Consumer awareness and organisations

Role of consumer organisations and NGOs.

Business Studies5 questions

The essentials

Consumer organisations and non-governmental organisations (NGOs) play an important role in protecting and promoting the interests of consumers. They spread awareness, test products, help consumers file complaints and push for better laws. India observes 24 December as National Consumer Day, and 15 March is observed as World Consumer Rights Day.

Key points

  • Functions of consumer organisations: educating the public about consumer rights through training programmes, seminars and workshops; publishing periodicals and other material about consumer problems and legal remedies; testing products in laboratories and publishing comparative results; encouraging consumers to protest and act against exploitation; providing legal assistance to consumers seeking redressal; filing complaints in consumer commissions on behalf of consumers; and taking the initiative to file cases in the general interest of consumers.
  • Examples in India: Consumer Coordination Council (New Delhi), Common Cause (New Delhi), Voluntary Organisation in Interest of Consumer Education, known as VOICE (New Delhi), Consumer Guidance Society of India (Mumbai) and Consumer Education and Research Centre, known as CERC (Ahmedabad).
  • A registered voluntary consumer association can file a complaint on behalf of consumers.
  • Consumer awareness also depends on consumers themselves: reading labels, keeping bills and reporting unfair practices.

Exam tips

  • Product testing and publishing comparative results helps consumers make informed choices.
  • Filing cases in the general interest of consumers is often called public interest action.

Common mistakes

  • Thinking consumer organisations can punish sellers themselves. They help consumers approach the commissions, which pass orders.
  • Confusing consumer organisations with government regulators such as the CCPA.

Practice questions

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