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
• 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
NEED FOR CONSUMER AWARENESS
1) The market is flooded with a wide
variety of goods and services and it is
very difficult to know which one is a
• 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
• 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
Consumer redressal system
Consumer redressal system helps a
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)
2) Institutions to deal with Consumer Complaints
Central Consumer Protection Council
State Consumer Protection Council.
National Consumer Courts
State Consumer Courts
District Consumer Courts
1) Right to information – The producer should
about the product
like price, weight, expiry date
2) Right to choose – The consumer can choose
what 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
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
– Consumers can sue any company if they pass on their
– Real estate developers can also be tried in consumer
1. The consumer must have the cash memo
2. Nature of complaint has to be mentioned
3. Complain must be made within 2 years of date of defect.