Market and Consumer Protection – Detailed Summary | Samacheer Kalvi 7th Social Science | Term 3 Civics

Market and Consumer Protection – Detailed Summary

Book: Samacheer Kalvi 7th Social Science

Term: Term 3

Subject: Civics

Unit: Unit 2

Lesson Name: Market and Consumer Protection

About the Lesson

“Market and Consumer Protection” is an important Civics lesson in the Samacheer Kalvi 7th Social Science book. This lesson explains the meaning of market, types of markets, consumer rights, consumer protection, unfair trade practices and consumer courts.

A market is not only a physical place where goods are sold. It is a system where buyers and sellers exchange goods, services and information. Consumer protection is necessary to safeguard consumers from unfair trade practices, defective goods, misleading advertisements and adulteration.

Learning Objectives

To understand the meaning of market.
To know the features of a market.
To learn about buyers, sellers and consumers.
To understand different types of markets.
To learn about local, regional, national and international markets.
To understand spot market and future market.
To learn about regulated and unregulated markets.
To understand monopoly and monopolistic competition.
To learn the meaning of consumer protection.
To know the basic rights of consumers.
To understand unfair trade practices and adulteration.
To know the role of consumer courts and consumer protection laws.

Detailed Summary of the Lesson

1. Introduction

Every day we buy and use many goods and services. We buy food items, clothes, books, stationery, household goods, transport services, mobile services and many other things.

When we buy a product or use a service by paying money, we become consumers. Consumers must be protected from cheating, poor quality goods, false information, overpricing and unfair business practices.

2. Meaning of Market

A market is a setup where two or more parties engage in the exchange of goods, services and information.

The two important parties in a market are buyers and sellers. The seller sells goods or services, and the buyer buys them by paying money.

3. Market Is Not Only a Place

A market is not restricted to one physical or geographical location.

A market may be a shop, weekly market, supermarket, online store, stock market or international trade platform. It may be local, national or global.

4. Buyer

A buyer is a person who purchases goods or services by paying money.

Buyers may purchase things for personal use, family use, business use or livelihood.

5. Seller

A seller is a person who sells goods or services to buyers.

Sellers may be shopkeepers, traders, manufacturers, service providers, online sellers or business organisations.

6. Consumer

A consumer is a person who purchases a product or avails a service for a consideration.

The product or service may be used for personal use or to earn livelihood through self-employment.

7. Features of a Market

A market is not restricted to one physical location.
There must be buyers and sellers.
Buyers and sellers must have business relations.
Buyers and sellers must know about market conditions.
There should be awareness about demand, supply and price.
In a perfect market, one price may prevail for the same goods and services.

8. Types of Markets

Markets can be classified in different ways.

On the basis of geographical location.
On the basis of time.
On the basis of nature of transaction.
On the basis of regulation.
On the basis of nature of competition.

9. Local Market

In a local market, buyers and sellers are limited to a local region or area.

Examples include village markets, street markets, town markets, vegetable markets and weekly markets.

10. Regional Market

A regional market covers a wider area than a local market.

It may cover a district, region or cluster of smaller states.

11. National Market

A national market exists when the demand for goods is limited to one specific country.

In some cases, the government may not allow the trade of certain goods outside national boundaries.

12. International Market

An international market exists when the demand for a product is international.

In this type of market, goods are traded internationally in bulk quantities.

13. Very Short Period Market

In a very short period market, the supply of goods is fixed and cannot be changed immediately.

Examples include markets for flowers, vegetables and fruits because these goods are perishable.

14. Short Period Market

In a short period market, supply can be adjusted slightly.

Examples include markets for fish, milk and eggs.

15. Long Period Market

In a long period market, supply can be changed easily by increasing or reducing production.

Producers can adjust production according to demand in the market.

16. Spot Market

A spot market is a market where money is paid immediately.

There is no system of credit in spot market transactions.

17. Future Market

A future market is a market where transactions are credit transactions.

In this market, there is a promise to pay the amount sometime in the future.

18. Regulated Market

In a regulated market, there is oversight by appropriate government authorities.

The stock market is an example of a highly regulated market.

19. Unregulated Market

An unregulated market is an absolutely free market.

In this type of market, there is no government oversight or regulation. Market forces decide everything.

20. Monopoly

Monopoly refers to a market structure in which there is a single producer or seller who has control over the entire market.

This single seller deals in products that have no close substitutes.

21. Monopolistic Competition

Monopolistic competition refers to a market situation in which there are a large number of buyers and sellers of products.

The products may be similar but not exactly the same.

22. Meaning of Consumer Protection

Consumer protection is a group of laws enacted to protect the rights of consumers.

It protects fair trade, competition and accurate information in the marketplace.

23. Need for Consumer Protection

Consumer protection is needed because consumers may face problems from producers and sellers.

These problems may include defective products, adulteration, false advertisements, unfair trade practices, poor quality goods, overpricing and lack of information.

