumption?
Answer: The act of using up goods and services to satisfy wants is called ‘consumption’.
Q. Who is considered a consumer?
Answer: The one who consumes goods and services is called a consumer.
Q. What is the objective of modern philosophy of marketing?
Answer: In the modern philosophy of marketing, a consumer is supposed to be the king and business is expected to provide maximum possible satisfaction to consumers.
Q. What is meant by adulteration?
Answer: Adulteration means mixing other matter of an inferior or harmful quality with food or drink intended to be sold.
Q. What is the factor that causes consumer exploitation due to lack of availability?
Answer: Consumers are exploited when goods and services are not available in the market in the required quantity or numbers, giving rise to black marketing.
Q. In which year was the Consumer Protection Act passed in India?
Answer: The Indian Parliament passed the Consumer Protection Act in 1986.
Q. What is the purpose of the Consumer Welfare Fund?
Answer: The Consumer Welfare Fund was created in 1992 with the objective of providing financial assistance to promote and protect the welfare of the consumer, create consumer awareness and strengthen consumer movement in India, especially in rural areas.
Q. What is the right to safety for consumers?
Answer: The consumers have the right to be protected against marketing of goods and services which are harmful to life and property.
Q. What is the duty of consumers regarding cash memo?
Answer: Consumers should insist for a cash memo for the items purchased, wherever possible.
Q. What is the role of Indian Standards Institution (ISI)?
Answer: Indian Standards Institution (ISI) has the responsibility of laying down the standards for industrial and consumer products.
Q. What is the international body for consumer movement?
Answer: ‘Consumers International’ is an international body of consumer movement created under the banner of United Nations.
Q. What is the significance of the Consumer Protection Act, 1986?
Answer: The Consumer Protection Act, 1986, also known as COPRA (Consumer Protection Act), is a landmark legislation enacted by the Indian Parliament to protect the rights of consumers and establish consumer courts at the district, state, and national levels. This act aims to safeguard consumers from unfair trade practices, defective goods, and deficient services. It provides a legal framework for consumers to seek redressal for their grievances through the consumer courts. These courts are known as Consumer Disputes Redressal Agencies, and they operate at three levels: District Consumer Forum (for claims up to 20 lakhs), State Consumer Commission (for claims between 20 lakhs and 1 crore), and National Consumer Commission (for claims exceeding 1 crore). The act empowers consumers to represent their cases in these courts and seek appropriate compensation or replacement for defective goods or deficient services.
Q. What are the different forms of consumer exploitation mentioned in the document?
Answer: The document highlights several forms of consumer exploitation prevalent in the market:
- Underweighing and Under-Measurements: Shopkeepers weighing or measuring less than the actual quantity they should provide.
- Sub-Standard Quality: Selling goods of inferior or substandard quality, such as expired medicines or defective home appliances.
- High Prices: Traders charging exorbitant prices by adding hidden charges not mentioned earlier.
- Duplicate Articles: Selling counterfeit or duplicate items in the name of genuine products.
- Adulteration: Mixing inferior or harmful substances in food items or products to increase profits.
- Lack of Safety Devices: Electronic goods, electrical devices, or appliances lacking required in-built safety features, leading to potential accidents.
- False Information: Providing incorrect or misleading information about products, such as false claims about their benefits or superiority.
- Rough Behavior and Undue Conditions: Harassing consumers and imposing unreasonable conditions during transactions or services.
Q. What are the factors that cause consumer exploitation according to the document?
Answer: The document outlines three major factors that contribute to consumer exploitation:
- Consumer Ignorance: Consumers generally lack awareness about various aspects of products, such as price, quality, composition, conditions of use, and terms of purchase. This ignorance makes them susceptible to making wrong choices and being exploited.
- Shortage of Goods and Services: When goods and services are not available in the market in sufficient quantities, it creates an environment conducive to black marketing and exploitation.
- Unfair Market Practices: In markets where producers are few and powerful, sellers have an upper hand in fixing prices. This is particularly prevalent in the production and sale of consumer durables like houses, medicines, drugs, and automobiles, where producers can charge higher prices due to their market dominance.
Q. Explain the role of ‘Consumers International’ in the consumer movement.
Answer: ‘Consumers International’ is an international body established under the banner of the United Nations to promote and strengthen the consumer movement globally. It plays a crucial role in the following ways:
- Advocacy: It advocates for consumer rights and protection measures at an international level, influencing policies and regulations across nations.
- Guideline Development: In 1985, the United Nations adopted the UN Guidelines for Consumer Protection, which serves as a tool for nations to adopt measures to protect consumers and for consumer groups to hold their governments accountable.
- Collaborative Platform: Consumers International provides a collaborative platform for consumer organizations worldwide, currently encompassing 240 organizations from over 100 countries.
- Knowledge Sharing: It facilitates the exchange of information, best practices, and strategies among consumer organizations, enabling them to learn from each other’s experiences and successes.
