All Exams Test series for 1 year @ ₹349 only
Question

Which of the following statements is not correct relating to consumerism ?

The correct answer is

The government does not have any role in consumer protection as it is the part of business organisations alone.

Understanding consumerism involves looking at it from different angles, including the role of businesses, consumers, and the government. The question asks us to identify the statement that is not correct regarding consumerism.

Analyzing Statements on Consumerism

Let's examine each statement provided in the options:

  • Statement 1: Consumerism is a manifestation of the failure of the business to guarantee and ensure consumer legitimate rights.
    This statement suggests that consumerism arises when businesses fail to protect consumer rights. This is widely accepted. When consumers feel their rights (like safety, information, choice, voice) are not being met by businesses, consumer movements and advocacy often emerge. So, this statement is generally considered correct.
  • Statement 2: The government does not have any role in consumer protection as it is the part of business organisations alone.
    This statement claims the government has no role in consumer protection and it's solely the responsibility of businesses. This is factually incorrect. Governments around the world play a crucial role in consumer protection by enacting laws, setting standards, establishing regulatory bodies (like consumer protection agencies), and providing avenues for consumer redressal. While businesses have responsibilities, government involvement is essential for effective consumer protection. Therefore, this statement is not correct.
  • Statement 3: The consumers should accept consumerism as a means of asserting and enjoying their rights.
    Consumerism empowers consumers to demand better products, services, and ethical practices from businesses. It encourages consumers to be aware of their rights and actively assert them. Therefore, consumers embracing consumerism to protect and enjoy their rights is a correct perspective.
  • Statement 4: Consumerism evolution is not a set-back for marketing but rather points to the next stage in the evolution of enlightened marketing.
    This view sees consumerism as a force that pushes businesses towards more responsible and consumer-oriented marketing practices. Enlightened marketing focuses on long-term consumer welfare and societal well-being, which aligns with the goals of consumerism. Instead of hindering marketing, consumerism can drive innovation and ethical behavior, leading to a more sustainable marketing approach. So, this statement is also considered correct by many.

Identifying the Incorrect Statement on Consumerism

Based on the analysis, Statement 2 is the one that is not correct. Governments absolutely have a significant role in consumer protection, working alongside businesses and consumer organizations.

Consumer protection is typically a shared responsibility involving:

  • Government: Enacting laws, regulations, and enforcing standards (e.g., product safety laws, advertising standards, fair trade practices).
  • Businesses: Adhering to laws, ethical practices, ensuring quality, and handling customer grievances responsibly.
  • Consumers: Being informed, vigilant, and asserting their rights.
  • Consumer Organizations: Advocating for consumer rights, providing information, and assisting consumers.

The statement that the government has no role in this process is fundamentally wrong.

Therefore, the statement that is not correct relating to consumerism is the one that denies the government's role in consumer protection.

Conclusion

The incorrect statement among the options is the one claiming the government has no role in consumer protection.

Statement Analysis Correct/Incorrect regarding Consumerism?
Consumerism is a manifestation of business failure... Consumerism often arises from perceived business failures in protecting rights. Correct
Government does not have any role... solely business responsibility... Governments have significant roles in consumer protection through laws and agencies. Not Correct
Consumers should accept consumerism... for asserting rights. Consumerism empowers consumers to assert their rights. Correct
Consumerism... points to... enlightened marketing. Consumerism can drive businesses towards more responsible marketing. Correct

Revision Table: Key Aspects of Consumerism and Consumer Protection

Here’s a quick summary of important points related to consumerism and the roles involved:

  • Consumerism: A social movement strengthening the rights and power of buyers in relation to sellers.
  • Purpose: To protect consumers from unfair, unethical, or unsafe business practices.
  • Key Consumer Rights: Right to safety, right to be informed, right to choose, right to be heard, right to redressal, right to consumer education.
  • Role of Business: Produce safe products, provide accurate information, handle complaints, practice ethical marketing.
  • Role of Government: Create and enforce laws (e.g., Consumer Protection Act), regulate industries, establish consumer protection agencies, facilitate dispute resolution.
  • Role of Consumers: Be informed, make careful choices, speak up against malpractices, seek redressal.

Additional Information: Government's Role in Consumer Protection

Government intervention in consumer protection is crucial because individual consumers often lack the power, information, or resources to protect themselves against large businesses. Governments establish frameworks to ensure fair play in the marketplace. Examples include:

  • Setting safety standards for products (e.g., food, pharmaceuticals, automobiles).
  • Regulating advertising and marketing to prevent misleading claims.
  • Establishing mechanisms for consumer complaints and redressal, such as consumer courts or forums.
  • Controlling monopolies and unfair trade practices that limit consumer choice or increase prices unfairly.
  • Mandating clear labeling and information disclosure for products and services.

These governmental actions complement the ethical responsibilities of businesses and the self-protective efforts of consumers, forming a comprehensive consumer protection system. Therefore, stating that the government has no role is fundamentally wrong.

Was this answer helpful?

Important Questions from Legal Environment

  1. A sudden shift from import tariffs to free trade may induce short term unemployment in
  2. Given below are two statements, one labelled as Assertion (A) and the other labeled as Reason (R). Read the statements and choose the correct answer using the code given below.

    Assertion (A): Consumers need to be given legal protection against certain trade practices and business methods.

    Reason (R): Protection as per market forces and 'Caveat Emptor' is not enough as perfectly competitive market is an economist's dream and consumer sovereignty is a myth.

  3. According to FEMA, foreign exchange does NOT include

    1. Deposits payable in any foreign currency

    2. Bills of exchange drawn in Indian currency but payable in any foreign currency

    3. Traveller's cheques drawn by institutions outside India but payable in Indian currency

    4. Drafts drawn by banks outside India and payable in foreign currency 

  4. Which of the following laws does not affect business organizations?

  5. Which of the following sections of Companies Act, 2013 facilitates amalgamation, absorption and reconstruction of companies?

    1. 319

    2. 320

    3. 410

    4. 502

Need Expert Advice?

Start Your Preparation with Prepp Mobile App

Download the app from Google Play & App Store
Download the app from Google Play & App Store
Prepp Mobile App