CONSUMER AWARENESS

Consumer awareness

Refers to the following – 1) Knowledge of the product in terms of

price, quality etc.

.

2) Knowledge about any problem associated with marketing of the product. Example – misleading advertisement.

• 3)Knowledge about how to lodge a complaint and claim compensation if the product is faulty.

4) Knowledge about consumer’s own responsibility to buy and use only

what is necessary and avoid wasteful consumption

1) The market is flooded with a wide variety of goods and services and it is very difficult to know which one is a duplicate.

NEED FOR CONSUMER AWARENESS

• 2) Because of advanced technology, distance between buyer and seller has increased, hence a buyer decides what to buy based on the advertisements which can be misleading.

• 3) Information about date of packaging/ expiry date in the case of certain products becomes important hence the consumer should be aware.

• 4) Producers have their unions and associations to protect their interests, but consumers don’t, hence consumers should be aware of their rights

• 1) VAT is value added tax to be paid by the seller.

• 2) It is a tax placed on a product whenever value is added at any stage of production and at final sale.

• 3) Once this is levied, price of the commodity will increase because seller has to cover his cost.

• Consumer must ask for a bill because – • 1) Government loses tax revenue when

consumer does not take a bill.• 2) In case of a faulty product, consumer will

not be able to claim compensation if there is no bill.

Consumer redressal system helps a consumer

to file a complaint in a consumer court if cheated by the seller or producer.

It consists of two parts –

1) Government Laws

a)Consumer Protection Act (CPA)

Consumer redressal system

b)Prevention of Food Adulteration Act (PFA)

c) Essential Commodities Act (ECA)

d)Standard of Weights and Measures Act (SWMA)

a) Government Councils1. Central Consumer Protection Council2. State Consumer Protection Council.

b) Consumer Courts1. National Consumer Courts2. State Consumer Courts3. District Consumer Courts

2) Institutions to deal with Consumer Complaints

1) Right to information – The producer should provide information about the product like price, weight, expiry date etc.

2) Right to choose – The consumer can choosewhat to buy and what not to buy.

3) Right to safety – The consumer should be protected from unsafe goods,

like adulteration in food.

4) Right to be heard – The consumer have the right to complain

against defective products or services.

5) Right to seek redressal – The consumer has the right to get justice in the form of compensation if they are cheated.

6) Right to consumer education – The consumer should be educated about instuctions to be followed before taking the decision to buy. Example – trademarks such as ISI, AGMARK etc on some products.

• 1. Gives Support and Guidance to consumers to fight for their rights.

• 2. Main objective – to give cheap, simple and quick justice to consumers.– Consumers can decide where they want to file a case.– The company which has cheated cannot insist ona

particular court.– Consumers can sue any company if they pass on their

personal information.– Real estate developers can also be tried in consumer

courts.

1. The consumer must have the cash memo2. Nature of complaint has to be mentioned3. Complain must be made within 2 years of date of defect.

Thank you