- Global Advocacy: Consumers International represents the collective voice of consumers globally, advocating for their rights and interests on various platforms and forums.
Q. What is the significance of the Consumer Welfare Fund created in India in 1992?
Answer: The Consumer Welfare Fund was established in India in 1992 with the objective of providing financial assistance to promote and protect the welfare of consumers. Its significance lies in the following aspects:
- Awareness Creation: The fund supports initiatives aimed at creating consumer awareness, particularly in rural areas, where consumer literacy may be relatively low.
- Strengthening Consumer Movement: It provides financial resources to strengthen the consumer movement in India by supporting consumer organizations and their activities.
- Rural Outreach: The fund places special emphasis on reaching out to rural communities, where consumer exploitation may be more prevalent due to lack of awareness and resources.
- Consumer Education: It facilitates consumer education programs, empowering consumers with knowledge about their rights, responsibilities, and means of seeking redressal.
- Research and Development: The fund can support research and development activities related to consumer welfare, enabling evidence-based policymaking and innovative solutions.
- By providing dedicated financial resources, the Consumer Welfare Fund plays a crucial role in fostering consumer awareness, empowerment, and protection across India, particularly in underserved rural areas.
Q. Discuss the importance of standardization of products as a technical measure for consumer protection.
Answer: Standardization of products is an essential technical measure adopted by the government to ensure consumer protection. It involves setting standards and specifications for various products to ensure their quality, safety, and reliability. The importance of standardization lies in the following aspects:
- Quality Assurance: Standardization helps maintain consistent quality levels across products, preventing substandard or defective goods from entering the market.
- Safety Standards: It establishes safety standards for products, ensuring that they meet minimum safety requirements and do not pose risks to consumers’ health or well-being.
- Consumer Confidence: Products bearing standardization marks or certifications, such as ISI (Indian Standards Institution) or Agmark (for agricultural products), instill confidence in consumers regarding the quality and safety of the products they purchase.
- Fair Trade Practices: Standardization promotes fair trade practices by setting uniform benchmarks for all manufacturers and sellers, creating a level playing field and preventing unfair competition based on compromised quality or safety.
- International Recognition: Adherence to international standards, such as those set by the International Organization for Standardization (ISO), facilitates global trade and acceptance of Indian products in international markets.
- Legal Compliance: Standardization helps manufacturers and sellers comply with relevant laws, regulations, and consumer protection measures, reducing the risk of legal disputes or penalties.
By ensuring that products meet established standards, the government safeguards the interests of consumers, promotes fair competition, and enhances the overall quality and safety of goods available in the market.
Q. Explain the role of Public Distribution System (PDS) as an administrative measure for consumer protection.
Answer: The Public Distribution System (PDS) is an administrative measure implemented by the government to protect the interests of consumers, particularly those from economically weaker sections of society. Its role in consumer protection can be understood through the following aspects:
- Food Security: PDS aims to ensure food security for the poor by procuring and distributing essential food items like grains, pulses, and other commodities at subsidized and affordable prices through a network of fair price shops.
- Price Control: By procuring goods at predetermined prices and distributing them through the PDS network, the government can regulate market prices and prevent exploitation by traders or hoarders.
- Rationing System: The introduction of a rationing system through PDS allows for the equitable distribution of essential commodities, ensuring that even the poorest consumers have access to basic necessities.
- Black Marketing Prevention: PDS helps curb black marketing practices by maintaining a steady supply of essential goods at regulated prices, reducing the incentive for traders to engage in illegal hoarding or overpricing.
- Quality Control: The government can enforce quality standards for the goods distributed through PDS, ensuring that consumers receive products of acceptable quality.
- Rural Outreach: The extensive network of fair price shops, often reaching remote rural areas, ensures that consumer protection measures are not limited to urban centers but extend to rural populations as well.
By providing a reliable and regulated channel for the distribution of essential goods at affordable prices, the Public Distribution System serves as an important administrative measure to safeguard the interests of consumers, particularly those from vulnerable socio-economic backgrounds.
19. Discuss the role of consumer organizations in promoting consumer awareness and protection.
Answer: Consumer organizations play a vital role in promoting consumer awareness and protection. These voluntary organizations work towards empowering consumers and advocating for their rights. Their roles can be summarized as follows:
- Awareness Campaigns: Consumer organizations conduct awareness campaigns through various mediums, such as workshops, seminars, publications, and social media, to educate consumers about their rights, responsibilities, and available legal remedies.
- Consumer Education: They provide consumer education programs, teaching individuals about product quality, safety standards, fair trade practices, and how to identify and avoid unfair practices or deceptive advertising.
- Legal Assistance: Many consumer organizations offer legal assistance and guidance to consumers in filing complaints or pursuing cases in consumer courts, helping them navigate the legal.
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