24. Unfair Trade Practice

Unfair trade practice means a trade practice that uses unfair or deceptive methods to promote the sale, use or supply of goods and services.

It is harmful to consumers because it misleads them and affects their right to correct information.

25. Examples of Unfair Trade Practices

False representation of goods and services.
Sale of goods that are not of stated standard, quality or grade.
Selling second-hand or renovated goods as new goods.
Making false claims about usefulness or benefits.
Making false claims about warranty or guarantee.
Misleading price information.
False and misleading advertisements.
Hoarding of goods to raise prices.

26. Adulteration

Adulteration means mixing inferior quality material with superior quality material.

Adulteration is dangerous because it affects the health, safety and money of consumers.

27. Product Information

Consumers must be provided with adequate information about a product.

Correct information helps consumers make proper decisions in the purchase of goods.

28. Information Needed on a Product

Name of the product.
Price of the commodity.
Date of manufacture.
Date of expiry.
Batch number.
Net quantity.
Address of the manufacturer.
Quality mark or standard mark.
Directions for use.

29. Consumer Rights

Consumers have basic rights to protect themselves in the market.

These rights help consumers receive safe goods, correct information, fair choices and justice.

30. Eight Basic Consumer Rights

The Right to Basic Needs
The Right to Safety
The Right to Information
The Right to Choose
The Right to Representation
The Right to Redress
The Right to Consumer Education
The Right to a Healthy Environment

31. Right to Basic Needs

Consumers have the right to basic goods and services needed for survival.

These include food, clothing, shelter, water, health care and education.

32. Right to Safety

Consumers have the right to be protected against goods and services that are dangerous to life and property.

Products must be safe and should not harm consumers.

33. Right to Information

Consumers have the right to get correct information about a product or service.

Information about price, quality, quantity, expiry date, ingredients and manufacturer must be provided.

34. Right to Choose

Consumers have the right to choose from a variety of goods and services.

They should not be forced to buy a particular product.

35. Right to Representation

Consumers have the right to express their complaints, opinions and concerns.

Their voice must be heard by sellers, companies and authorities.

36. Right to Redress

Consumers have the right to get compensation or remedy for defective goods, poor services or unfair trade practices.

Consumer courts help consumers get redress.

37. Right to Consumer Education

Consumers have the right to know their rights and duties.

Consumer education helps people become aware and careful while buying goods and services.

38. Right to a Healthy Environment

Consumers have the right to live and work in a healthy environment.

Goods and services should not harm the environment or public health.

39. Consumer Courts

Consumer courts look into consumer grievances against unfair trade practices and provide necessary compensation.

Consumer courts work at national, state and district levels. This is called a three-tier system.

40. Three-Tier System of Consumer Courts

National Consumer Disputes Redressal Commission.
State Consumer Disputes Redressal Commission.
District Consumer Disputes Redressal Forum / Commission.

41. National Consumer Disputes Redressal Commission

The National Consumer Disputes Redressal Commission works at the national level.

It is the highest body in the hierarchy of consumer courts.

42. State Consumer Disputes Redressal Commission

The State Consumer Disputes Redressal Commission works at the state level.

It deals with consumer disputes at the state level.

43. District Consumer Disputes Redressal Forum / Commission

The District Consumer Disputes Redressal Forum or Commission works at the district level.

It helps consumers file complaints and get justice at the local level.

44. Consumer Protection Councils

Consumer Protection Councils are established at national, state and district levels.

Their main aim is to increase consumer awareness.

45. Important Acts for Consumer Protection

The Consumer Protection Act, 1986
The Legal Metrology Act, 2009
The Bureau of Indian Standards Act, 1986
The Essential Commodities Act, 1955
The Prevention of Black Marketing and Maintenance of Supplies of Essential Commodities Act, 1980

46. Consumer Protection Act

The Consumer Protection Act protects consumers from unfair trade practices.

COPRA is regarded as the “Magna Carta” in the field of consumer protection for checking unfair trade practices.

47. Legal Metrology Act

The Legal Metrology Act deals with weights and measures.

It helps ensure that consumers receive the correct quantity of goods.

48. Bureau of Indian Standards Act

The Bureau of Indian Standards Act is related to quality standards.

It helps maintain the quality and safety of products.

49. Essential Commodities Act

The Essential Commodities Act helps regulate the supply and availability of essential goods.

It helps prevent hoarding, black marketing and artificial price rise of essential commodities.

50. E-Commerce Transaction

E-commerce means buying and selling goods or services through electronic means.

Online shopping, teleshopping, direct selling and multi-level marketing are examples of modern consumer transactions.

51. E-Filing of Complaints

Consumers can file complaints electronically.

Modern consumer protection provisions also allow hearing and examination through video-conferencing.

52. Duties of Consumers

Consumers should also act responsibly while buying goods and services.

Check the price, expiry date and quality mark.
Ask for a bill or receipt.
Read product information carefully.
Avoid buying expired goods.
Do not believe false a

Market and Consumer Protection – Detailed Summary | Samacheer Kalvi 7th Social Science