How Consumer Are Exploited

• Moneylenders in the informal sector that you have read earlier adopt various tricks to bind the borrower: they could make the producer sell the produce to them at a low rate in return for a timely loan;

Consumers Montage

• Many people who work in the unorganized sector have to work at a low wage and accept conditions that are not fair and are also often harmful to their health.
• Rules and regulations are required for the protection of the consumers in the marketplace.
• 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.
• 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 they 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 amount and are scattered.
• At times false information is passed on through the media, and other sources to attract consumers. For example, a company for years sold powder milk for babies all over the world as the most scientific product claiming this to be better than mother’s milk.
• It took years of struggle before the company was forced to accept that it had been making false claim.
• Similarly, a long battle had to be fought with court cases to make cigarette-manufacturing companies accept that their product could cause cancer.
• Hence, there is a need for rules and regulations to ensure protection for consumers.

CONSUMER MOVEMENTS:

In India, the consumer movement as a 'social force' originated with the necessity of protecting and promoting the interests of consumers against unethical and unfairtrade practices. Rampant food shortages, hoarding, black marketing, adulteration of food and edible oil gave birth to the consumer movement in an orgainsed form in the 1960s. Till the 1970s consumer organisations were largely engaged in writing articles and holding exhibitions. They formed consumer groups to look into the malpractises in ration shops and overcrowding in the road passenger transport. More recently, India witnessed an upsurge in the number of consumer groups. Becouse of all these efforts, the movement succeeded in bringing pressure on business conduct which may be unfair and against the interests of consumers at large. A major step taken in 1986 by the Indian government was the enactment of the Consumer Protection Act 1986, popularly known as COPRA.

Social consumer movements Consumer Protection Act, 1986

Need for Rules and Regulations to save the Consumers:

• Due to the expansion of the business activities and globalisation there are variety of goods available in the market and producers are spending a lot of money to influence the consumers which makes it difficult for the consumers to make a correct choice. So there is a need for consumer awareness.
• Producers do not provide sufficient information to the consumers and sometime even harass them.
• Consumer awareness is also must because at times greedy traders begin to play with the health of the people by indulging in adulteration of edible oils, milk, butter, ghee etc.
• After 1991, the Government of India has withdrawn it self from most of the productivities and allowed the private sector to take over. So it was felt that there is a greater need to enforce discipline and regulations in the market and to make the consumers aware not only of the commercial aspects of sale and purchase of goods but also the health and security aspects.
• There is a need for rules and regulations because most of goods and services are being produced by private sector with profit as a main motive.