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Maharashtra State Board · HSC Commerce · Class 12 (Std XII)

Class 12 OCM Chapter 7: Consumer Protection

Short notes, key concepts, quick revision and practice MCQs with answers

This chapter explains who a consumer is, why consumers need protection, the ten consumer rights and eight responsibilities, the ways of protecting consumers, and the three-tier redressal system under the Consumer Protection Act, 2019.

Key concepts: Consumer Protection

Consumer
A person who buys goods or hires a service for a price that is paid, promised, partly paid, partly promised or payable under deferred payment. The word comes from the Latin 'Consumere'.
Consumer protection
All measures that safeguard the rights and interests of consumers. It is needed because consumers are scattered, ignorant and unorganised, and face spurious goods and misleading advertising.
Consumer rights
Ten rights: safety, information, choose, be heard, consumer education, represent, redress, healthy environment, protection from unfair business practices, and protection against spurious goods.
Consumer responsibilities
Duties of a consumer such as being cautious and quality conscious, complaining on time, demanding an invoice and guarantee card, planning purchases and making organised efforts.
Ways and means of protection
Lok Adalat, Public Interest Litigation, redressal forums, awareness programmes, consumer organisations, Consumer Welfare Fund and legislative measures.
Three-tier redressal machinery
The 2019 Act sets up a District Commission, a State Commission and a National Commission, each with its own monetary jurisdiction and appeal route.
Consumer organisations and NGOs
Non-profit, non-political bodies that run campaigns, train and inform consumers, give free legal advice and file public interest litigation. Examples are CGSI, VOICE and Mumbai Grahak Panchayat.

Quick revision: important points

Practice MCQs with answers

  1. The word 'consumer' comes from the Latin word 'Consumere'. What does it mean?

    1. To sell or to trade
    2. To eat or to drink
    3. To buy or to exchange
    4. To produce or to make
    Show answer

    Answer: B. To eat or to drink
    'Consumere' means to eat or drink, that is, to use up a commodity or service.

  2. Ravi hires a taxi and promises to pay the fare at the end of the month. Under the definition, is he a consumer?

    1. No, because he has not paid at once
    2. No, because he only hired a service
    3. Yes, because payment can be paid, promised or deferred
    4. Yes, but only if he pays by cheque
    Show answer

    Answer: C. Yes, because payment can be paid, promised or deferred
    A person who buys goods or hires a service for a consideration that is paid, promised, partly paid or deferred is a consumer.

  3. Which day is observed as National Consumer Day in India?

    1. 24th December
    2. 15th March
    3. 9th August
    4. 26th January
    Show answer

    Answer: A. 24th December
    24th December is National Consumer Day, while 15th March is World Consumer Rights Day.

  4. Which of these are safety standards given by the Government of India to protect consumers?

    1. GST, PAN and TAN
    2. SEBI, RBI and IRDA
    3. CGSI, VOICE and CERC
    4. AGMARK, ISI, BIS and Hallmark
    Show answer

    Answer: D. AGMARK, ISI, BIS and Hallmark
    AGMARK, ISI, BIS and Hallmark are quality and safety marks connected with the Right to Safety.

  5. A salesman cannot force a customer to buy a particular product. Which consumer right does this show?

    1. Right to choose
    2. Right to be heard
    3. Right to redress
    4. Right to information
    Show answer

    Answer: A. Right to choose
    The Right to Choose gives full freedom to select an article and helps prevent monopoly.

All Class 12 OCM chapters

Class 12 OCM notes: all chapters