Economics: Consumer Awareness: Meanings, Need and Redressal Mechanism (For CBSE, ICSE, IAS, NET, NRA 2022)

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  • Consumer: A consumer is a person who buys goods and services for self-consumption.
  • Goods: Goods are those products which are manufactured or produced and sold to consumers through wholesalers and retailers.
  • Services: A service is a transaction in which no physical goods are transferred from the seller to the buyer.

Consumer Awareness

Consumer Awareness is an act of making sure the buyer or consumer is aware of the information about products, goods, services and consumers rights. Consumer awareness is important so that buyer can take the right decision and make the right choice.


  • To achieve maximum satisfaction by spending income on different goods appropriately.
  • The consumer awareness help the consumers to be aware of protection against exploitation by sellers and producers.
  • Control over consumption of harmful goods.
  • Motivation for saving.
  • Knowledge regarding solution of problems.
  • To know the importance of consumers association.

Consumer Redressal System in India

  • Consumer redressal system is a system under which the consumers can file a complaint in a consumer court and demand justice when they are cheated by the sellers or manufacturers of the commodity or service they buy. The purpose is to help the people understand their rights and responsibilities as consumers and to redress their grievances.
  • Different institutions which deal with grievances of the affected consumers are as follows:
Consumer Redressal System in India

Government Legislations

There are several government legislation in our country to protect the right of the consumers but Consumer Protect Act (CPA) is the most important as it gives a consumer all the support and guidance against violation of your rights. There are other legislations also aimed at providing consumer protect like Prevention of Food Adulteration Act (PFA) 1954, The Essential Commodities Act 1955 (ECA) and The Standard of Weights and Measures Act (SWMA) 1975.

Institutions to Deal with Consumer՚s Grievances

The citizens of India have an institutional machinery, to deal with consumers՚ grievances, working at all the levels: national, state and district. There are two types of institutions which are as follows:

Government Councils

Government Councils

Consumer Courts

Consumer Courts

Redressal Mechanism

A consumer who feels cheated can get justice or relief in the form of compensations by approaching any consumer court by filing a written complaint on his/her own or through a lawyer depending on the value of the commodity. According to CPA the relief should be given within 90 - 150 days. If a consumer is not satisfied by the decision of any court can challenge the same before the higher authority.

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