CONSUMERISM IN INDIA Consumer movement is a relatively new concept in India. Markets of the developing countries like India are highly imperfect. It is a social and economic order that is based on the systematic creation and fostering of a desire to purchase goods and services in ever greater amountsConsumers are largely exploited because many of them are illiterate, ignorant and unaware. Rural population is not integrated into the main stream of consumerism. What is Consumerism? Consumerism is an organised movement of citizens and government to strengthen the rights and power of buyers in relation to sellers. Consumerism refers to the wide range of activities of government business and independent organisations designed to protect rights of the consumers. Consumerism is a collective consciousness on the part of consumers, business, government and civil society to enhance consumer satisfaction and social welfare which will in turn benefit all of them and finally make the society a better place to live in.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
CONSUMERISM IN INDIA
Consumer movement is a relatively new concept in India. Markets of the developing countries
like India are highly imperfect. It is a social and economic order that is based on the systematic
creation and fostering of a desire to purchase goods and services in ever greater
amountsConsumers are largely exploited because many of them are illiterate, ignorant and
unaware. Rural population is not integrated into the main stream of consumerism.
What is Consumerism?
Consumerism is an organised movement of citizens and government to strengthen the
rights and power of buyers in relation to sellers.
Consumerism refers to the wide range of activities of government business and
independent organisations designed to protect rights of the consumers.
Consumerism is a collective consciousness on the part of consumers, business,
government and civil society to enhance consumer satisfaction and social welfare which
will in turn benefit all of them and finally make the society a better place to live in.
The consumer is exposed to many hazardous - physical, environmental and exploitation
due to unfair trade practices.
The consumer needs protection against products which are unsafe for consumption such
as drugs and adulterated food products and products which may cause injury such as
defective electrical appliances.
Consumer needs protection against mal-practices and deceit by sellers.
Consumer should have adequate rights and right of recourse to redressal measures against
defaulting businessmen.
The need for consumer protection has been widely accepted all over the world. India has
also taken up the concept of consumer protection more seriously.
Our markets have become consumer oriented. Government is educating the consumers in
various ways like :
(i) Through advertisements about consumer rights in media such as newspaper, radio, T.V., etc.
(ii) Promoting consumer organizations in India.
(iii) Setting up consumer courts in India.
(iv) Making consumers aware about his rights by arranging seminars, workshops, etc.
In our Indian system, the consumer has six rights given for his protection from
exploitation from the shopkeepers or sellers.
Consumer exploitation means mistreatment or cheating with consumer by adulteration,
Thagi or in any other unfair form.
To prevent consumer from exploitation, our government have passed many Acts from
time to time. Some of them are as follows:-
1. Drug and Cosmetics Act, 1940
2. Prevention of Food Adulteration Act, 1954
3. Essential Commodity (supply) Act, 1955
4. Monopolies and Restrictive Trade Practices Act, 1969
5. Standard of Weights and Measures Act, 1976
6. Consumer Protection Act, 1986 .
Consumer Education
According to Philip Kotler, "Consumerism' is a social movement seeking to augment the
rights and powers of the buyers in relation to seller".
Consumer education is an important determinant of consumer protection. Consumer education
means to educate the consumers about their rights like-fight to be informed, right to safety, etc.
Consumer education helps the consumers in protecting them against exploitation by the
producers: Forms of consumers exploitatation by producers:
(i) Supply of inferior quality goods.
(ii) False information regarding quality of goods.
(iii) Adulteration.
(iv) Less weight or measure.
(v) Non-compliance of terms of guarantee.
(vi) Unfair Trade Practices like misleading and deceptive advertisements.
(vii) Charging price higher than maximum retail price (MRP).
(viii) Deceptive Packing.
(ix) Deficiency or negligence in services.
(x) Monopolistic Trade Practices : like creating artificial scarcity, etc.
CHARACTERISTICS OF CONSUMERISM
It is a social movement of consumers.
It provides balance between power and responsibility relationship.
It involves large number of organised consumer groups.
It aims to protect the rights of people as consumers in the society.
It is' the movement of people supported by government through suitable legislations.
It acts as a check on all kinds of economic activities.
It is a movement of volunteers.
OBJECTIVES OF CONSUMERISM
"Consumerism" is also used to refer to the consumerist movement, consumer
protectionor consumer activism, which seeks to protect and inform consumers by requiring such
practices as honest packaging and advertising, product guarantees, and improved safety
standards. In this sense it is a movement or a set of policies aimed at regulating the products,
services, methods, and standards of manufacturers, sellers, and advertisers in the interests of the
buyer.
To enforce the rights of people as consumers against exploitation like poor quality, over
charging, etc.
To ensure fair trade practices in the society.
To ensure the avoidance of unrestricted trade practices.
To ensure co-operation between government and producers.
To create a self-help support system where consumers voluntarily form an association for
their self-protection.
To build the confidence of MNC's for investing in developing countries.
To create healthy competition among producers.
To promote consumer organisations in society like Consumer Guidance Society of India.
To build the confidence of international organisations like United Nations by passing the
Consumer Protection Act, 1986 according to their guidelines.
To introduce the consumer to remedial organisations like consumer courts, forums,
commissions, etc.
ORIGIN OF CONSUMERISM
Consumerism has weak links with the Western world, but is in fact an international phenomenon.
People purchasing goods and consuming materials in excess of their basic needs is as old as the
first civilizations. A great turn in consumerism arrived just before the Industrial Revolution. In
the nineteenth century, capitalist development and the industrial revolution were primarily
focused on the capital goods sector and industrial infrastructure (i.e., mining, steel, oil,